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To motivate workers, prizes beat punishment

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To motivate workers and boost productivity, the promise of reward wins out over the threat of penalty.

“What this means for companies is that employees who receive bonuses for their efforts will work even harder, increasing productivity and potentially bolstering profits,” says Karen Sedatole, associate professor of accounting at Michigan State University.

“But those subjected to penalties tend to distrust the supervisor and, because of that, work less hard.”

Full story at Futurity.

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