A poorly designed incentive plan can motivate the wrong behaviors and create anger and indifference.

Question

Quizplus · Accepted Answer

It is true that a poorly designed incentive plan can motivate the wrong behaviors and create negative emotions such as anger and indifference among employees or participants. For instance, an incentive program that gets people to achieve goals at any cost or by unethical or illegal means can lead to a decline in quality, teamwork, customer satisfaction, morale, and trust. Likewise, if people perceive the rewards as too small or too difficult to attain, or if they feel that the system is unfair, arbitrary, or biased, they may lose their interest, enthusiasm, and commitment. Therefore, incentive plans must be carefully designed, communicated, monitored, and revised to align with the organization's objectives, values, culture, and context, and to avoid unintended consequences.

A Poorly Designed Incentive Plan Can Motivate the Wrong Behaviors