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Large Bonus Degrades Cognitive Performance

predictably_irr.jpgAccording to Dr. Ariely, a professor of behavioral economics at Duke, and author of the interesting book, Predictably Irrational, the offer of a huge bonus does not improve cognitive performance.  He makes his argument in a recent piece in the New York Times, What’s The Value of A Big Bonus?.

In the article he describes several experiments that demonstrate those offered very large bonuses actually do worse on a cognitive task than those offered a medium or even small bonus.

Many have pointed out that money may not motivate those that think for a living.  But this research goes further:

Given in the wrong dose (too much) money may worsen our performance on tasks that require learning, thinking, decision-making, creativity and other forms of cognition.  

We need to be careful to design compensation and reward systems for how minds actually work, not how we think they should work.

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One Response to “Large Bonus Degrades Cognitive Performance”

  1. best flash design Says:

    Enjoying reading your blog. Hard work always pays off.

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