There are examples to show incentives are good: they improve some behaviors and are a way to give people what they want in exchange for effort you want. There are also examples of why incentives are bad: they promote individuality at the expense of teamwork, they morph motivation to extrinsic rewards when motivation could (should?) be intrinsic, people always find ways to game the system.
Context is the Key
It’s like saying is fat bad? Too much is, so is too little. And it depends what kind, what else you eat etc.
Incentives are good for some things, bad for others. On top of that some people respond to them differently from others. Management is part science and part art. The smaller your group of people (less than a dozen) the more exceptions there are to the “science” and the more important is the art of knowing each person and what works for them and how to give people what they want/need without making others feel things are unfair.
If you’re in the USA – have a happy Thanksgiving Day this Thursday. If you’re not in the USA be thankful. (Double entendre intended.)
[tags] management, CEO skills, small business, entrepreneur [/tags]