Carrot And Stick

Topics: Steve Jobs, Motivation, Reward system Pages: 7 (334 words) Published: May 23, 2015
Carrot and Stick

• 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




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





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 him and
hired other great worker
⁻ Kept worker who tend to be loyal to the team
⁻ Praise worker as what they deserved after succeed

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