Question

How do incentive systems sometimes promote the wrong behaviors?

a) Incentive systems always promote the right behaviors.
b) Incentive systems encourage ethical behavior.
c) Incentive systems may lead to unethical actions.
d) Incentive systems are unrelated to behavior.

Answer 1

Incentive systems sometimes promote the wrong behaviors by creating unintended consequences, encouraging unethical tactics, and undermining intrinsic motivation.

Step-by-step explanation:

Incentive systems sometimes promote the wrong behaviors because they can create unintended consequences. For example, if a company implements a sales incentive program based solely on the number of units sold, it may encourage employees to use unethical tactics to meet their targets. This can lead to dishonesty, manipulation, and the sacrifice of quality in order to achieve the desired outcomes.

Incentive systems that focus solely on tangible rewards like money can also undermine intrinsic motivation. When individuals are motivated by intrinsic factors such as personal satisfaction or a sense of purpose, the introduction of extrinsic rewards can actually decrease their motivation. This is known as the undermining effect.

Overall, while incentive systems can be effective in driving certain behaviors, they must be designed carefully to avoid promoting the wrong behaviors. They should consider a range of factors, including the potential for unintended consequences and the impact on intrinsic motivation.