Most leaders today talk about motivation as if it were obvious: you set targets, attach rewards, maybe add pressure, and magically people perform. But the idea that humans do great work because they want to, not because they’re pushed or paid, is surprisingly new. And it didn’t come from management theory. It came from a series of weird psychological experiments that almost didn’t happen. The story of intrinsic motivation starts long before anyone had a name for it – and its lessons hit painfully close to home for anyone leading teams today. When Behaviorism Ruled the WorldFor decades, psychology was obsessed with a simple formula: Humans, in this view, weren’t much different from lab rats. If you dangled the right incentive, the right compliance would follow. This mindset seeped into business, education, parenting — everything. And then reality intruded. Harlow’s Accidental Breakthrough (1950)In 1950, Harry Harlow – already known for his attachment studies – gave monkeys mechanical puzzles. Simple devices the monkeys could manipulate and solve. But here’s the twist: there was no reward. Yet the monkeys:
They acted like they enjoyed it. When Harlow later introduced food rewards, performance actually got worse. Interest dropped. Mistakes increased. The external reward somehow interfered with whatever inner drive had been there before. Harlow wrote that the monkeys seemed motivated by the activity itself — a shocking claim at the time. He even called it “intrinsic reward.” White’s Theory of Competence (1959)A few years later, Robert White published a landmark paper arguing that humans have a basic need to feel effective — to handle challenges, master tasks, and shape their environment. He called this “effectance motivation.” His point was simple but radical: White didn’t run the famous experiment, but he gave language to something everyone intuitively knows: This set the stage for the experiment that truly broke behaviorism open. Deci and the Soma Puzzle Experiment (1971)When people talk about the origin of intrinsic motivation research, they usually mean Edward Deci’s Soma puzzle study from 1971. If the Harlow experiment cracks open the door, Deci kicks it wide open. The SetupDeci recruited students and gave them Soma puzzles — seven wooden pieces that can be arranged into dozens of shapes. They’re interesting, challenging, even addictive. Perfectly suited for people to get lost in. The study ran for three sessions across three days. Two groups:
A key part of each session was the “free-choice period.” The experimenter left the room, supposedly to “score” solutions, and told students they could do whatever they liked. On the table: puzzles, magazines, random objects. What Deci was secretly measuring was: This free-choice time became the measure of intrinsic motivation. The PunchlineOn day two, the experimental group was paid for every puzzle solved. And yes — they worked harder. But on day three, when payment stopped, something dramatic happened: They voluntarily spent less time playing with the puzzles than:
Being rewarded had changed the meaning of the activity. For the first time, we had clear human evidence that rewards don’t just motivate. They also demotivate — if they replace the sense of autonomy and interest that was already there. Kids, Crayons, and the Overjustification Effect (1973)To see if this effect applied to children, Lepper, Greene, and Nisbett ran a similar study in 1973. Preschool kids who loved drawing were divided into three groups:
Later, when kids were left alone during free play, the result was unmistakable: The kids who expected a reward now spent less time drawing for fun. This became known as the overjustification effect: Self-Determination Theory EmergesDeci later teamed up with Richard Ryan to turn all of this into a framework: Self-Determination Theory (SDT). SDT says intrinsic motivation thrives when three basic psychological needs are met:
The early experiments are now classic illustrations of what happens when these needs are supported — or violated. Where Business Still Gets It WrongAnd here’s where it gets uncomfortable for leaders. Corporate life is built on rewards:
But the early research shows a clear pattern: Rewards can increase performance in the short term — If people already enjoy the work (learning, problem-solving, building, creating), adding controlling rewards can turn that joy into compliance. The story in their head shifts from: “I’m doing this because it’s interesting,” And once that inner spark is gone, it’s very hard to reignite. The tragedy? Not because they changed. That’s why a hard-wired reward system is one of the most expensive mistakes in modern management. What Effective Leaders UnderstandThe leaders who get this don’t fight human nature. The leaders who get this don’t fight human nature They create environments where intrinsic motivation can breathe:
They’ve learned the hard lesson that the science teaches us: If you want high performance, stop bribing and threatening people. Intrinsic motivation isn’t a fluffy concept. If you want your leaders to build environments where intrinsic motivation actually thrives, let’s talk. We help organizations grow leaders who know how to create conditions for real performance, not just compliance. FAQ: Intrinsic Motivation, SDT, and LeadershipWhat is intrinsic motivation? What is Self-Determination Theory (SDT)? How is intrinsic motivation different from extrinsic motivation? Do rewards always kill intrinsic motivation? Why is intrinsic motivation so important for agile teams? What can leaders do tomorrow to support intrinsic motivation? |
How to create high-performing teams, innovative products and lead thriving businesses? The Agile Compass shares hands-on knowledge from 20+ years of experience in industries worldwide. Matthias is a Silicon Valley veteran and has been awarded the Agile Thought Leader award in 2022. His unique approach focuses on the human side of creating thriving organizations.
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