Extrinsic rewards diminish intrinsic rewards. When people are motivated to seek an extrinsic reward, whether bonus, award, or supervisor approval, they generally focus on the reward rather than on the work they do to achieve it. Thus, the intrinsic satisfaction people receive from performing their jobs declines. When people lack intrinsic rewards in their work, their performance stays at an adequate level to achieve the reward offered. In the worst case, employees may cover up mistakes or cheat to achieve the reward. One study found that teachers who were rewarded for increasing test scores frequently used various forms of cheating.

LO.1