An article written by
How to carefully designed incentives, cash rewards, social acceptance, and daily appreciations that motivates a person toward its goal?
This article is based on behavioral techniques through which a person learns to replace healthy behaviors with defective behaviors. These techniques are well explained with some practical life examples.
Paras Meer Works as a clinical psychologist at willing ways. She joined willing ways in April 2017 as researcher and clinical psychologist. She has done MS (Health Psychology) and BS (Hons) in Applied Psychology from Lahore College for Women University, Lahore. Counseling Psychology, Clinical Psychology, Organizational Psychology and Research are her areas of interest and Specialty.Readmore…
Editor: Sehrish sarfraz
In beginning in 2011, Wells Fargo bank workers opened more than 2 million sham bank and credit card accounts in their customers’ names, for charging heavy fee from their customers. What is the purpose behind this activity? Incentives and job promotion drove the employees to do this. But at this time company assign some targets to the employees regarding issuance of credit cards. This target is difficult for them to achieve and cause too much stress and anxiety in most of the bankers. After the scandal was exposed bank was fined and bounded to reimburse consumers at least $2.6 million. Many sales rapes were fired at this time. But the bank had little profited from this creation. At this time company new head said that in first setting we would remove incentives that could endorse bad behavior.
Researchers showed that if goals are unrealistic and you used fraud and cheating to achieve them, other will also cheat you. They will commit fraud to make their strategy successful but they failed to achieve their target.
What Will Get You to Do What’s Right?
Communities need their members behave in civilized way and follow norms and value- to obey traffic rules, dispose wastes properly, donate blood etc. but how and when people become willing to do this? How to motivate the people to increase their participation in these activities? The ongoing challenge that behavioral economist faced under which conditions people respond with more interest and what are incentives for them? How incentives shape their behaviors? The most common response is to design such an incentive so selfish people do right things to get their incentive.
Sometime intrinsic motivation plays more significant role then extrinsic reward. If we add extrinsic reward it cause decline in performance based on intrinsic reward. A study finding showed that students collect more funds for cancer patients to satisfy their selves to get appreciation and acknowledgement based on intrinsic motivation. But when commissions are offered to them for collecting more funds- add extrinsic reward to get more effective result, it cause decline in their performance.
Poorly designed incentives poison the work performance of even more altruistic people. Oncologists, for example, have been found to prescribe more chemotherapy drug when their compensation is tied to the capacity they administer. If you introduce materialistic rewards to intrinsically motivated people for accomplishing your goals, then they focus their incentive rather and lose their identity as professional.