Module 7 discussion
W. Edwards Deming, often referred to as the leading quality
guru in the United States, and psychologist Alfie Kohn support the idea that
incentive pay is not a motivator for individuals to do a good job. Yet
economists argue that incentive compensation does work and as economist George
Baker notes in his 1993 article in the Harvard Business Review titled
“Rethinking Rewards,” “The problem is not that incentives can’t
work but that they work too well.” What does Baker mean? Discuss the
importance of a well-developed compensation plan in attracting and retaining
good employees and how to keep those plans from “working too well.”
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