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Relationships are Essential to Improve the Efficacy of Incentives

When it comes to augmenting efficiency or boosting overall performance, most people opt for incentives as an effective technique to reinforce positive behavior. A recent research paper by Jana Gallus and Joseph Reiff from UCLA Anderson, Emir Kamenica from the University of Chicago, and Alan Page Fiske from UCLA, however, proposes that fostering meaningful associations is essential to improve the efficacy of incentives in order to evoke the best outcomes, an area which is delved into at length in this article on UCLA Anderson Review.

To begin with, in order to improve the efficacy of incentives, the paper recommends attaching equal importance to the mode or nature of relationships governing such incentives. For instance, a sense of community among the members receiving similar incentives fosters a sense of responsibility on their part, to adhere to their roles and optimize the opportunity, the article states. On the other hand, individuals belonging to different ranks can also be coupled together to ensure co-dependence and adherence from each side and thereby, improve the efficacy of incentives. In order to evoke the best of outcomes, therefore, not only is it important to focus on the nature or value of incentives but also to ensure that they are propagated or governed by the right mode of relationships so as to improve the efficacy of incentives, on the whole, the article affirms.

This is a valuable insight for those at senior or leadership positions. To improve your management skills and grow in your career click to know more about the UCLA Post Graduate Program in Management for Professionals (UCLA PGP PRO).

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