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It is generally believed that linking extrinsic reward to performance leads to better performance, however Dan Pink (2010) points out that there is empirical evidence

It is generally believed that linking extrinsic reward to performance leads to better performance, however Dan Pink (2010) points out that there is empirical evidence

that this may not be true under certain circumstances. Select the statements that are consistent with Dan Pink's (2010) views on this matter.

Multiple answers are possible.

  1. An agent always behaves in accordance with their rational self-interest, which is to maximise their remuneration, therefore extrinsic reward always leads to better performance.
  2. The effectiveness of extrinsic reward diminishes when pay is high and the work requires a higher level of expertise, creativity, and judgement.
  3. When an employer wants employee engagement rather than mere compliance, they should ensure that extrinsic pay is above a reasonable amount and then motivate workers with autonomy, mastery, and purpose.
  4. When pay is low and the work is rudimentary, intrinsic reward is more likely to lead to better performance, than extrinsic reward.

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