Incentive schemes and the motivation of middle-level managers - a replication and extension

This paper reports the results of a replication study designed to re-examine the relationship between managerial perceptions of elements of the performance measurement evaluation and reward system (PMERS) and managers’ motivation. Using data from a survey of 256 middle-level managers in a Greek financial institution, this study revisits the Kominis and Emmanuel (2007) expectancy-valence (E-V) model of managerial motivation in an attempt to establish its external validity. The observed data generally provide a good fit with the theoretical model. The findings confirm that the capability of extrinsic rewards to positively influence managerial motivation and performance must be viewed as a complex interrelationship between all elements of the PMERS. They also corroborate the role of a number of intrinsic factors, potentially present in the middle manager’s job environment, which can provide alternative motivational drivers when the ability to devise accurate performance measures and set realistic targets is limited. On a more general level, this study provides additional supporting evidence of the validity of the Kominis and Emmanuel (2007) model and its ability to explain the process of motivation at the middle management level in different settings.