Final answer:
Cognitive Evaluation Theory posits that providing incentive pay decreases intrinsic motivation, especially when such rewards are expected. Efficiency Wage Theory suggests that higher pay motivates employees, but this is due to competitive wages rather than incentives. The correct option is d.
Step-by-step explanation:
According to Cognitive Evaluation Theory, providing incentive pay decreases employees' overall levels of intrinsic motivation. The theory suggests that when employees expect tangible rewards such as monetary incentives, their intrinsic motivation for the task tends to be reduced.
Furthermore, the Efficiency Wage Theory contends that employers find it beneficial to pay more than the market rate because it encourages employees to work harder and stay with the employer, due to the recognition that losing their job would mean a decline in salary.
Intrinsic motivation can be affected negatively by tangible rewards like money when they are expected, as opposed to intangible rewards like praise.
In contrast, the Efficiency Wage Theory emphasizes that higher pay can also motivate employees to be more productive, but this is from a perspective of maintaining a competitive wage rather than direct incentive pay. The correct option is d.