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Consider This!

On the Folly of Rewarding A While Hoping for B
Getty Images Managers who complain about the lack of motivation in

workers might do well to examine whether the reward
system encourages behavior different from what they
are seeking. People usually determine which activities
are rewarded and then seek to do those things, to the virtual exclusion of activities
not rewarded. Nevertheless, there are numerous examples of fouled-up systems that
reward unwanted behaviors, whereas the desired actions are not being rewarded
at all.
In sports, for example, most coaches stress teamwork, proper attitude, and one-for-
all spirit. However, rewards are usually distributed according to individual performance.
The college basketball player who passes the ball to teammates instead of shooting
will not compile impressive scoring statistics and will be less likely to be drafted by the
pros. The big-league baseball player who hits to advance the runner rather than to score
a home run is less likely to win the titles that guarantee big salaries. In universities, a
primary goal is the transfer of knowledge from professors to students, yet professors
are rewarded primarily for research and publication, not for their commitment to good
teaching. Students are rewarded for making good grades, not necessarily for acquiring
knowledge, and may resort to cheating rather than risk a low grade on their college
transcript.
In business, there are often similar discrepancies between the desired behaviors and
those rewarded. For example, see the following table.
What do a majority of managers see as the major obstacles to dealing with fouled-up
reward systems?

1. The inability to break out of old ways of thinking about reward and recognition. This
includes entitlement mentality in workers and resistance by management to revamp
performance review and reward systems.
2. Lack of an overall systems view of performance and results. This is particularly true
of systems that promote subunit results at the expense of the total organization.
3. Continuing focus on short-term results by management and shareholders.
Motivation theories must be sound because people do what they are rewarded for. But
when will organizations learn to reward what they say they want?
Sources: Steven Kerr, “An Academy Classic: On the Folly of Rewarding A, While Hoping for B,” and
“More on the Folly,” Academy of Management Executive 9, no. 1 (1995), pp. 7–16.

Managers Hope For But They Reward
Teamwork and collaboration The best individual performers
Innovative thinking and risk taking Proven methods and not making
mistakes
Development of people skills Technical achievements and
accomplishment
Employee involvement and Tight control over operations and
empowerment resources
High achievement Another year’s routine effort
Commitment to quality Shipping on time, even with defects
Long-term growth Quarterly earnings

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