Papa Bill's, a local pizza chain, instituted a new compensation policy to increase the on-time delivery of its pizzas. Drivers were paid an extra $1.00 for each on-time delivery, payable on the next pay period. However, a review of the policy showed that traffic tickets for reckless driving among delivery drivers had increased by 50% since the new policy was introduced. Which of the following best explains why this reward system did not perform as expected?
A)The organization was unintentionally rewarding counterproductive behavior.
B)Employees viewed the $1.00 incentive as an entitlement.
C)The delay was too long between the performance and the reward.
D)The organization placed too much emphasis on monetary rewards.
E)The reward lacked an "appreciation effect."

Question

Quizplus · Accepted Answer

Despite huge investments of time and money for monetary and nonmonetary compensation, the desired motivational impact often is not achieved when counterproductive behavior is rewarded. In this scenario, even though Papa Bill's was trying to focus its rewards on the on-time performance of its drivers, it was inadvertently rewarding reckless driving.

Papa Bill's, a Local Pizza Chain, Instituted a New Compensation