Ineffectiveness of Incentive Pay Programs
Today, most companies are employing incentive pay programs to promote the motivation and productivity of their workers. The move is cultivated by the pervasive assumption that a promise of an award encourages employees to increase their output and productivity. However, this is not usually the case. Incentive pay programs manipulate employees even more than seniority and merit pay programs. The programs tend to stimulate temporal compliance, especially in certain workplaces (Martocchio, 2013). The crux of the problem is connected to the unsuitable psychological assumptions among employees. In fact, research has shown that this is the major factor that undermines ...
