Finally, relational incentives theory raises a great many questions about the subtleties of what we have, for the sake of parsimony, presented as if they were dichotomies:
accepting and rejecting incentives, knowing and not knowing whether they are
congruent, and selecting a response voluntarily or involuntarily. As indicated in section 2, there are innumerable intermediate cases and ways of appearing to do one thing while actually doing something else, or being intentionally ambiguous about what one is doing, such as using indirect speech (Lee and Pinker, 2010). Cognitive scientists have shown that knowledge is not unitary: There are two ways of explicitly knowing (semantic and episodic), and several ways of implicitly knowing (including procedural competence, perceptual competence, classical conditioning, and operant conditioning). What are the consequences of knowing congruence/incongruence in different ways? Likewise, a person often has conflicting motives, including motives concerning morality, social relationships, and the welfare of others that may define the self in ways that make it
33 unclear just what ‘individual (selfish) preferences’ are, and hence what ‘voluntary’ and
‘involuntary’ are. So as the next frontier, relational incentives theory needs to go beyond any dichotomy between voluntary and involuntary. In addition, because of the nuances of realizing any relational model in any social interaction, sometimes there may be ambiguity or disagreement about whether a scheme is congruent with the relational model organizing the coordinated activity. What causes such ambiguity, and what are the consequences? These questions will be important and exciting to study.
4. Incentives Sustain, Modulate, or Change Relationships Much of social life consists of maintaining or modulating social relationships, all the while trying to get others to do something. Incentivizing is central to both processes.
People’s use of a particular incentive scheme not only signals the kind of social relationship that they expect, but in the long run partly determines the kind of
relationship that they will have. The manner in which parents and teachers choose to incentivize children, how employers decide to incentivize workers, and the ways that governments select to incentivize citizens will shape our future social relationships and our society as a whole.
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Participation Hierarchy Balancing Proportional
Within firms, with money as means
Long-term employment and rare layoffs – when employees perceive themselves as a truly integral part of the organization.
E.g., Japanese "Theory Z"
business model where the firm takes care of its employees for life (Ouchi 1981)
Discretionary promotions and bonuses handed out by a 'boss'
Profit sharing schemes with even division. Partnerships with even payouts (as, e.g., in many law
Free family health insurance for all employees. Free drinks, food, and events. Free use of lounge, kitchen, gym, or other facilities.
E.g., Hewlett-Packard's practices conveying the message of "being part of a family" (Baron & Kreps, 1999: 38)
Discretionary non-monetary rewards (e.g., job titles and offices carrying prestige) conferred by a superior
Equal vacation length and equal number of paid 'personal days' off
Sabbatical for every seven years of teaching, fractionally divisible
Incentives for extreme self-sacrifice: soldiers
(e.g., Stouffer et al 1949;
Moore & Galloway 1992;
Costa & Kahn 2003)
Belonging to the group of comrades in arms.
“We discovered in that
depressing, hellish place, where death was our constant companion, that we loved each other. We killed for each other, we died for each other, and we wept for each other.” (M & G 1992 p. xviii)
Discretionary promotions with honors and privileges of rank
Equal number of rest and recreation days out of the war zone. Turn-taking rotations to safe locations away from front lines
Free access to a cabin one helped build
Many instances of rewarding in families, where parents decide on which behaviors to reinforce
Turn-taking, random draws, even resource splits
Screen minutes per time spent cleaning up