Date post: 2017-10-06 06:17
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9. Contingent pay leads to cooking the books. When a large proportion of a person’s pay is based on variable financial incentives, those people are more likely to cheat. In academic terms, we would put it this way: extrinsic motivation causes people to distort the truth regarding goal attainment.
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And when financial incentives are applied to increase senior leaders’ extrinsic motivation, intrinsic motivation diminishes. A meta-analysis of 678 independent studies conclusively confirmed this effect. Although all studies have methodological shortcomings, the consistency of the results across so many studies, samples, and methodologies is noteworthy. As noted by the authors, “expected tangible rewards made contingent upon doing, completing, or excelling at an interesting activity undermine intrinsic motivation for that activity.” Because intrinsic task motivation is fundamental to creativity and innovation, highly variable incentives deplete top managers of the intrinsic motivation they so much need to perform optimally.
ENDING A PERSONAL ESSAY EXAMPLES | ASSIGNMENT - DISCUSSION: SHARED PRACTICE: DETAIL AND DYNAMIC COMPLEXITY PART II / SUBJECTS: BUSINESS - UNDERGRADUATE | ESSAY - SOCIAL POLICY ISSUE / SUBJECTS: SOCIOLOGY - UNDERGRADUATE