Saturday, November 22, 2008

Big bonus, bad thinking?

Link above goes to: The New York Times

Quote from the page:
Op-Ed Contributor
What’s the Value of a Big Bonus?
Published: November 20, 2008
If our tests mimic the real world, then higher bonuses may not only cost employers more but also discourage executives from working to the best of their ability.

Interesting research indicating that big bonuses actually impair cognitive function despite the motivation they provide. People want to do well for the big bonus but just having it out there, if I'm interpreting this article correctly, can impair mental function which is a counter-intuitive result which if true could explain a lot.

So remarkably, companies handing out big bonuses may be paying their people to do worse.
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