It is a basic truism of management practice that “Carrot and Sticks” is the way to manage people. Instead scientists are finding that this is true only for simple rudimentary tasks. But for tasks that require out-of-the-box thinking this type of incentive structure does more harm than good. Unfortunately the problems faced by modern workers do not lend themselves to mechanical and routine problem solving. Thus the incentive structures have to be revised to provide what are known as “intrinsic” incentives. These are:
1. Autonomy: The urge to direct our own lives.
2. Mastery: Desire to get better at something that is important.
3. Purpose: The yearning to do something larger than ourselves.
What does all this mean for you? If you want to be happy get yourself in an environment where incentives are not the “carrot and stick” type but instead revolve around: Autonomy, Mastery, and Purpose.
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