I have blogged many times about the “iatrogenic” effects from paying big bonuses. Like when “Bonus Culture” inhibits creativity in the organisation and the observation that rewards sabotage people’s intrinsic motivation and sabotage good customer service. The idea of using rewards to drive/modify behaviour comes from the Old Psychology models. To get to understand the nature of intrinsic human motivation we need to look to New Psychology models.
Well the RSA have just produced this video summary in their Animate series from Dan Pink which summarises some of the other problems about paying bonuses, including a study at M.I.T. sponsored apparently by the USA Federal Reserve Bank.
