Why incentives don't work

01/27/2009 | Fast Company online

AT&T used to pay programmers for each line of code they produced. Executives found the incentive highly effective -- at producing never-ending programs. A phenomenon called the "focusing illusion" makes people bad at designing incentive plans, argue the authors of this article. "In a maddeningly multivariable environment, great management trumps great incentives, for the simple reason that managers are multivariable," they say.

View Full Article in:

Fast Company online

Published in Brief: