
This classic article by Steven Kerr (1975) shows how many organizations reward one behavior while hoping for another. One example is that dentists get paid for finding and filling cavities while hoping for good oral health. Kerr would argue that dentists should be paid for the number of healthy mouths.
On to Venezuela--this one is courtesy of one of my MS Engineering Management students from that country. He told me that Venezuela made a change around five years ago to not allow employees to be fired for an unjustified reason. This was to improve family stability, income, etc. Well, the employees quickly found out that being absent two days in a row is not justification for being fired. This has led to a huge increase in absenteeism in Venezuela, including government positions because of all the state-owned businesses. Back to the article, this is an example of emphasizing equity over efficiency.
On to Venezuela--this one is courtesy of one of my MS Engineering Management students from that country. He told me that Venezuela made a change around five years ago to not allow employees to be fired for an unjustified reason. This was to improve family stability, income, etc. Well, the employees quickly found out that being absent two days in a row is not justification for being fired. This has led to a huge increase in absenteeism in Venezuela, including government positions because of all the state-owned businesses. Back to the article, this is an example of emphasizing equity over efficiency.