The effect of extrinsic rewards on intrinsic motivation

Abstract: Title: The effect of extrinsic rewards on intrinsic motivation: an empirical study of aspiring investment bankers and their extraordinary drive Seminar date: 2019-06-05 Course: FEKH49, Bachelor level thesis in organisation, Business Administration, 15 ECTS Authors: Afnan Al Khalifa and Andreas Källström Advisor: Nadja Sörgärde Keywords: motivation, identity work, extrinsic rewards, monetary compensation, investment banking Purpose: The purpose of this thesis is to examine and increase the understanding of the role of extrinsic rewards on intrinsic motivation, as an explanation for the hard work put into pursuing the difficult career path of investment banking. We examine and increase the understanding of what drives students to push themselves to their utmost limits for a job. Methodology: A qualitative study with semi-structured interviews. Theoretical perspectives: The theoretical perspective used is identity work. A thorough presentation of traditional motivational theories and their divide between intrinsic and extrinsic motivation has also been done. Empirical foundation: Seven interviews have been conducted with individual students working part-time at a university-affiliated organization preparing students to work within investment banking through various activities. Conclusions: Our findings show that extrinsic rewards such as monetary compensation have a significant positive impact on intrinsic motivation. Furthermore, the difference between intrinsic and extrinsic motivation is explained to be more of a grey zone than previously thought.