Performance based reward systems sometimes have undesirable effects on behavior.

Question

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Performance based reward systems can sometimes lead to employees focusing solely on achieving the reward, rather than working towards the actual goals and objectives of the company. This can result in unethical behavior, cutting corners, or neglecting other important tasks. Additionally, it can lead to resentment if certain employees consistently receive rewards while others do not, creating a toxic work environment.

Performance Based Reward Systems Sometimes Have Undesirable Effects on Behavior