Chapter 13: Kerr Had It Right: What Is the Folly of the Reward?

In his seminal article “On the Folly of Rewarding A, While Hoping for B,” Steven Kerr (1975) pointed out numerous examples of occasions where organizations unwittingly reward behavior that does not support the attainment of organizational objectives. Kerr’s 1975 article has become a classic of management scholarship; he was one of the first researchers to identify the disparate notion of goals and rewards. Some situations result in outcomes that might be positive in the short term; for example, hoping to achieve sustainable growth but instead rewarding increased quarterly profits. At other times situations result in outcomes that run against their intent; for example, hoping to improve teamwork but instead rewarding individual effort.