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The motivation of the business manager
Author(s) -
Kratz Lawrence A.
Publication year - 2007
Publication title -
behavioral science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.371
H-Index - 45
eISSN - 1099-1743
pISSN - 0005-7940
DOI - 10.1002/bs.3830050405
Subject(s) - shareholder , profit maximization , business , compensation (psychology) , maximization , profit (economics) , marketing , microeconomics , industrial organization , economics , corporate governance , finance , psychology , psychoanalysis
What factors would the owners of business firms—whether they are individual owners of corporate stockholders—take into account in selecting a business manager to produce the kind of company they are interested in having? This study shows, contrary to previous economic theories based on profit maximization, that depending on how closely the owners are involved with the firm, methods of compensation to a manager and his internal motivations are deciding factors in a firm's success.