5. • First is biological drive to do certain things. Second is the drive owing to external motivations like
rewards and punishments .When money is used as an extrinsic reward for some activity, subjects
lose intrinsic interest for the activity. Just like caffeine cranks u up for a few hours, money acts as
a short term booster only.
• As human beings we have the inherent tendency to seek out novelty and challenges, extend and
exercise, to explore and to learn. This is the third drive. It includes the need to direct our own
lives and live a life of purpose.
• Motivation 2.0 works for algorithmic tasks routine ones. Motivation 3.0 works for heuristic tasks
creative ones.
• Routine work requires direction and management, non routine work requires self direction and
self management.
• Unexpected ad hoc rewards motivates. But if-then rewards take away autonomy to some extent
and hence they impact performance badly by converting play into work.
• Carrot and stick can promote bad behavior, create addiction and promote short term thinking
instead of long term thinking.
6. How to build a great team
• Baseline rewards e.g. salary perks etc must be at par with the industry.
• Give them autonomy and tell them the outcome, not how to do.
• Give them a chance to pursue mastery.
• Their daily duty must relate to a sense of larger purpose.
• Give them urgency and significance.
• Now Get out of talent's way.
7. On what should Feedback focus
Feedback should focus on:
• Specifics.
• Effort and strategy and not outcome.
8. Our three innate needs
Our three innate needs are:
• Competence
• Autonomy
• Relatedness
9. • People fundamentally like work. Under certain conditions, they not only accept but seek
responsibility.
• Type X vs Type Y (extrinsic vs intrinsic). Money is imp for type X people because it takes
money off the table so they can now focus on work. For type Y people money is the table.
• Human beings are not human resources. They are human beings. Or they are partners. Treat
them like that.
• Use a ROWE. RESULTS ONLY WORK ENVIRONMENT. People just produce results –
how,where and when is Upto them.
• A typical work environment is all about control. It's assumed that people do not work without
a prod. And once they get going, they need a firm and reliable guide to keep them from
wandering. Both these premises are faulty.
• Autonomy is not cow boy type go-it-alone independence. People are yet ready to work in an
interdependent way.
10. • People will not move out of a results only work environment for increased pay.
• Management and empowerment are dirty words for an organization. This is the era for self-
direction.
• Hire good people and leave them alone.
• Let them have control over their task, time, technique and team selection. Four T's. Best
strategy for an employer is to figure out which of above is most important for each employee.
• Encouraging autonomy doesn't mean discouraging accountability. People wish to be
accountable and giving autonomy is a path to it.
• Control leads to compliance, autonomy leads to engagement.
11. Flow
Flow requires following conditions:
• Goals are clear.
• Feedback is immediate.
• Challenge is neither too easy nor too difficult; just a notch or two above
the current abilities.
Flow also helps defeat depression (my corollary)
13. Deci's study
Deci's study showed:
• In purpose goals: you value, you attain it, you are better off.
• In profit goals: you value it, you attain it, you are worse off as a result of it