A fascinating study quoted by Dan Pink and Dan Ariely shows that incentives as a stimulator of performance may be misunderstood and misused. Higher incentives for more complex work actually reduced performance! So if we can’t use the carrot to achieve higher performance do we need to rely on more complex aspects of leadership? Do we need to find ways to inspire our staff, create meaning for them in the performance of their role and thereby creating an intrinsic driver for their achievement? How would we do that?
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