16 May 2012

High financial reward doesn´t always lead to better performances

Most people think that the higher an expected financial reward is, the harder people will work (and the better they will perform). Fact is, this is only the case when rewards are moderate.
Researchers from the California Institute of Technology (Caltech) found that when people get too much money for performing a certain task, they will be afraid of losing this reward and they will perform worse...
The perfect amount of reward differs per person however (and is related to the amount of fear they experience of losing money).

Read more about this research at http://media.caltech.edu/press_releases/13512


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