Incentives
Courtney Leonard
Saint Leo University
Economics of Life: Assignment 3
August 22, 2020
Incentives
According to Sanderson & Shaikh (2017), the Social welfare of organizations, businesses, and sports is promoted by incentives. Motivations arising from incentives act as performance activator thus suitable in every work or competition setup. Employers observe better performance from employees through incentives. In this case, businesses find that giving incentives to their workers aggravates the involvement of extra effort achieving organizations’ goals. Creativity, skills, and talents are advocated among organizations and sports that get motivated though reward offers.
Theguardians.com (2016) describes Olympic as a popular event with competitive benefits. The incentives obtained in participation are real-time and are tagged to fame too. Considering the involvement of global participants, the self-interest of getting triumph or maintaining fame has driven the involvement of enhancement of drugs to keep merits. Sports such as athletics, marathon swimming, boxing, cycling, karate, and cycling require great rewards that might encourage the use of unethical means to attain it. Among incentives is a large sum of money, countries’ sports representation, medals, and fame (Maier, Woratschek, Ströbel & Popp, 2016). Personal-interest in Olympic using fare approaches in finding incentives is of societal benefits as it earns countries recognition of triumph in specific sports.
Incentives a time may create more harm that propagating benefits when offered to individuals of an organization destroying the stewardship values in the society. Businesses are found to offer incentives to their employees without considering ways they will involve in achieving some goals. This is self-interest, and its consequences are so devastating within the society when unethical production techniques are used. Such incentives are most deliberate and allow employees to use unlawful behavior as long as their objectives are achieved. The marketing process is where most sector firms use varied approaches to increase revenue while out-competing others with similar products. Chrisman, Devaraj & Patel (2017) profoundly explains how major firms employ unethical means of marketing their products to fetch monopolistic benefits in negative approaches.
According to Knowlegdewharton.upenn.edu (2011), Maurice Schweitzer intuits that employees should not be given money incentives as it promotes unethical behavior. He adds that incentives are likely to boost performance at work but do not guarantee the use of appropriate approaches due to self-interests. Cheating has been the most approach used to overstate performance and goal achievement. Integrity in the transaction data records is also used by employees to exceed analysis for many companies’ self-realization. The approach mentioned above is perceived by the companies that end could justify the mean of which its downturn is so harmful. The struggle to such incentives is a cause of failure to basketball teams with a wide range of salary pay between the highly paid and least paid (Knowledge.wharton.upenn.edu, 2011). The mentioned range has attributed to a significant number of games lost. It is likely due to self-interest and not a community benefits leading to societal harm.
Incentives have a contributive value in societies; however, businesses and sporting firms should value communal welfare. Correct approaches in getting the rewards should be used as benefits from incentives are short-lived when an unfair process is used. In the site of rewards from activities and transactions, beholders should have a consideration of communal benefit rather than individual benefits to avoid fraud as its downturn outweighs the benefits. Therefore, it is worthy if employees could reject incentives as long as the business admits the use of unethical means to attain self-benefits.
References
Chrisman, J. J., Devaraj, S., & Patel, P. C. (2017). The impact of incentive compensation on
labor productivity in family and nonfamily firms. Family Business Review, 30(2), 119-136.
Knowledge.wharton.upenn.edu (2011). The Problem with Financial Incentives – and What to do About It. Knowledge@Wharton. https://knowledge.wharton.upenn.edu/article/the-problem-with-financial-incentives-and-what-to-do-about-it/.
Theguardians.com. (2016, August 21). Have the Olympics been worth it for Rio? https://www.theguardian.com/sport/2016/aug/21/rio-olympics-residents-impact-future-legacy.
Maier, C., Woratschek, H., Ströbel, T., & Popp, B. (2016). Is it really all about money? A study
on incentives in elite team sports. European Sport management quarterly, 16(5), 592-612.
Sanderson, A. R., & Shaikh, S. L. (2017). Economics, sports, and the environment. Routledge
handbook of sport and the environment, 36-53.