Tuesday, 22 February 2011

Incentives and the rediscovery of Herzberg

Well I've been saying it for long enough. Monetary Incentives simply don't work!
Now Nottingham University ( see http://www.nottingham.ac.uk/news/pressreleases/2011/february/thetruthaboutbonuses.aspx ) reckon that a mixture of punitive fines plus incentives works better than incentives alone. Well maybe in the laboratory but in the real world comparisons are made and, most important of all, actual job content counts for far much than what Fredrick Herzberg (see http://www.trainanddevelop.co.uk/view_article.php?ArticleID=78) dubbed Hygene factors. That is the things that will demotivate us if they're not OK. That is in turn vastly different to the Motivators - relationships, job content, control and flexibility that really turn us on and get us firing on all cylinders. That's what we have to hold in mind when shaping jobs, organisations and pay/incentive packages. Pity the bangsters never understood.

Meanwhile we've a government obsessed with controlling the uncontrollable and offering incentives to companies to come and run services that, without the spurious controls and measures, could be run so much more cost effectively than they are now or will be under a for profit regime. Today we learned that 14% of the NHS budget is spent simply on the disaggregation of purchaser and provider. Put out the £80bn to GPs and this figure will rise dramatically leaving even less to spend on patients.

What's that to do with fundraising you ask? Not a lot save it will put even more pressure on charities to pick up the non standard pieces and fund them from voluntary income. Time to start taking responsibility for the whole funding mix not just fundraising. That's pure Herzberg!

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