Tuesday, January 12, 2010
Banker's remuneration - the truth
"Workers in a wide variety of jobs are paid based on performance, which is commonly seen as enhancing effort and productivity relative to non-contingent pay schemes. However, psychological research suggests that excessive rewards can in some cases result in a decline in performance. To test whether very high monetary rewards can decrease performance, we conducted a set of experiments in the US and India in which subjects worked on different tasks and received performance-contingent payments that varied in amount from small to very large relative to their typical levels of pay. With some important exceptions, very high reward levels had a detrimental effect on performance". Abstract of "Large Stakes and Big Mistakes" Ariely, D., Gneezy U., Loewenstein , Mazar M., 'Review of Economic Studies', 76 (2), 2009, 451-469.
IMO: Much of this work was carried out in India, which is a marvellous place for this kind of work. I know because I do a lot of work over there on my own experiments. But control experiments were also done in USA. "Very high reward levels had a detrimental effect on performance" so cut the wages of top bankers, MPs, local authority chiefs and similar worthless UK riff-raff as soon as possible. These people are already floating in money and it is diabolical to pay them so much. On top of that they swindle the public's money even further and do little valuable work at all. Shame !!!
IMO: Much of this work was carried out in India, which is a marvellous place for this kind of work. I know because I do a lot of work over there on my own experiments. But control experiments were also done in USA. "Very high reward levels had a detrimental effect on performance" so cut the wages of top bankers, MPs, local authority chiefs and similar worthless UK riff-raff as soon as possible. These people are already floating in money and it is diabolical to pay them so much. On top of that they swindle the public's money even further and do little valuable work at all. Shame !!!
# posted by uv : 11:18 PM
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