Saturday, May 12, 2012

Who Benefits?



I was reviewing an employment problem the other day and had the feeling that you get when you know something is missing. The reason finally emerged. One party in the matter was rewarded if things got better. Another was rewarded if things got worse. This didn't mean that the latter party wanted to make things worse or would not shy away from a chance to make them better. It was simply the case that if the situation worsened, the latter party would assume a greater and more powerful role. Furthermore, it was one of those times when you know that the scenario may not be perceived by the participants. If it were, the accompanying reservations would be quickly put into a drawer because - truth be known - there is not a great deal to be done with them, at least not directly The parties will remain in play no matter what. It is important, however, to know the different incentives and tendencies since they may indirectly affect the proposed strategies.

In short, always consider the reward systems.

1 comment:

John said...

Hmm...
Sounds like what hospitals and doctors face.
(Our dentist once had an impulse to open an ice-cream franchise until I reminded her how sweet stuff is usually associated with cavities. I think she may have noticed the contradiction.)