Deming’s point is that MBO and its ilk are managerial cop-outs. By using simplistic extrinsic motivators to goad performance, managers excuse themselves from harder matters such as investment, direct personal motivation, thoughtful team formation, staff retention, and ongoing analysis and redesign of work procedures. Our point here is somewhat more limited: Any action that rewards team members differentially is likely to foster competition. Managers need to take steps to decrease or counteract this effect.
