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You are missing a basic point. Schemes laid on workers to "motivate" them, to force them to produce more, to bribe or threaten them to do better work never aids intrinsic motivation. These schemes reduce the workers' inherent need to do good work. Further, these schemes make the workers care less about the company. They may care more about chasing the rewards, but they care less about the company. Another of your basic errors is the assumption that compensation is only extrinsic motivation. Of course most of us would not work for free. That we are compensated is normal. Adequate compensation is a neutral thing. It can be used (abused?) as an extrinsic tool, and WILL cause damage. Pay-for-performance schemes pit workers against one another, and causes the work force to focus on the scheme rather than the work. Your suggestion of a blend shows you still don't get it. Here are a couple of illustrations of this point. A father spends a lot of quality time with his kids. He shows a great role model -- energetic, courteous, gentle, hard-working, loving, responsible, considerate, trusting. Then one day he gets fed up with the way one kid is nasty to the other, even after repeated "consultations" with Dad, and the father back-hands him, knocking him down, teaching him a lesson, making sure the kids understand about not sparing the rod. What lesson have the kids just learned? What about all this courteous, considerate, gentle, loving bull***t? Maybe a more relevant example. A manager spends a lot of time trying to develop good communication laterally and vertically in his organization. He encourages honest feedback. He gives and receives it well. Things are gradually starting to improve. He is learning more about how his operation works than ever before. To add to the improvement, he installs a Friday afternoon meeting where all the shop managers get together and present informational items where the boss rates them, and gives out points on how important they are, how much improvement it shows, and valuable it is that problem info is brought up in a timely manner to be nipped in the bud, so to speak. The points will decide who gets what bonuses, trips, badges, etc. All of a sudden, the picture changes. After a few weeks he realizes that what he is hearing bears little resemblance to what is actually happpening. He no longer hears of problems. Everyone's project is reported in glowing terms. He has a special meeting where he decrees that everyone must give him the real info. Nothing changes. He has another meeting where he chastises a guy who obviously sugar-coated his reports to get points. He makes it known that it will reflect in the new performance appraisal system he is working on. Now the info the boss gets bears absolutely no semblance to reality. Extrinsic destroys instrinsic.
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