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What if psychologists ruled the world? In real life?

Meeting Maslow’s basic needs?

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The news that Ergo, a division of Munich Re the world’s biggest insurance company for other insurance companies, took over a company that organised an orgy in 2007 to reward its most successful sales people may have shocked many people at the time.

But you have to be impressed by the teutonic efficiency of it all.

The event was held at Gellert Baths in Budapest where 20 prostitutes were hired for the 100 participants. The women wore coloured armbands denoting their availability and whether they were hostesses, game for anything, or reserved for board members.

The men had to form an orderly queue of up to an hour to get into the 4-poster beds. After each interaction the prostitutes had their arm stamped. Not only could guests see at a glance which girls were more popular but the girls themselves could compare themselves with their peers and see which of them was performing better – instant feedback. The reports don’t say if the girls received any bonuses but truly this is performance management in the flesh.

On a personal note I have never been to Budapest but it’s on my list. But when I was last in Kaunas, Lithuania I noticed that Ergo had taken over the apartments where I lived for a month or so in 2008 so they are obviously doing well.

Perhaps there is something in rewarding people at a very basic need level (as Maslow would have proposed).

There was a sting in the tail for the participants who ended up paying €3,000 to the German tax authority for taking advantage of taxable perks.

When it became public knowledge in 2011 the company stated that it was a one-off indiscretion and the two executives who organised the event left the company.

However an internal audit discovered that the company had previously held incentive events at a swinger hotel in Jamaica and at strip clubs in Prague and Hamburg. The contents of the report were made public by the German business newspaper Handelsblatt in 2012.

 

First posted by Mike the Psych as “Well organised orgy as sales incentive”

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Author: mikethepsych

He says he's a psychologist but aren't we all?

One thought on “Meeting Maslow’s basic needs?

  1. Pingback: The plan behind Munich Re’s corporate orgy