THE REWARD SYSTEM

Every organization is characterized by a particular type of reward structure, often differing from person to person and from department to department.

As author Michael LeBoeuf says in his book, The Greatest Management Principle in the World: “What gets rewarded gets done.” If you want more of something in an organization, simply create greater rewards for that behavior. If you want less of an activity in an organization, simply reduce the rewards, or increase the punishment or disapproval for that behavior. People respond to incentives.

It is quite common for companies to identify their most profitable products and services, and then increase the percentage of commission that salespeople will receive for selling those specific ...

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