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Incentive and motivation: Beware of disincentives

The “ratcheting” up of bonus goals can make workforces less motivated, so managers need a clear system of communicating changes to incentives, says a new study co-authored by Francisco Brahm, a PhD candidate at Cambridge Judge. The study focuses on the sales force of the largest Chilean beverage company, which receives on average 55 per cent of their monthly earnings from sales incentives.

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