• Founded by Jeremy Bartham in the 800s
• This theory suggest a combination of both rewards and penalties for motivation.
• The organization use this approach as the motivation tools to ensure people in the organization can behave like what the superior want. • Based on the strategy of putting carrot in the front of donkey and hitting it with the stick behind so it has to run. The result is the same, the donkey run.
CARROT
• Refer to incentives or rewards
• People contribute or become more productive because they are offered rewards.
• It can work very well as long as the rewards is attractive enough.
• More money you give to employees, the harder they will work.
• Example: bonus, gift, salary & promotion
STICK
• Represent of fear and punishment
• Stick of fear is a good motivator and when use at the right time it can be helpful
• In the short term, employees performance may be improved without any need for incentive or financial remuneration.
• Example: Cut of salary, getting fired, demtion
Advantages of Carrot
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Motivate employees
Employees feel appreciated
Able to achieve organization’s goal
Disadvantages of Carrot
• Inadequate reward will not motivate employees • Expensive for the company
• No reward no motivation
Advantages of Stick
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Induces employees to comply with the rule of conduct
Encourage employees to work harder to avoid undesired consequences
Disadvantages of Stick
Stressful to employees
• Lead to backfire
• Employees will do just enough
Is this approach still relevant?
• Doesn’t work, especially in work that is complex, requires creativity or involves problem solving.
• Only an external motivation to achieve short term success not in the long term.
APPLICATION (APPLE INC)
• Steve Job always pushed his workers as far as they could go
• Carrot and stick management was applied by
Steve Job to develop worker’s potential
• Example : If people can’t stand for Macintosh project, he fired those that stand against