Can Extrinsic Motivational State Hinder Good Behavior? The Mediating Role of Ambition and Competition in Relationships of Contingent Rewards and Punishments with Work Performance

Drawing upon the integration of expectancy theory and extrinsic motivation, we attempt to develop and examine a model that reveals different extrinsic motivation-based relationships among contingent rewards and punishments, task performance, job engagement and job creativity. In study 1, we develop a model of contingent incentives, ambition, competition, and work performance using a multiple-case, inductive approach. In study 2, we conduct a one-group pretest-posttest design with 362 matched supervisor-subordinate dyads from Chinese state owned enterprises, the results show that contingent rewards have positive relationships with job engagement and job creativity through ambition and competition. Contingent punishments have positive relationship with job creativity through competition, whereas contingent rewards and punishments have no effect on task performance through ambition or competition. In addition, contingent punishments have no effect on job engagement through competition. On the basis of these findings, the framework suggests formal performance management practices to aid managers and human resource development practitioners in their understanding and enactment of extrinsic motivation. Finally, the implications of the study for further research are discussed.