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The Incentive Myth

Traditionally, if you want something done by another person, you can simply commission it. In business, the most obvious example of this is the hiring of people who are paid to work on specific tasks. For particularly important tasks, incentives are built in to increase employees' motivation. There's even an old saying spoken in countless Principles of Management classrooms: “If you want something done in business, measure it. If you want something done well, monetize it.” This method has its roots in the early management practices of the industrial era; individuals were hired to complete specific tasks inside a highly structured factory. As the economy grew, despite its shift from industry to information, the old methods ...

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