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Also standard works on this are:

Robert D. Austin, Measuring and Managing Performance in Organizations (1996). This book coined the term "measurement dysfunction" to describe how reward structures work against company goals.

And Alfie Kohn's 1993 article in Harvard Business Review where he summarizes decades of motivational research (also citing Herzberg), concluding that giving bonuses to staff is usually a bad idea, and it is an especially bad idea for jobs that require cognitive sophistication.

https://hbr.org/1993/09/why-incentive-plans-cannot-work



I'd also suggest the book Drive about motivation and how economic compensation can have counterproductive effects.

Edit: Oh, and dear Lord how could I forget Deming?! Most of the time we think we're measuring individual performance we're really measuring noise. And it's not individual performance but organisational performance that matters anyway.


Yep, Red Beads [0].

The system determines performance. Measuring variation within statistical process control and attributing it to individual effort is a mistake that keeps being made.

Many have made the effort to translate these ideas to knowledge work, so it's not like the manufacturing context is holding this concept back from being understood.

[0] https://deming.org/lessons-from-the-red-bead-experiment-with...




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