Why do some work while others shirk?

Why do people choose to work? More specifically, what is it that motivates some to labor extremely hard, while others seize nearly every opportunity to shirk and seek personal gain at the expense of the company or fellow employees? "Many managers still think employees need to be coerced into performing with some system of carrots and sticks, but my research suggests this approach has its limitations. Managers who can effectively use political skills to inspire trust and cooperation in their workforce will always have a competitive advantage," states Gary J. Miller, Taylor Professor of Political Economy, Washington University's John M. Olin School of Business.

He contends that many American companies owe their success to internal policies that long had fostered a sense of partnership between workers and management. He argues that this productive culture of cooperation has been shattered by the recent rash of corporate downsizings and layoffs. "Managers face incredible pressure from Wall Street to slash labor costs to the bone. Every dollar they take out of workers' pockets is another dollar for shareholders. Wall Street applauds firms for being 'lean and mean,' but these downsizings are going to have a devastating impact on employee morale and long-term productivity.

"The workplace is in reality a political institution in which all the players--chief executives, managers, and workers--have their own personal agendas. The only way an organization can achieve maximum productivity is to give each player some degree of political power and ownership in exchange for commitment and cooperation."

Miller admits that some people will work harder for higher salaries, hourly raises, or bonuses, but claims that incentive systems based on economic rewards alone never will spur all workers to put forth their maximum joint effort for...