Managers are using incentives in order to achieve things they think are important instead of good leadership, that is, discussing, interacting and collaborating with people, why they should do like this. Money is a carrot. Problem here is that those bonus targets must be somehow measurable and IF people are trying to get their carrot they are trying to get those meters green, instead of focusing on the root causes. People must feel that they own the problem and be motivated to solve them. Also if problems are discussed, instead of stated, there are probably popping up better ideas than the original one man's idea.
Btw. Good video siding the issue by Daniel Pink
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