4 ms·

This is a sad fact. There are huge (irrational?) barriers for giving employees big raises or bonuses. Take Borland for example - they'd rather sue Microsoft for

• llimllib 16y ago
  > There are huge (irrational?) barriers for giving employees big raises or bonuses. Since they exist at almost every company, I think it seems probable that it's rational. Here's a simple possible argument for their rationality: Creating big barriers to large raises/bonuses discourages employees from sharing salary info, since there's little they can do about it. Furthermore, the more your employees are worrying about their salary, the less they're working.
  • jessedhillon 16y ago
    > ...I think it seems probable that it's rational. It's an example of bounded rationality: http://en.wikipedia.org/wiki/Bounded_rationality http://en.wikipedia.org/wiki/Bounded_rationality The decisions seem rational given the perspective and limitations of the decision-makers.