Australian National University · S1 2026 · FACULTY OF BUSINESS & ECONOMICS

BUSI7280 · Managing In A Global Context

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Chapter 4 of 7 · BUSI7280

Motivation

Most folk theories of motivation ask how much drive someone has, as if it were a single dial you turn up with money. Self-Determination Theory (SDT) reframes the question entirely: what matters is the quality of motivation — how autonomous it is — because that is what predicts persistence, performance quality, learning and wellbeing, not just short-term effort. The master distinction is autonomous (willing, volitional) vs controlled (pressured) motivation, laid out along a six-point internalisation continuum from amotivation to intrinsic. Three basic psychological needs — autonomy, competence, relatedness — mediate the effect of job design, pay and style on motivation and wellness. The manager's strongest lever is an autonomy-supportive (vs controlling) style, and cognitive evaluation theory warns that contingent rewards can crowd out intrinsic motivation. The #1 trap: “extrinsic” is not a synonym for “controlled,” and “controlled” means the employee is under pressure, the worse state.

In this chapter

What this chapter covers

  • 014.1 Autonomous vs controlled — the master distinction
  • 02The internalisation continuum (amotivation → intrinsic)
  • 03Introjected vs identified — the boundary that sets the bracket
  • 044.2 The three basic psychological needs
  • 054.3 Cognitive evaluation theory — how rewards crowd out
  • 06The manager's lever: autonomy-supportive vs controlling style
Worked example · free

Worked example: diagnose with SDT

Q [6 marks]. A support centre's agents took pride in solving customers' problems. To boost productivity, management added a cash bonus per call closed and a public leaderboard. Within months, calls closed shot up but repeat-contact rates soared, agents rushed hard cases, and two long-tenured staff quit saying “it stopped feeling like helping people.” Diagnose with SDT and recommend.
  • +1Name: SDT distinguishes autonomous from controlled motivation along an internalisation continuum, rests it on three needs (autonomy, competence, relatedness), and via cognitive evaluation theory warns contingent rewards can crowd out intrinsic motivation.
  • +1Apply — before: agents were near intrinsic / identified (“it felt like helping people” — autonomous).
  • +1Apply — the reward: the per-call cash bonus + leaderboard is a tangible, contingent, controlling reward; by CET it shifted the perceived locus of causality outward, pushing motivation back to external regulation (controlled).
  • +1Apply — thwarted needs: autonomy (the metric dictates behaviour), competence (closing fast ≠ solving well), relatedness (the leaderboard pits agents against each other).
  • +1Evaluate: output rose while quality collapsed — the signature of controlled motivation narrowing effort to the rewarded metric; but the fix is redesign, not removing all pay (informational rewards can help).
  • +1Recommend: drop the leaderboard; measure resolution quality not volume; give agents discretion and a rationale; rebuild non-zero-sum team goals — re-internalising motivation rightward and recovering quality and retention.
A contingent reward crowded out intrinsic motivation (CET), shifting agents to external regulation and thwarting all three needs; the fix is an autonomy-supportive redesign measuring quality, restoring discretion and rebuilding team belonging.
Glossary

Key terms

Autonomous vs controlled motivation
The master distinction in SDT. Autonomous = willing, volitional (interest, personal value, intrinsic + well-internalised extrinsic); controlled = pressured (rewards, threats, ego, guilt). Autonomous motivation predicts persistence, quality, learning and wellbeing; controlled yields short-term gains, narrowed effort and burnout. “Controlled” means the employee is under pressure — the worse state.
Internalisation continuum
The six-point spectrum of how far a reason for acting has been taken inside the self: amotivation → external → introjected (these three are controlled) | identified → integrated → intrinsic (these three are autonomous). Moving rightward = more self-determined.
Introjected vs identified regulation
The boundary that decides the bracket. Introjected = internal pressure (guilt, ego, “I'd feel worthless if I didn't”) — still controlled. Identified = you genuinely value the goal (“this matters to me”) — now autonomous. The tell is pressure vs value.
The three basic psychological needs
SDT's universal needs whose satisfaction moves motivation toward autonomous and whose thwarting harms wellbeing: autonomy (volition / ownership), competence (mastery / effectance) and relatedness (belonging / connection). They mediate the effect of style and job design on motivation. Note: autonomy means volition, not working alone.
Cognitive evaluation theory (CET)
The SDT mini-theory explaining why paying people for something they already love can make them love it less: a tangible, contingent reward shifts the perceived locus of causality from internal to external and can lower perceived competence — both undermine intrinsic motivation. Informational rewards that signal competence rarely backfire; controlling, do-this-get-that rewards do.
FAQ

Motivation FAQ

Does “controlled motivation” mean things are going well?

No — that's the #1 SDT trap. It does not mean the manager is in control or that things are good. It means the employee is acting under pressure (external or internal) — the worse motivational state, which narrows effort and burns people out.

Is extrinsic motivation the same as controlled?

No. Identified and integrated regulation are extrinsic yet autonomous — the person values or has absorbed the goal even though it isn't inherently fun. The real axis is how self-determined the motive feels (volition vs pressure), not intrinsic vs extrinsic. So “extrinsic = bad, intrinsic = good” is wrong.

Doesn't giving autonomy mean letting people work alone?

No — another favourite distractor. Autonomy in SDT means acting with volition and ownership, and it is fully compatible with teamwork and even with following instructions, provided the person endorses the reason. It is the opposite of coercion, not the opposite of collaboration.

What's the cheapest thing a manager can do to lift motivation?

Provide a rationale — explain why a task matters. Of all the autonomy-supportive moves, this costs nothing and reliably nudges motivation from external toward identified (controlled toward autonomous). If you can do only one thing, do this.

Study strategy

Exam move

SDT is about the quality of motivation, so anchor everything on autonomous (willing) vs controlled (pressured) and the six-point continuum, with the introjected/identified boundary (pressure vs value) memorised because the MCQ loves it. Lock the three needs — autonomy, competence, relatedness — and the four traps: controlled ≠ “in control / good”, extrinsic ≠ controlled, autonomy ≠ working alone, and rewards-backfire = CET / crowding-out / locus shifts outward. In application questions, locate the team on the continuum, name the thwarted need, then prescribe internalising interventions (choice, rationale, competence feedback, belonging) — don't just turn up the reward dial. Remember the causal chain: autonomy-supportive style → satisfies the 3 needs → internalisation → performance + wellness, with the needs as the mediator.

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