Module 7 discussion W. Edwards Deming often referred to as the leading quality guru in the United States and psychologist Alfie Kohn support the idea that incentive pay is not a motivator for individuals to do a good job. Yet economists argue that incentive compensation does work and as economist George Baker notes in his 1993 article in the Harvard Business Review titled “Rethinking Rewards ” “The problem is not that incentives can’t work but that they work too well.” What does Baker mean? Discuss the importance of a welldeveloped compensation plan in attracting and retaining good employees and how to keep those plans from “working too well.”
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