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Project Team Rewards

Literature Review

Table 3: Reward Pros and Cons

Some more arguments against rewards exist (see also Table 3). Sprenger (2002) argues

rewards make people try to get the reward but not necessarily do the task (see Figure 3,

p. 9, for illustration and explanation). Baker et al. (1988:597) emphasise that rewards are

“too effective”; employees would only follow their job description but do nothing else if

they get rewards (see also Appendix VI: Example of Bad Reward Practice, p. 94). Burgess

& Turner (2000) state, rewards could only buy temporarily compliance but no real

Corruption costs are a hypothetical concept and not proven by

empirical research

Rewards undermine intrinsic motivation only when rewards are

applied to activities that people would engage in without rewards

Rewards decrease creativity

Rewards can create creativity if creativity is rewarded

Studies prove that rewards do not work (at least in the

long term and also often in short term)

Research shows that reward systems can work and money does

motivate (also in long-term)

People do not want incentives

People feel it is fair if they get more when they do more

Work Environment helps to satisfy needs

Money helps satisfying needs

Rewards may create winners but where winners are,

loser exist, too

Positive performance feedback can counteract losing a reward

Rewards only motivate people to get the reward, not to

Rewards make people do things that they wouldn't normaly do

Rewards make people take less risks and therefore

prevent innovations

Incentives increase personal costs for risks and increase safety which

may be beneficial

Rewards are flexible

Intrinsic motivation is difficult to change and therefore inflexible

Rewards only buy compliance but no real commitment

Rewards help to communicate the company's values, performance,

standards, and expectations

Rewards ignore reasons are and function as a

substitute for good leadership/management

Studies show that rewards have no negative effect on continuous

Rewards are immediate in impact

Intrinsic motivation is difficult to create

Intrinsic motivation can lead to unwanted actions

Intrinsic motivation becomes less if the same activity is repeated

If at all, rewards can make people create more of

something, but on the cost of quality

Rewards make people focusing on what is important (quality, time,

safety, team work, skills acquisition)

Rewards make people feel controlled

Rewards create a sense of ownership

Rewards rupture relations

Money makes people feel they are valued

Poeten (2002), Appelbaum et al. (1999), Slavin (1991), Orr (2004), Bragg (2000), Langley (2005)

Table 3: Reward Pros and Cons

Rewards decrease intrinsic motivation and are therefore

counterproductive ("corruption effect")

Rewards' positive effects are only very short term

Intrinsic rewards motivate much deeper and inherently

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