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Traditionally, extrinsic motivation has been used to motivate employees:

  • Tangible rewards such as payments, promotions (or punishments).
  • Intangible rewards such as praise or public commendation.

Within economies transitioning from assembly lines to service industries, the importance of intrinsic motivation rises:

  • The further jobs move away from pure assembly lines, the harder it becomes to measure individual productivity. This effect is most pronounced for knowledge workers and amplified in teamwork. A lack of objective or universally accepted criteria for measuring individual productivity may make individual rewards arbitrary.


Telic and Paratelic motivational modes[]

Psychologist Michael Apter's studies of motivation led him to describe what he called the "telic" (from Greek telos or "goal") and "paratelic" motivational modes, or states. In the telic state, a person is motivated primarily by a particular goal or objective--such as earning payment for work done. In the paratelic mode, a person is motivated primarily by the activity itself--intrinsic motivation.

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