Managerial Intervention, Employee Motivation, and Collaboration

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Authors: Roi Orzach, Kramer Quist
Cited by: 1
References: 38

Abstract

The economic literature on delegation focuses on the subordinate’s improved motivation when liberated from managerial intervention in decision making. However, many managers motivate employees while proactively intervening in the decision-making process. We build a principal-agent model to analyze when managerial intervention is, and is not, motivational to the agent. Although managerial intervention may demotivate the agent when leading to actions that waste employee effort, managerial intervention can also motivate the agent by incentivizing principal effort that complements the agent’s effort. In fact, delegation may demotivate the agent when the principal and agent work collaboratively. Our results speak to understanding the role of strategic complementarity in determining when various managerial practices do, and do not, motivate employees. This paper was accepted by Maria Guadalupe, business strategy.

Fields of Study & Subjects

Experimental Behavioral Economics Studies Game Theory and Voting Systems Game Theory and Applications

Publication details

Journal / source
Management Science
Publisher
Institute for Operations Research and the Management Sciences (INFORMS)
Publication date
27 February 2026
Language
EN