Managerial Intervention, Employee Motivation, and Collaboration
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