When searching for tools to motivate our people, we can take the choice of making visible rankings , where each one can know which is his/her mark, as well as others classification.
When doing this, we expect to satisfy and recognize the effort of the high-performers and motivate the low –performers in order to improve.
This is a general belief, but in July 2.010 a paper has been published, demonstrating the opposite
“Rankings and Social Tournaments” from professor Iwan Barankay conclusion is that rank incentives are negative in the sense that demotivate high-performers, while is not getting much or better from low-performers
When a High-P knows the classification, trends to reduce his/her effort.
After the experiments, where two groups of workers, one receiving feedback, the other being considered as reference group, were asked to return to work, “those who receive feedback are 30% less likely to return and when the do come back they are 22% less productive”.
While High-P can search for other challenges, the Low-P can’t expect to have opportunities in the market, so this trend will drive to retaining only the Low-P.
If there is no clear indication taht some individuals or, much better, some teams, will be positively motivated by knowing the ranking, it’s better not to use the system.
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