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Titlebook: Successful Management by Motivation; Balancing Intrinsic Bruno S. Frey,Margit Osterloh Book 2002 Springer-Verlag Berlin Heidelberg 2002 Ar

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Motivation — A Dual-Edged Factor of Productionextrinsic motivation). These two forms of motivation are interlinked and, as such, companies cannot opt for one or the other in isolation. Under certain circumstances, an extrinsic incentive in the form of variable performance-related pay will undermine intrinsic motivation. This “crowding-out effec
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How Does Pay Influence Motivation?m the point of view of economic theory, specifically with reference to the principalagent theory. In practice it is being used more and more for management grades and other levels of the corporate hierarchy. The key to performance-related pay is that compensation is adjusted to reflect an employee’s
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Pay for Performance: Motivation and Selection Effectsloyees to put in more effort, but at the same time they provide an incentive for less qualified people to carry out activities that are rewarded by performance-related pay. Consequently, the overall effect of a greater focus on performance is ambivalent: if the motivational effect dominates, output
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