REWARDS AND CREATIVITY: THE NEXT STEP

Abstract

Though research has shown a consistent and positive relationship between intrinsic rewards and creative behavior, the research to explore the impact of extrinsic rewards on creative behavior has yielded mixed and non-conclusive results. The mechanisms and psychological processes through which rewards affect creative behavior and the boundary conditions within which rewards trigger creative behavior are largely unknown. Most of the reward – creative behavior research is based on three assumptions, a- The relationship between rewards and creative behavior is direct and un-moderated, b- Rewards have same impact on individuals, irrespective of their dispositional differences and contextual settings, and c- All types of rewards produce similar type of creative behavior. This study challenges all of these assumptions and forwards the reward - creativity research by identifying factors that mediate and moderate the relationship between rewards and creative behavior. The results based on the data collected through survey forms from 260 employees and their supervisors, suggest that rewards affect individuals differently, depending on their personal dispositions and on contextual factors. The study shows that intrinsic and extrinsic rewards produce different types of creative behavior. The results also show that contextual and personal variables such as organizational climate, locus of control and goal orientation affect the relationship between rewards and creative behavior. Thus, the study makes it clear that impact of rewards on creative behavior depends on several personal and contextual factors and ranges from significant positive to significant negative. The study guides managers about how to use rewards to enhance creative behavior of their employees, and how to trigger different types of creative behaviors, byiv aligning rewards with personal and contextual factors. The study advances the reward - creativity debate from cognitive – behaviorism dichotomy to the social cognitive paradigm.