7. Whether a person is satisfied with his or
her relative value mainly depends on how
his or her compensation compares with
the compensation of his or her peers.
http://www.managementexchange.com/hack/simply-practical-model-compensation-management
9. At Gore, people are asked to indicate who’s making
the biggest contribution to Gore’s success.
No specific criteria are provided.
An associate typically is evaluated by 20-30 peers and
will evaluate 20-30 peers.
http://www.mixprize.org/story/innovation-democracy-wl-gores-original-management-model
10. The energy company AES has tested a system that
sets salaries through peer review.
In the experiment, each person sent a proposed
salary for himself or herself to everyone else in
the group.
Malone, Thomas W.: The Future of Work, p. 67.
11. A possibility is to let each person in a group
assign a percentage of the total compensation
budget to all the others.
The average of these numbers then determines
each person’s actual compensation.
Malone, Thomas W.: The Future of Work, p. 67.
13. At the company Fishbowl, colleagues are paid
on commission for doing tasks:
They can, for example, ask each other: ”I have
an extra half hour. Is there anything I can do to
help you finish a sale?”
https://hbr.org/2013/03/why-we-pay-all-our-employees-a
14. Harvard University Professor Roland Fryer, Jr. has
conducted large-scale studies paying students for
reading, grades, various behaviors, and test scores.
The results indicated positive outcomes, especially
for paying students to learn specific skills.
http://www.psychologytoday.com/blog/who-we-are/201005/motivating-students-learn
16. There is no
correlation
between
CEO pay and
company
performance
http://www.businessweek.com/articles/2014-07-22/for-ceos-correlation-between-pay-and-stock-performance-is-pretty-random
17. Financial incentives may reduce an person’s
natural inclination to complete a task and
derive pleasure from doing so.
Analysis by Bernd Irlenbusch of 51 separate studies.
http://timesmediamw.com/more-pay-equals-less-work/
19. When I taught 7th grade English, I frequently gave
stickers to my students. One day I ran out, and informed
my students that there will be no stickers for a few
days. A riot ensued. ”Where's my sticker?” ”I want a
sticker!” ”I won't do anything without a sticker!”
I discovered they had become addicted to stickers.
http://www.edutopia.org/blog/reward-fraud-richard-curwin
20. Studies by Edward Deci show that strategies
that focus primarily on the use of extrinsic
rewards do, indeed, run a serious risk of
diminishing rather than promoting intrinsic
motivation.
http://www.rug.nl/gmw/psychology/research/onderzoek_summerschool/firststep/content/papers/4.4.pdf
http://blogs.hbr.org/cs/2013/04/does_money_really_affect_motiv.html
21. Several studies show that there is less
than 2% overlap between pay and job
satisfaction levels.
In other words, you cannot buy
engagement with money.
https://hbr.org/2013/04/does-money-really-affect-motiv
http://www.timothy-judge.com/Judge,%20Piccolo,%20Podsakoff,%20et%20al.%20(JVB%202010).pdf
22. External rewards work well for routine,
mechanical tasks, such as those found
on a 20th century assembly line.
Analysis by Bernd Irlenbusch of 51 separate studies.
http://timesmediamw.com/more-pay-equals-less-work/
24. Question # 5
Should peple be paid an
individual bonus that must
be given to others?
25. National Australia Bank gave money to people
working for different companies and asked them to
give gifts to each other.
Teams that received pro-social bonuses performed
better after receiving the bonuses than teams that
received money to spend on themselves.
http://blogs.hbr.org/2013/10/the-bonus-employees-really-want-even-if-they-dont-know-it-yet/
27. In Santiago, Chile, drivers, who are
compensated with a fixed wage have
approximately 67% less accidents
per kilometer driven than drivers who
are paid per passenger transported.
http://www.nber.org/papers/w11744
28. At Whole Foods, the
top 7 executives get the
same pay and bonus.
http://online.wsj.com/article/SB10001424127887324235104578243673073627726.html
29. In the USA, emotional well-being levels
increase with salary levels up to a salary
of USD 75,000. Afterwards, they plateau.
http://www.pnas.org/content/early/2010/08/27/1011492107.abstract
http://blogs.hbr.org/cs/2013/04/does_money_really_affect_motiv.html
31. Edward Deci has found that money does
not work very well to motivate people
over the long term, particularly for tasks
that involve creativity.
http://www.time.com/time/nation/article/0,8599,1978589-2,00.html#ixzz0krFBzRx8
33. Question # 8
How are people praised
for results in non-
financial ways?
34. For a player - for any human being - there is
nothing better than hearing “Well done.”
http://hbr.org/2013/10/fergusons-formula/ar/4
Sir Alex Ferguson
35. Thank you. Great job. I really appreciated your
work on that project.
These words take less than 10 seconds to say.
http://www.forbes.com/sites/victorlipman/2013/02/09/in-praise-of-praise/
36. Non-financial incentives are more effective than financial incentives
http://www.mckinsey.com/insights/organization/motivating_people_getting_beyond_money
37. People reported that recognition of their
ideas was a reward in itself. They wanted to
be engaged and to participate.
We therefore involved people in presenting
their ideas to senior management.
http://sloanreview.mit.edu/the-magazine/2011-winter/52210/the-5-myths-of-innovation/
38. At your next department meeting, see if you
can find someone to praise for:
Coming up with some great ideas.
Trying something new.
Challenging the conventional way of thinking.
Bringing an external idea into the company.
Collaborating with a different department.
Making something happen.
http://www.bqf.org.uk/innovation/2010/04/06/praise-the-behaviours-you-want-to-see/
Paul Sloane
39. Indra Nooyi, CEO of PepsiCo,
sends the spouses of her top
team handwritten thank-you
letters.
http://www.mckinsey.com/insights/organization/increasing_the_meaning_quotient_of_work
42. Question # 9
How are people praised
for effort in non-
financial ways?
43. Study shows that it is much better to
praise a child for effort than
for their intelligence.
http://www.nytimes.com/1998/07/14/science/praise-children-for-effort-not-intelligence-study-says.html
46. Writing handwritten notes
may seem like a waste of
time. But in my experience,
they build goodwill and lead
to higher productivity.
Sources
http://youtu.be/9buGE_vKxcc
https://hbr.org/2011/02/secrets-of-positive-feedback
Douglas R. Conant