The Overjustification Effect refers to a phenomenon where offering external rewards for intrinsically motivated activities leads to a decrease in intrinsic motivation over time. It highlights the challenges of relying heavily on incentives, as it may undermine individuals’ genuine interest in performing tasks. Examples include rewarding students for academic achievements and offering bonuses for previously enjoyable tasks.
The overjustification effect is a psychological phenomenon characterized by the provision of external rewards for activities that individuals are already intrinsically motivated to perform.
When external incentives are introduced, it can lead to a decrease in intrinsic motivation, causing individuals to become more dependent on rewards.
Here are the key characteristics of the overjustification effect:
External Reward: The overjustification effect occurs when external rewards, such as money, prizes, or recognition, are offered to individuals for activities they would naturally engage in due to intrinsic motivation or personal interest.
Decrease in Intrinsic Motivation: As external rewards are introduced, individuals may experience a reduction in their natural interest and enjoyment of the activity. The act of receiving rewards can overshadow the intrinsic satisfaction derived from the activity itself.
Dependency on Rewards: Over time, individuals may come to rely on external incentives to motivate their continued participation in an activity, diminishing their intrinsic motivation and personal interest.
Use Cases of the Overjustification Effect
The overjustification effect is observed in various contexts where external rewards are introduced for activities previously driven by intrinsic motivation.
Here are some use cases that illustrate its effects:
Education: In education, rewarding students with extrinsic incentives for academic achievements or reading can unintentionally decrease their intrinsic motivation to learn and explore subjects.
Workplace: In the workplace, offering bonuses or monetary rewards for tasks that were previously intrinsically rewarding can lead employees to focus more on the rewards than the enjoyment of the work itself.
Hobbies: Providing monetary rewards for hobbies or creative pursuits, such as art or writing, may potentially reduce individuals’ enjoyment and passion for these activities.
Benefits of the Overjustification Effect
While the overjustification effect is generally associated with negative consequences, there are some potential benefits to consider:
Short-Term Performance: Extrinsic rewards can boost short-term performance by providing immediate incentives to engage in a specific activity or task.
Achievement Recognition: External rewards can serve as a means of acknowledging accomplishments and contributions, reinforcing positive behavior.
Behavioral Change: In some cases, external incentives can be used to induce desired behaviors or actions, particularly when individuals may not have a natural inclination to perform them.
Challenges Posed by the Overjustification Effect
However, the overjustification effect primarily poses challenges and potential downsides:
Long-Term Motivation: Over time, the overjustification effect may lead to a decrease in intrinsic motivation, potentially resulting in individuals losing interest in activities they once found enjoyable.
Dependency: Individuals may become increasingly reliant on external rewards to motivate their behavior, which can erode their sense of autonomy and personal agency.
Undermining Interest: The overjustification effect can lead to a loss of passion and interest in activities due to the emphasis on rewards rather than the inherent enjoyment of the activity itself.
Examples of the Overjustification Effect:
Academic Rewards:
In educational settings, students are often rewarded with prizes, stickers, or other incentives for achieving high grades or reading a certain number of books. Over time, some students may become less intrinsically motivated to learn or read for the sheer joy of it, as their focus shifts towards earning rewards.
Workplace Bonuses:
In some workplaces, employees are given performance-based bonuses or cash rewards for completing tasks that were initially enjoyable or aligned with their interests. Overjustification can occur when employees start to view their work as a means to earn bonuses rather than finding genuine satisfaction in their tasks.
Hobbies and Interests:
Imagine an individual who has a passion for painting as a creative outlet. If they begin to receive payments for their artwork, their intrinsic motivation may decrease as the external rewards become the primary focus, potentially reducing their enjoyment of painting.
Volunteer Activities:
Some volunteers engage in altruistic activities to make a positive impact on their communities or causes they care about. When organizations start offering financial rewards for volunteering, volunteers may become more extrinsically motivated, potentially diminishing their intrinsic desire to contribute.
Fitness and Exercise:
Individuals who once exercised for the pleasure of staying fit or the enjoyment of physical activity may experience a shift in motivation if they start receiving external rewards for working out, such as cash incentives or prizes. This shift can result in a decreased interest in exercise for its own sake.
Creative Pursuits:
In the realm of creative arts, such as writing or music composition, artists who receive monetary rewards or contracts may find their original passion waning. The focus on external gains can sometimes overshadow the joy of creating and self-expression.
Key Highlights of the Overjustification Effect:
External Reward Impact: The overjustification effect occurs when external rewards or incentives are introduced for activities that individuals were initially intrinsically motivated to perform.
Decreased Intrinsic Motivation: Over time, the presence of external rewards can lead to a reduction in individuals’ intrinsic motivation, which is their innate desire to engage in an activity for the sheer pleasure or interest it provides.
Dependency on Rewards: This phenomenon highlights the risk of individuals relying heavily on external incentives, which can displace intrinsic satisfaction and autonomy in performing tasks.
Short-Term vs. Long-Term: While external rewards may boost short-term performance, they can undermine long-term intrinsic motivation, potentially leading to a decreased passion for the activity.
Balancing Extrinsic and Intrinsic Motivation: It is important to strike a balance between extrinsic and intrinsic motivation to maintain individuals’ genuine interest and engagement in tasks, especially in educational, workplace, and creative contexts.
Framework
Description
When to Apply
Self-Determination Theory
– Self-Determination Theory: Self-determination theory is a motivational framework that proposes individuals are driven by three innate psychological needs: autonomy, competence, and relatedness. According to this theory, individuals are more intrinsically motivated when they feel a sense of autonomy (control over their actions), competence (ability to achieve desired outcomes), and relatedness (connection to others). Extrinsic rewards or incentives can undermine intrinsic motivation when they are perceived as controlling or manipulative, leading to the overjustification effect. Recognizing the importance of intrinsic motivation and satisfying individuals’ psychological needs can promote engagement, well-being, and optimal performance in various domains.
– Fostering intrinsic motivation and psychological well-being by supporting individuals’ autonomy, competence, and relatedness needs, thus promoting engagement and optimal performance in educational, work, or personal contexts where intrinsic motivation is essential for sustained effort and fulfillment.
Cognitive Evaluation Theory
– Cognitive Evaluation Theory: Cognitive evaluation theory is a sub-theory of self-determination theory that focuses on the impact of extrinsic rewards on intrinsic motivation. According to this theory, external rewards can have different effects on intrinsic motivation depending on their perceived locus of causality and the degree of autonomy they afford. Rewards that are perceived as controlling or undermining individuals’ sense of autonomy can decrease intrinsic motivation, whereas rewards that support individuals’ sense of autonomy can enhance intrinsic motivation. Cognitive evaluation theory highlights the importance of autonomy-supportive environments and intrinsic interest in maintaining and enhancing intrinsic motivation.
– Creating autonomy-supportive environments by providing choice, feedback, and opportunities for self-direction, thus enhancing intrinsic motivation and engagement in educational, work, or organizational settings where autonomy is valued for promoting creativity and initiative.
Intrinsic Motivation
– Intrinsic Motivation: Intrinsic motivation refers to the inherent desire to engage in an activity for its own sake, driven by internal rewards such as enjoyment, curiosity, or personal satisfaction. Intrinsic motivation arises from individuals’ inherent interest or enjoyment in an activity and is associated with greater persistence, creativity, and well-being. Extrinsic rewards or incentives can sometimes undermine intrinsic motivation by shifting individuals’ focus from the inherent enjoyment or satisfaction of the activity to external contingencies or outcomes. Recognizing and fostering intrinsic motivation is essential for promoting engagement, creativity, and fulfillment in various domains, including education, work, and personal pursuits.
– Fostering engagement and creativity by supporting individuals’ intrinsic motivation through meaningful tasks, autonomy, and opportunities for mastery, thus promoting well-being and achievement in educational, work, or personal contexts where intrinsic motivation is essential for sustained effort and satisfaction.
Motivation Crowding Theory
– Motivation Crowding Theory: Motivation crowding theory suggests that the provision of external rewards or incentives can have unintended consequences for individuals’ intrinsic motivation, depending on the nature and context of the incentives. External rewards that are perceived as controlling or undermining individuals’ sense of autonomy can crowd out intrinsic motivation, leading to the overjustification effect. Conversely, rewards that are perceived as informational or supportive of individuals’ autonomy can enhance intrinsic motivation and performance. Motivation crowding theory highlights the complex interplay between extrinsic and intrinsic motivation and underscores the importance of considering motivational factors when designing incentive systems or interventions.
– Designing incentive systems or interventions that support individuals’ autonomy and intrinsic motivation, thus minimizing the risk of the overjustification effect and promoting sustained engagement and performance in educational, work, or organizational settings where motivation crowding can influence individuals’ behavior and attitudes.
Intrinsic-Extrinsic Motivation Continuum
– Intrinsic-Extrinsic Motivation Continuum: The intrinsic-extrinsic motivation continuum represents the spectrum of motivation ranging from intrinsic motivation (engagement in an activity for its inherent enjoyment or satisfaction) to extrinsic motivation (engagement in an activity for external rewards or outcomes). According to this continuum, individuals’ motivation can vary in terms of the extent to which it is driven by internal or external factors. Extrinsic rewards can sometimes undermine intrinsic motivation by shifting individuals’ focus from the inherent enjoyment of the activity to external contingencies. Recognizing and balancing intrinsic and extrinsic motivators is essential for promoting sustained engagement and well-being in various contexts, including education, work, and personal development.
– Balancing intrinsic and extrinsic motivators to promote sustained engagement and well-being, by recognizing individuals’ diverse motivational needs and providing opportunities for autonomy, mastery, and purpose, thus fostering a sense of fulfillment and achievement in educational, work, or personal contexts where motivation is essential for success and satisfaction.
Overjustification Hypothesis
– Overjustification Hypothesis: The overjustification hypothesis posits that the provision of extrinsic rewards for engaging in an intrinsically motivating activity can reduce individuals’ intrinsic motivation for that activity. According to this hypothesis, extrinsic rewards can undermine individuals’ intrinsic interest or enjoyment in an activity by signaling that the activity is externally controlled or contingent on external incentives. The overjustification effect occurs when individuals come to view the activity as less intrinsically rewarding due to the presence of extrinsic rewards. Recognizing the overjustification effect is essential for designing incentive systems or interventions that support individuals’ intrinsic motivation and autonomy while achieving desired outcomes.
– Designing incentive systems or interventions that support individuals’ intrinsic motivation and autonomy, thus minimizing the risk of the overjustification effect and promoting sustained engagement and satisfaction in educational, work, or organizational settings where motivation crowding can influence individuals’ behavior and attitudes.
Behavioral Economics
– Behavioral Economics: Behavioral economics is a field of study that integrates insights from psychology, economics, and decision science to understand and predict individuals’ behavior and decision-making processes. Behavioral economists recognize that individuals’ choices are influenced by cognitive biases, heuristics, and social factors, leading to deviations from rational decision-making models. The overjustification effect is one example of how external incentives can affect individuals’ intrinsic motivation and behavior, highlighting the importance of considering psychological factors in economic and policy interventions. Behavioral economics provides a framework for designing interventions that nudge individuals toward desired behaviors or outcomes while accounting for cognitive biases and motivational factors.
– Designing interventions that nudge individuals toward desired behaviors or outcomes while accounting for cognitive biases and motivational factors, thus promoting sustained engagement and well-being in educational, work, or organizational settings where individuals’ behavior and decisions are influenced by psychological factors.
Incentive Theory
– Incentive Theory: Incentive theory posits that individuals are motivated to engage in behaviors or pursue goals that are associated with rewards or positive outcomes. According to this theory, external incentives can influence individuals’ behavior by providing a basis for goal setting, reinforcement, or satisfaction of needs. However, the effectiveness of incentives depends on their perceived value, relevance, and congruence with individuals’ intrinsic motivations. In some cases, extrinsic rewards can undermine individuals’ intrinsic motivation by reducing their perceived autonomy or interest in the activity. Recognizing the role of incentives in shaping behavior is essential for designing effective motivation strategies and incentive systems that align with individuals’ motivational needs and promote desired outcomes.
– Designing effective motivation strategies and incentive systems that align with individuals’ motivational needs and promote desired outcomes, thus leveraging incentives to support engagement and performance in educational, work, or organizational settings where motivation is essential for goal achievement and satisfaction.
Reward Psychology
– Reward Psychology: Reward psychology examines the psychological processes underlying individuals’ responses to rewards and incentives. Rewards can elicit positive emotions, reinforce behaviors, and influence individuals’ motivation and decision-making. However, the effects of rewards on behavior can vary depending on factors such as the type, timing, and perceived value of the reward. External rewards can sometimes undermine intrinsic motivation by shifting individuals’ focus from the inherent enjoyment or satisfaction of the activity to external contingencies. Reward psychology provides insights into the complexities of reward-based motivation and the potential pitfalls of using extrinsic incentives to motivate behavior. Recognizing these dynamics is essential for designing reward systems and interventions that effectively promote desired behaviors and outcomes while supporting individuals’ intrinsic motivation and well-being.
– Designing reward systems and interventions that effectively promote desired behaviors and outcomes while supporting individuals’ intrinsic motivation and well-being, thus leveraging rewards to foster engagement and achievement in educational, work, or organizational settings where motivation is essential for performance and satisfaction.
Goal-Setting Theory
– Goal-Setting Theory: Goal-setting theory posits that individuals are motivated to achieve specific, challenging goals that are perceived as meaningful and attainable. Setting clear goals provides individuals with direction, focus, and a sense of purpose, driving motivation and effort toward goal attainment. However, the effectiveness of goal setting depends on factors such as goal specificity, feedback, and commitment. Extrinsic rewards can complement goal setting by providing incentives for goal achievement, but they must be aligned with individuals’ intrinsic motivations and goal pursuits to avoid undermining intrinsic motivation. Goal-setting theory provides a framework for designing effective motivation strategies and interventions that support goal pursuit and achievement while maintaining individuals’ intrinsic motivation and well-being.
– Designing effective motivation strategies and interventions that support goal pursuit and achievement while maintaining individuals’ intrinsic motivation and well-being, thus leveraging goal setting to promote engagement and performance in educational, work, or organizational settings where motivation is essential for goal achievement and satisfaction.
Convergent thinking occurs when the solution to a problem can be found by applying established rules and logical reasoning. Whereas divergent thinking is an unstructured problem-solving method where participants are encouraged to develop many innovative ideas or solutions to a given problem. Where convergent thinking might work for larger, mature organizations where divergent thinking is more suited for startups and innovative companies.
The concept of cognitive biases was introduced and popularized by the work of Amos Tversky and Daniel Kahneman in 1972. Biases are seen as systematic errors and flaws that make humans deviate from the standards of rationality, thus making us inept at making good decisions under uncertainty.
Second-order thinking is a means of assessing the implications of our decisions by considering future consequences. Second-order thinking is a mental model that considers all future possibilities. It encourages individuals to think outside of the box so that they can prepare for every and eventuality. It also discourages the tendency for individuals to default to the most obvious choice.
Lateral thinking is a business strategy that involves approaching a problem from a different direction. The strategy attempts to remove traditionally formulaic and routine approaches to problem-solving by advocating creative thinking, therefore finding unconventional ways to solve a known problem. This sort of non-linear approach to problem-solving, can at times, create a big impact.
Bounded rationality is a concept attributed to Herbert Simon, an economist and political scientist interested in decision-making and how we make decisions in the real world. In fact, he believed that rather than optimizing (which was the mainstream view in the past decades) humans follow what he called satisficing.
The Dunning-Kruger effect describes a cognitive bias where people with low ability in a task overestimate their ability to perform that task well. Consumers or businesses that do not possess the requisite knowledge make bad decisions. What’s more, knowledge gaps prevent the person or business from seeing their mistakes.
Occam’s Razor states that one should not increase (beyond reason) the number of entities required to explain anything. All things being equal, the simplest solution is often the best one. The principle is attributed to 14th-century English theologian William of Ockham.
The Lindy Effect is a theory about the ageing of non-perishable things, like technology or ideas. Popularized by author Nicholas Nassim Taleb, the Lindy Effect states that non-perishable things like technology age – linearly – in reverse. Therefore, the older an idea or a technology, the same will be its life expectancy.
Antifragility was first coined as a term by author, and options trader Nassim Nicholas Taleb. Antifragility is a characteristic of systems that thrive as a result of stressors, volatility, and randomness. Therefore, Antifragile is the opposite of fragile. Where a fragile thing breaks up to volatility; a robust thing resists volatility. An antifragile thing gets stronger from volatility (provided the level of stressors and randomness doesn’t pass a certain threshold).
Systems thinking is a holistic means of investigating the factors and interactions that could contribute to a potential outcome. It is about thinking non-linearly, and understanding the second-order consequences of actions and input into the system.
Vertical thinking, on the other hand, is a problem-solving approach that favors a selective, analytical, structured, and sequential mindset. The focus of vertical thinking is to arrive at a reasoned, defined solution.
Maslow’s Hammer, otherwise known as the law of the instrument or the Einstellung effect, is a cognitive bias causing an over-reliance on a familiar tool. This can be expressed as the tendency to overuse a known tool (perhaps a hammer) to solve issues that might require a different tool. This problem is persistent in the business world where perhaps known tools or frameworks might be used in the wrong context (like business plans used as planning tools instead of only investors’ pitches).
The Peter Principle was first described by Canadian sociologist Lawrence J. Peter in his 1969 book The Peter Principle. The Peter Principle states that people are continually promoted within an organization until they reach their level of incompetence.
The straw man fallacy describes an argument that misrepresents an opponent’s stance to make rebuttal more convenient. The straw man fallacy is a type of informal logical fallacy, defined as a flaw in the structure of an argument that renders it invalid.
The Streisand Effect is a paradoxical phenomenon where the act of suppressing information to reduce visibility causes it to become more visible. In 2003, Streisand attempted to suppress aerial photographs of her Californian home by suing photographer Kenneth Adelman for an invasion of privacy. Adelman, who Streisand assumed was paparazzi, was instead taking photographs to document and study coastal erosion. In her quest for more privacy, Streisand’s efforts had the opposite effect.
As highlighted by German psychologist Gerd Gigerenzer in the paper “Heuristic Decision Making,” the term heuristic is of Greek origin, meaning “serving to find out or discover.” More precisely, a heuristic is a fast and accurate way to make decisions in the real world, which is driven by uncertainty.
The recognition heuristic is a psychological model of judgment and decision making. It is part of a suite of simple and economical heuristics proposed by psychologists Daniel Goldstein and Gerd Gigerenzer. The recognition heuristic argues that inferences are made about an object based on whether it is recognized or not.
The representativeness heuristic was first described by psychologists Daniel Kahneman and Amos Tversky. The representativeness heuristic judges the probability of an event according to the degree to which that event resembles a broader class. When queried, most will choose the first option because the description of John matches the stereotype we may hold for an archaeologist.
The take-the-best heuristic is a decision-making shortcut that helps an individual choose between several alternatives. The take-the-best (TTB) heuristic decides between two or more alternatives based on a single good attribute, otherwise known as a cue. In the process, less desirable attributes are ignored.
The bundling bias is a cognitive bias in e-commerce where a consumer tends not to use all of the products bought as a group, or bundle. Bundling occurs when individual products or services are sold together as a bundle. Common examples are tickets and experiences. The bundling bias dictates that consumers are less likely to use each item in the bundle. This means that the value of the bundle and indeed the value of each item in the bundle is decreased.
The Barnum Effect is a cognitive bias where individuals believe that generic information – which applies to most people – is specifically tailored for themselves.
First-principles thinking – sometimes called reasoning from first principles – is used to reverse-engineer complex problems and encourage creativity. It involves breaking down problems into basic elements and reassembling them from the ground up. Elon Musk is among the strongest proponents of this way of thinking.
The ladder of inference is a conscious or subconscious thinking process where an individual moves from a fact to a decision or action. The ladder of inference was created by academic Chris Argyris to illustrate how people form and then use mental models to make decisions.
Goodhart’s Law is named after British monetary policy theorist and economist Charles Goodhart. Speaking at a conference in Sydney in 1975, Goodhart said that “any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes.” Goodhart’s Law states that when a measure becomes a target, it ceases to be a good measure.
The Six Thinking Hats model was created by psychologist Edward de Bono in 1986, who noted that personality type was a key driver of how people approached problem-solving. For example, optimists view situations differently from pessimists. Analytical individuals may generate ideas that a more emotional person would not, and vice versa.
The Mandela effect is a phenomenon where a large group of people remembers an event differently from how it occurred. The Mandela effect was first described in relation to Fiona Broome, who believed that former South African President Nelson Mandela died in prison during the 1980s. While Mandela was released from prison in 1990 and died 23 years later, Broome remembered news coverage of his death in prison and even a speech from his widow. Of course, neither event occurred in reality. But Broome was later to discover that she was not the only one with the same recollection of events.
The bandwagon effect tells us that the more a belief or idea has been adopted by more people within a group, the more the individual adoption of that idea might increase within the same group. This is the psychological effect that leads to herd mentality. What in marketing can be associated with social proof.
Moore’s law states that the number of transistors on a microchip doubles approximately every two years. This observation was made by Intel co-founder Gordon Moore in 1965 and it become a guiding principle for the semiconductor industry and has had far-reaching implications for technology as a whole.
Disruptive innovation as a term was first described by Clayton M. Christensen, an American academic and business consultant whom The Economist called “the most influential management thinker of his time.” Disruptive innovation describes the process by which a product or service takes hold at the bottom of a market and eventually displaces established competitors, products, firms, or alliances.
Value migration was first described by author Adrian Slywotzky in his 1996 book Value Migration – How to Think Several Moves Ahead of the Competition. Value migration is the transferal of value-creating forces from outdated business models to something better able to satisfy consumer demands.
The bye-now effect describes the tendency for consumers to think of the word “buy” when they read the word “bye”. In a study that tracked diners at a name-your-own-price restaurant, each diner was asked to read one of two phrases before ordering their meal. The first phrase, “so long”, resulted in diners paying an average of $32 per meal. But when diners recited the phrase “bye bye” before ordering, the average price per meal rose to $45.
Groupthink occurs when well-intentioned individuals make non-optimal or irrational decisions based on a belief that dissent is impossible or on a motivation to conform. Groupthink occurs when members of a group reach a consensus without critical reasoning or evaluation of the alternatives and their consequences.
A stereotype is a fixed and over-generalized belief about a particular group or class of people. These beliefs are based on the false assumption that certain characteristics are common to every individual residing in that group. Many stereotypes have a long and sometimes controversial history and are a direct consequence of various political, social, or economic events. Stereotyping is the process of making assumptions about a person or group of people based on various attributes, including gender, race, religion, or physical traits.
Murphy’s Law states that if anything can go wrong, it will go wrong. Murphy’s Law was named after aerospace engineer Edward A. Murphy. During his time working at Edwards Air Force Base in 1949, Murphy cursed a technician who had improperly wired an electrical component and said, “If there is any way to do it wrong, he’ll find it.”
The law of unintended consequences was first mentioned by British philosopher John Locke when writing to parliament about the unintended effects of interest rate rises. However, it was popularized in 1936 by American sociologist Robert K. Merton who looked at unexpected, unanticipated, and unintended consequences and their impact on society.
Fundamental attribution error is a bias people display when judging the behavior of others. The tendency is to over-emphasize personal characteristics and under-emphasize environmental and situational factors.
Outcome bias describes a tendency to evaluate a decision based on its outcome and not on the process by which the decision was reached. In other words, the quality of a decision is only determined once the outcome is known. Outcome bias occurs when a decision is based on the outcome of previous events without regard for how those events developed.
Hindsight bias is the tendency for people to perceive past events as more predictable than they actually were. The result of a presidential election, for example, seems more obvious when the winner is announced. The same can also be said for the avid sports fan who predicted the correct outcome of a match regardless of whether their team won or lost. Hindsight bias, therefore, is the tendency for an individual to convince themselves that they accurately predicted an event before it happened.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
