1. Is high dispersion in rewards desirable to organizations? Why or why not?
High dispersion in rewards may not be the best solution for motivation and greater performance
because they tend to negatively affect the companies. Since most of the organizations’ culture is
about team work, this sorts employees per categories making them feel less or better than other
members in the group and therefore, weaker relationships between the team by creating a negative
synergy. I believe that there should be a system able to give incentives only to employees who go
“the extra mile”. In my company, I am an engineer and I taught Spanish last year at the world
headquarters because I wanted to help other engineers who visit plants in Mexico to not only
perform better but, to achieve personal development. And received an incentive for that. It is always
great to get rewarded for helping others.
2. In what ways incentives affect you? In your answer, include an explanation using the three
different effects of incentives which was mentioned in the article.
Incentives can have an impact on motivation. There is an example in the book chapter of an energy
company at Florida that gives compensations based on performance. In this case, there is no way to
control the weather, the system is not functional because there will be incentives only during the
summer when the high temperatures hit leading this situation to be frustrating making employees’
motivation to drop. In the other hand, we have automotive companies with the same system working
perfectly due that the revenue of the company is an output of all employees’ effort from designing a
car from scratch to marketing and sales. This leads workers to have a better motivation and
