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date: 16 July 2020

Abstract and Keywords

The predominant theories of motivation at work in management practice consider compensation as an important factor of motivation towards effort and performance. A number of theories in psychology and economics converge to support this general hypothesis, to the point at which they form a paradigm: that of work motivation through incentives. Another stream of research, consisting of the theories of intrinsic motivation, has long contradicted the former theoretical position. The latest developments in intrinsic motivation research, along with the contributions of self-determination theory, make it possible to take a new look at the question of the motivational power of compensation. This essay aims to show that self-determination theory offers a promising theoretical perspective for understanding the relationships between compensation and motivation. The essay concludes with a set of theoretical propositions drawing together research in psychology, economics, and management.

Keywords: motivation, effort, incentive, rewards, bonuses

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