Motivation | Why Money isn’t everything
Motivation | CEO 1st 100 days problem
In todays’ reward and punish system , a new CEO of a company has about 100 days to show results , else when the earnings are out , all eyes will be on him . The problem is everybody wants results , and as quickly as possible . Sometimes these quick fixes are really very poor band aids and good in the short term , and harm the company in the longer term .
This is like a normal car salesman . He gets his commission the moment sales is done . He does not care about after sales , car maintenance and customer complaints because he has already received his incentives . These are short term and may not do well in the long term . If the salesman’s commission and incentives are tied to longer term goals , such as after sales on customer feedback on maintenance and everything about the car , the salesman will do activities that is more balanced in both the short and longer term which truly benefits both customers and the organizations
Motivation | Money and the creative right brain
We know that money isn’t everything when it comes to motivation . Here are 2 very interesting articles from Daniel Pink , author of the book “A whole new mind” about motivation . In his book , Dan talks about the right side of the brain dominating today’s global economy . Our left brain hemisphere which controls logical thinking , sequential , linear and analytical are essential , but not enough . We need to develop our creative right brain capabilities (empathy , artistry , vision , big picture ) . In Dan’s book “Drive” , he believes that to motivate right brain creativity , it can be done with more human and less material incentives . In this video , he has CEO of System Source talking about scrapping sales commission in 1994 , because it disrupts customers’ effort . The reality seems to be that money de-focus the original intent or purpose of the act or task itself .
See the video below .
Motivation | Monetary incentives led to poorer performance
What is the normal typical motivation scheme in many organizations ? We rewards the top performers and non-performers don’t get anything. Basically , if you reward something , you get more of the behavior that you want . If you punish something , you get less of the behavior that you want. .
Conclusion : If the task involve routine task or purely mechanical type of skills , bonuses work as expected . The higher the payout the better the performance . This is the traditional carrot and stick approach that we used to know
However , according to Dan , some study has shown that , once the task involve some rudimentary cognitive skills , the results is reversed , which is larger rewards led to poorer performance . This is surely unexpected . How can this possibly be ?
Watch this video from RSA (Daniel Pink)
Let’s examine some of Daniel Pink’s findings
1. Monetary incentives led to poorer performance . Traditional “stick and carrot” motivation is only good for routine , mechanical task oriented activities and not for task that require even rudimentary cognitive skills . Breakthrough requiring creativity , visionary , conceptual thinking that requires the right brain , the type of motivation or incentives are not necessary monetary , but more on human incentives such as recognition , purpose and self direction .
2. People needs to be paid enough , so that they don’t have to worry about about them .
3. To motivate the right brain type of activities , we need human incentives or motivation , and according to Dan , they are autonomy , mastery and purpose
There is another report with similar results and findings . [For full report]
Motivation | Summary
In summary , there are 3 things we need to work on other than money . Allow some degree of autonomy in doing what they like to do and how they want to do it , doing things that they care very , very much and start treating everyone as humans who needs a sense of purpose and meaning in what they do . So who says motivation cost a lot money ?