Easily measured, easily understood goals need to be carefully designed and agreed upon. Performance needs to be assessed fairly to avoid violent end-of-year arguments. Difficult messages need to be delivered with actionable suggestions, so an employee sees a clear path to greater rewards in the future. But the most difficult job in redesigning ince

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Cultures use incentive systems too. Instead of physical shocks or jail time as penalties, cultures enforce their values with social and psychological punishments like criticism, ridicule, shame, and ostracism. Instead of Snausages or money, they use rewards like praise, acceptance, approval, respect, and admiration.

Initial evidence suggests that monetary payments often crowd out existing motivations by activating extrinsic rather than intrinsic values. As the case studies described below reveal, there may be far wiser ways – drawing on what we now know about values, nudges, networks and reciprocity – to nurture human nature towards the Doughnut’s safe and jus

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