Negative incentives are any actions that discourage behavior or provide a solution to undesirable behavior. One of the most common types of negative incentives is financial punishment. At one of my previous jobs, Ace Hardware, the company participated in profit sharing. Profit sharing is the distribution of profits among employees. Profit sharing is a positive incentive; however, I was more likely to thrive in the workplace whenever my job was threatened. One day, while working at Ace Hardware, I mispriced a piece of sheet metal, resulting in a loss of profit for the company. I was punished with a reduction in work hours that week. Since this incident, I have been careful not to give incorrect prices. I always checked prices before sharing them with customers. Studies have been done to show that negative incentives are more effective in monetary situations. For example, a random group of people of all ages participated in an experiment involving solving anagrams. Half of the participants started with money and were told they would lose that money if they were unable to solve the anagrams. The other half of the participants, on the other hand, had to earn their money. The study concluded that participants who were threatened with losing their initial money performed better than their counterparts. A website, Stickk.com, allows people to enter into engagement contracts to achieve their personal goals. Individuals who complete the engagement contracts place a monetary bet on the website, bound by a contract, and if that person fails to achieve their goal, they lose the money initially wagered. According to Kelly Goldsmith, an as... .... middle of document ...... e operational objectives, an action plan must be developed to help employees follow a course of action necessary to achieve this objective. Consistent with a possible decrease in job performance, continued negative incentives can lead employees to separate from their coworkers. Separation can lead to low morale and dissatisfaction in the workplace, leading to poor teamwork skills and inhibiting any possible growth of ideas and innovations for the company. It is important for frontline management to continually monitor their employees to ensure high morale and fulfillment in the workplace. Human relations movement theory suggests that better human relations can increase worker productivity. It is therefore important that middle managers implement the appropriate policies and plans so that front-line managers can follow them and direct them to employees..