Paradoxical effect of incentives on decision-aid performance


1) Use the article attached that addresses the ethical issues associated with performance-based incentive systems.

2) Analyze the issue and devise an adaptation of the incentive system discussed in the article to increase ethical behavior.

o This might mean that you offer an alternative to a strictly sales-based incentive system.
o Consider the three major approaches (utilitarian, rights and duties, and fairness and justice) when discussing your alternative.

• Describe how organizations can design systems that support ethical behavior, while also providing incentives for high levels of performance.

Source:

An Effort Based Analysis of the Paradoxical Effects of Incentives on Decision-Aided Performance

JANET A. SAMUELS and STACEY M. WHITECOTTON,

Journal of Behavioral Decision Making
J. Behav. Dec. Making,, 24: 345-360 (2011)
Published online 2 March 2010 in Wiley Online Library

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