Managerial Motivation Dynamics and Incentives
- Tags:
- Benefits,
- Compensation,
- Human Resources,
- Incentive,
- Motivation
- Source:
- Bilkent University
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Overview: Firms can increase profitability by appropriately motivating managers. This paper investigates drivers of managerial motivation, and propose how firms can use performance-pay to alter motivational patterns. The paper focuses on the agent's optimal effort decision in trading off compensation utility with effort cost in a static and dynamic setting. Surprisingly, it is found that lower risk aversion or increased pay are not necessarily motivating factors, and the relevant motivational drivers underlying the agent's utility and compensation plan are identified.
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Format: PDF | Size: 350KB | Date: Nov 2005 | Pages: 27




