A Larger Reward leads to Poorer Performance!

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How can that be? It turns our thinking on the head. Daniel Pink the Author of  "Drive" says that we need to rethink motivation. Bonuses work only in certain situations, when the tasks are mechanical. Once the tasks calls for even rudimentary cognitive skills a larger reward leads to poorer performance.
Studies show that Pay for performance does not work. or to put it another way If then rewards do not work. And that there is a "Gap between what Science knows and business does."
 
So what does work? How drives superior performance.
 
Money is a motivator, which is a fact, he says one does have to pay people fairly and adiquately. However once you pay people enough, so that they are not focused on the money, more money does not get better results.
 
What does is "Autonomy, Mastery and Purpose".
 
He wants us to examine the notion of Management, and quotes, Management guru Gary Hamel who said "Management is a technology for organising people into productive capacitors." and that  management was invented in 1850s. Now there are very few technologies from the 1850's that we use today. It is time to reinvement management. Management is designed to get compliance, we do need some of this, but what we need today is not so much compliance but engagement and the technology for engagement is Self Direction.
 
Those were just some of the highlights to this very engaging and insightful talk by Daniel Pink in the video below.
 

 

Liked that? Recommend reading his will written and reserached book, Drive. It will change the way you manage your organisation.