The bad news is that ignoring the performance of people is almost as bad as shredding their effort in front of their eyes. Ignoring gets you a whole way out there. The good news is that by simply looking at something that somebody has done, scanning it and saying "Uh huh," that seems to be quite sufficient to dramatically improve people's motivations.
Dan ArielyTo summarize, using money to motivate people can be a double-edged sword. For tasks that require cognitive ability, low to moderate performance-based incentives can help. But when the incentive level is very high, it can command too much attention and thereby distract the personโs mind with thoughts about the reward. This can create stress and ultimately reduce the level of performance.
Dan ArielyWe have very strong intuitions about all kinds of things โ our own ability, how the economy works, how we should pay school teachers. But unless we start testing those intuitions, weโre not going to do better.
Dan ArielyWhen it comes to the mental world, when we design things like health care and retirement and stock markets, we somehow forget the idea that we are limited. I think that if we understood our cognitive limitations in the same way that we understand our physical limitations โฆ we could design a better world.
Dan Ariely