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Effectiveness of Group Behavior Incentives
A company is trying to reduce its office's electricity consumption. Management is considering two different strategies:
- Implementing a system that tracks each department's energy usage and imposes a small monetary penalty on departments that exceed a set limit.
- Launching an internal campaign that highlights the environmental benefits of saving energy, publicly recognizes the 'most energy-efficient department' each month, and fosters a sense of shared responsibility for sustainability.
Analyze the potential long-term effectiveness of these two strategies in changing employee behavior. In your analysis, explain why one approach might lead to more durable changes by influencing individuals' internal motivations.
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Economy
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Effectiveness of Group Behavior Incentives
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