Question

Which of the following is suggested by cognitive evaluation theory?

a. It would make sense to make an individual's pay non-contingent on performance.
b. Employees are motivated by a hierarchy of needs.
c. Extrinsic rewards increase intrinsic rewards.
d. Needs are divided into higher-order and lower-order categories.
e. It would make sense to make an individual's pay contingent on performance.

Answer 1

According to Cognitive Evaluation Theory, it is suggested that making an individual's pay non-contingent on performance makes sense because expecting extrinsic rewards can decrease intrinsic motivation.

Step-by-step explanation:

Cognitive Evaluation Theory suggests that intrinsic motivation can be affected negatively by extrinsic rewards. Specifically, it suggests that intrinsic motivation for a task tends to be reduced if an individual expects to receive an extrinsic reward, like money. Therefore, the answer to the question is (a) It would make sense to make an individual's pay non-contingent on performance. This theory highlights how intrinsic enjoyment of an activity can diminish when external rewards are introduced, a phenomenon known as the overjustification effect. In contrast, efficiency wage theory posits that better pay can lead to increased productivity because employees are motivated to maintain their higher wage.