Never Blame Stupidity for What Incentives Explain Perfectly Well
You want quality. You pay for quantity.
You want innovation. You punish failure.
You want teamwork. You reward individual performance.
Then you're shocked when everything goes to shit.
People aren't morons. People are rational.
They do exactly what you pay them for, praise them for, don't fire them for.
If the result doesn't suit you, look at the incentives. The answer is almost always there.
If behavior seems irrational, you're missing the incentive. Find it and everything makes sense.