COMMENTS

The ideas in this book are counter to the pervasive and prevailing attitudes concerning extrinsic rewards of most managers in American businesses.

 

In fact, the book is stored in the psychology section of most bookstores and not in the management or business section.

8 OF THE BEST IDEAS

1. Depending on the size and type of company surveyed and the way the question is framed, recent estimates of the number of U.S. companies using some form of incentive or merit pay plan ranges from 75 to 94 percent.
   
   

2. Incentive plans are based on the belief the best way to get something done is to provide a reward to people when they act the way we want them to, “Do this and you’ll get that.”
   
   

3. Reason why rewards fail:

1. Rewards punish – most rewards are used to control and include a negative aspect – “Don’t do this and you won’t get that.”

2. Rewards rupture relationships – the central message of all competition is that everyone else is a potential obstacle to one’s own success.

3. Rewards ignore reasons – there might be very legitimate reasons why employees don’t do things.  Rewards ignore reasons that often should be addressed.

4. Rewards discourage risk taking – when we are working for a reward, we do exactly what is necessary to get it and no more.

5. Extrinsic rewards destroy intrinsic motivation (the joy of doing something for its own sake).  When something is perceived as a means (work) to an end (rewards), the end becomes more valuable and important than the means.

4. Most praise is counter productive because, like rewards, it is used to control and manipulate employees.  It exists to benefit the giver, not the receiver
   
   

5. When asked what factors they value in a job, pay is usually ranked fifth or sixth.  “Interesting work” is usually ranked first.
   
   

6. The answer to the question “How do you motivate people” is “You don’t”.  You can get employees to do things, but the desire to do something can not be imposed.
   
   

7. Pay is not a motivator, but is often a de-motivator.
   
   

8. Three steps to authentic motivation

1. Abolish incentives.

2. Abolish employee evaluations that create competition.

3. Create conditions for authentic motivation.

1. Encourage employee collaboration and teamwork.

2. Create interesting work and match employees to their interests.

3. Give employees choices and control.

"As an 11-year member of CEBI we gain much wisdom from these meetings; true bearings to steer our course by, especially over the last 3 years." Jack Murphy President The Murphy Company