Short Answer

Unintended Consequences of Incentives

A software company noticed its developers frequently stayed late voluntarily to help each other meet project deadlines, driven by strong team spirit. To reward this dedication, management introduced a policy to pay a small, fixed bonus for every hour worked after 5 PM. Shortly after, they observed that developers were less willing to help each other and overall team productivity on complex tasks declined. Based on the interplay between different types of motivation, explain the most likely reason for this negative outcome.

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Updated 2025-09-21

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