An academic paper contends that pay-for-perfomance policies may not motivate the unrewarded to work harder.
Alix Stuart, CFO Magazine
December 1, 2009
If it can't be measured it can't be payed for. If a bonus is just given it isn't a bonus it's a gift. Control over the outcome is also necessary to the reward being effective. I was working with an owner that loved to pull out $100 and lay them on the desk to challenge employees to reach a goal. I talked to someone that was given the $100 challenge. He said "The $100 meant nothing because I couldn't affect the outcome of the goal. We didn't hit the goal and I didn't get the money. It was out of my control."
Posted by Dee Gardner | December 02, 2009 01:57 am© CFO Publishing Corporation 2009. All rights reserved.