Equity and intrinsic motivation: The role of choice.

Research on the effects of pay on productivity and intrinsic motivation has yielded seemingly contradictory results. The "equity" literature has repeatedly found that increasing pay increases productivity (and presumably, intrinsic motivation), whereas the "insufficient/oversufficient justification" literature has found that increasing pay decreases intrinsic motivation (hence, presumably, productivity). It was hypothesized that the choice variable mediates these results. Specifically, under low choice, high pay should lead to reduced productivity or intrinsic motivation, whereas under high choice, high pay should lead to reduced productivity or intrinsic motivation. A pilot study and a subsequent experiment, both using female undergraduates, examined the effect of pay and choice on productivity or intrinsic motivation. Both studies supported these predictions. The results are discussed with regard to problems in determining the level of reward to be offered for task performance, since providing inadequate rewards may sometimes decrease, and other times increase, intrinsic motivation. (26 ref) (PsycINFO Database Record (c) 2010 APA, all rights reserved)