Economics

Running Head : Economics of Behavior

: Economics of Behavior

Name

Institution

Economics of Behavior

Alfie Kohn 's , Why Incentive Plans Cannot Work , highlights the deficiencies of incentive program to help corporations motivate employees . According to Kohn , the programs could end up achieving the opposite : de-motivating labor force to undertake their duties and responsibilities as expected by the management and shareholders . This short analysis links Kohn 's article with economic of behavior that is how individuals make choices at the presence of incentives . Kohn observes that individuals are employed to

take specific roles in respective capacities . Remuneration is purely based on the amount and quality of work performed , as per job s and agreements made at the point of employment

The additional pay in form of incentives , such as bonus wages commissions , and paid vacations are meant to motivate employees to put extra effort in their work . Unfortunately human behavior lead to people achieving the bare minimum required to get the extra pay . This leads to Kohn 's argument that incentives limit employee capacity to perform to their maximum abilities . Kohn argues that the absence of incentives leads to employees working in accordance to their abilities - there is no level at which employees must perform in to get noticed . On the contrary , senior management band supervisors end up employing more progressive measures of recognizing and rewarding employees ' efforts Simple measure measures as providing feedback to employees , constant communication and involving them in organizational decision making processes go a long way...