... or action' but rather rewards buy only 'temporary compliance'. He goes onto argue that this may in fact be detrimental to organisational success as rewards only motivate people to seek greater rewards while important attributes of successful managers such as creativity and risk taking are replaced by simplicity and predictability in actions. The reward becomes an end in itself and the motivation is there for earnings and performance management to be carried out, especially due to the fact that the directors are privy to information which the shareholders (principal) will only know if the directors choose to truthfully reveal it. This paper appears to be highly selective in its selection of examples to demonstrate the failure of motivation theories. Kohn looked at the response of a group of welders at a Midwestern manufacturing company to the removal of financial incentives and came to the conclusion that financial incentives diminished productivity ...

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