On the Folly of Rewarding A, While Hoping for B

TLDR: This publication contains reprint articles for which IEEE does not hold copyright and which are likely to be copyrighted.

Abstract: Whether dealing with monkeys, rats, or human beings, it is hardly controversial to state that most organisms seek information concerning what activities are rewarded, and then seek to do (or at least pretend to do) those things, often to the virtual exclusion of activities not rewarded. The extent to which this occurs of course will depend on the perceived attractiveness of the rewards offered, but neither operant nor expectancy theorists would quarrel with the essence of this notion. Nevertheless, numerous examples exist of reward systems that are fouled up in that behaviors which are rewarded are those which the rewarder is trying to discourage, while the behavior he desires is not being rewarded at all. In an effort to understand and explain this phenomenon, this paper presents examples from society, from organizations in general, and from profit making firms in particular. Data from a manufacturing company and information from an insurance firm are examined to demonstrate the consequences of such reward systems for the organizations involved, and possible reasons why such reward systems continue to exist are considered.