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Incentives Complexity
Incentives may have a sweet
topping; but underneath they
     may be deleterious
How?
Let us start on our
discovery journey
There is complexity in motivation and this
complexity warrants greater attention
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.
There is a switch over of
      preferences
A second point is the realization that
there exists a feedback mechanism that
    might lead to non-linear results.
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
The Feedback Loop
These positive feedback interactions lead to
   surprising results that are non-linear
Imagine if same employees keep getting the
     majority of financial incentives
Big financial incentives create disparities




                            These disparities
                           weaken any system
                          such as organizations
Eggshells
would be very
hard to break if
   they were
     thicker
Thick cement
blocks are easy to
 break the more
disparity there is
  in their voids
Else, the
organization will
 become like….




 Do not allow for
 disparity in your
   organization
Shutters




Fragile Glass-Like
  Organizations
1 more
 point
People future
rewards are based
on today's rewards
This may lead to
widening the gaps
     within
  organizations
Beware of the
 inflation of
  incentives
Do not limit your
incentives to monetary
 ones; mix them with
 other incentives such
      as traveling

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