Al Gorman has sent me an article that explains in more depth some of the points about incentive systems that he has made on this site. He’s volunteered to have it posted here, so I’ve converted it to PDF for easy, non-threatening viewing enjoyment.
It’s interesting that he and Harald Solaas make such similar points. I think that Solaas says something in “Why Requisite Organization Is So Hard to Understand?” along the lines of “incentive pay is evil” but “stupid” may be more accurate. Peter Block also makes the same point in The Right Use of Power. When the post-talk interviewer asks him about incentive pay, he asks “How do you know that it works? Did no one do anything when there wasn’t an incentive?” It’s a good thought and I think that what Gorman is describing answers some of the questions that Block poses. Block’s ideas are good but he doesn’t quite know where to go. Felt-fair pay seems to provide a good direction.