Gordon Wong, the VP of Human Resources at Zeta Manufacturing, is concerned about the apparent lack of motivation among Zeta's employees.At a meeting with company executives, he proposes that workers' wages be immediately increased by 20% in order to improve motivation levels.Julia Franco, the VP of Operations disagrees."If you throw more money at them, they will become even less motivated!" she exclaims.Who is correct? Explain your answer.

As discussed in the text, there is considerable debate about the relationship between extrinsic and intrinsic motivators.In support of Julia's position, there is research evidence which suggests that the proposed increase in pay (an extrinsic reward)may lead to reduced levels of intrinsic motivation stemming from the workers' tasks.Other studies suggest that intrinsic motivation is only negatively affected by extrinsic rewards in certain circumstances, and therefore, Julia's argument may not be relevant at Zeta.Either way, pay is only one type of reward and Zeta's management would be well advised to develop a strategy which includes both intrinsic and extrinsic motivators.It should also be noted that according to self-determination theory, more pay will simply increase controlled motivation.Autonomous motivation facilitates effective performance and is also associated with other work outcomes.Thus, they should consider increasing autonomous motivation as well.Furthermore, both intrinsic and extrinsic motivation are related to performance although intrinsic motivation is more strongly related to the quality of performance while extrinsic motivation is more strongly related to the quantity of performance.In addition, intrinsic motivation is most beneficial for performance on complex tasks while extrinsic motivation is most beneficial for performance on more mundane tasks.