The incentive-contribution theory for more motivation

Organizations can be seen as cooperative systems in which some trading takes place. Employees compare the contribution they are expected to make with the wage they are promised. If the wage is at least equal to the contribution, you as a manager can expect with high probability that the employee will make this contribution. Wage should not be understood only in monetary terms, but includes all other benefits perceived by the employee.

The motives that work best are those that drive each individual the most. This incentive-contribution theory works very well in practice. However, to do so, you need to engage with your employees and find out what motivates them most.


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