Motivation | Why Money isn’t everything

WHY money not everything e1335262836638 Motivation | Why Money isnt 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 ?

 

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