Madison-area Caffeine and Crullers general manager Jane Sutton has just gotten word from corporate that bonuses are no longer going to be based totally on individual achievement, but also on how the entire team of managers in her region performs. Now half of each manager's year-end bonus will be calculated based on the average of how each team member's department delivers on its goals. Most of Jane's managers do not like this because they all see themselves as above-average performers. They started making references to the "unfair practice of group grades, just like in school," and they've been saying unkind things to one another, stressing their own department's superior performance and the desire not to be "dragged down by other departments." Jane knows these are signs of deep fears about the new reward system.
Do you think team or individual rewards are better for a management team? Why?