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Responding to Kohn 'Why incentive plans can work' "Even if people were principally concerned with their salaries ... there is no firm basis for the assumption that paying people more will encourage them to do better work or even in the long run, more work". This is the underlying theme of Alfie Kohn's arguments in 'why incentive plans cannot work' where Kohn argues of the failure of the behaviorist model of motivation which underlies agency theory and particularly the contracting relationships between the principal (shareholders in the case of public quoted companies) and the agent (the board of directors). This challenge to the legitimacy of the commonly held belief in the power of incentives to motivate individuals to a course of action that is mutually beneficial to the contracting parties is an indirect attack on the agency model and the nature of the contracting relationship. Kohn delves into the nature of work...

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