{IncentivesTeam Members:Pallav GuptaMayur DubeyGaurav Singh

We are not endlessly

Manipulable and Predictable as

you would think.

When tasks require some conceptual, creative thinking

then incentives don't work.

For Simple Straight forward tasks,

incentives works. Performance is Outstanding.

AutonomyMasteryPurpose

3 Factors

Autonomy

Mastery

Challenge in Mastery and Making a Contribution

Purpose

Financial Incentives: Some form of material reward, especially money.

Coercive Incentive: Person can expect that the failure to act in a particular way will result in physical force being used against them.

Categories

A person acting on a moral incentive can expect a sense of

self-esteem, and approval or even admiration from his

community.

Moral Incentives

Natural Incentives: Mental or physical exercise, admiration, fear, anger, pain, joy, or the pursuit of truth, or the control over things in the world

or people or oneself.

Personal incentives: Motivate an individual person through their tastes, desires, sense of duty, pride, personal drives to artistic creation or to achieve remarkable feats.

Financial incentives are far over rated in business settings.

Cash is not always the answer to the question how to reward my employees, showing appreciation to their work might help.

People get immediately acclaimed to financial incentives.

Why Financial Incentives Doesn’t Work ?

A Dog food manufacturing company in boston has poor employees.

Employees were given turkey for Christmas first year. They were quite happy to see their owner giving gifts for christmas. They were morally motivated.

Next year they were again provided with turkey for christmas but nothing really happened so they started treating it as their god given right to receive gifts from their owner.

From third year they started complaining. We should motivate our employees that what they are

doing is important, this is far more effective for long run than giving money.

Example

In Google people love working in google, they believe in google.

Google gives 20% of the time a week to do anything what they like and anywhere.

Total freedom is provided to them because google believes in their employees that are going to generate values for the company.

So Every manager should inculcate into the employees why what they are doing is important and why does it matters.

Google