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Monetary Motivation: Too Much of a Good Thing is Bad, Too

Why monetary motivation causes productivity deviation. Also: one inventive expert's insight into road bumps that impede innovation.

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Offering a bonus can make employees more dedicated to a project, but there’s such a thing as too much of a good thing.

So says The Build Network’s Adam Vaccaro  (opens in a new tab), referencing the results of a psychological study from Radboud University  (opens in a new tab) in the Netherlands. It found that participants whose brains normally had a high level of dopamine—the chemical that stimulates reward-seeking behavior—proved less skilled at accomplishing a designated analytical task when they were promised a bigger reward than did those who were offered a smaller one.

While Vaccaro says the research exposes a noteworthy characteristic, he points out that the study wasn’t conducted in a work environment.

“[E]ven if it was in a business atmosphere, and even if you knew all your employees had high dopamine levels, the task itself was still the sort of deadline-driven work that required a very specific solution,” he writes. “So the findings might not be applicable to more collaborative, open-ended, left-brain sort of work.”

Still, Vaccaro says, the study makes an intriguing finding on how rewards don’t always equal a greater work performance.

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Is creativity really that hard to harness? Writer and speaker Gregg Fraley offers  (opens in a new tab) up eight politically incorrect statements frequently made about innovation:

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Alexis Williams

Alexis Williams & Alexis Davis are contributors to Associations Now.

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Tags: #employee performance #Leadership #Motivation #psychology

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