On the folly

I am tempted to write “of attempting to fly out of a New York area airport on a summer afternoon,” but in truth I’m referring to another of my favorite papers, this one on organizational/incentive theory (and apropos of the post below).

On the Folly of Rewarding A, While Hoping for B

…Managers who complain that their workers are not motivated might do well to consider the possibility that they have installed reward systems which are paying off for behaviors other than those they are seeking. This, in part, is what happened in Vietnam, and this is what regularly frustrates societal efforts to bring about honest politicians, civic-minded managers, etc. This certainly is what happened in both the manufacturing and the insurance companies.

A first step for such managers might be to find out what behaviors currently are being rewarded. Perhaps an instrument similar to that used in the manufacturing firm could be useful for this purpose. Chances are excellent that these managers will be surprised by what they find-that their firms are not rewarding what they assume they are. In fact, such undesirable behavior by organizational members as they have observed may be explained largely by the reward systems in use.

This is not to say that all organizational behavior is determined by formal rewards and punishments. Certainly it is true that in the absence of formal reinforcement some soldiers will be patriotic, some presidents will be ecology minded, and some orphanage directors will care about children. The point, however, is that in such cases the rewarder is not causing the behaviors desired but is only a fortunate bystander. For an organization to act upon its members, the formal reward system should positively reinforce desired behaviors, not constitute an obstacle to be overcome.

It might be wise to underscore the obvious fact that there is nothing really new in what has been said. In both theory and practice these matters have been mentioned before. Thus in many states Good Samaritan laws have been installed to protect doctors who stop to assist a stricken motorist. In states without such laws it is commonplace for doctors to refuse to stop, for fear of involvement in a subsequent lawsuit. In college basketball additional penalties have been instituted against players who foul their opponents deliberately. It has long been argued by Milton Friedman and others that penalties should be altered so as to make it irrational to disobey the ecology laws, and so on.

By altering the reward system the organization escapes the necessity of selecting only desirable people or of trying to alter undesirable ones. In Skinnerian terms (as described in 11, p. 704), “As for responsibility and goodness-as commonly defined-no one . . . would want or need them. They refer to a man’s behaving well despite the absence of positive reinforcement that is obviously sufficient to explain it. Where such reinforcement exists, ‘no one needs goodness.’ “

Steven Kerr, Academy of Management Journal 18(4), 1977, 769-783

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One Response to On the folly

  1. Pingback: Atlanta schools: K-score 9 | aluation

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