An activity is - motivated when it is done and enjoyed for its own sake, whereas it is - motivated when it is done as a means to something else. According to the - theory, extrinsic rewards undermine our sense of ourselves as free agents, and according to the - theory, when we are extrinsically rewarded for doing something, we assume we did that thing only in order to receive the reward. But in truth, often the extrinsic and intrinsic motivation work together.

The activity is intrinsically motivated, which means that this activity is interspersed from within, by some of our inner goals as personal achievement, professional growth, a sense of satisfaction. Intrinsic motivation comes from us, for our personal well-being and pleasure.

The activity is extrinsically motivated when it comes as a result of an external demand, in order to achieve something related to something else. Extrinsic motivation is used to increase salaries, bonuses, public recognitions, or to avoid negative consequences.

According to incentive theory, behavior is primarily motivated by the stimulation of external factors, while internal incentive factors are performed because of a personal feeling of satisfaction with what is done as a result of an external incentive. Although the feeling of ourselves as a free agent diminishes, the extrinsic rewards is the one that motivates us. Also, according to research, the internal incentive decreases over time if the external incentives to which the individual is accustomed are intensified. Of course, the effectiveness of external motivators depends on individual characteristics such as self-esteem, locus of control, self-efficacy.