Labor Principles

Pizza Party as an Incentive

Each year the store participates in a competition that divides the employees between two teams to see which team can sell the most during the day. Glenn announces that the winning team will receive a pizza party. While the employees aren’t overly happy about either the competition or the pizza party, incentives can usually be a way to induce higher levels of productivity. It turns out that each team member on the winning team also receives $100, but Glenn was saving it as a surprise incentive. Amy has to explain to Glenn that incentives need to be announced at the beginning in order for them to actually work.