Why Incentive Plans Cannot Work

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하버드 비지니스 리뷰 HBR Why Incentive Plans Cannot Work입니다. 내용 요약과 제 의견을 제시했습니다.

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Opinion

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Summary
Many US companies incentive plans to motivate their employees. The author Alfie Kohn, the plans are not much to do with employees’ performance. According to the first column of the page 3, rewards, incentives and extrinsic motivators are same. Of course, these work at the beginning. But that is it. Once the rewards run out everything will be back to the previous level where rewards were not given to employees. In other words, rewards only work in a short term bringing in just temporary compliance of employees. In the long term, employees will not be driven by rewards.
Kohn suggested six reasons for this phenomenon. The first reason is “Pay is not a motivator.”. If one’s pay was cut in half, he will be discouraged and this would be negative on his performance. But the opposite way (doubling his pay) cannot guarantee better performance. The second reason is “Rewards punish”. Employees can feel controlled when employers say “Do this and you will get bonus.”. This would result in effects of punishment. The third reason is “Rewards rupture relationships.”. When employees compete against one another, no cooperation will happen. The fourth reason is

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