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The overjustification effect occurs when an individual's intrinsic motivation to engage in an activity diminishes as a result of receiving extrinsic rewards. But why does this effect happen?

To comprehend the overjustification effect, it is important to distinguish the differences between intrinsic and extrinsic motivation. Intrinsic motivation stems from internal factors such as enjoyment, curiosity, or personal satisfaction derived from performing an activity. On the other hand, extrinsic motivation involves external rewards or punishments, such as money, prizes, or praise.

Psychologists believe that the overjustification effect occurs when extrinsic rewards undermine intrinsic motivation. When individuals initially engage in an activity for the sheer enjoyment or satisfaction it brings, their intrinsic motivation is high. However, when external rewards are introduced, such as monetary incentives or public recognition, the focus shifts from the inherent pleasure of the activity to the external reward alone.

Cognitive dissonance and shift in perception

Over time, individuals may associate the activity more with the external reward rather than the intrinsic enjoyment it once provided. Consequently, when the external reward is removed or reduced, the activity may no longer hold the same appeal. This shift in perception can lead to a decrease in intrinsic motivation, resulting in a decline in engagement with the activity.

The cognitive dissonance theory also plays a role in understanding the overjustification effect. When individuals receive external rewards for an activity they previously enjoyed intrinsically, they may experience a discrepancy between their intrinsic motivation and the external reinforcement. This discrepancy can lead to a change in self-perception, where individuals may begin to perceive themselves as engaging in the activity solely for the extrinsic reward rather than out of genuine interest.

Losing passion for one's craft

For example, a passionate writer enjoys crafting stories in their free time. They decide to pursue a career in journalism, driven by their intrinsic love for storytelling. However, as they climb the corporate ladder, their employer introduces performance-based bonuses for articles published. 

Over time, the writer's focus shifts from the creative process to meeting quotas for financial gain, leading to a decline in job satisfaction and creativity.