Tuesday, September 07, 2010

Behavioural Psychology Proves that Greed-Driven PAP Ministers' Compensation System is Fundamentally Flawed!!!

The following short video is an animation of Dan Pink's talk on motivation and what drives people. It is based on the discoveries of Behavioural Economists and is key to this post so please take a moment to watch it. It is fantastic to say the least.

The key discovery by the Behavioural Economists is that:
  1. As long as a task involves only mechanical skill, monetary incentives correlate with performance i.e. higher the pay the better the performance.
  2. Once a task involves even rudimentary cognitive skill, a larger reward leads to poorer performance !!!