In the modern work place lots of what was traditionally done has now been outsourced to cheap labour or become automated. The work we do is now non routine or the solution is unknown at the start and in these situations the old style carrot and stick (or if....then...) approach to motivating people just doesn't work has been proven by psychologists to not work.
Most of us now work in jobs where we are above the threshold of survival. We can pay for food, clothes and shelter and still have money left over for nice stuff. In this environment a new drive appears. A desire to do a good job. This is an internal drive and we get personal satisfaction in doing a job well.
In the modern world carrots (and sticks) have been shown to reduce performance as well as removing the intrinsic value and the joy of the job (this really exists for some people in their work). Yet businesses still use these approaches.
To increase someones motivation for the non routine work, the right environment needs to be created. One that allows people to do things their way, in their own time, using the methods they want and to work with the people they want to. Management in this environment needs to cede control and focus more on praise. Not at every stage - this smacks of insincerity but when a job is done. Managers should also focus on providing information, coaching and guiding the staff.
Read more stuff, recommended Daniel H. Pink and Guy Claxton
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