Why we are working? One may say that we are working to earn money, to have a power, to be a very important person. Let’s assume that these are the only or at least the most important reasons we are working. If so, why we like running, playing football, playing a guitar, reading books, learning etc. These activities give us a satisfaction but not money. In spite of that we are doing them, because we are taking care about our values!
There is a big difference between: want and have to do something. Financial benefits (carrots) are necessary to convince people to be responsible for the work they don’t like. Unfortunately, they are not sufficient. Some awards, a bonus payment, a health insurance, a company car – all of this things are connected with the money. Furthermore every penalty is nothing else than the lack of the financial benefits (stick). The image above shows an employer who is motivated by three carrots e.g bonus payments. The question suggests that the man has a lot of responsibilities and a promise of a reward. A lot of mangers thinks that one person could be as efficient as a group of people when we promised him a great reward. Unfortunately, it is not so simple. In this case the man could be frustrated, because getting a carrot may be too difficult for him. In the same time he has to do his job as usually, because of the penalty, e.g lack of promotion.
On the other hard if we like our work we will do everything to work efficiently and improve the quality of the products without any reward or bonuses. It is a big challenge to the leaders to motivate employees without using a carrot or a stick. Truly motivated people, who likes their job, are ready to take a risk and do impossible things for the company and for themselves.