Self-determination theory attempts to understand what the motivating factors are behind the choices that people make in life. Self-determination theory is based on two different types of motivation, namely; Intrinsic and Extrinsic motivation. This theory was devised by academics - Ryan & Deci in 2000. Intrinsic motivation can be understood as an individual being compelled, for their own reasons, internally, to work with a positive attitude, desire and drive, with a goal or aspiration in mind. Intrinsically motivated people tend to gain a certain level of enjoyment, excitement and an inner satisfaction by accomplishing what they want by effort. Intrinsically motivated people see that their hard work is paying off, by the display of positive results. The results might be in the form of a better j0b, recognition via a place on a Committee or Board, a higher wage, by accomplishing a successful business deal, by a promotion in the company to a higher position, or via growth in the success of their own business.

Extrinsic motivation, on the other hand, is the theory that some individuals develop a drive and enthusiasm to work, due to external reasons. The drive that extrinsically motivated people have is created by their view, ideas and opinions, or by their view of others. Extrinsically motivated people can be influenced by the company which they work for, the job itself, or the workplace environment. Extrinsic motivational factors for such individuals can include a good set of colleagues or a nice working environment, a happy organisation where everyone gets on well, or for reasons such as medium to low levels of work-based stress.. Extrinsic Motivation is therefore more about being motivated by the place of work and by colleagues and the enjoyment of working for that particular organisation, rather than the desire for more money or power, as is the case in intrinsic motivation.

The work-based drive an individual has can either be the first form of motivation or the second, or a combination of both. Extrinsic motivation is no less less effective than intrinsic motivation when it comes to achieving success in the workplace, or within one's own career, both are determined by an individual's psychological make up, how they think and behave, what their ideals for the future might be, or a combination of their life-long learned behaviour and their historical conditioning. Conditioning within a person's mind can have a huge effect, conditioning of thoughts or ideas coming from areas such as parents or guardian's views, values and beliefs.. Someone might be really Intrinsically motivated due to influence gained from a parent or guardian, from their beliefs, values and passions, whereas another person might be highly extrinsically motivated due to working for a great company that listens to them, understands their views and recognises and rewards their own abilities,  bringing out their inner potential and their best work, with praise and gratitude.

Ryan and Deci 2000, put forward the proposal that two schools of thought exist when it comes to the two types of work-based motivation, the first is that only either intrinsic and extrinsic motivation exists within an individual and not a combination of both.

The second school of thought however addresses the view that an individual can be driven by either types of motivation and that the type of motivation in a person can change from type 1 to type 2, however in all cases, Ryan and Deci determine that certain rewards and financial incentives are always required in order for the job role desire to exist in them for long enough. Certain incentives therefore must be present for either types of motivation to fully develop.