Science of Motivation

Science of Motivation (Rethinking how we run our businesses)

Candle Problem from 1945 - Box of thumbtacks, a candle, and matches. You must attach candle to wall so wax doesn't drip onto the table. What do people try to do? (Functional Fixedness - Cognitive bias that limits a person to using an object only in the way that it is traditionally used, or "mental block against using an object in a new way that is required to solve a problem."

Experiment using candle problem (Power of Incentives)
Time how quickly you can solve this problem
1 group - Time you to establish norms, averages, how long it takes for someone to solve problem
1 group -If in top 25% of fastest times, you get $5. If you are the fastest, you get $10.
Took 2nd group three and half minutes longer to solve the problem.

We think "If we want people to work better, we have to reward them". That's not happening here, though.

Mismatch between what science knows and what business does.
If-then rewards eliminates creativity in the workforce.
ROWE (Rewards Only Work Environment) - Higher productivity, lower turnover rate, higher employee satisfaction. Everyone works on their own time, whenever you want. Come and go as you please.