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Article: Tuesday, 6 May 2025

Are you and your colleagues motivated to do your best at work every day? Do some employees really aim to get paid for doing nothing? New research published by Professors Marylène Gagné of Curtin University and Bex Hewett of Rotterdam School of Management, Erasmus University Rotterdam (RSM) shows that the old trope of work-shy employees doing as little as possible is not only flawed, but in some cases leads to counterproductive management practices. And they have some handy suggestions for breaking that cycle. Their research, What Leaders Get Wrong About Employee Motivation, has been published in MIT Sloan Management Review.

In the article, Gagné and Hewett point out that most managers accept that the best performers are employees who are naturally motivated and engaged with their work while, but many also assume that employees need incentives to work hard, and need to be monitored to make sure that they’re getting the job done. Their research reveals that these assumptions are not only contradictory but also lead to ineffective management – they're actively undermining both performance and wellbeing.

The researchers are asking leaders to examine what their assumptions about what motivates their employees, to evaluate these, and then align their behaviour to what we know about how people are motivated, showing trust and respect.

They say the most effective leaders have some approaches in common:

 

They communicate a clear vision and organisational goals
They provide guidelines while allowing employees autonomy to organise their own work
Their employees are paid fairly and regularly without having to meet targets

Carrot or stick? – two different assumptions about motivation

Marylène Gagné and Bex Hewett highlight that leaders’ assumptions about what motivates people is shaped by two different theories – self-determination theory and agency theory. 

Self-determination theory recognises that, when workers are given recognition for their competences, work they feel is significant, the autonomy to work without close supervision, clear direction and meaningful feedback, and feel connected to their colleagues, then their natural motivation can thrive. 

Alternatively, ‘agency theory’ begins with an assumption of mutual distrust, of thinking workers are are self-interested, don’t want to put any effort in, need constant supervision and are only motivated by when they have an external incentive to do so.

Gagné and Hewett highlight that the way that most organisations manage people is based on the assumptions of agency theory, and that this is why management practices often fail: employees find ways to misuse even expensive monitoring systems, resulting in warped performance metrics and less attention paid to ethical considerations. This tactic hinders sustainability because it pays more attention to what’s happening in the short term, and everyone working in the organisation finds it stressful when they feel that colleagues can’t be trusted.

In short, these organisations have a narrow focus on targets that can be measured and lose sight of important contributions that come from allowing employees autonomy to use their skills to get the job done in the best way possible.

 

 

"Companies don’t need to go all-out self-managing in order to help their employees to thrive."

What leaders want

The researchers give the example of self-managed teams as a way of nurturing these needs. These teams align their work goals with the company’s strategy and decide collectively about how work is to be distributed. They make the most of their members’ strengths and preferences, and handle their own budgets and resources, as well as co-ordinating with other teams in other company functions. 

The researchers gave examples across industries and countries: Dutch mortgage provider Viisi, Finnish-American game developer Supercell, and Brazilian manufacturing company Semco demonstrate how this approach works in practice. 

The authors point out that companies don’t need to go all-out self-managing in order to help their employees to thrive. Self-determination theory highlights that people thrive when their work supports employees' psychological needs for autonomy, feeling competent, and experiencing a sense of belonging at work. Employees feel more satisfied, are more interested and engaged with work and try new ideas when this kind of environment is created. 

Marylène Gagné and Bex Hewett’s research makes it clear that these are the kinds of employees that leaders want.

Four steps in psychological motivation

The researchers gave four tips for organisations that want to encourage motivated workers and self-managed teams:

Don’t rely solely on management hierarchies for decision-making.

When possible, let the people closest to the work make the decisions. 

Are all your rules necessary?

Could some of them be more flexible – or be eliminated altogether? Make sure workers understand the reasons behind your policies so they don’t see them as arbitrary rules – and listen to their feedback to make improvements.

Transform how you manage performance

Focus more on development than performance evaluation, introduce a culture of informal feedback throughout the year to encourage growth rather than retrospective annual reviews, and try out methods other than pay incentives to reward performance.

Be self-aware when it gets stressful!

People often revert to tighter controls when difficult decisions need to be made, quickly. Instead, stop and take a moment to think. Involving employees in identifying the problem and designing solutions could reach a better outcomes for all 

Dr. R.L. (Bex) Hewett
Associate Professor
Rotterdam School of Management (RSM)
Erasmus University Rotterdam
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Bex Hewett
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