Intrinsic motivation is what works once people get enough money to have their basic needs met.That is the principle of the Maslow’ Pyramid of needs.
Some people think that Maslow’s theory is not valid anymore, yet I agree with Tom Fisburne on his analysis of relation with what brands offer, pricing and Maslow’s hierarchy of needs
If we assume that we are talking about an environment where people have enough money for “paying the bills”, then external rewards of any types wont’ motivate people on the long run. They will expect to get more each time and ultimately lose interest if rewards don’t increase. It is a kind of “incentive addiction”, it destroys more than it stimulates.
Any goal setting exercise should start by the end : What benefits do you expect if you reach a specific goal ? or only half of the goal or making the efforts but not succeeding ?
Visualization of achieving a goal can help better define: Why do you choose this goal specifically ? What benefits will you get versus the energy you invest to this particular goal rather than another ?
If you don’t know why you are doing what you do and nobody tells you how you contribute to the big picture, if nobody encourages you and say thank you from time to time or if you don’t have the resources for doing your job well, then external reward only will demotivate people. I think it is impossible to make someone passionate against his or her will, but it is very easy to kill the fire within passionate people.