OB-The Best Laid Incentive Plans - The Best-Laid Incentive...

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The Best-Laid Incentive Plans o Sometimes the best management is no management at all – first do not harm/do nothing (Bob Sutton) o Rules of performance management You get what you pay for The devil is in the detail (difficult to define the right metric and anticipate exactly how people will react to it) Tricky to balance what can be measured objectively and internally, what customers really want, and what ultimately creates value for the organization Pay for performance: monetary incentives tied to one’s results or accomplishments o An analysis of 39 studies found only a modest positive relation between financial incentives and performance quantity and no impact on performance quality o Roughly half of the incentive plans don’t work because of poor design and administration 8 reasons why rewards fail to motivate 1. Too much emphasis on monetary reward 2. Rewards lack an “appreciation effect” 3. Extensive benefits become entitlements 4.
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  • Spring '14
  • BAER
  • incentive plans, level incentive study, higher incentive levels, one-size-fits-all rewards, short-lived motivating impact

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