Dan Ariely on Bonuses and Motivation

Posted by: Jena McGregor on August 5, 2009

How effective are those millions of dollars in bonuses bankers still manage to receive? Are bonuses really motivating for all employees? Dan Ariely, a behavioral economist at Duke University’s Fuqua School of Business, believes in some cases, bigger bonuses can actually be a bad thing.

In this “virtual office hours,” he explains how his research questions long-held notions of pay for performance:

 

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