Team Incentives vs Individual Incentives LO26306

From: Gavin Ritz (
Date: 03/08/01

Replying to LO26295 --

Hi Warwick

We created this very thing at a corporate were I was directly involved as
a consultant. I was horrified that team incentives were changed from
individual at 80 percent to 80 per cent team incentive (these were a bunch
of internal reps). Within two years the company had become soft and was
unable to meet targets because most of the autonomous type reps left and
more affiliative people were trained up to be reps with pretty ghastly
results. Today 5 years after implementing the self directed team concept
the pains are still being felt. And guess what they are going back to the
individual 80 percent component.

Even worse managers hired some of more achievement motivated reps who
clashed with the team type ones, because the managers knew who would be
more successful at the job. In essence the managers hired to deliver
results because that was how they were incented. All in all in the time I
was with this company most of the middle managers resigned because they
did not have the requisite variety to do their jobs.

If the work is group output yes I think there should be a group incentive,
if the work is more autonomous then an individual incentive and then
something in between in there is a mix of output type.

Incentives, money or otherwise are powerful driving forces if incorrectly
set the consequences can be very severe and painful and last for years.


Warwick Lyon wrote:

> I am interested to know if anyone has had experience with incentive
> schemes for teams rather than individuals
> The concept works for coaches of successful sporting teams - why not in
> the business world?


Gavin Ritz <>

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