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Carrots, Not Sticks, Motivate Workers

By Guest PostJune 23, 2012Economyaccounting review, carrot, demotion, disciplinary action, employee, karen sedatole, kristy towry, margaret christ, michigan state university, motivate, penalty, penalty system, productivity, punishment, sticks and carrots, threat

EAST LANSING, Mich. — What motivates people to work harder: The promise of reward or the threat of penalty?

A new study co-authored by a Michigan State University business scholar says it’s the carrot – and not the stick – that drives productivity.

The study, which appears in The Accounting Review, challenges previous research that says the threat of penalty is more effective for getting increased effort, said Karen Sedatole, associate professor of accounting in MSU’s Broad College of Business. (more…)

How the Big Three forgot Accounting 101

EAST LANSING, Mich. — The Big Three were so driven by short-term profits that they forgot – or ignored – basic accounting practices that could have guarded against production decisions with long-term damage, according to an award-winning study by Michigan State University and Maastricht University in the Netherlands. (more…)

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Carrots, Not Sticks, Motivate Workers

How the Big Three forgot Accounting 101