Many of the problems of pay-for-performance schemes can be traced to an overly simple, indeed deeply distortive, conception of human motivation, one that assumes that people are motivated to work only by material rewards. For some are motivated less by extrinsic monetary rewards than by various sorts of intrinsic psychic rewards, including their commitment to the goals of the organizations for which they work, or a fascination with the complexity of the work they do, which makes it challenging, interesting, and entertaining. The existence of intrinsic as well as extrinsic motivations is
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