On the Folly of Rewarding

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Transcript of On the Folly of Rewarding

8/14/2019 On the Folly of Rewarding

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Group 1 | Sec B

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Goal ‐ Reinforcement of  desired behavior  Assessment

Too often reward systems discourage truly 

desired behavior

 while

 encouraging

 disagreeable

 ones

Frequently ignoring valuable contribution during 

performance evaluation

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Politics –Operative goals have few takers

Public votes for politicians promising “high 

acceptance BUT low quality goals”

Typically punishes

 frank

 leaders

 doing

 the

 HARD

 TALK

War –World War II vs Vietnam 

Organizational Motive –WIN 

Individual Motive – GO HOME ALIVE

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Medicine

Type1 Error – Pronounce a healthy man sick

Type2 Error – Pronounce a sick man healthy

Doctors prefer

 Type1

 because:

▪ Less risky

▪ Increased earnings

Public REWARDS this behavior while HOPING 

that the doctor does not make them

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Rehabilitation Centers and Orphanages

Budget, reputation, size ALL depend on the 

number of  inmates reducing motivation of  the 

staff  to

 encourage

 adoption

Adoption criterion are thus made unnecessarily 

stringent

Rehabilitation counselors

 spend

 more

 time

 with

 

relatively skilled clients to improve their own 

ratings

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Ecology‐ easy to get away with non 

conformance Evaluation of  training 

same set

 of 

 people

 delivering

 the

 program

 are

 

also ones who evaluate the outcomes – clear case 

of  conflict of  interest

Top management

 prefer

 to

 ignore

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Football –

Coaches prefer TEAMWORK over individual performance‐ at least while SPEAKING

People SCORING

 are

 REWARDED

 ahead

 of 

 the

 ones who set the move

For RATIONAL players‐ individual performance 

comes ahead

 of 

 team’s

 show

Management by Objectives –

Unquantifiable goals

 get

 unrewarded

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Manufacturer of  industrial goods complained 

about dysfunctional

 organizational

 climate

A 7 point Likert scale questionnaire was 

administered Observations‐

Behaviors termed as dysfunctional by managers were seen as rewarding by lower level employees

Conservatism and apple‐polishing perceived as 

RATIONAL by

 employees

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Under‐payments provoke outrage while Over‐

payment is

 met

 with

 silence

Additional standards like timely closing of  claims promoted‐

“When in doubt, pay it out” Annual raises for “Outstanding” and “above 

average” employees

 were

 too

 close

 for

 any

 differentiation 

“Hoping for performance, while rewarding 

attendance”

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Fascination with an “Objective” Criterion

May work for predictable  jobs, but wont for other areas of  the businesss

Overemphasis on

 Highly

 Visible

 Behaviors

Ignoring qualitative features of  performance

Hypocrisy Emphasis

 on

 Morality

 or

 Equity

 rather

 than

 

efficiency

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Selection

Select employees whose individual goals and 

motives match with the organizations

Training Aiming to mould employees goals

Effectiveness is questionable

Altering the Reward System

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THE END