Thursday, May 31, 2012

Incentives( an Economist view)



Incentives

One thing which I have learnt while reading the book titled Freakonomics by (Steven D Levitt &  Stephen J Dubner) is that how incentive are working. We have basically two type of incentives positive and negative(in economic views). Positives, say like monitory rewards, non-monitory awards and negative are the penalties and punishments.
 There are three favors of the incentives viz Economic, Social and Moral. A single incentive scheme will have to  include all three  varieties. for an example 30%  tax on cigarette is economic incentive, ban in restaurant and bar is social and terrorist raise money by selling in block market is moral incentive.

Idle incentive, should take consideration of all these favors to achieved the required results/changes. Unless these were not put into very appropriate manners it would be quite challenging to achieve the desired outcome.  This is an economic approach towards incentives.
I undoubly  while reading this book believed that HR persons should  be master of an economics to peruse Human asset in all possible direction. The world of HR shall be only limited to business HR but this is time to became an HR economist to serve the stakeholders of the business community. It would be highly recommended to read Freakonomics .

Faith.
Amol Nakve.

No comments:

Rusted but remained!

 Rusted but remained! Clicked at Matheran, Maharashtra, India.