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Monetary rewards harm performance

  • Business author has suggested that financial incentives for employees can actually harm their performance.

    Through his book ‘Drive: The Surprising Truth About What Motivates Us’ American author Daniel Pink has used behavioural science to claim that monetary rewards dull employees thinking and block creativity.

    Pink, whose research is reportedly backed by University of Chicago, and the London School of Economics, has said that pride, wanting to share and robust social conventions push workers to perform better in creative ways. He also sited that autonomy, mastery and purpose are the intrinsic three building blocks for motivation.

    In terms lean thinking Pink’s book seems to support the idea that innovative lean cannot be implemented more effectively or quickly with the help of financial rewards.

    Motivating workers with praise, responsibility and time to develop their own ideas is free and can eliminate costly and time-consuming processes from a number of areas in your businesses.

    Pink has also suggested that giving employees a fair share of profits and then providing them with autonomy is a better motivational tool than paying them a low wage with big monetary incentives.

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