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  2. Rethinking Motivation: The Power of Intrinsic Rewards

Rethinking Motivation: The Power of Intrinsic Rewards

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The Confession and Journey Towards a New Perspective on Motivation

In a humorous confession, the speaker, who once pursued a law degree, transitions into an unexpected area: the science of motivation. Drawing on their legal background, they aim to present a compelling case against traditional business practices, especially the use of extrinsic rewards to motivate employees.

Unraveling the Candle Problem

The candle problem, a classic experiment by psychologist Karl Duncker, illustrates the limitations of functional fixedness and sets the stage for a broader discussion on creativity and problem-solving. This problem reveals how conventional solutions often fail to encourage innovative thinking.

The Surprising Effect of Incentives

An experiment by Sam Glucksberg using the candle problem demonstrates that incentives can sometimes impair performance rather than enhance it. Contrary to the expected outcome, participants promised monetary rewards for quick problem-solving took longer than those who weren't incentivized. This counterintuitive result challenges the traditional belief that higher rewards lead to better performance.

Repeated Findings and the Implications for Business

The speaker highlights that this phenomenon isn’t an isolated incident. Numerous studies over decades show that while extrinsic motivators like bonuses and rewards can work for simple, rule-based tasks, they often fail or even harm performance for tasks requiring creative, complex problem-solving.

The Mismatch Between Science and Business Practices

Despite robust scientific evidence, many businesses continue to rely heavily on extrinsic rewards. This reliance is particularly troubling in light of the evolving nature of work, which increasingly demands creative and complex problem-solving skills.

The Role of Autonomy, Mastery, and Purpose

The solution, according to the speaker, lies in fostering intrinsic motivation through autonomy, mastery, and purpose. These elements, they argue, are the cornerstones of a new operating system for businesses in the 21st century.

Autonomy in Action

The speaker provides compelling examples of companies like Atlassian and Google that have successfully implemented practices that grant employees significant autonomy. These examples demonstrate how autonomy not only boosts creativity and satisfaction but also leads to tangible outcomes like the development of new products.

The Proof Is in the Pudding: Wikipedia vs. Encarta

The competition between the for-profit Encarta and the volunteer-driven Wikipedia serves as a powerful case study. Wikipedia’s success over Encarta highlights the superiority of intrinsic motivation over traditional extrinsic rewards.

Conclusion: A Call for Change

The speaker concludes by urging businesses to align their practices with what science shows about motivation. By moving beyond the outdated carrot-and-stick approach and embracing autonomy, mastery, and purpose, businesses can solve more complex problems, enhance productivity, and potentially change the world.

The case for rethinking how we motivate in the workplace is strong, resting on decades of scientific research and compelling real-world examples. By focusing on intrinsic rather than extrinsic rewards, we can unlock a higher level of creativity, satisfaction, and performance in our businesses and our lives.

Watch the original video here.

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