Monetary rewards in a tourism organization:  
A study-case based on an auto-ethnography  
Recompensas monetarias en una  
organización de turismo: Un caso de estudio  
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basado en una autoetnografía  
Prof. Maximiliano E. Korstanje  
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Manuscrito recibido el 30 de septiembre del 2019 y aceptado para publicación, tras revisión el 01 de diciembre del  
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019. Turismo, Desarrollo y Buen Vivir. Revista de Investigación de la Ciencia Turística  RICIT. Nro. 13  Año 2019. ISSN:  
390-6305 ISSN-e: 2588-0861.  
PhD y Profesor Principal, Departamento de Ciencias Económicas, Universidad de Palermo, Buenos  
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Aires, Argentina.  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
Abstract  
Over years, management and marketing has been influential and useful to organize the  
working condition in modern corporations in tourism fields. The classical literature  
suggests that motivated workers enhance their commitment respecting to the goal of  
corporation. In this process, the assistance of managers is vital to achieve the success.  
In doing so, the program of incentive (monetary awards) gives to workers a reason to  
internalize management decisions. This not only is not truth but also, we have found in  
this case-study opposite evidence. The capital somehow, disorganizes the human  
relations and harmony in service organizations. Of course, outcomes of this review  
should not be extrapolated to other unit of analysis; this is valid only for this  
organization.  
Key Words: Psychological motivation, Monetary Awards, Conflict, Trust  
Resumen  
A lo largo de los años, la gestión y el marketing han sido influyentes y útiles para  
organizar las condiciones de trabajo en las corporaciones modernas en los campos  
turísticos. La literatura clásica sugiere que los trabajadores motivados mejoran su  
compromiso con respecto al objetivo de la corporación. En este proceso, la asistencia de  
los gerentes es vital para lograr el éxito. Al hacerlo, el programa de incentivos (premios  
monetarios) da a los trabajadores una razón para internalizar las decisiones de gestión.  
Esto no solo no es verdad, sino que también hemos encontrado en este estudio de caso  
evidencia opuesta. El capital de alguna manera desorganiza las relaciones humanas y la  
armonía en las organizaciones de servicio. Por supuesto, los resultados de esta revisión  
no deben extrapolarse a otra unidad de análisis; esto es válido solo para esta  
organización.  
Palabras clave: motivación psicológica, premios monetarios, conflicto, confianza  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
Introduction  
The specialized literature stresses the needs of implementing efficient methods to  
motivate workers and desk-staff. In the industry of tourism and other services where  
experiences are sold and exchanged, the customer attention occupies a central position  
to gain loyalties. The tourist organizations devote considerable efforts and resources to  
keep their staff motivated to cement the customer´s relations. Because of this, the  
present chapter explores the negative effects of monetary rewards in these types of  
organizations. Needless to say, the research results from a much broader project of  
investigation concerning the negative effects of a monetary incentive program in one of  
the most well-known rent a car company in Buenos Aires and Argentina. The main  
selected methodology of this research was ethnography. The reason behinds this lies in  
the fact that motivation is a complex and dense theme which needs further qualitative  
explorations. Because of confidential claims, the real names of participants and  
interviewees were covered or changed to protect their identities. Added value is a  
significant aspect of psychological motivation widely followed and recommended by  
marketing experts and consultants. Corporations often adopt monetary rewards to  
incentives their personnel but in so doing, they trigger a climate of extreme competition,  
greed and fear which directly or not affects the organization. The implementation of  
monetary rewards has some limitations which are discussed in the present text. The  
history of management reveals that the relationships between workers and capital  
owners were determined by the conditions of production, which vary from time to time.  
Originally, the policies to foster production were based on paternalist viewpoints, but in  
the time the concept sets the pace to more concrete philosophies oriented to measure the  
staff performance. It is safe to say that as a concept, resource management was  
originally imagined as a need if not an urgency- of organizing the workers´  
relationship in a more efficient way. As experts suggested, these new rationalizations  
lead to more prosper and stable organizations. When the conflict is regulated or  
constrained, the organization expands its potential to other fields. For this reason, and  
whatsoever, the labor policies were implemented by top-ranked managers taking  
seriously the contribution of psychology and sociology amounted during the 70s decade  
(Davis 2006). This begs a more than interesting point of entry for this essay review, is  
postmodernity effacing the classical notion of authority, by which conflict arises?  
Preliminary Discussion: what method?  
Let´s explain readers first that ethnography-related research was conducted during the  
years of 2004-2008 in a well-known Argentinean rent-a-car company. In this  
opportunity, we succeeded in collating substantial and firm evidence which helps us  
understanding the complexity of workers´ relations. In view of the fact that many  
interviewees manifested their worries or fears their supervisors penalize them, the role  
of observer kept occulted. Based on a snowball method, the interviews were conducted  
to several workers to gain a rapid snapshot, tape-recorded and verbatim transcribed. To  
date, the literature adopted by experts associated to the psychological motivation as a  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
key factor that explains how a good (memorable) experience is mutually constructed.  
There are financial resources in the fields of management- deployed to understand the  
customer´s experience. The thesis of these studies holds that sustainable tourist  
companies are successfully expanded when the internal client is preserved. Workers are  
more active, creative and or find better ways of dealing with problems when they are  
motivated or have a sentiment of belonging. Thus, for these voices, motivation plays a  
significant role facilitating the necessary background towards a climate of cooperation  
and stability (Zamora Gonzalez et al, 2004; Arkursus and Tarkan, 2002; Lindroth, 2008;  
Zehrer et al, 2008). In addition, others studies have drawn their attention to the  
importance of incentive-programs to improve the satisfaction of workers and their  
connection with consumers (Dominguez, Richert and Castro, 2006; Charles and  
Marshall, 1992; Hall, 1995; Rodriguez and San Martin, 2008; Mckercher and Lau,  
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007; Um, Chon and Ro, 2006; Fuller, Matzler and Faullant, 2006; Ball, 1988; Brymer,  
991; Bigne and Andreu, 2004; Szivas, Riley and Airey, 2003; Muller and Wyss, 2007;  
Moller et al, 2007; Alonso Ferreras, 2002; Lillo Bañuls et al, 2007). Although the  
number of publications on workers´ motivation abounds, less attention was paid to the  
negative effects of rewards in tourism organizations. This is the reason; research of this  
caliber deserves our time and efforts.  
Centered on empirical-rich research based on the usage of Culture Assimilator  
Technique in the cross-cultural interaction between Australian airline’s employees and  
Japanese tourists, Bochner & Coulong evince how complainers not only had a bad  
experience but followed cultural maps that lead them to claim something in the services  
was wrong. We claim when our expectancies are not met. In consequence, when we  
move in unfamiliar situations, we behave according to our cultural background  
(software). These researchers found that Japanese tourists opted not to complain before  
returning to home. What is more important, sometimes a complaint may not overtly be  
expressed at the desk by the consumer because it is considered a lack of respect or  
inappropriate. In this, way, the familiarity with the visited destinations serves very well  
in resolving previous disputes or problems. Those tourists who have repeated the  
destination claim less than others who visit the destination by the first time (Bochner &  
Coulong, 1997). The recent advances of social psychology, -in multicultural  
organizations- shows how interpersonal relations are harmed or boosted according the  
cultural background as well as how rapid conflicts are minimized. (Hofstede, 1991). To  
wit, Earley (1989) compared the performance of Chinese and American managers on a  
in-basket simulation of work to find that there were clear evidences of social loafing  
among US managers whilst Chineses worked harder even though in loneness. Similarly,  
as Yamagishi (1988) acknowledged, American managers were inclined to choose for  
individual rewards whenever the penalties that compound the incentive system are low,  
but not when they were high. Generally, Japanesses often inclined to be satisfied for  
individual rewards no matter than the level of penalties. Recent advances reflected that  
competiveness -among firms- pressed workers to be trained in a high-quality system of  
education where efficiency and efficacy prevail. A. Lillo Bañuls et al (2007) show how  
behind the quest of excellence lies a climate where the organization needs to compete –  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
in egalitarian conditions- with other firms at a liberal decentralized market. The volatile  
nature of the tourist system, adjoined to the high-mobilities in the tourist organizations  
without mentioning the increasing numbers of destinations and brands, paved the ways  
to new forms of training and motivation. The psychological motivation seems to be the  
tug of war of organizational consultants to explain why or under what conditions the  
firms fail in the goal achievements. Alexandru Nedelea calls attention to the importance  
of marketing and managerial disciplines as a toolbox to delineate the necessary policies  
for destinations enhance their attractiveness. As discussed, the volatile nature of tourism  
and its intangibility reproduces flexible cultures which are mainly adapted to resolve  
customers´ issues. In the basis of this competence, destinations recycle themselves  
while overcoming the obstacles often they face as well as invigorate their skills and  
potential in struggling with other firms. For the customer´s loyalty to be recaptured,  
companies launch different commercial promotions and programs generating a  
Darwinist backdrop of all against all. (Nedelea, 2010). This raises a more than an  
interesting question, what is the role of ethics in business?  
To respond to this question, we need to come to British philosopher G. Klempner  
(2004), who toyed with the belief that ethics, business and marketing should not be  
dissociated. This chapter as well as this book- intends to deal with ethical issues and  
the problems of competition in the tourism industry. Of course, it is noteworthy West  
faces a serious stock market crisis which whipped the main economies since 2008. This  
reality says much than we are accustomed to accepting. Having said this, the  
international financial order rests on shaky foundations while tourism goes through  
countless risks and threats. Is competition the symbolic core of capitalism? how can  
competition be regulated to avoid a climate of mistrust in the tourist organization?  
Capitalism and the atmosphere of competition  
The inevitable and sudden decline of Communism had serious effects for local  
economies even to date. Based on a limited control over business by states, investors  
have selected peripheral countries with lower costs to enhance their profits.  
Undoubtedly, this resulted in a search for maximizing benefits searches which ushered  
workers to a climate of precaritization as never before. The process of globalization  
triggered a climate of extreme competition for workers as well as the rise of anxieties  
and conflicts in the organizations (Gottdiener, 1994).  
In the Manufacturing Consent, Michael Burawoy (1979) explores the roots of capitalist  
mind as well as the ideological discourses that produce the monopoly of knowledge. In  
some respect, the sociology of work has serious problems to understand the role of  
conflict in the process of production. Defining the “organization-factory” as a harmonic  
body, the founding parents of sociology considered the conflict only as a social malady,  
at the best an error, or a disruption which should be remedied. Starting from the premise  
that the organization needs from the technocracy to control its performance, as Burawoy  
adds, organizational consults believe that conflict far from optimizing the resources- is  
disruptive and should be avoided. Contrariwise, Burawoy argues eloquently that  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
conflict far from being negative- seems to be endemic, as a part of the system of  
production, but inscribed in capitalism since its inception. Over the years, Burawoy  
reminds, sociology through the lens of structuralism and functionalism, embraced a  
managerial perspective while Marxism was overlooked or simply contested. These  
theories punctuated on the negative figure of conflict for social enhancement but also  
judged badly the nature of consent. As Burawoy says, there is no consent without  
conflict and vice-versa.  
Conflict and consent are neither latent nor underlying but refer to directly observable  
activities that must be grasped in terms of the organization of the labor process under  
capitalism. Conflict and consent are not primordial conditions but products of the  
organization of the work” (1979: p. 12).  
This above-noted citation reveals two significant things. On one hand, the sociological  
literature had minimum efforts in explaining but merely describing- the workers´  
behaviour as well as their innermost feelings. In this way, conflict receives a pejorative  
connotation as a cultural illness to be eradicated from the core of the private  
organization. On another, the surplus theory and the expropriation of the capitalist  
system remain untouched or covered by an ideological veil. Put the problem in these  
terms, the history of capitalist production reveals that the production of goods not only  
is finely-ingrained in a dense network which often remains inexpugnable even for the  
trained sociologist but also creating tailored experiences so that the capital can be  
reproduced.  
Why does Capital lead to conflict?  
In practical terms, capitalism has been widely criticized by the limitations in the  
accumulative process, without mentioning the material asymmetries created by the  
system. As Geoffrey Skoll puts it, the figure of capital seems to be a symbolic mediator  
of human relationship in the same way, the Id in the Freudian theory. What is important  
to discuss, is why capital mediates between production and workers. The problem of  
reproduction, and probably it is the main Skoll´s thesis, seems to be based on a  
philosophical dialectics where the relation between causes and effects is blurred. From  
its earlier texts, Marx interrogated furtherly on how the society keeps united. He traces  
back on the social origin of human relations and its intersection with the economic  
system. Over years, sociology prompted to respond to the same dilemmas but  
overlooked the material connection of economy and history, as Skoll adheres. In the  
Marxian texts, the figure of the city occupied a prominent position as the main recipient  
of human relations. Metropolis condenses capital accumulation and the necessary  
manpower to keep the machine functioning. The capital exhibits a dialectical relation  
between the worker and the machines disposed to amass the surplus. In this respect,  
Skoll mentions the “dialectics of triadic thought” to denote the juxtaposition of two  
complementing modes of thinking. Originally, social sciences demarcated the borders  
of capitalism assuming that the exploitation of the workforce was irreversible and an  
inevitable stage of economic production. The agency, which is oppressed by the system,  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
earns a wage for its work, but behind this economic relation lies a cheat. The theory of  
surplus-value says overtly that the worker is stolen of the produced profit in favor of the  
capital-owners. Having said this, dialectics consists in introducing a third object  
(capital) that mediates between the other two objects, but in so doing, the relations  
between the three objects are obscured. Far from being the subject, subjectivity becomes  
an “object” to be placed under the lens of expert scrutiny. The laypeople are educated to  
understand them-Selves, through the mediation of the analyst. This type of analytic  
process consists of getting away the mythical autonomy of the agency to achieve a view  
of other much deeper forces. At a closer look, history plays a similar role than  
dialectics. Although one of the merits of Karl Marx was his contributions to the  
philosophical fields, above all the dialectics of agent and production, he was exploring  
the economy of capitalism. The crux for this society lies in the production as well as the  
reproduction of what is produced. This creates a dialectic image of two objects, the  
original and its copycat. The dialectics in the Marxian tradition, it is safe to say,  
postulates that capital takes the form of commodities, while shaping the productive  
relations. The reification of capital consists in absorbing any individual worker´s  
essence, into the sublimated form of their labor, the commodity. The ontology of capital  
adheres not only to the subordination of workforce, but also a clear sign of  
victimization, where the worker lost their rights to claim good portions of surplus. The  
system of wage, Skoll adds, alienates the possibilities of workers to keep the control of  
consuming machine.  
In consonance with this, Richard Hofstadter (1992) contended that the quest for profits,  
as well as the needs of competing with others for a job in the labor market, is not news  
in the US. Such a tradition stems from the doctrine of social Darwinism in earlier  
authors as Asa Gray, Graham Sumner and of course Herbert Spencer only to name a  
few. This theory introduced two significant axioms which reconfirmed the long-  
dormant sentiment of exceptionalism in American society. On one hand, the theory  
marked the idea of the survival of the fittest, as a precondition towards evolution. On  
another, social determinism evinced the urgency to explain the material inequalities in  
the US. After all, Darwinism shed light on the conceptual limitations of classical  
liberalism. As he observes, the legitimacy of the law and order was not sufficient to  
explain why some Americans were richer and others remained in extreme poverty. As a  
supra-organism, the social structure interrogates on the hegemony of the law,  
presenting the individual performance as a sign of self-improvement. The struggle for  
survival was the mainstream cultural value that marked the American character from the  
outset. Drawing an ideological map between the wild man and the civilized one, the  
fathers of social Darwinism sees in wealth and social mobilities the marks of the racial  
superiority only West has respecting other cultures. Thus, “primitive man, who long ago  
withdrew from the competitive struggle and ceased to accumulate capital goods, must  
pay with a backward and unenlightened way of life” (p 58). Millionaires have not  
resulted from the greed or avarice but the evolution of natural selection. They have been  
selected by their strengths, tested in their success in business, and abilities to achieve  
adaptation to the environment. Rather, others have been relegated to occupy pour  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
conditions of existence or to disappear. Because of social Darwinism was a doctrine  
originally adopted by some religious waves, not only Sumner but Gray alarmed on the  
negative effects of leaving the pour without assistance. At a closer look, Calvinist and  
other protestant circle emphasized on the hostility of the environment as a proof of faith.  
This belief suggests that man evolves in a conflictive and dangerous world. Secondly,  
the archetype of the uphill city which holds the selected people exerted considerable  
influence to delineate the roots of labor. Being a successful businessman for Americans,  
was more than important to ensure one is part of selected by God. At a surface, this is  
not pretty different in what social Darwinism claims (Hofstadter, 1992).  
In this token, Zygmunt Bauman illuminates us discussing the problems of capitalism in  
two of his seminal books, Consuming life and Liquid Fear. In the early industrialization  
age, workers were part of the production machinery. They worked surely for many  
hours and were paid starvation wages. The capitalist spirit not only changed the  
workers´ minds but also the ideological narratives revolving around the ways  
consumption and production are finally organized. Today´s labor market, workers are  
commoditized to be exchanged by other commodities. We do not work to live, rather  
we work to consume. This point opens the doors to what Bauman calls liquid  
modernity. The big brother is an example of how people enter incompetence, as  
commodities, to be selected and bought by others. Participants in this reality show know  
that only one will win, and the rest will die. Big Brother, for Bauman, emulates the life  
in capitalist societies which enhance the style of life of few by producing pauperization  
for the whole. The modern state set the pace to the advent of liberal market to  
monopolize the sense of security for people. This does not mean that states are unable to  
keep the security, but also the market is re-channelling the consumption by the  
imposition of fear. If human disasters as Katrina show the pervasive nature of  
capitalism which abandoned thousand of poor citizens to death, no less true is that the  
“show of disaster” unbinds of responsibilities for the event. The sense of catastrophe,  
like death, serves to cover the inhuman nature of capitalism (Bauman, 2007; 2008). This  
society only has an answer to the crisis, when its economic system is at risk. Since the  
real reason for disaster are ignored by the allegory of death, which persisted in the  
media and famous TV series where technicians and forensic experts look to solve the  
crime, the disaster comes sooner or later (Bauman, 2011).  
Last but not least, the logic of capitalism rests on the needs of alternating cycles of  
production and destruction. This creative destruction denotes the needs of transforming  
the reality, the social institutions and the environment according to the needs of capital-  
owners. The organizational and institutional goals, which historically marked the life of  
an organization, have been replaced by a solipsist discourse where reality is tailored to  
what any consumer wishes (Korstanje 2012). In a world where reality can exist only in  
the individual perception of people, the inner world remains impermeable to the  
external events. This means that we only see what we want to see. Paradoxically, we  
live in a safer world comparing the Middle Age- but needs further rituals which are  
stimulated by mass consumption- to recover the sense of security.  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
The psychological character of Managers  
Unlike the classical sociology, some scholars as Miklas Luhmann and Anthony Giddens  
focused their attention on the figure of money in our modern style of life. Luhmann  
clarifies that money serves as a symbolic mediator (among many other else as power  
and beautiness) for the self to reduce the uncertainty and the society may function  
(Luhmann, 1979). In a similarly minded argument, Anthony Giddens (1991) explains  
money is very important for the capitalist society. As a cultural project, the  
globalization has been consolidated allowing the evolution of what Giddens dubs as  
“disembedding processes”. In this new world, money, risk and the net of expertise  
return to lay-people the trust in their institutions (Giddens, 1991). A more than a  
pungent book, in this discussion, sheds light on the passage from family to corporate  
capitalism. Michael Useem (1984), in the inner Circle, points to the problems to  
understand if nations are governed by a powerful business-elite class or by an atomized  
cell of corporations which only exerts pressure over governments. This debate is far  
from being closed. The psychological portraits of American and British managers vary  
on by many factors. While Americans are oriented to profit-generations and private  
welfare, the British are less prone to productivity issues. However, over the years,  
sociologists portrayed a benefactor character of managers. Unlike the “predatory”  
capital owners, managers are workers who want the best for the company. They not  
only care for the good function of the company but also are motivated by non-profit  
concerns. The merit why Useem needs recognition rests on the criticism of this belief.  
Managers, in the US and UK, evidenced not only rapacious greed for money but also  
attempted to intervene to generate public policies that protect their business and  
concerns. As Useem added, family capitalism was more integrated into the community  
using a type of scale production. Now, things are more scattered, units are more  
atomized, but large corporations govern the world from one to another point of the  
Ocean. Many managers have tempted to buy shares of the company which became in  
owners while others have pursued their self-interests to have the opportunity to make  
their businesses (Useem, 1984). They are no longer concerned by the workforce  
motivation nor by the performance of the company unless by their wealth enhancement.  
Unfortunately, this was not investigated in tourism fields. Our research in this vein  
intends to fulfil a gap to complement the specialized literature on motivational issues.  
One of the founding fathers of organizational psychology, Harry Levinson (1976),  
contends that leadership is vital to achieving a good performance in the lines of  
production. The decision making the process as it is made by top-management molds  
the destiny of workforce. The leadership marks the start for the total authority of  
executives over workers. The introductory chapters channel precisely the problem of  
greed. Those people less educated, Levinson adds, seem not to be interested in  
accumulating money than other groups. The efficacy of a good leader (executive) is the  
stimulation of non-monetary rewards. Its primary goal depends on the possibility to  
contribute to common wellbeing. In doing so, psychology and psychoanalysis allows  
not only the understanding of worker’s mind indoors but opening the horizons to  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
captivate new segments of consumers. By tracing analogies between the family and the  
line of production, Levinson considers that rules are crucial aspects of life to order the  
world and lead the organization to stimulation. This archetype confers to workers the  
security of being protected by executives, as fathers care their children.  
The superego incorporates the moral and spiritual value of culture in which a person  
lives, the rules and regulation within the family, and the attitudes toward himself which  
the person has acquired from those around him. Thus the superego is at a policeman, a  
judge, and a preceptor. The superego represents the law, telling us what we should or  
should not do. It represents the judiciary, in judging how well we conform to the rules  
which it has set up, and it represents the preceptor, incorporating values and aspirations  
and goals” (1976: p. 11).  
Per his view, chiefs and subordinates celebrate a psychological contract that draws the  
expectations and behaviors in the organization. Management should understand how  
this psychological contract is formed. Other studies emphasize on the relevance to  
recruit the correct personnel, high skilled or qualified to make great achievements for  
the company. At some extent, these scholars argue that the workers are committed if  
they can reap rewards for their efforts. This enhances not only the self-esteem but the  
concept of security of self. (Rogelberg & Books-laber, 2002; Miner, 1992). What is  
more than important to examine is the role played by leaders to forge the labor-related  
climate. Managers are crucial to organize the worker’s duties as well as resolving all  
conflicts resulting from human interactions. In doing so, they should appeal to create a  
fluid communication, which may align the workforce to managerial goals (Daft, 2011).  
However, no less true is that conflicts sometimes have benefits and disadvantages to the  
chain of production and job-satisfaction levels. Undoubtedly, there is a gap between  
conflict management and social network literature, which was not yet fulfilled. One of  
the first methodological problems to study conflict is how it can be measured. What one  
person may perceive as conflictive atmosphere, others experience as harmonic one and  
vice-versa. In this discussion, the role played by networks in the reduction or inflation  
of conflicts is significant for social analysts. Under some conditions, the conflict  
triggers team performance or the commitment to a certain task. Ching Tsung Jen (2013)  
conducted an empirical research to validate the following salient axioms,  
In groups where the authority is centralized, the conflict influences negatively in  
job satisfaction.  
Team-structured organizations managers and people who are in better position  
are prone to conflict than others.  
Psychological problems as anxieties or any type of disorder lead people not to  
understand social change.  
Centrality in the task, not authority, is benefited by the exacerbation of conflict.  
The distress caused by discrepancies, in the task-oriented group, fosters the  
productivity and the competition among workers.  
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Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
In the fields of hospitality, Sanchez Cañizares (2007) et al explored how workers do  
their best to increase the quality of service as long as they are motivated. Since those  
companies that give incentives to their members develop more possibilities to prosper  
than others in the line of time, psychological satisfaction comprises the motivation as a  
vehicle for good and efficient communication. In doing so, the importance of a fluid  
interaction between workers is an essential aspect in services (Sanchez Cañizares et al,  
2
007:244-246). Like in other aspects of life, people feel motivated when perceiving  
their work contribute to the general goals of organizations. In the preexistent body of  
knowledge, the perception of material benefits is outweighed to the costs at the time of  
accepting or rejecting a tourist project in a community. This means that power,  
competition, benefits and costs are inextricably intertwined (Gursoy and Rutherford,  
2
2
004) (Santana, 2006) (Zehrer et al, 2007) (Pearce, 2008) (Franch et al, 2008) (Dwyer,  
008) (McNaughton, 2006). Tran and Phillip emphasized that the nature of human  
beings is based on the need for achievement (prizes), power (control) and affiliation  
sentiment of belonging). The pattern of behaviour is often determined by the typology  
(
of subjective needs (Tran and Phillip, 2010). Applied research in psychology shows that  
positive and negative incentive determines the motivation of subjects as well as their  
commitment to production. The process encompasses three stages, arousal, direction  
and intensity. The arousal signals to any aspect that triggers the action. Rather, direction  
understands the channel where the worker´s needs are fulfilled or how its energy is  
monopolized. Lastly, intensity refers to the vigor workers put in achievement some  
goals and ignoring others (Mitchell & Daniells, 2003). Interesting research has revealed  
the influence exerted by the psychological character of bosses (capital owners), the  
goals and workers into the organizational culture. It exhibits the collective values,  
principles, and beliefs that regulate the member´s behaviour and management style  
(
(
Needle, 2004). However, motivation is a very difficult concept to grasp. Schlemenson  
1987) focuses on the non-monetary aspects of the organization are the most important  
to care to keep motivation in subordinates. Leadership is based on a clear message and  
exemplary conduct by managers. The commitment declines when the gap between what  
people do and the predicate is enlarged. By this vein, G. Morgan (1998) and E. Jacques  
(2000) argued that monetary incentive should be combined with other non-monetary  
resources in order not to generate a climate of downright envy and competence. Unless  
otherwise resolved these experts point out stakeholders start to develop a sentiment of  
frustration simply because monetary awards are entropic. The much money the worker  
earns much more conflict the organization faces. The frustration as psychological  
concept can be understood in comparison with expectances. The money expands the  
individual expectances in detriment of the in-group performance. Organizations that  
have implemented system of monetary funds to stimulate the work have faced serious  
problems internally. Therefore, monetary awards should be complemented with other  
types of incentives.  
Study-case: Buenos Aires.  
This research is a result of vast experience of more than 10 years managing monetary  
and non-monetary fund for tourist companies. A couple of decades back, G. Homans  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
affirmed that employees work based on a high level of motivations when their work  
contributes to the well-functioning of organization beyond the wage or other variables,  
being useful has major importance for workers than the earned-money (Homans, 1963).  
As explained, one might speculate that wages should equate to time and efforts spent by  
the employee, otherwise, pathological behavior surfaces. At first glance, the preliminary  
findings in this research can be detailed as follows:  
1
2
. The studied organization trained their employees to ensure the best quality in  
customer attention. The importance of their psychological motivation was  
associated to the goal of ensuring the existent level of loyalty in consumers.  
. The pyramid of this organization was based on three levels. At the top, Chief  
Executive Officer (CEO) who makes the vital decision in tactic and strategic  
fields. His managers, situated at a second middle level, are in charge of  
controlling the quality of the service. At the bottom, the front-line workers who  
are in direct contact with consumers, renters and tourists. While the managers  
have no financial or monetary incentive program, front line workers have paid  
depending on their sales.  
3
4
. Although the application of incentive programs started from a previous  
discontent in front line workers, the working atmosphere worsened after the  
policy of incentive was widely applied.  
. The process of recruitment was carefully accomplished following higher criteria  
of selection. The points that should follow a frontline worker were documented  
in a manual to prevent potential conflicts.  
Quite aside from this, from 35 interviewed workers who range from 20 to 55 years old,  
a total of 29 stated their disconformities respecting to the monetary incentive system; by  
the way, only 4 interviewees were certainly well-motivated with the application of the  
present motivation incentive system. Because of time and space, we are not able to give  
more specification about all interviews, but only the most relevant are transcribed:  
Romina (female 32 years old) was upset stating that:  
The current form of incentivation does not work in our company; I believe this is  
because managers apply penalizations without any previous notice. Quite aside from  
this, we realize at the end of month how much money will earn. Sometimes the  
penalizations are based on fact invented to debit from arbitrarily that is not a serious  
system; however, the system has been designed properly the problem lies in the  
application if you ask me”.  
Similarly, other agent Agustin (Male, 27 years old) claimed:  
I am unhappy with our incentive programs for two reasons, penalties are not  
applied in a fair manner and it is an invention of Managers to boost the performance but  
save money. If the monetary penalties over us are not clear, it is because we bill more  
and more each month. As a result of this, they (Managers) like no to pay us and invent  
errors in procedures for the application of debits and pay less than due”.  
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RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
For some reason, this climate of conflict and hostility among managers and front-line  
employees was not found by the opinion poll conducted by Human Resources  
departments. The problem remained undetected for all them. One of the striking  
limitations managers found in the implementation of a monetary incentive program was  
the resistance of agents to accept the discounts processed by personal omissions or  
errors. On another hand, a typical behaviour observed in the front-desk managers was a  
manipulation of monetary programs at their discretion. The root of discrepancy was  
simple in general terms. Managers were reluctant to support their subordinate in view of  
the increasing of monetary awards given. Eager and envy were two emotions that  
flourished in this organization while the incentive program applied. The gap between  
Managers and workforce´s wages reduced considerably to the extent that some  
managers earned a less salary than their subordinates. In view of this, workers were  
unduly penalized by errors that were fabricated by their managers. This generated a  
climate of conflicts or tension as never before.  
Starting from the premise wages are measurable instrument to regulate the performance,  
managers have not felt valorized by their job and achievements. For Esteban (Male,  
manager 35 years old) who is in charge of Buenos Aires Location  
Employees are very ambitious when more money they earn more like. I understand  
that they are receiving at hand more than $ 500/600 for productions but claim that that is  
not enough. Truthfully, Managers do not inform the penalties in due course, but this is a  
consequence of all problem’s employees have brought. In past, when we reported to  
agents that a penalty of $ 150 was debited from there accounts in accordance to some  
errors, they responded aggressively and threatened us to mistreat to clients because of  
their unsatisfaction. Please figure out that we do not manipulate the incentive program,  
if this measure was taken it is due to diverse problems program of this nature has been  
caused; up-to-date we have modified this program more than twice but the unhappiness  
still remains”.  
It is important to mention that the degree of conflict does not deter the volume of sales  
in this organization. To put this in numbers, during 2005 the number of sales was $  
2
.000.000 ARS, in 2006 this amount rises to $ 2.500.000 for being $ 3.500.000 to the  
end of 2007. On another hand, the number of complaints about 2005 was 65 in the  
country all while the number duplicated to 120 for 2006. This evidenced that even  
though the sales have not been diminished the quality of customer relationship slumped.  
Based on these assumptions, an all-encompassed four-fold model has been construed in  
accordance with two grids: a) the course of action of managers and b) agent’s reactions.  
Table 1 shows the types of behaviors observed during the ethnography according to the  
degree of punishment or recognition. At the short term, if the worker were penalized  
employing a monetary deduction, the answer was based on hostility or any neglect.  
Accused of being liars, managers were blamed to manipulate the monetary program by  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
envy and anger. Rather, if the penalties do not involve any type of monetary deduction,  
workers evidenced indifference or acceptance.  
Table 1  
Types of reaction based on punishments  
Type of Punishment  
Monetary Punishment  
Negation and Hostility  
Non-Monetary Punishment  
Acceptance or Indifference  
Table 2 gives an opposite conclusion than Table 1. At time of applying monetary  
awards over workforce, the answer was based on commitment and motivation.  
Secondly, this behaviour changed radically if the award were non-monetary such as  
more days of holiday, ticket to fly, or training programs. At a closer look, in this  
organization, once the monetary program was implemented, any change was not  
allowed by workforce. Paradoxically, workforce did their best to increase the  
production but at the same time the conflict arose. The climate of loyalty and trust  
between managers and agents not only diluted but also become into a culture of  
mistrust.  
Table 2  
Types of reactions based on awards.  
Type of Award.  
Monetary  
Motivation and commitment  
Acceptance or Indifference.  
non-monetary  
At a first glance, the dichotomy, acceptance or rejection of punishments depends on the  
type of incentive, award or punishment at stake. In cases when the incentive is  
exclusively applied on monetary awards or punishments the self-esteem and  
commitment respecting to work rises but this causes serious problems whenever the  
worker should be subject to monetary punishment. Since front line workers are in a  
privileged position because they are in contact with tourists or consumers, they can  
negotiate major portions of monetary awards than other relegated groups. The  
expectance of managers respecting of the high quality of service offered, situates front  
line workers in a privileged position. Far away from capitalizing this advantage to  
coordinate efforts, as managerial literature says, front-line workers extortionate  
managers to gain further power. Of course, in this tactic, consumers were hosted by  
workforce. This happens because agents speculate with the fears of managers who were  
in charge of the service quality. To validate this assumption, we come across with the  
following interview which is self-explanatory: Marcelo (male, 25 years old) said us the  
following,  
I do not care if I had right or not, if the mistake is mine or not, I will always complaint  
and fight when an economical penalty is being applied on me simply because that is  
money, and the money worths my time and efforts”.  
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RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
Other consultants agreed to the same question voicing: “whatever the case may be, I  
will be in disagreement with this award programs only for one reason, the money”.  
This latter excerpt seems to be in sharp discordance with previous managerial literature  
that outlines stakeholders tend to accept punishments whenever they consider they are  
fair. To this point of view, one might conclude in two main ideas:  
1
2
. Monetary incentive program increases the sales but paradoxically triggers an  
impropriate atmosphere for working since it paves the ways for the advent of  
competition and dishonesty.  
. Whenever the involving incentive program is exclusively centred on a monetary  
basis, the individualism rules.  
Starting from the premise that agents were close up to customers, the quality of services  
is in danger if they self-perceive as under-motivated. The symbolic proximity of agents  
along with consumers gives to the latter ones a major probability to deploy strategies to  
negotiate directly to CEO with their back to managers. It is more than important not to  
loose the sight that the agent’s strength lays in the capacity to be working at front-staged  
positions. Relevant findings, in this study, lead readers to question the nature of money  
and its pervasive influence in subject behavior. In a desperate attempt to reduce the  
conflict, chief executive officer prompted to fix a “ceiling” to the monetary awards, but  
this was in vain. The pressure of workforce boycotted the income and profits of  
organizations from many perspectives. Some agents and front desk workers aborted the  
activities echoing a strike which was supported by worker unions. In other cases, they  
refused to offer cheaper rates to their clients, affecting seriously the organizational  
profits. CEO lost his political arm wrestling against workforce and opted to return the  
award-system. This measure woke up the fury of managers who quitted in protest. They  
passed to other rent-a-car companies migrating vital information for local competence  
in the market.  
Conclusion  
It is important not to lose the sight that conclusion obtained in this study case cannot be  
extrapolated to other samples or units. They are only adjusted to micro-sociological  
condition of work in this corporation. One of the premises that delineated this research  
was the idea that motivated workers are committed in the production of organization.  
This point of entry was widely validated by all specialized literature in tourism fields.  
The surveys of working climate reveal what managers and top management want to  
hear. Classical methodologies of survey to reveal the working atmosphere sometimes  
are not enough to correct glitch generated by capital and monetary incentive royalties.  
Instead, a much deeper ethnography may complement and give results that help in  
understanding human behaviour in organizations. What would be more than important  
to discuss in future research are the effects of monetary fines found in our fieldwork.  
Monetary rewards in a tourism organization  
Maximiliano Korstanje  
RICIT Nro. 13 (Año 2019) (pp. 96-115) ISSN: 1390-6305 ISSN-e: 2588-0861.  
This represents the complexity of psychological motivations. One of the aspects which  
have not been addressed in this review is the effects of over-motivation on workforce.  
This means that under some conditions, the excess of motivation may generate  
conflictive atmosphere declining the trust because of a rise of competition. The  
introduction of monetary paid awards may be causing this by elevating the expectative  
of workers. However, these are simple speculations which deserve further attention.  
Secondly, perhaps the cultures of rent cars are different than other organization such as  
hotels or airplanes. Our evidence, anyway, demonstrates the monetary awards  
disorganize the human relations necessary to grant the firm´s performance.  
Basically, Human capital comprises all stock of skills and knowledge embodied in the  
ability to perform labor so as to produce economic value.  
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