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HBS Working Knowledge: Pay-for-Performance Doesn’t Always Pay Off

HBS Working Knowledge: Pay-for-Performance Doesn’t Always Pay Off
"The teams were frustrated that factors out of their control, such as the delivery of parts, affected their work. The high-performance teams often refused to admit people whom they thought to be below their level of expertise, leading to disparities among the teams. There was reduced mobility between teams, preventing the transfer of learning across teams. Employees built their lifestyles around the higher level of pay, and were angry when they could not achieve it consistently."

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