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The Effects of Performance Measurement and Compensation on Motivation: An Empirical Study
Social Science Research Network
The design and implementation of a performance measurement and compensation system can strongly affect the motivation of employees. Building on economic and psychological theory this study develops a conceptual model that is used to empirically test this effect. Our survey results demonstrate a positive relationship between the perceived characteristics of the compensation system and extrinsic motivation. Intrinsic motivation is not affected by design monetary compensation, but is affected bydoi:10.2139/ssrn.417355 fatcat:tlce3cn7dfh57bnbh4z4womgpu