Apples, Bananas, and Management: Decoding the Reward System Paradox

Sep 10th, 2023

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3 min read

Alright, reader friends. Gather round. We're diving deep into a management conundrum that's as old as leadership itself. It's a tale of good intentions gone sideways, and it's all too common in the realm of people management. Grab your beverage of choice, and let's unpack the age-old wisdom of Kerr’s paper, "On the folly of rewarding A, while hoping for B".

Rewards vs. Reality

Every seasoned leader and greenhorn manager knows (or ought to know) that rewards are powerful motivators. But here's the catch: What happens when there's a chasm between the rewards you hand out and the behavior you're actually aiming for? You end up in a confounding situation. Like hoping for fresh apples and yet, every morning, finding a bunch of bananas on your desk.

Kerr's central thesis is about this glaring inconsistency between what organizations say they want and what they actually reward. Let's digest this.

The System's Got Bugs

Imagine a software system. It's beautifully coded, the UI is sleek, and the UX team gives it two thumbs up. But there’s a bug—whenever a user hits 'submit', the system freezes. Now, the company rewards developers for rapid code output, not robust code. So what do they get? A lot of buggy systems. The company hoped for robust software (B) but rewarded rapid output (A). It's the software equivalent of the apples and bananas situation.

Bridging the A-B Gap as a Manager

Alright, so how does a manager navigate these treacherous waters? Let's lay out some guidelines.

  1. Know Thy Outcome: Before setting any rewards, crystalize in your mind what you want the end result to look like. You want apples? Make sure every message, signal, and reward points to apples.
  2. Eyes on the Unintended: It's all too easy to incentivize the wrong things without realizing it. Be vigilant. Check whether the current reward system is producing some bizarre bananas.
  3. Regularly Re-calibrate: Just because a reward system worked once doesn’t mean it'll always work. Periodically reassess, talk to your team, and adjust as needed.
  4. Transparency is Golden: Make sure your team understands not just the what but also the why behind every reward. When they see the big picture, they're less likely to chase the quick banana reward.
  5. Feedback Loop: Build a culture of feedback. If people see that the rewards are out of sync with the goals, they should feel comfortable raising a flag.

In Conclusion

Being a people manager isn't about mastering some mystical arts. It's about understanding human behavior and aligning it with organizational goals. Kerr's wisdom is a timeless reminder: it’s not enough to hope for one outcome while doling out rewards for another.

So, the next time you're about to reward someone on your team, pause and ask: "Am I rewarding A, while secretly hoping for B?" If the answer is yes, it's time to re-evaluate.

Stay curious, keep questioning, and remember: you’ve got the power to turn those bananas into apples.

Kevin Hall

Kevin is an experienced people manager with a track record of success at startups and Fortune 500 companies. He is dedicated to creating positive workplace cultures and fostering continuous learning and growth.