The first time I tried to implement a strict reward-and-punishment system within my team, I was genuinely excited. I thought I finally had a “hardcore weapon” in my hands. Everyone’s KPIs were clearly defined, and the incentives and penalties were crystal clear—only to find that reality didn’t follow the script I had in mind. Some people gritted their teeth and completed tasks just to avoid punishment, all while secretly scheming in their heads. Others, upon receiving rewards, simply relaxed their efforts. A few even found ways to bypass the rules, engaging in subtle “slacking off” maneuvers. In that moment, I realized that clear rewards and punishments are far from a universal solution.

In management theory, this isn’t exactly new. Herzberg’s Two-Factor Theory long ago told us that motivation (rewards) and hygiene (punishments) are two different things. Punishment can prevent problems, but it doesn’t necessarily spark creativity; rewards can encourage behavior, but they don’t guarantee sustained commitment. In practice, I came to deeply understand that rules and numbers only govern the surface—human motivation and psychology are the truly unpredictable variables.

Drawing from experience in software engineering, the parallel is fitting: code reviews, process standards, and automated testing are all tools of “clear rewards and punishments”—errors are flagged, bugs are fixed. On the surface, everything seems orderly. But in reality, if the team’s culture, trust, and sense of responsibility aren’t in place, these tools easily devolve into mere formalism. No matter how polished your standards are, if team members don’t buy into their value, they remain nothing more than words on paper.

I began to reflect on the hidden costs involved. Setting rules takes time, enforcing them requires energy, and maintaining them demands sharp judgment. Every rigid enforcement can trigger defensiveness and a guarded mindset. Over the long haul, the team’s atmosphere of trust may actually erode. This reminds me of many business scenarios: no matter how well-designed a company’s policies are, employees will still find ways to protect their own interests through various channels. Because trust itself carries a cost, and being wary of the unknown or uncertain environments is a natural human response.

So, clear rewards and punishments are not a silver bullet—they’re just one screwdriver in the management toolbox. They can correct deviations and constrain behavior, but they cannot solve issues of motivation, trust, or value alignment. Truly effective management requires a higher level of design: how to make rules understood, how to get goals embraced, and how to strike a balance between systems and human nature. Perhaps there is no perfect answer—and that’s precisely what makes management so fascinating. You’re always experimenting and adjusting, searching for the right “temperature.”

In the end, the lesson I took away is this: clear rewards and punishments can clear the path, but a team’s energy and creativity are built step by step through trust, shared understanding, and psychological safety. Rules are just a supporting tool, not the main act. Understanding this keeps you from becoming a slave to regulations—and from mistakenly believing that hardline measures are a cure-all.