Discuss the importance of a well-developed compensation plan in attracting and retaining good employees and how to keep those plans from “working too well.”

W. Edwards Deming, often referred to as the leading quality guru in the United States, and psychologist Alfie Kohn support the idea that incentive pay is not a motivator for individuals to do a good job. Yet economists argue that incentive compensation does work and as economist George Baker notes in his 1993 article in the Harvard Business Review titled “Rethinking Rewards,” “The problem is not that incentives can’t work but that they work too well.” What does Baker mean? Discuss the importance of a well-developed compensation plan in attracting and retaining good employees and how to keep those plans from “working too well.”
Use at least three specific in-text-narrative/parenthetical citations to point to concrete examples. Use a managerial economics vocabulary, concepts and principles to demonstrate your full grasp of the key concepts and principles covered this week. We need the page numbers or paragraphs to vet the intext/parenthetical citations.

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