Carrot and Stick. Do incentives work in business?

Dan Pink says that incentives only appear to work when workers benefit financially for working faster or harder on simple tasks that require no thought. But when a wide peripheral thinking vision becomes necessary the wheels come off as incentives are introduced. So if you're a pieceworker on a bonus, the money is probably well spent on you, but if you're a banker on a bonus we're probably headed for a worldwide financial crisis.

If you happened to miss the last banker induced worldwide financial crisis and can't wait for the next one then watch the video and see how The Candle Problem illustrates all this very nicely.