The Harvard Case The best laid incentive plans highlights a very important point about motivation. Distortions occur. In other words, when you create an incentive plan, you motivate two types of behavior:

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The Harvard Case The best laid incentive plans highlights a very important point about motivation. Distortions occur. In other words, when you create an incentive plan, you motivate two types of behavior: The kind you want, and the kind you don t want. This case, in combination with the articles by Kohn and Herzberg suggest that money may not be the best thing in the world to motivate your employees. Be ready to discuss all three articles in addition to the Steve Kerr article on The Folly of Rewarding A while hoping for B . For the paper to be handed in, answer the following: 1. Why do you believe managers put so much faith in pay for performance plans? 2. There is an aphorism among managers known as Cash is King . Looking at firm practices, most would agree that this is the case. What do you think about the prevalent use of cash incentives? Is Cash overused?

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