Avoid inflation of incentives if you wish to avoid running an organization of glass

1. Incentives Complexity

2. Incentives may have a sweet
topping; but underneath they
may be deleterious

3. How?

4. Let us start on our
discovery journey

5. There is complexity in motivation and this
complexity warrants greater attention

6. The motivation to give incentives will work up to a
certain range (optimal range). Say, somebody welcomes
monetary incentives. This is correct up to a limit, when
the same person might seek different incentives such as
more work responsibility.

7. There is a switch over of
preferences

8. A second point is the realization that
there exists a feedback mechanism that
might lead to non-linear results.

9. Giving more money to an employee will
motivate him. This motivation increases his
productivity and desirability to do more work,
which in turn enhances his eligibility for more
financial incentives

10. The Feedback Loop

11. These positive feedback interactions lead to
surprising results that are non-linear

12. Imagine if same employees keep getting the
majority of financial incentives

13. Big financial incentives create disparities
These disparities
weaken any system
such as organizations

14. Eggshells
would be very
hard to break if
they were
thicker

15. Thick cement
blocks are easy to
break the more
disparity there is
in their voids

16. Else, the
organization will
become like….
Do not allow for
disparity in your
organization

17. Shutters
Fragile Glass-Like
Organizations

18. 1 more
point

19. People future
rewards are based
on today's rewards

20. This may lead to
widening the gaps
within
organizations

21. Beware of the
inflation of
incentives

22. Do not limit your
incentives to monetary
ones; mix them with
other incentives such
as traveling