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    Fields of competence

    Motivation and Incentives

    The employees’ motivation strongly influences their performance and can be one of the key factors for organizational success. But how can organizations use incentives in a specific and effective way? How much can intrinsic incentives and leaders’ behavior increase the employees’ motivation? A leader’s behavior has been proven to strongly affect their employees. Our research has shown that control can have negative effects on the employees’ motivation; however, praise, e.g. awards, positively influences motivation and consequently performance. While employees perceive the decision for control as a sign of mistrust, social recognition by awards – either symbolic or monetary value – has a positive effect.

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