Question

EXERCISE 1-11 Intrinsic Motivation and Extrinsic Incentives In a Harvard Business Review article titled "Why Incentive Plans Cannot Work." (Volume 71, Issue 5) author Alfie Kohn wrote: "Research suggests that, by and large, rewards succeed at securing one thing only: temporary compliance. When it comes to producing lasting change in attitudes and behavior, however, rewards, like punishment, are strikingly ineffective. Once the rewards run out, people revert to their old behaviors... . Incentives, a version of what psychologists call extrinsic motivators, do not alter the attitudes that underlie our behaviors. They do not create an enduring com mitment to any value or action. Rather, incentives merely-and temporarily-change what we do." Required: 1. Do you agree with this quote? Why? 2. As a manager, how would you seek to motivate your employees? 3. As a manager, would you use financial incentives to compensate your employees? If so, what would be the keys to using them effectively? If not, then how would you compensate you employees?

Answer 1

1. Yes I agree with the author Alfie Kohn’s quote stating that external motivation which includes rewards for performance or punishments for non-performance has temporary impact on the employee performance and behaviors.

These external rewards do not actually motivate the employees to change their work behavior. They only act as stimulant to boost their performance till the rewards are running.

2. A manager’s responsibility is to motivate the employees to give their best performance at all times. When employees contribution is recognized and they are appreciated and valued for their work, they feel more connected with the organization. As a manager, I would focus more on internal or instrinsic motivation which brings permanent changes in the employee performance behaviours. Mentioning the name of the employee as star performer in the company’s newsletter or internal employees meetings certainly boosts up employee morale and job satisfaction level.

I would also like to survey on the level of job satisfaction of the employees and the changes they feel should be implemented. The feedbacks should be reviewed carefully and the office enviornment should be kept positive and pro-growth as far as possible.

3. As a manager, I would focus more on Instrinsic motivation methods.

But at times, when situation demands, I will also resort to extrinsic rewards as well to drive out maximum performance by each employee.