This year three Japanese nationals were awarded the Nobel Prize in Physics, and Japanese citizens took heart from this.The other day I had an opportunity to talk with the president of small company, and the Nobel Prize became the topic of conversation. He had this to say: “There are about 50 employees in my company, we’re like a family, but there’s a lot of chat and this brings down efficiency. So, I decided to present a President’s Prize of one million yen to the employee who submits the most outstanding innovative idea, on the day of the Nobel Prize announcement next year.” “That’s wonderful. Your employees must be pleased, right?” I said. “Of course. In addition, I introduced a system of performance-based pay so that those who work hard are rewarded.” “Well then, your workers must be working to the best of their ability, no?” “Well… Next year I’m considering putting a stop to the President’s Prize, as well as to performance-related pay,” he said gloomily. “What’s the matter?” “Well, it’s true that compared to before, their chatting has died down. But their team work has become terrible.” “Why?” “Because of the money, everybody is secretly mulling over ideas and communication between employees has almost died out. Because of this more employees quit one after another and sales have begun to fall,” he sighed. I said, “Just as under a socialist regime, employees in a company do not work hard, but if a competitive system is introduced, the employees go wild, and that’s tough on the boss.” Then, he had this to say: “Well, my worries will be resolved in a few years.” As I looked at him puzzled, he continued. “I’m getting on and, after hearing about these problems, my son does not want to take over, so I’ll shut down the company,” he said.