Cognitive Evaluation Theory

Cognitive Evaluation Theory of Motivation belongs to the category of contemporary

theories. It is also commonly known as CET, and unlike some other motivation theories,
the cognitive evaluation theory has a lot of empirical data and researches that validate its
applicability.

Extrinsic Motivation and Intrinsic Motivation:

Extrinsic motivation means when you are motivated to do something because of external
rewards and/or punishment associated with it. On the other hand, intrinsic motivation is
totally independent of any external reward.
For example, if you are reading a novel because your teacher will give you a good grade,
this is extrinsic motivation. On the contrary, if you are reading the novel only for the
pleasure of it and there is no additional benefit associated to it, e.g. the good grades
this is referred to as the intrinsic motivation.
It was believed that intrinsic motivation was totally independent of extrinsic motivation.
However, with further studies and researches, it was concluded that these two are
connected with each other. Finally, psychologists and organizational behaviorists reached
on the conclusion that with the use of extrinsic motivation, the intrinsic motivation
which could be already present eventually decreases.
There can be a lot of explanations for this theory based on the specific situations and
cases. However, psychologists believe that the cognitive evaluation theory holds true
mainly because of the following two reasons:

When the extrinsic rewards are offered, the individual himself loses a lot of
control on the task. This loss of control results in lower intrinsic motivation.

Secondly, the presence of extrinsic rewards changes the perception of the

individual. The very reason, why he was performing the task in the first place,
changes. This results in a shift from intrinsic motivation to extrinsic motivation.
When the focus of the individual changes, so does his motivation.
Extrinsic rewards, in terms of appreciation, encouragement and praise, actually increases
the intrinsic motivation. Many OB experts believe that in the case of cognitive evaluation
theory, extrinsic rewards can be categorized into two types: verbal and tangible.
According to them, the verbal type of extrinsic motivation (appreciation, praise and
encouragement) increases the overall level of intrinsic motivation. On the other hand,

tangible extrinsic motivation (money, rewards, demotion) damages the intrinsic

motivation.

Summarizing the Cognitive Evaluation Theory:

Cognitive Evaluation Theory is a contemporary theory of motivation. It is also
known as CET and is well-supported by various researches, studies and reports.

The theory suggests that the extrinsic rewards have a negative effect on an
individuals intrinsic motivation. In other words, the inclusion of extrinsic rewards
decreases the overall level of intrinsic motivation.

Extrinsic rewards can further be divided into two different types: verbal rewards
and tangible rewards.

Studies suggest that it is the tangible extrinsic rewards (money) that decrease the
intrinsic motivation. While the verbal extrinsic rewards (praise and appreciation) can
actually boost the intrinsic motivation of an individual.