Topic > A Look at Negative Incentives - 1035

Negative incentives are any action that discourages behavior or provides a solution for unwanted behavior. One of the most common types of negative incentives is financial punishment. At one of my previous jobs, Ace Hardware, the company did profit sharing. Profit sharing is the distribution of profits among employees. Profit sharing is a positive incentive; however, I was more likely to thrive in the workplace whenever my job was threatened. On one occasion, while working at Ace Hardware, I gave the wrong price on a piece of sheet metal resulting in a loss of profit for the company. That week I was punished with a decrease in working hours. Since that incident I have been careful not to give incorrect prices. I always double-checked prices before sharing them with customers. Studies have been conducted to show that negative incentives are more effective in monetary situations. For example, a random group of people of all ages took part in an experiment that involved solving anagrams. Half of the participants started with money and were told that they would lose that money if they were unable to solve the anagrams. The other half of the participants, however, had to earn their own money. The study ended with participants who were threatened with losing their initial money being more successful than their counterpart participants. One website, Stickk.com, allows people to make commitment contracts for people to achieve any personal goal. People who fill out pledge contracts place a monetary bet on the website, bound by a contract, and if that person fails to complete his goal, he loses the money originally wagered. According to Kelly Goldsmith, an as.. .... half of the document ......and operational objectives, you need to develop an action plan to help employees follow a course of action necessary to achieve that objective. Consistent with a possible decrease in work productivity, continuous negative incentives can lead employees to separate from colleagues. Separation can lead to low morale and dissatisfaction in the workplace, resulting in poor teamwork and inhibiting any possible growth of ideas and innovations for the company. It is important for front-line management to continuously monitor their employees to ensure high morale and workplace satisfaction. The human relations movement theory suggests that better human relations can increase worker productivity, so it is important for middle management to implement the proper policies and plans for front-line management to follow and direct to employees.