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Incentives, Part Three

 
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Louis Altazan



Joined: 15 May 2007
Posts: 774
Location: Baton Rouge, LA

PostPosted: Sun Jul 15, 2007 9:45 am    Post subject: Incentives, Part Three Reply with quote

Part Three

Most people will fall into one of three general groups, in response to incentives. This of course assumes they are all given a fair distribution of task and are all doing the same type of work. Group one can meet the criteria for the incentive at their normal pace, and will do so. They usually think the incentive is okay. Some like the fact that it provides a choice as to income. In my experience such people would perform equally well if paid the same amount with no incentive attached.

Group two are people that can attain the incentive, but must work at an uncomfortable pace to do so. They are likely to be critical of the system, try to pick and choose jobs that provide the best opportunity to meet the goal and avoid jobs that don’t. They waste a lot of time and energy on excuses when they do not meet the criteria for the incentive.

People in group two will normally be focused on the short term. This is the largest group, and the one where I feel most of the problems develop. They try to work the system to meet the goal, even if it causes long-term problems. They are less likely to cooperate with others, and more likely to try shortcuts. Many times they develop poor attitudes toward the company, management and other employees. They also find very little joy in this situation. These are good people who I feel, with proper management could be cooperative, and enjoy their work.

The final group are those that cannot meet the goal. This may be a result of inability, refusal to compromise on what they feel is right or no interest in being extrinsically motivated. Some very good workers that could do much better fall into this category. They see the system as unfair, and will either turn off and go through the motions, or leave.

In my experience I have found, group one is largely unaffected, as to performance. Group two is made much more difficult to work with. Gains in production are quickly offset by additional errors and lower production from others who must take the jobs group two tries to avoid. Group three is loss as potential employees, either physically or psychologically. Now in a less than perfect system, where work is unfairly distributed and ranking and rating of employees is taking place, the results can be far more devastating.

Very few people are able to earn a good living, doing something they love. Once they have enough money to meet their needs, money is no longer an issue. They are able to do what they love, they excel at it, and this is due to intrinsic motivation. We all have, or had it at one time but many have been extrinsically motivated for so long, they no longer recognize it. Can we restore the intrinsic motivation felt by people doing a good job for the joy of it? Can people enjoy their work, and want to do their best, day after day?

(End of part three)

Part two: http://www.outofthecrisis.org/forum/viewtopic.php?t=54
Part four: http://www.outofthecrisis.org/forum/viewtopic.php?t=56

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA
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Dave



Joined: 19 May 2007
Posts: 206
Location: Camp Verde, AZ

PostPosted: Tue Jul 17, 2007 10:42 pm    Post subject: Reply with quote

I learned long ago that most people are not motivated by money, at least for any length of time. A person will not work any harder for $80.00 an hour than he will for $10.00. That is not to say under pay the person. Pay them what they are worth or they will go some where else. But, I had never thought about the three catagories. Looking back, I can see where different people have fit into the different groups.

This has been a good series of posts! Very Happy
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