Gamification (the trend of applying video game mechanics such as point

Question

Gamification (the trend of applying video game mechanics such as points and achievements to non-gaming work processes such as innovation, training, and employee performance) is increasingly being used by organizations, with many realizing significantly improved performance and increased profitability as a result. Michael Wu sees significant potential for increased corporate performance through gamification of processes, but expresses a concern that gamification could also result in decreased employee performance over time. Gamified processes can create a short-term increase in performance and productivity as employees seek to earn points and badges, but eventually the employees, like even the most avid gamers, would grow bored with playing and move on. Furthermore, a danger inherent in the gamification of processes is the so-called “moral hazard” of game play--that people will become focused on the extrinsic rewards and mechanics of the game play rather than on the intrinsic rewards to be gained by participating in the activity. As a result, a corporation might become significantly more efficient and profitable as a result of gamifying its internal processes, while at the same time its employees become gradually less motivated by the intrinsic rewards of their work as well as developing a stronger expectation for external rewards that increase over time.

Wu argues that in order for companies to successfully employ gamification, they must develop a strategy to make it sustainable over the long term, such as tying extrinsic rewards to specific intrinsic benefits that have long-term value to the individual, or using the gamification process only long enough to discover each employee''s intrinsic motivations and develop new reward systems that address each employee individually. Focusing narrowly on gamification, while offering a significant opportunity for businesses to increase efficiency and profitability over the short term, may ironically result in decreased employee performance and corporate earnings over the long term.

Wu argues that in order for companies to successfully employ gamification, they must develop a strategy to make it sustainable over the long term, such as tying extrinsic rewards to specific intrinsic benefits that have long-term value to the individual, or using the gamification process only long enough to discover each employee''s intrinsic motivations and develop new reward systems that address each employee individually. Focusing narrowly on gamification, while offering a significant opportunity for businesses to increase efficiency and profitability over the short term, may ironically result in decreased employee performance and corporate earnings over the long term.   1 
 Q1) The primary purpose of the passage is to 
 
A) suggest a potential alternative to a business strategy that may result in a lack of employee motivation
B) demonstrate that a specific business strategy will not be successful over the long run
C) explain why intrinsic motivations are more important to employee performance than extrinsic rewards are
D) describe the dangerous moral implications of a particular business strategy
E) explain concerns about the potential effects of implementing a specific business strategy
 E 
 2 
 Q2) The passage implies that which of the following is a potential consequence of a company's implementation of gamification processes? 
 
A) A company that does not see improvements in efficiency or increases in profitability as a result of gamification may have little reason to continue implementing such processes.
B) Employees with little or no previous exposure to game-style processes could find the gamified process to be confusing, leading to less employee motivation and reduced morale.
C) In order to continue to see results from a gamified process over a longer term, the company may need to adjust the gamification process by implementing increases in the extrinsic rewards provided to employees.
D) The increased profits generated by the company as a result of the implementation of the gamification process might be reinvested in other, non-gamified areas of the company, with no guarantee that gamification processes will result in additional future performance improvements.
E) The company will become significantly more efficient and profitable over the long term, while its employees gradually lose motivation.
 C 
 3 
 Q3) According to the passage, which of the following is a possible effect of gamifying a company process? 
 
A) Giving employees the opportunity to treat work like a game and earn points and badges would lead to improved company morale.
B) Company employees who are avid gamers would earn more rewards than those who are not, because they are familiar with the process of earning points and badges.
C) The employees would expect increasing intrinsic rewards the longer they participate in the system, and would gradually lose motivation if such rewards were not periodically increased.
D) After a time, employees may lose interest in competing in the system to earn rewards, and choose to focus instead on other aspects of work.
E) The improvements in productivity and profitability may cause the company to implement gamification processes in a more widespread manner throughout the company.
 D

MagooshExpert · Answer

Happy to help! Here's how I would approach this

The passage here is talking about the idea of using gamification as a business strategy to improve strategy. However, overall the author of the passage seems cautious about gamification, pointing out several potential problems with applying it. So the primary purpose here seems to fit best with choice E: explain concerns about the potential effects of implementing a specific business strategy. Choice A doesn't fit, because the author is not suggesting a specific alternative to gamification. Choice B doesn't align perfectly -- the author doesn't go so far as to say that gamification will not be successful in the long run, just that it needs to be implemented in specific ways in order to be successful. Choices C and D are not discussed in the passage in any real detail. I think the best choice here is C: C) In order to continue to see results from a gamified process over a longer term, the company may need to adjust the gamification process by implementing increases in the extrinsic rewards provided to employees. This is supported by this part of the passage, at the end of the first paragraph: "its employees become gradually less motivated by the intrinsic rewards of their work as well as developing a stronger expectation for external rewards that increase over time." So over time, employees might expect increasing external rewards. That means that to keep seeing results from implementing a gamified process, the company will need to increase the extrinsic rewards. The best choice here is D: D) After a time, employees may lose interest in competing in the system to earn rewards, and choose to focus instead on other aspects of work. That's supported by this part in the first paragraph: "eventually the employees, like even the most avid gamers, would grow bored with playing and move on". That implies that eventually the employees will lose interest in playing the game, and move on to focus on other aspects of their work. I hope that's helpful!

-Carolyn

Praneta Priyati · Answer

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rkandula · Answer

This passage is easier one compared to most of typical RC passages of GMAT 
one should not be reading not even 3 to 4 sentences in this passage and should not spend more than 1.5 minute
to read the entire passage.

First Paragraph
Topic: Gamification
why Author writing this paragraph : Gamification is increasingly used by organizations for improved performance.
CHANGE in IDEA: Moral Hazard, only short term performance improvements
 
Second Paragraph : 
Topic: Wu tries to suggest strategy to make gamification a successful strategy
Why Auth writing this paragraph: author presenting a concern

These should be the summary, and the entire passage should be read in 1 minute to 1.5 minute.

Also see my post for tips of reading RC: Reading comprehension Structural approach

Nikhil · Answer

+1 kudos to the posts containing answer explanations of all questions

tapasgupta · Answer

Q1) The primary purpose of the passage is to

A) suggest a potential alternative to a business strategy that may result in a lack of employee motivation  - Inconsistent. The author shows more concern rather than the alternative

B) demonstrate that a specific business strategy will not be successful over the long run  - Inconsistent

C) explain why intrinsic motivations are more important to employee performance than extrinsic rewards are  - out of scope

D) describe the dangerous moral implications of a particular business strategy  - extreme

E) explain concerns about the potential effects of implementing a specific business strategy  - In the whole passage, the author is showing concern about the gamification

Q2) The passage implies that which of the following is a potential consequence of a company's implementation of gamification processes?

A) A company that does not see improvements in efficiency or increases in profitability as a result of gamification may have little reason to continue implementing such processes.  - Inconistent. There may be other possible reasons

B) Employees with little or no previous exposure to game-style processes could find the gamified process to be confusing, leading to less employee motivation and reduced morale.  - out of scope

C) In order to continue to see results from a gamified process over a longer term, the company may need to adjust the gamification process by implementing increases in the extrinsic rewards provided to employees.  - that is the alternative as told by the author

D) The increased profits generated by the company as a result of the implementation of the gamification process might be reinvested in other, non-gamified areas of the company, with no guarantee that gamification processes will result in additional future performance improvements.  - out of scope

E) The company will become significantly more efficient and profitable over the long term, while its employees gradually lose motivation.  - inconsistent, over the long run it will decline

Q3) According to the passage, which of the following is a possible effect of gamifying a company process?

A) Giving employees the opportunity to treat work like a game and earn points and badges would lead to improved company morale.  - inconsistent. not company morale but the employee morale

B) Company employees who are avid gamers would earn more rewards than those who are not, because they are familiar with the process of earning points and badges.  - out of scope

C) The employees would expect increasing intrinsic rewards the longer they participate in the system, and would gradually lose motivation if such rewards were not periodically increased.  - inconsistent. not stated in the passage

D) After a time, employees may lose interest in competing in the system to earn rewards, and choose to focus instead on other aspects of work.  - as stated in the passage

E) The improvements in productivity and profitability may cause the company to implement gamification processes in a more widespread manner throughout the company.  - Inconsistent. not stated

Pathshala · Answer

Q1) The primary purpose of the passage is to

A) suggest a potential alternative to a business strategy that may result in a lack of employee motivation

Alternatives are suggested by Michael Wu but not by Author.
 Primary Purpose is all about author's view . In the first paragraph, Author just talked about the Concerns of gamification.

B) demonstrate that a specific business strategy will not be successful over the long run

If the author is demonstrating that a specific business strategy will not be successful over the long run, the why author is mentioning in the first line of second paragraph that "Wu argues that in order for companies to successfully employ gamification, they must develop a strategy to make it sustainable over the long term,....individually"?
Any guess?? It is to shown that this business strategy can be successful. " will not be successful" in option B is too strong , but in the passage the author is just concerned about the strategy.

C) explain why intrinsic motivations are more important to employee performance than extrinsic rewards are

Again, it is not the Author but Michael Wu, who suggests in the second paragraph "Wu argues that..... to discover each employee''s intrinsic motivations.....individually".  Primary Purpose is all about author's view .

D) describe the dangerous moral implications of a particular business strategy

Author is just talking about the concerns of a particular business strategy, and the author is not just talking about the moral implication but also talking about other aspects such  as short-term increase in performance and productivity, which is not dangerous. Right?, but the concern is that it is just short term .

E) explain concerns about the potential effects of implementing a specific business strategy.

In the first paragraph, the author highlights the concerns associated with a specific business strategy.

deva1 · Answer

Hi,

Can anyone explain the 2nd question to me?

Because, based on my understanding, as per the question we are looking for a  implied  consequence-- not directly stated but suggested.

So, when I came to options.
A, B, and D are not helpful.

When I came to C. To continue to see results... the company may need to increase extrinsic rewards...

Here, Wu says increasing expectation for extrinsic rewards is a problem, not the solution. This goes against the passage’s caution, right? So, this can't be the answer.

Whereas E, states The company will become significantly more efficient and profitable... while employees gradually lose motivation. Yes — this is exactly what Wu warns about: company does better, but employees become less intrinsically motivated over time.

But, when I selected E, it was. So, can anyone help me understand the 2nd question?

MuskaanMittal · Answer

According to the passage, which of the following is a possible effect of gamifying a company process?

Question 3 Answer Choices

Question Explanation

The phrase according to the passage indicates that this is a retrieval question. The subject of the question is a possible effect of gamifying a company process. The task of the question is indicated by the phrase according to the passage. In order to answer the question, determine what the passage states about the subject and evaluate the answer choices, eliminating any choice which cannot be supported by the text. According to the first paragraph, gamified processes can create a short-term increase in performance and productivity as employees seek to earn points and badges, but eventually the employees, like even the most avid gamers, would grow bored with playing and move on. Furthermore, a danger inherent in the gamification of processes is the so-called “moral hazard” of game play--that people will become focused on the extrinsic rewards and mechanics of the game play rather than on the intrinsic rewards to be gained by participating in the activity.

Choice A: No. The recycled language earn points and badges may make this choice seem appealing. However, this choice is a reversal. Although the passage does not directly discuss employee morale, the passage states that gamified processes can create a short-term increase in performance and productivity as employees seek to earn points and badges, but eventually the employees, like even the most avid gamers, would grow bored with playing and move on which suggests decreased morale rather than improved morale.

Choice B: No. The recycled language rewards and points and badges may make this choice seem appealing. However, there is no such comparison of the rewards earned by employees who are avid gamers to those who are not.

Choice C: No. The recycled language intrinsic rewards and gradually lose motivation may make this choice seem appealing. However, this choice is a reversal because in the first paragraph the passage states that people will become focused on the extrinsic rewards and mechanics of the game play rather than on the intrinsic rewards to be gained by participating in the activity... employees become gradually less motivated by the intrinsic rewards of their work as well as developing a stronger expectation for external rewards that increase over time, which is the opposite of the answer choice.

Choice D: Correct. This answer choice is supported by the passage which states that gamified processes can create a short-term increase in performance and productivity as employees seek to earn points and badges, but eventually the employees, like even the most avid gamers, would grow bored with playing and move on.

Choice E: No. The phrase implement gamification processes in a more widespread manner throughout the company is extreme language. Although the passage mentions that a corporation might become significantly more efficient and profitable as a result of gamifying its internal processes, there is no indication that this will cause the company to implement gamification processes in a more widespread manner throughout the company.

The correct answer is choice D.

MuskaanMittal · Answer

QUESTION 2

Question Explanation

The word implies in the question stem indicates that this is an inference question. The subject of this question is a potential consequence of a company's implementation of gamification processes. The task of the question is indicated by the word implies. In order to answer the question, determine what the passage states about the subject and evaluate the answer choices, eliminating any choice which cannot be supported by the text. According to the first paragraph, gamified processes can create a short-term increase in performance and productivity as employees seek to earn points and badges, but eventually the employees, like even the most avid gamers, would grow bored with playing and move on. Furthermore, a danger inherent in the gamification of processes is the so-called “moral hazard” of game play--that people will become focused on the extrinsic rewards and mechanics of the game play rather than on the intrinsic rewards to be gained by participating in the activity.

Choice A: No. The phrase improvements in efficiency or increases in profitability may make this choice seem tempting, but it is a memory trap, reminiscent of the phrase in the second paragraph that states increase efficiency and profitability over the short term. This choice is a reversal because the passage does not suggest that a company would not see such improvements or increases, nor does it discuss whether a company would have little reason to continue the gamification process as this choice indicates.

Choice B: No. The phrase less employee motivation and reduced morale may make this choice seem tempting, but it is a memory trap, reminiscent of the phrase in the first paragraph that states employees become gradually less motivated. However, the passage indicates that employees become gradually less motivated by the intrinsic rewards of their work as well as developing a stronger expectation for external rewards, not due to the gamified process being confusing as the answer choice suggests. Furthermore, there is no such comparison to employees with little or no previous exposure to game-style processes.

Choice C: Correct. The passage states at the beginning of the second paragraph that in order for companies to successfully employ gamification, they must develop a strategy to make it sustainable over the long term, such as tying extrinsic rewards to specific intrinsic benefits that have long-term value to the individual. This answer choice is an effective paraphrase of this sentence from the passage.

Choice D: No. The phrase increased profits generated by the company as a result of the implementation of the gamification process may make this choice seem tempting, but it is a memory trap, reminiscent of the phrase in the first paragraph that states a corporation might become significantly more efficient and profitable as a result of gamifying its internal processes. However, the passage makes no reference to how those profits might be reinvested in other, non-gamified areas of the company.

Choice E: No. This choice is a memory trap for the phrase in the second paragraph that states significant opportunity for businesses to increase efficiency and profitability as well as the phrase in the first paragraph that states that employees become gradually less motivated. However, this choice is a reversal since the passage states that focusing narrowly on gamification, while offering a significant opportunity for businesses to increase efficiency and profitability over the short term, may ironically result in decreased employee performance and corporate earnings over the long term.

The correct answer is choice C.

MuskaanMittal · Answer

QUESTION 1

Question Explanation
This is a primary purpose question, as indicated by the phrase primary purpose. The subject of the question is the passage as a whole. The task of the question is to determine why the author wrote the passage. In order to answer the question, determine why the author wrote the passage, then evaluate the answer choices, eliminating any choice which does not match the author’s primary purpose. The first paragraph mentions that Gamification...is increasingly being used by organizations, with many realizing significantly improved performance and increased profitability as a result. The paragraph then states that there is a concern that gamification could also result in decreased employee performance over time. It also mentions that a danger inherent in the gamification of processes...that people will become focused on the extrinsic rewards and mechanics of the game play rather than on the intrinsic rewards. The second paragraph discusses one critic’s analysis of the ways for companies to successfully employ gamification so that they do not increase efficiency and profitability over the short term at the cost of decreased employee performance and corporate earnings over the long term.

Choice A: No. The reference to a lack of employee motivation is a memory trap as it is reminiscent of the end of the first paragraph of the passage which mentions that employees become gradually less motivated by the intrinsic rewards of their work as a result of gamification. However, the passage doesn’t discuss gamification as an alternative to another business strategy. Gamification is the only business strategy mentioned in the passage.

Choice B: No. The phrase will not be successful over the long run is extreme language. While the second paragraph states that focusing narrowly on gamification...may ironically result in decreased employee performance and corporate earnings over the long term, it does not state that the strategy will not be successful over the long run.

Choice C: No. The answer choice uses the phrase intrinsic motivations are more important to employee performance than extrinsic rewards to compare intrinsic motivations to extrinsic motivations. However, there is no such comparison in the passage. While the passage does mention both intrinsic motivations and extrinsic rewards, employees become gradually less motivated by the intrinsic rewards of their work as well as developing a stronger expectation for external rewards that increase over time, it does not make a comparison between them.

Choice D: No. The reference to dangerous moral implications is a memory trap as it is reminiscent of the section in the first paragraph of the passage that states a danger inherent in the gamification of processes is the so-called “moral hazard” of game play. However, these dangers are only discussed at the end of the first paragraph, and as such are not the primary purpose of the passage.

Choice E: Correct. This answer choice is supported by the passage. It is a paraphrase of the relationship between the first paragraph, which describes both potential positive and negative effects of gamification, and the second paragraph, which describes a strategy for mitigating the negative effects of the strategy.

The correct answer is choice E.

Gamification (the trend of applying video game mechanics such as point

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GMAT Reading Comprehension (RC) Questions

Gamification (the trend of applying video game mechanics such as point

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