This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: the desired behavior and the likelihood that the behavior will lead to the desired outcomes (e.g., will their effort lead to results that will be rewarded in a way that they want?) Agency Theory- Not being able to monitor workers. How do you get them to behave in line with your interest if you are an owner but you do not see their day-to-day actions (theoretical reason for stock options aligning employee often CEO interests with shareholder interests) Efficiency Wage Theory- Higher wages attracts better employees who produce more to make-up for the higher pay and work harder for fear of losing the high paying job. Tournament Theory-If the top prize is big enough, everyone will work hard throughout the organization in hopes of winning that prize. Institutional Theory-Companies copy each others behavior often for less than logical reasons....
View Full Document
- Spring '09