When it comes to complex cognition oriented tasks, rewards actually hinder progress rather than facilitate it. In the kinds of challenges we deal with in a knowledge based economy, pay for performance is precisely the wrong way to structure compensation. A better model to understand performance : Autonomy, Mastery, Purpose. Align your organization to these goals and values, and you are more likely to succeed. Case in point: Britannica vs Wikipedia (ie unpaid unmanaged yet self motivated hordes create a product that makes obsolete a product created by experts over many decades).
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