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Why incentive plans cannot work

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Alan Jonsson

on 10 April 2018

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Transcript of Why incentive plans cannot work

A. Kohn - "Why Incentive Plans cannot work"
Discussion Questions
Do you think that monetary reward-incentive programmes can have a detrimental effect to organisations?

What are your experiences? Have you ever felt “bribed” at work through incentives?
Do Rewards work?
Temporary compliance
When rewards run out people revert to old behavior

People who expect rewards for completing a task do not perform as well as people who don't

Reward quality maybe a fools errand
Higher pay does not produce better performance
Consists of 6 points
Self-Determination Theory
Showcases why a reward system fails
Mixing extrinsic and intrinsic motivation is a self-fulfilling prophecy
- our own Experiences -


Both agree that
Rewards Discourage Risk-taking.
The book limits this to spcific cases
Viewpoint Article:
Viewpoint Textbook:
destructive influence of extrinsic motivation

importance of intrinsic motivation
usefulness of rewards for some employees

some rewards increase productivity and motivation
Highlights the detrimental effect of extrinsic motivation
and the beneficial effects of intrinsic motivation.
Part One
Part Two
There are similarities between the text book and the article:
Kohn's Framework
There is also some agreement that
Pay Is Not a Motivator.
The use of the ‘Two-Factor Theory’.
By Alan, Annalena, Anton, Aradhana & Yuwen
Full transcript