PERFORMANCE MANAGEMENT: ASSIGNMENT 4

BY: NIHARIKA THAKKAR (NISHU)

DATAE: 19th February, 2020
PAY PERFORMANCE BY DAN PINK

Motivation is the reason can make employees feel stronger and more powerful to do work.
Dan Pink says about pay for performance that money does not work for motivation every
time. To explain, the organization being focus in payment of extra wages to employees instead
of develop creativity which reduce the skills in long term basis. Mr. Den Pink believes that
there is a mismatch between what science knows and what business does so human
psychology does not correlate with corporate life. People will stick to the old ways of doing
things because all they are looking for is a good rating more money.

Moreover, Dan Pink challenged the ancient strategy of incentive for better performance and
he has proved by giving example of psychologist Karl Dunker’s ‘Candle Puzzle’. Candle puzzle
would show behavioral science and how ineffective incentive with creative tasks, he also says
that employees get impact by two types of motivation: intrinsic and extrinsic. Intrinsic
motivation comes from inside where extrinsic motivation is motivators from outside that very
effective to achieve the goals. Then, He gave three elements for performance to encourage
employees: autonomy, mastery and purpose.

According to Dan Pink, these approach incline intrinsic motivation: Autonomy means the urge
to direct our own lives, Mastery means the desire to get better and better at something that
matters and purpose means the yearning to do what we do in the service of something larger
than ourselves. Dan Pink said that if someone wants engagement, self-direction works better
for example like Google and their twenty percent time policy. The policy lets their employees
dedicate twenty percent of their time to do whatever they want to work on. This has helped
create ideas such as Gmail and GoogleDocs and become a big success in creative thinking.

On the other side, if I talk about Bacal’s view, rewarding high performers maybe part of good
management. He also mentioned that extra pay for performance may motivate some and
upset and anger others, pay performance tends to put manager and employee on opposite
sides of the table, sometimes making more difficult to work together as employee seek to
maximize his pay while manger want minimize payroll costs. Furthermore, ratings are not
accurate enough; it has many biases which lead to inconsistent measures of productivity or
employee value. According to Bacal, every approach has advantages and disadvantages. There
are other ways by gain sharing or tying rewards to team performance rather than to individual
performance.

In conclusion, as per my opinion, Dan Pink and Bacal have similar perspective to see pay
performance. They think that over pay performance affect creativity of employees and pay
performance on the basis of ratings are not fair and valid enough to determine pay.
Companies have different ways of motivating their workers and some have adopted the new
system of Dan pink while others are still using the old system.