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P a ge 20 t opside V olume 114 , I s s u e 1

A Critical Look at Incentives By Norman Fehr , DVC-VI

The USCG Auxiliary offers many insignia , devices , ribbons , medals , certificates and other awards that are intended to offer incentives to engage in significant levels of worthwhile achievement - to increase desirable behaviors . What makes some incentives more effective than others ? Why do some incentives encourage teamwork and cooperation and other incentives pit individuals or units against one another ? These questions pertain to incentives at all levels . However , for the purposes of providing examples . we will concentrate on VE incentives offered to Flotillas by Divisions .
Essentials of an effective incentive
To be effective , the incentive should alter behavior of the candidates . To achieve this goal , the criteria to receive the incentive should be simple , easy to understand and well known to all . An effective incentive must motivate the competitors to alter their behavior in ways that are consistent with the organizations goals . Likewise , potential recipients must know that the incentive will be awarded based on merit and not popularity or affiliation . When this happens , the incentive fails to be motivational because the deck is stacked . This may also create resentment and even hostility in an organization that depends on fellowship .
Non-competitive incentives defined
Some incentives are awarded to any individual / unit that meets or exceeds a fixed , well known standard . Any individual or unit that meets or exceeds the standard receives the acknowledgement . There is no competition and everyone is on the same team . If a Flotilla assists another Flotilla in meeting the standard , neither Flotilla ' s chances of receiving the incentive are sacrificed , therefore teamwork and cooperation are not penalized . One Flotilla ' s success does not have a negative effect on other competing Flotillas . Care should be taken when establishing the standard because the acknowledgement will fail to be an incentive to individuals / units that perceive the standard to be unrealistic or unattainable and this may create resentment and even hostility .
Competitive incentives defined
Other incentives are competitive and are awarded to a single individual / unit that wins the competition . The competitors are not on the same team and cooperation between competitors may actually be penalized . Some competitive incentives are awarded based on subjective criteria and other competitive incentives are awarded based on quantitative criteria . Let ' s look at each one .
In an incentive with subjective criteria , an individual or small group selects the winner based on general guidelines that require value judgments to select the winner . If people believe that the winner is selected based on popularity or Flotilla / Division affiliation , merit takes a back seat , the incentive loses its effectiveness and resentment and hostility may be created .
The winner in an incentive with quantitative criteria is easily selected because it is solely based on the numbers . However , if one individual / unit continues to win the award over an extended period of time , resentment may be created . This may also occur if the criteria to receive a competitive award is intentionally created to exclude an individual / unit .
Unintended consequences of competitive incentives
One of the goals of any competition is to encourage competitors to innovate in such a way as to gain and maintain a competitive advantage ( s ). If the innovation is shared with competing Flotillas , the competitive advantage ceases to exist and the innovator ' s chances of receiving the competitive award are reduced . This may not be unhealthy if the competitors are not in close proximity . However , if the competitors are in close proximity , teamwork and cooperation may be penalized and the incentive may be detrimental to the Auxiliary ' s mission .
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