How Leaders Manage

Incentive

When you think of how people internally operate, you might think that it’s a vast and complex system of variables and obscure inherited traits that each person has genetically encoded. You might be inclined to think that each person is motivated by something different. You may even think that YOU are motivated by something different.

Well believe it or not; all incentives can be grouped into only three categories:

Economic Incentives – Sales are down. So a money reward is put in place. Anyone who increases their sales gets and extra $500 added to their paycheck.

Social Incentives – This is a simple caparison of one person to everyone else. It can compare activity and accomplishments. The best social incentives offer recognition for great work. The second best is to recognize the lowest performer. Although very painful, it is a rather effective form of negative reinforcement.

Moral Incentives- A moral…

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