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EXERCISE 1-11 Intrinsic Motivation and Extrinsic Incentives In a Harvard Business Review article titled Why Incentive Plans Cannot Work. (Volume 71, Issue 5) author Alfie Kohn wrote: Research suggests that, by and large, rewards succeed at securing one thing only: temporary compliance. When it comes to producing lasting change in attitudes and behavior, however, rewards, like punishment, are strikingly ineffective. Once the rewards run out, people revert to their old behaviors... . Incentives, a version of what psychologists call extrinsic motivators, do not alter the attitudes that underlie our behaviors. They do not create an enduring com mitment to any value or action. Rather, incentives merely-and temporarily-change what we do. Required: 1. Do you agree with this quote? Why? 2. As a manager, how would you seek to motivate your employees? 3. As a manager, would you use financial incentives to compensate your employees? If so, what would be the keys to using them effectively? If not, then how would you compensate you employees?

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