Tuesday, November 4, 2008

Sins of Commission

Incentives and Commission – a boon or bane? While in some cases it encourages short term growth and improves performance, it evinces a lot of unwarranted results. The first illustrated incident wherin the couple ultimately decide to choose a different dealer exemplies this fact. Customer service and encuragement of dealer loyalty should be stressed for desired results. The next incident regarding the truckers in New Mexico displays how a well intentioned strategy went awry. Either the workforce should have been increased or the hazards of carrying overweight garbage and speeding should have been stressed enough. Assigning manageable tasks in the required timeframe might have been more efficient in this case. The belief that employee compensation contributes to the company performance and management issues is a misconception as this can produce undesirable effects. Instituting merit pay for teachers to teach children has found to lead to cheating on the part of teachers. Behaviour is a function of the person and the environment and these cases elucidate this fact.

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