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  • 1.  Motivating NPD Teams

    Posted 01-19-2021 11:00

    Financial rewards are often thought to be powerful motivators, however, this is not necessarily the case when it comes to stimulating intrinsic task motivation, and ultimately creative performance, within NPD teams. According to the article “Extrinsic Rewards, Intrinsic Motivation, and New Product Development Performance,” published in the latest issue of the JPIM, both formal recognition and social rewards have a positive effect on the creativity of a team, in addition to being less “resource-intensive” actions. This is not the case for financial rewards, which appear to involve high managerial control, in essence taking away each team member’s sense of autonomy, and seem to place too much emphasis on the outcome rather than the task at hand. 

    Though, an important caveat discussed is project complexity. When it comes to simple projects, the authors argue that social rewards fare best in elevating intrinsic motivation. Yet, complexity changes perception. The concerns of lacking control associated with financial rewards are not as prevalent with more complex projects, making this type of extrinsic reward useful within this context. Recognition rewards are noted to be beneficial, regardless of the level of complexity.

    Given that product quality and degree of innovation, two indicators of the creative performance of NPD teams, are positively related to intrinsic motivation, it’s essential that managers carefully select suitable extrinsic rewards and provide NPD teams the right level of guidance and involvement.

    Gabriela Pinotti
    Graduate Research Assistant
    Oakland University

  • 2.  RE: Motivating NPD Teams

    Posted 01-22-2021 16:56
    Very nice article, thanks for sharing!

    Mohamad Midani
    Assistant Professor
    German University in Cairo

  • 3.  RE: Motivating NPD Teams

    Posted 01-25-2021 00:30
    Thank you for your insightful comments, Gabi. Motivation is indeed key to successful team members, and overall project team success. An excellent resource for further information about motivation is the author Daniel Pink.  An animated summary  of his 2009 book "Drive" can be viewed on youtube here, or here.  His conclusion is that motivation is tied to three factors:  Autonomy, Mastery, and Purpose.

    [Sue] [Burek] [NPDP]
    [kHUB Administrator]
    [Huntersville] [NC]