Final answer:
The downside to João's system of offering large bonuses for achieving goals can encourage unethical behavior by employees trying to achieve targets. Additionally, while it can motivate harder work, it may also reduce the overall incentive to work. Structured pay systems can also lead to a lack of responsiveness in bureaucracy.
Step-by-step explanation:
The question revolves around the potential downsides of using monetary rewards as a motivation tool within a team or organizational setting, as depicted by João's practice of offering large bonuses for achieving certain goals.
The primary concern illustrated in this case is that providing monetary rewards could potentially encourage unethical behavior, where employees might resort to cheating the system to achieve targets and receive bonuses. This could lead to a detrimental impact on the organizational culture and overall ethical standards.
Another downside, as noted by Davis and Moore, is that while rewarding important work with higher levels of income and prestige can encourage people to work harder, it might also reduce the incentive to work, as some employees might choose to work fewer hours but maintain a higher income with the help of bonuses.
Lastly, structured pay systems have the potential to make permanent employees too independent of elected leaders, potentially becoming less responsive to political change, and may sometimes shield chauvinistic impulses within a bureaucracy.