When Rewards Distort Behavior: Cheating, Addiction, and Shortsightedness

Analysis of three negative consequences when rewards are misused: cheating behavior, dependency like addiction, and strategic short-sightedness. An applied perspective for leadership and human resource management.

When Rewards Distort Behavior: Cheating, Addiction, and Shortsightedness

We have seen that rewards can kill motivation, joy, and creativity. But even more dangerous consequences arise when rewards become the center of all behavior:

• Blurring ethical boundaries
• Creating addiction-like dependence
• Causing people to lose long-term strategic thinking

If you notice colleagues or yourself losing motivation amid tight deadlines, this article may be a gentle but necessary reminder.

1️⃣ When goals are too focused, ethical behavior may blur

We often hear: "Without goals, we go nowhere." But according to research from Harvard, Wharton, and Northwestern, not all goals are good.

Especially when goals are externally set – like KPIs, sales targets, or year-end bonuses – and come with significant rewards, they can cause people to narrow their ethical perspective to achieve results at all costs.

📌 Real-life examples:

• Sears: Auto repair staff cheating on fees to meet targets.
• Enron: The biggest accounting scandal in US history due to overly harsh financial goals.
• Ford Pinto: Cutting safety inspections to meet launch deadlines.

Common point: When rewards are everything, then ethics become a choice – no longer the foundation.

2️⃣ When rewards become addictive

Anton Suvorov – a Russian economist – noted that repeated rewards can create behavioral dependence.

💡 Everyday example: The first time you pay your child to take out the trash – they do it. But if there’s no money next time – the trash stays.

In businesses:

• Large KPI bonuses → Employees see them as default entitlements.
• No bonuses → Dedication disappears.

From a neuroscience perspective: Research by Brian Knutson shows:

• Anticipating rewards → The brain releases dopamine (similar to drug effects).
• Initially: excitement. Later: dose escalation needed (higher rewards).
• If not increased → Positive feelings vanish. Motivation erodes.

Consequence: Rewards shift from being “motivation tools” to “budget drugs.”

3️⃣ When rewards shorten vision – killing long-term strategy

Many listed companies are “obsessed” with quarterly financial results. They:

• Forget long-term research – development – innovation.
• Focus on hitting short-term targets for bonuses or beautifying reports.

Outcome: Short-term growth – long-term weakness.

🎯 Personal examples:

• Paying employees to read 3 books → They stop at the third.
• Paying someone to go to the gym → Once the discount ends, they quit.

Reason: When rewards end, the journey stops too. There is no connection to growth or intrinsic purpose.

📌 A perspective for leaders

If you lead a team, ask yourself:

• Are employees acting for the reward?
• Do they lack long-term thinking?
• Do they dare to try new things, make mistakes, and be creative?

If the answer is "No," your organization may be operating on an outdated motivation model – “Reward good, punish bad.”

And then, leaders need to pause and ask themselves:

• Am I creating development opportunities or applying pressure to avoid KPIs?
• Are employees learning new skills, or just learning how to “pass tests”?

🔚 Summary – Rewards: Reason or tool?

Rewards – if misused – can become dangerous.

• ❌ When imposed rather than inspiring.
• ❌ When tied to short-term benefits instead of long-term goals.
• ❌ When they become the main motivation instead of a supportive recognition.

✅ You don’t need to eliminate rewards. But you need to redefine their role in development strategy:

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