Management Control Systems and Motivation

Management Control

Systems and Motivation

2013

INFLUENCE OF MANAGEMENT CONTROL SYSTEMS ON

EMPLOYEES’ MOTIVATION

THIJS FIKKERT

Influence of management control systems on intrinsic

and autonomous motivation.

A case study research in the banking sector

Abstract

Within organizations Management Control Systems are used by managers to influence employees behavior and performance. In this, these Management Control Systems influence motivation of employees. Motivation is distinguished in intrinsic and extrinsic motivation. Furthermore, self-determination theory by Gagné and Deci (2005) subdivided extrinsic motivation in autonomous and controlled motivation, wherein autonomous motivation is seen as the more intrinsic side of extrinsic motivation. Within autonomous motivation the feeling that someone is having a choice is of great importance. By using the Levers of Control Framework of Simons (1995), this thesis studied the influence of Management Control Systems on intrinsic and autonomous motivation. The main aim in this to find out how this can be most positive. This can be done by creating high levels of involvement and understanding at the employees. Employees should feel that they are taken serious and that all levers of control are arranged so that they are rational and feasible. In this manner the MCS offers them support which leads to that the MCS work in guiding and motivating way. By composing a Management Control System in a way that the employees experience for themselves a high level of responsibility is key in creating intrinsic and autonomous motivation.

Keywords: Management Control Systems, Motivation, Intrinsic & extrinsic motivation, Autonomous motivation, Levers of control,

Name: T. (Thijs) Fikkert Student number: S2243709

University: University of Groningen, Faculty of Economics and Business Master Program: MSc Business Administration

Specialization: Organizational & Management Control Telephone number: +31-651765785

Email: thijs.fikkert@gmail.com

Supervisor: prof. dr. ir. P.M.G. van Veen-Dirks Co-assessor: dr. M.P. van der Steen

Content

Chapter 2 - Literature review ... 6

§ 2.1 - Motivation ... 6

§ 2.1.1 - Intrinsic motivation ... 6

§ 2.1.2 - Extrinsic motivation ... 7

§ 2.1.3 – Autonomous motivation ... 7

§ 2.2 - Management Control Systems ... 8

§ 2.2.1 – Purpose, definition & role of Management Control Systems ... 8

§ 2.2.2 – General concept of Management Control Systems: Levers of Control ... 10

§ 2.3 – Influence of Management Control Systems on motivation ... 11

§ 2.3.1 - Beliefs systems and motivation ... 12

§ 2.3.2 - Boundary systems and motivation ... 12

§ 2.3.3 - Diagnostic systems and motivation ... 13

§ 2.3.4 - Interactive systems and motivation ... 14

§ 2.3.5 – Difficulties in regard to the type of motivation in which MCS exert influence ... 15

Chapter 3 - Methodology ... 16

§ 3.1 – Research method ... 16

§ 3.2 – Data collection ... 16

§ 3.2.1 – Prominent case study ... 16

§ 3.2.2 – Additional case study ... 17

§ 3.2.3 – Justification of case studies ... 17

§ 3.2.4 – In-depth interviews... 17

Chapter 4 – Results ... 19

§ 4.1 - Motivation ... 19

§ 4.1.1 - Importance of the job ... 19

§ 4.1.2 - Appreciation ... 19

§ 4.2 - Management Control Systems ... 20

§ 4.2.1 - Beliefs systems ... 20

§ 4.2.2 - Boundary systems ... 22

§ 4.2.3 – Diagnostic systems ... 25

§ 4.2.4 – Interactive systems ... 27

§ 4.3 – How can Management Control Systems influence motivation... 29

§ 4.3.2 – Intrinsic motivation ... 30

§ 4.3.3 – Extrinsic motivation ... 31

§ 4.4 – Additional results at Rabobank ... 32

§ 4.4.1 – Management Control Systems ... 32

§ 4.4.2 – How can Management Control Systems influence motivation ... 34

Chapter 5 - Discussion & Conclusion ... 35

§ 5.1 – Findings ... 35 § 5.2.1 – Beliefs systems... 35 § 5.1.2 – Boundary systems ... 36 § 5.1.3 – Diagnostic systems ... 36 § 5.1.4 – Interactive systems ... 36 § 5.2 – Implications ... 37 § 5.2.1 – Theoretical implications ... 37 § 5.2.2 – Managerial implications ... 37

§ 5.3 - Limitations & further research ... 37

References ... 39

Appendix A – Interview questions (Dutch) ... 42

Intro ... 42

Motivatie in het algemeen ... 42

Management Control Systemen ... 42

Beliefs systems ... 42

Boundary systems ... 42

Diagnostic control systems ... 43

Interactive control systems ... 43

Chapter 1 - Introduction

It speaks for itself that motivated people are very important for organizations and that motivation leads to better achievements and performance of employees within their jobs. When the motivation of the employees is in line with the strategy, you can say that motivation determines, for a part, organization’s success.

Universally, motivation is divided in two groups; intrinsic and extrinsic motivation. Intrinsic motivation refers to doing an activity simply for the enjoyment of the activity itself, rather than its instrumental value. Extrinsic motivation contrasts with intrinsic motivation and is a construct that pertains whenever an activity is done in order to attain some separable outcome (Ryan and Deci, 2000). This strong dividing line is nuanced by the self-determination theory. In this theory a distinction is made between autonomous and controlled motivation. In autonomous motivation is the feeling of having a choice of great importance, whereas with controlled motivation more pressure is experienced and there is greater talk of imposition (Gagné and Deci, 2005). Concluding, the autonomous part of extrinsic motivation can be classified as more intrinsic than the controlled part.

Overall, an organization would be very ‘satisfied’ when all its employees would be mainly intrinsically or autonomously motivated, because they will do all their tasks for themselves and for the sake of the organization in a way in which they strongly believe in. On the other hand, there are of course also positive sides of extrinsic motivation, in which a manager is more able to exercise control on an employee’s behavior (Osterloh and Frey, 2000).

To influence employees behavior and performance, which is largely associated with motivation, Management Control Systems (MCS) are used by managers (Merchant and Van der Stede, 2007). The question in this is if MCS could also be designed in a way that they can influence more intrinsic or autonomous motivation. The answer might indicate whether the more intrinsic motivation of an employee could also be controllable, and whether a MCS can be used as a tool to increase the intrinsic employee involvement within a company.

§ 1.1 - Problem statement

The way in which MCS can possibly positively influence the more intrinsic motivation of employees has not yet been studied and could be extremely interesting for organizations and their managers. This because of the high level of importance of more intrinsically or autonomously motivated employees. The main objective of this research study is thus to create a better understanding how a MCS can positively influence the more intrinsic motivation of employees. Therefore the central research question of this study will be:

To answer this central question, first it has to become clear how employees could become more intrinsically and autonomously motivated. Also has to be clear in which MCS relate to motivation in general. This relation of MCS with motivation could also be experienced differently across different hierarchical layers within an organization. In order to also answer these elements, the following sub questions are formulated:

 How can employees become intrinsically and autonomously motivated?  How do Management Control Systems relate to motivation in general?

 How is the influence of Management Control System on Motivation experienced by different employees within different hierarchical layers within an organization?

§ 1.2 – Outline of thesis

Chapter 2 - Literature review

Before describing the possible relationship between the factors mentioned in the problem statement, it first has to become clear what these factors exactly are. To do this, the researcher came up with grounded theories that have been discovered by leading researchers in this field. To monitor the completeness and clarity, this theoretical background is structured in clear paragraphs.

At first, in paragraph 2.1 the general concept of motivation will be explained. Which types of motivations are known? The importance of motivation for organizations will be apparent, but what type of motivation is the most effective and how can motivation develop towards the more effective type?

In paragraph 2.2 the meaning and significance of Management Control Systems will be explained. Also will be described what the purpose of these systems are and in which ways these systems are generally used in organizations. Thereby some academically accepted general concepts of Management Control Systems are described.

§ 2.1 - Motivation

Many years ago, Lewin (1935) stated that motivation refers to the psychological force that enables action. More recent, Touré-Tillery and Fishbach (2011) suggested that motivation can manifest itself by increased effort and persistence aimed at reaching a goal’s desired state (outcome-focused motivation). Motivation can also manifest itself by an increased desire to use proper means in the process of goal pursuit (means-focused motivation).

To create a better understanding of the meaning of motivation it is universally accepted to subdivide motivation in intrinsic and extrinsic motivation. The same subdivision is used in this research study and therefore both types of motivation will be described below. Thereby autonomous motivation will be explained by the so called self-determination theory.

§ 2.1.1 - Intrinsic motivation

What is intrinsic motivation? To come up with a universal definition of intrinsic motivation some leading, partially overlapping, definitions of prominent researchers in this field will be mentioned.

According to Gagné and Deci (2005) does intrinsic motivation involve people doing an activity because they find it interesting and derive spontaneous satisfaction from the activity itself. In 1968, DeCharms already suggested that a person has a need for feelings of personal causation and that the essence of intrinsic motivation is a feeling of free choice and commitment.

also mentioned that man can be intrinsically motivated to perform effectively; that is, they assume that individuals can be motivated by the job itself and can derive satisfaction from doing the job well. Deci (1972) also says that there are two essential aspects to motivating employees intrinsically. The first involves designing tasks which are interesting and which necessitate creativity and resourcefulness and the second involves allowing workers to have some say in decisions which concern them so they will feel like causal agents in the activities which they engage.

The assertion of Osterloh and Frey (2000) is that motivation is intrinsic if an activity is undertaken for one’s immediate need satisfaction. Intrinsic motivation is valued for its own sake and appears to be self-sustained. Intrinsic motivation can be directed to the activity’s flow, to a self-defined goal such as climbing a mountain, or to the obligations of personal and social identities. The ideal incentive system is in the work content itself, which must be satisfactory and fulfilling for the employees.

§ 2.1.2 - Extrinsic motivation

If extrinsic motivation is the opposite of intrinsic motivation, how can extrinsic motivation be defined? Also this type of motivation is extensively studied.

According to Gagné and Deci (2005) extrinsic motivation requires an instrumentality between the activity and some separable consequences such as tangible or verbal rewards, so satisfaction comes not from the activity itself but rather from the extrinsic consequences to which the activity leads.

Employees are extrinsically motivated if they are able to satisfy their needs indirectly, especially through monetary compensation. Money is a “goal which provides satisfaction independent of the actual activity itself". Extrinsically motivated coordination in firms is achieved by linking employees' monetary motives to the goals of the firm. The ideal incentive system is strict pay-for-performance (Osterloh & Frey, 2000). With the above in mind, the characterization of extrinsic motivation of (Williamson 1985, 1996) becomes very logical. Osterloh & Frey (2000) stated that opportunism is a strong form of extrinsic motivation when individuals are not constrained by any rules. In the transactions cost view, the task is to establish institutional settings that mitigate the hazards and costs of opportunistic behavior.

§ 2.1.3 – Autonomous motivation

is that people do things because they like it to do and have chosen to do these things for themselves. Intrinsically motivated behavior is the prototype of autonomously motivated behavior (Van Veen-Dirks, 2013). Autonomous motivation is also present when there is extensive internalization, despite of that this is extrinsic motivation. Internalization means that there comes a process in motion in which one will fully integrate and own something which was first externally imposed. In the most extreme form of internalization the original external conception will be incorporated and integrated into someone’s own beliefs. This gives people the feeling that their behavior is determined entirely by themselves (Van Veen-Dirks, 2013). In contrast, with controlled motivation there is more pressure experienced and there is greater talk of imposition. In this case there is no full internalization. Controlled motivation may arise as a result of a system of material rewards. The special feature in the self-determination theory is the assumption that extrinsic motivation can vary in the degree to which these are autonomous versus controlled (Van Veen-Dirks, 2013).

§ 2.2 - Management Control Systems

This section is structured as follows. At first the purpose of Management Control Systems (MCS) will be described. Based on this purpose a generally accepted definition of MCS will be composed. The different roles of MCS within organizations will also be illustrated. Finally a brief description of different concepts of MCS, made by the leading researchers in this area, will be mentioned and explained.

§ 2.2.1 – Purpose, definition & role of Management Control Systems

To study the influence of a MCS on motivation, at first it has to become clear what MCS actually are. But before coming up with a definition of MCS, the purpose of MCS has to be known. Widener (2007) stated that de purpose of the MCS is to provide information useful in decision-making, planning, and evaluation. According to Merchant & Otley (2007), a MCS is designed to help an organization adapt to the environment in which it is set and to deliver the key results desired by stakeholder groups. They state that ‘almost everything in the organization is included as part of the overall control system’.

Simons (1990) stated that control systems are used for multiple purposes: monitoring, learning, signaling, constraint, surveillance, motivation and others. In this Simons emphasizes the non-specific, comprehensive and the bit vague meaning of MCS: “we use a single descriptor – management control systems - to describe these distinctly different processes. Eskimos use precise words to describe different types of snow and sailors have specialized words for ropes that perform different functions. Management control theorists also need a precise vocabulary to develop and communicate the concepts necessary to describe complex organizational phenomena.”

procedures for such things as planning, budgeting, environmental scanning, competitor analyses, performance reporting and evaluation, resource allocation and employee rewards. Simons (1995) argues that MCS are the formal, information based routines and procedures managers use to maintain or alter patterns in organizational activities. According to Henri (2006), these procedures and systems include planning systems, reporting systems and monitoring procedures that are based on information use.

Although the given definitions provide a relatively clear understanding about MCS, this study also uses the extensive research of Chenhall (2003). His definitions of MCS are quite specific and broadly referenced. The definition gives a good view how MCS are used in organizations and how MCS developed over the years: ‘The terms management accounting (MA), management accounting systems (MAS), MCS, and organizational controls (OC) are sometimes used interchangeably. MA refers to a collection of practices such as budgeting or product costing, while MAS refers to the systematic use of MA to achieve some goal. MCS is a broader term that encompasses MAS and also includes other controls such as personal or clan controls.’ According to Chenhall (2003),the definition of MCS has evolved over the years. At first the definition was mainly grafted on more quantifiable (formal, financial) information. MCS were perceived as passive tools providing information to assist managers. But over the years, as mentioned above, MCS developed more and more towards a broader scope of information. Nowadays, MCS are not only based on internal organizational information, but also external information is included. Examples for this are information related to markets, customers, competitors, non-financial information related to production processes, predictive information and a broad array of decision support mechanisms, and informal personal and social controls.

§ 2.2.2 – General concept of Management Control Systems: Levers of Control

To come up with a classification of MCS, this study will mainly focus on the further extensive research on MCS of Simons (1994, 1995 & 2000). In 1994, Simons introduced the Levers of Control (LOC) framework. This framework consists of four interrelated control systems: beliefs, boundary, diagnostic and interactive systems. For clarification follows an enumeration with a brief overview and description of these control systems as stated by Widener (2007):

§ 2.2.2.1 - Beliefs systems

The beliefs system is “the explicit set of organizational definitions that senior managers communicate formally and reinforce systematically to provide basic values, purpose, and direction for the organization”

(Simons, 1995). That is, a beliefs system communicates core values in order to inspire and motivate employees to search, explore, create, and expend effort engaging in appropriate actions. These inspiration and motivation is often communicated through a mission or vision statement. However, in dynamic environments there must be some restraint placed on employees to stop them from engaging in high-risk behaviors. This restraint is the boundary system, which acts in opposition to the beliefs system.

§ 2.2.2.2 - Boundary systems

and beliefs systems are similar in that they both are intended to motivate employees to search for new opportunities; however, the boundary system does so in a negative way through the constraint of behavior while the beliefs system does so in a positive way through inspiration (Simons, 1995). Often, firms communicate boundaries through a code of conduct.

§ 2.2.2.3 - Diagnostic systems

A firm’s critical success factors are embedded in its diagnostic system and communicated to its employees. The diagnostic system is intended to motivate employees to perform and align their behavior with organizational objectives. It reports information on the critical success factors which allows managers to focus their attention on the underlying organizational drivers that must be monitored in order for the firm to realize its intended strategy. The diagnostic control system also enables managers to benchmark against targets. Similar to the boundary system, the diagnostic system acts as a constraint on employee behavior (Simons, 2000).

§ 2.2.2.4 - Interactive systems

While the diagnostic system allows managers to manage results on an exception basis, an interactive system is forward-looking and characterized by active and frequent dialogue among top managers. The interactive system is intended to help the firm search for new ways to strategically position itself in a dynamic marketplace. Top managers choose which control system (e.g., PM, brand management, budget process) they want to use in an interactive manner. This study investigates the PM system since it is used extensively in practice and because the results of this study can contribute to a long stream of research on performance measures.

According to Simons (1994), all of these four dimensions of MCS link to strategy: belief systems to communicate and reinforce basic values and missions, boundary systems to establish limits and rules to be respected, diagnostic controls to monitor outcomes and correct deviations, and interactive controls to enable top managers to personally involve themselves with subordinates and operations with a view to forcing dialogue and learning (Chenhall, 2003). Moreover, Simons (2000) argues that strategic uncertainty and strategic risk play a central role in his (LOC) framework. To provide an effective control environment, all four control systems are necessary. Inter alia, Otley (1999) endorses the assertion of (the importance of and) the inter-dependency between control systems. He argues that researchers must approach research studies with a holistic perspective of control systems since different firms may use different configurations of control systems.

§ 2.3 – Influence of Management Control Systems on motivation

A more concrete link with motivation was made by Merchant & Van der Stede (2007).According to them Management Control addresses the question whether employees behave appropriately or not. MCS are therefore intended to help the organization to motivate employees to make decisions and to take actions which are in the organization’s best interest (Chow, Shields & Wu, 1999). On this, Asel (2009) concludes that Management control systems thus have two main purposes: providing information useful to management and helping to ensure viable patterns of employee behavior in order to achieve organizational objectives.

But also Simons (1994, 1995 & 2000), and further on Widener (2007) on Simons’ research,deepens and elucidates his own assertion about this relation in his further research. With his Levers of Control in mind, MCS clearly influences behavior of employees. For instance, the boundary control systems influence code of conduct and the diagnostic control systems contain the budgets where employees have to work with. How do these relations influence changes in (types of) motivation of employees? This will further be explained on the basis of the existing research of the four Levers of Control.

§ 2.3.1 - Beliefs systems and motivation

In 1994, Simons stated that the beliefs systems intentionally were vague in a way they could appeal to individuals at all levels of the organization. According to him these mission statements were often couched in inspirational language to supply fresh energy and motivation to the organization. In his empirical research, one manager stated: ‘Growth is our number one goal, so we must inspire as well as manage’. Concluded by this, beliefs systems are typically intended to inspire and motivate employees within organizations.

Later on this conclusion was endorsed by Widener (2007): ‘a beliefs system communicates core values in order to inspire and motivate employees to search, explore, create, and expend effort engaging in appropriate actions.’ Widener (2007) also emphatically emphasizes that there is some similarity between boundary and beliefs systems in that they both are intended to motivate employees to search for new opportunities. A big difference in this is that the beliefs systems motivates in a positive way through inspiration (Simons, 1995). These inspiration is often communicated through a mission or vision statement.

§ 2.3.2 - Boundary systems and motivation

Widener(2007) addresses special attention to the specific reasons for the inter-dependencies between the motivational intentions of beliefs and boundary systems. The beliefs and boundary systems both inform organizational members about opportunities to explore, create, and innovate. As we should know right know, the beliefs system motivates employees. In contrast the boundary system sets the limits of exploration. Thus the boundary system fits inside the beliefs system, that is, the boundary system constrains the exploration motivated by the beliefs system (Simons, 1995).

§ 2.3.3 - Diagnostic systems and motivation

At stated before, the diagnostic system is intended to motivate employees to perform and align their behavior with organizational objectives. Using case studies, Simons (1994) illustrates the interplay between the beliefs and boundary systems as one in which managers implement formal boundary systems in order to counterbalance the inspirational and motivational message communicated in the beliefs system. The beliefs system is also embodied in the diagnostic control system since the latter captures the critical success factors associated with the core values espoused in the beliefs system. The more motivated employees are to work towards achieving the firm’s ideals and core values, the more emphasis management will place on measuring the appropriate critical success factors in order to ensure that employees’ actions are aligned with the firm’s strategy (Widener, 2007). The diagnostic control system also enables managers to benchmark against targets. Similar to the boundary system, the diagnostic system acts as a constraint on employee behavior (Simons, 2000).

But, on this there are some opposing stories. Given the assertion of Simons (2000) that the diagnostic system acts as a constraint, Marginson & Ogden (2005) came with some interesting findings on the use of budgets and their possible positive influence on motivation of employees within organizations. This findings could be interesting given the fact that budgets are an example of diagnostic control systems. Marginson & Ogden (2005)

stated that there is, in essence, a rather negative view of budgets. By contrast, their analysis indicates that budgets may have a more positive role to play in people’s work related experiences. People may commit to meeting pre-determined budgetary targets, not because of the threat of accountability or the promise of reward, but because budgets can offer structure and certainty in situations of high ambiguity and uncertainty. Moreover,

Marginson & Ogden’s (2005) analysis suggests that the degree of commitment shown in these circumstances may be such that it over-rides the potential for recognized explanatory variables such as leadership style and hierarchical contagion to influence managers’ budgeting behaviors. Strong enough also, perhaps, to counter the absence of formal accountability, financial inducements and participation in the budget setting process

(Marginson & Ogden, 2005, p. 450).

emphasizes how they are ‘pulled’ towards meeting budgetary targets for reasons that are grounded in both the formality and visibility of accounting controls. People naturally desire to appear competent in terms of the criteria by which they are formally assessed. Moreover, their job may depend upon this. At the same time, expectancy theory suggests that budgetary targets need to be accepted as legitimate, as difficult but achievable, and is important before people will commit to attaining them, whether this is for intrinsic or extrinsic reasons. There also needs to be some assurance that the outcome is controllable. On the basis of our evidence, however, it is possible to argue that the appeal of budgetary targets may be less dependent upon issues such as accountability, achievability and (extrinsic) reward than previously envisaged. Our findings imply that the mere visibility of budgetary performance is sufficient to ensure commitment; formal inducements may not always be necessary (Marginson & Ogden, 2005, p. 450-451).

Interesting and important to check what experience is really alive . In which situations are diagnostic controls experienced as a constraint on human behavior (Simons, 2000) and when is the motivating and committing influence of these control systems, as found in the opposing stories of Marginson & Ogden (2005), present?

§ 2.3.4 - Interactive systems and motivation

Simons (1995) suggests that the interactive control system creates positive energy. According to

Widener (2007) the beliefs and interactive systems are the positive energy levers that inspire employees to seek, explore, and create. This implies that interactive systems are, in general, positively related with motivation of employees, but overall this relation is not very well explained.

In a more particular marketing management case, where the motivation of UK industrial salesperson was studied, Mallin & Bolman Pullings (2009) found that how the company and managers interact with salespeople can be potentially perceived as dissatisfiers and impinge upon intrinsic motivation. This interaction has similarities with the interactive control systems in which managers are in dialogue with fellow managers and their employees.

For example, salespeople indicated that earnings potential, when unattractive negatively impacted motivation. Likewise, when managerial acknowledgment of effort, promotion opportunities, required job tasks, training provided, and relationship with manager was experienced insufficient, then it negatively impacted motivation. Thus, there is evidence that the managerial interactions with salespeople (i.e., sales control system) may impact salesperson intrinsic motivation (Mallin & Bolman Pullings, 2009, p. 771).

These opposing points are very interesting in this study. It is important to check whether these interactive controls are experienced as a negative influence on employees intrinsic motivation Mallin & Bolman Pullings (2009), or that these systems are experienced more in line with the theories of Simons (1995) and

§ 2.3.5 – Difficulties in regard to the type of motivation in which MCS exert influence

As can be seen in the previous paragraphs there is some research done on the relation between MCS and motivation. What in particular strikes is that the relationship between MCS and the various types of motivation is generally missing or underexposed. This potential in which the Levers of Control Systems could influence the particular types of motivation can be seen as a gap in existing literature and therefore stresses the importance and legitimacy of this study.

Chapter 3 - Methodology

This section discusses the methodology used for this research. First the basic research plan will be described by clarifying the particular method used. The second paragraph addresses attention to the data collection methods and its justification. In this, also the subjects of the in-depth interviews will be discussed.

§ 3.1 – Research method

The research which is done adopts a qualitative research approach. Denzin & Lincoln (2008) gave the following meaning to qualitative research:

‘Qualitative research facilitates an understanding of social phenomena in the natural setting, often from the perspectives of the participants. As a process of research, qualitative methods have been developed to allow a systematic investigation of how individual participants ‘make sense’ of the world and how they interpret and experience events.’

The reason for this type of research is that this paper investigates a relation that has not been studied yet. ‘Making sense’ of this relation is therefore the right method and thus qualitative approach is most appropriate.

§ 3.2 – Data collection

Data collection was done by in depth interviews. The most prominent aim in this is to provide description of the hypothesized influences between the factors as mentioned in the research question and sub questions. Thereby an additional aim would be the generation of theory by this study (Eisenhardt 1989).

The two case study were conducted at two Dutch major banking institutions, ABN AMRO N.V. and Rabobank Group N.V. in the months June and July of 2013.

§ 3.2.1 – Prominent case study

The most prominent case study is conducted at the ‘YourBusiness Contact’-department (YBC) at ABN AMRO Bank in Zwolle, the Netherlands. ABN AMRO is a Dutch state-owned bank. ABN AMRO is one of the three largest banks in the Netherlands, serving retail, private and commercial banking clients, and is active internationally in private banking and a number of global specialist activities (corporate website ABN AMRO).

§ 3.2.2 – Additional case study

An additional, narrower, case study is conducted at two departments of the Rabobank. Rabobank is a Dutch multinational banking and financial services company. The Rabobank Group is the largest financial services provider in the Netherlands. Rabobank Group is a full-range financial services provider that operates on cooperative principles (corporate website Rabobank).

The first department, where the case study was conducted is a call center for the small to medium sized commercial clients in Assen, the Netherlands. The second department, ‘Grootbedrijf’, is a service and sales unit for the major sized clients in Groningen, the Netherlands.

§ 3.2.3 – Justification of case studies

Both organizations, ABN AMRO and Rabobank, were chosen because of the active role of which Management Control Systems play in banking institutions. Banking institutions are seen as tightly controlled institutions. It is expected that each lever of the LOC framework of Simons is clearly present. To begin, banks often express their mission and vision with inspiring slogans. Large institutions such as ABN AMRO and Rabobank have to comply with strict laws and regulations in areas such as fraud, confidential information and customer interaction. They also maintain an active policy regarding e.g. dress code. Various media regularly describe the presence of an active incentive policy. This also implies the presence of an active steering on employee performance. This may be even stronger in the call center departments. Since the objective of this study is to investigate the influence of these present MCS on motivation, these specific departments seem ideally suited.

§ 3.2.4 – In-depth interviews

At YBC, the prominent study at ABN AMRO, there is chosen to conduct these interviews with employees at every hierarchical level. This has been chosen in order to be able to gauge the opinions, about MCS its influence on motivation, on every level. This is an important choice because both MCS designers and implementer as the employees who are subject to these MCS have their say. So, interviews were conducted with senior management, middle management and operational floor.

At Rabobank, the additional study, there is chosen to interview only senior management and middle management. This is to set the expectation of this function groups a benchmark. It turned out to be too time consuming to also take interviews at operational level. However, in this way it is possible to make a certain comparison with the expectations of the MCS designing and implementing employees on the influence of these systems on motivation. Therefore, in this case study, there are only clear significant and/or different outcomes included in the results section.

Outline of the interviews were as follows. First, the interviewee asked to tell something about his / her duties and associated responsibilities. Based on these responsibilities some specific adjustments in questions were made. Then some general questions about the interviewees motivation in their job were asked, and in which does he/she finds this motivation. Then the questions became more detailed about MCS and also a general connection was made between de different LOC and motivation. It ended with more specific questions about the influence of MCS on motivation. Here were also specific questions asked about situations in which the interviewee saw the ideal situation in this area.

Chapter 4 – Results

In this chapter the results of the interviews will be discussed. The outline of this chapter is as follows. The first three sections discuss the results of the interviews are conducted by ABN AMRO. The first section discusses the things in which employees generally find their motivation. The second section reveals how the MCS are used within ABN AMRO, in this also a link is made to the effects of these MCS on their motivation. In the third section a more specific link will be made towards the influence of MCS on intrinsic and autonomous motivation. In this also a link is made Herein is also discussed how the employees of ABN AMRO see the more ideal interpretation of MCS in order to have the most positive influence on their autonomous motivation. This chapter is concluded by discussing the more complementary outcomes of the interviews with the employees of Rabobank.

§ 4.1 - Motivation

§ 4.1.1 - Importance of the job

The answers of virtually all interviewed employees of ABN AMRO revealed that the feeling of that you really matter in your functioning is a clear influencer on someone’s motivation. Thereby, this importance of the work is found in having clear purposes in work. This is, in terms of function groups, obviously different, but each function retrieves motivation by improving, developing and growing in their particular work. In this, the interests of the customer are decisive and in this the following questions have to be asked: "How can we do as much as possible for the customer, but can we simultaneously generate, in the most efficient and effective way, Sales?"

Improvements in work within YBC department would be found primarily in increasing the team spirit, providing more concretization in the more independent functions like knowledge-expert and creating a clear sense of "With my job and operations I really add something to the overall performance of this section, in which the customer is also satisfied as much as possible."

§ 4.1.2 - Appreciation

Another clear motivator in work is found in appreciation. This appreciation can be shown in many ways, but every interviewee agreed that personal appreciation of colleagues and superiors is more important than a financial reward. A confirmation of this is found in the following quote stated by a consultant of ABN AMRO:

This assertion is explicitly endorsed by a knowledge-expert of the department in the following statement:

‘When I think of the appreciation I find in a bonus, and the motivation partially resulting from this valuation, I have to say that that is clearly important to me. But, and I speak for myself, this is it explicitly with the bonus that occurs (and is based on the assessment interview). I attach more value in case that my superior sends me an email in a sense of "dude, you formulated this almost perfect, good job!” (In response to an email in which a process improvement is described). That is a small thing, but those little things do give me a lot more motivation and pride than an actual bonus payment. That is what I am doing well and if that is mentioned by an occasional email, then this really does miracles with my motivation!’

§ 4.2 - Management Control Systems

§ 4.2.1 - Beliefs systems

At ABN AMRO’S department YBC, the core values of the organization are broadly known at every job level. These values are more practically implemented within the YBC-department and the rationale is known at every job level. ABN AMRO’s mission and vision as a whole emerge by three key Dutch words, which are:

 ‘Slagvaardig’; this means that the employee should act decisive and quick-witted in his/her functioning and thus work.

 ‘Deskundig’,; means that the employee should be competent and professional in his/her particular expertise

 ‘Gemak’; which implies that the employee should act in a convenient and comfortable way in his/her work and in the communication with the customer.

All employees agreed with each other that these corporate values should be translated in smaller ideas and thus into more concrete actions on the operational level. With regard to this practical implementation within YBC, the Operational Manager said the following:

‘We have translated the mission in vision in some practical meanings. The expert role means that we want to give a very good advice to the customer. The convenience goes more towards the future, in 2015 we want to help over 90% of our customers via Internet or phone. These channels of communication are the future. The convenience in this is that we always should be able to communicate with the customer when it suits them.’

In addition the Head of Sales also addresses the efficiency role that emerges from these core principles:

consultations on the line. This will subsequently be easier because we offer several channels through which the customer has the freedom to choose how he / she comes in contact with us.’

§ 4.2.1.2 – Communication

These core values are also directly and indirectly communicated across the YBC department. Channels on corporate level are internal magazines, a blog of a member of the board of directors, intranet, the website, conference calls and annual meetings where these issues are discussed. On departmental level the values and its practical implementations are communicated by an annual plan, an own whiteboard, breakfast-sessions and job-specific training. Important topic in this is that the reason behind the ideas and the company’s direction is explained.

§ 4.2.1.3 – Inspiration and motivation

On higher level managers are very clear that they agree with these key values of the organization (and specific department) and what these values excite among the employees. The Operational Manager stated the following in this:

‘I think that if you pronounce and communicate such a mission & vision often enough and also make it visible, you will create a feeling that you are all pursuing the same goal. This feeling is certainly the case for me and I think this is also the case with all other functions. We're all going the same way. That feels good and I identify myself really with it.’

Thereby, a knowledge-expert also stated that this mission and visions creates a certain ‘company pride’. He said the following about the clear form of motivation that he experiences from the mission and vision and the pride it generates in him:

‘In this I recognize a piece of motivation. First you need to get used to a new mission & vision, but over time I begin to recognize myself in it and I really believe in the idea behind this values. Over time you make it your own values and I definitely see that it creates a sort of company pride. I also see this in people who are new in the company. It all starts a bit cautious, but over time you will notice a real ABN AMRO employee. People who fit within the vision and they feel a certain pride that they are allowed to work for this company.’

§ 4.2.2 - Boundary systems

Within a banking institution as the ABN AMRO boundary systems are present in many forms. Especially in a sense of compliance, very strict guidelines regarding laws and regulations are actively communicated and imposed to their employees. The consultant within ABN AMRO, who has to deal with these guidelines in regard to customer contact states the following about this:

‘Yes, really an emphasis on compliance, so focusing on what you can and cannot say. But I also see this as very logical, because if you're on the phone you can never check if you have the right person on the phone, so you should always look after this. This has to happen in this way, because, obviously, you are involved with (confidential) bank account details. A bank is so sensitive in this matter.’

Also more operational codes of conducts are present within the banks. Both have strict rules in a way that the employees have to act and look decent and professional. This is translated in the following rules:

 Dress code; these are even in the call center-type environment very explicitly prescribed. For example, a skirt has to long enough, there may be no sandals or shorts worn and shoulders should be covered.  Clean desk policy; which means that there is no single paper (customer documents etc.) on the

employees’ desk at the end of the day and thereby everybody cleans up its own ‘mess’

 Internet restrictions; employees are limited in their use of internet and social media. Full focus on their job is expected.

 And behavioral descriptions; which are enclosed in individually drawn up development plans. Enclosed are for instance rules of conduct. In this is described how employees should behave in customer contact. Also some more individual plans are included and prepared in direct cooperation with the employee

Especially within ABN AMRO, all of these rules are repeatedly communicated in various ways, like memo’s, agreements, dialogues and active addressing of each other to these rules. In this also exemplary behavior by executives is embedded. About the importance of this, the Head of Sales said the following:

‘We have also determined our own behavior description. So we have a certain standard of what we expect of ourselves and of our staff within our department. It is also very important to us as the management team, who have prepared these behavior descriptions, that we also set the example by exemplary behavior. It is clear that we have to establish that clearly self-executing and preparation, will be followed. A good example tends to be followed.’

§ 4.2.2.2 – Understanding

‘Because it is something that we have established for ourselves, in consultation with the entire department, and that makes it that I am wholeheartedly behind these rules. So it appears from the rules in what we think is important in how we present ourselves. This applies to the way of presenting towards the middle management (team leaders), but also to the consultants. This is in relation to what we expect of our staff.’

Thereby the exemplary behavior of superiors is very important in creating understanding as well as that every employee is in a position to correct any colleague in any position, as evidenced by the following quote of the Operational Manager:

‘I like the fact that everyone can correct my behavior on the basis of these rules, no matter which hierarchical position someone is in. This is because of the fact that I have expressed my commitment to these behavioral rules and if I do not act in this way, I think it is good that someone corrects me in this behavior. Furthermore, the understanding begins with exemplary behavior. I see myself, a member of the management team, as a role model for the department and I am also dedicated to act in this way. This manifests itself in that I am always present, that I always arrive on time, and I stick to these agreements even though I have no fixed schedule. Maybe I am a little bit too obedient, but I think you get back what you give.’

With regard to the understanding of the rules of conduct it is notable that the employees in the lower hierarchical levels think and feel virtually in the same way as their superiors. They address value to this understanding and in addition they think that it cannot be otherwise in this profession. These rules give them direction and structure and it creates a norm in which everybody is treated equally. In support this is confirmed by the consultant of YBC by the following statement:

‘I think it is only to be welcomed. If you are such a large organization like ABN AMRO, you simply have to establish rules. I clearly see that when there is even given slightly more freedom, people tend to do things in their own way and that this does not directly contributes to their performances. But also from the perspective of professionalism, uniformity, but also just collegiality, do not be a burden to your colleague.’

§ 4.2.2.3 – Restrictive or stimulating effect

Where code of conduct in nature is seen as a restrictive and constraining factor in an employee’s functioning and motivation, it is noticeable within both banking organizations that this is not completely experienced this way. In particular in these straightforward and strictly managed call center departments these code of conducts are even perceived as motivating or stimulating. This also can be found in some assertions of the members of the management team, for instance the Operational Manager of YBC:

"this issue is not that relevant to me, I would better handle my mail on my phone," but in this you radiate that you have no interest and prefer to be busy with your phone then that you actively participate in the meeting. I find it so important that we can discuss these thing without no further consequences! Thereby I think that it is a good thing that the rules establish a frame, which creates more clarity and structure for the consultants. This frame represents our policy and this is the culture in which we work with each other. In this I definitely see some habituation; in a sense that “this way of working with each other and this is also the way we should work”.’

Despite the rules I also see within my own function enough freedom, there are just some cadres raised. I also think that other functions will also experience this the same way.’

These assertions of the management team also appear to be consistent with the experience of employees in lower hierarchical layers. Very illustrative examples for this are the following statements of a knowledge-expert and a team leader.

Knowledge-expert:

‘I really try to think of something in which I experience the rules of conduct as a barrier, something that I can hardly find myself in, but I cannot think of anything. I experience the clarity that it creates actually as very pleasant.’

Team leader:

‘The code of conduct is for me my nature. I always thought it was my standard, but not the standard of the bank. And now that all these things are actually put on paper… I think; “yes, this is not just my norm but this is also the standard of the bank. I identify myself with this code of conduct and it works for me as fuel for my job!’

§ 4.2.2.4 – Freedom

The restrictive or, in contrast, the enabling and stimulating side of the code of conducts is mainly experienced in the level of freedom an employee perceives in his/her functioning and work. It appears from the answers of the members of the management team that they experience, in their own functions, very much freedom and that they also see this as a strong incentive in increasing their own motivation.

The same is experienced by a knowledge-expert. This function is in many aspects quite independent and is seen as a quality improvement function. Herein lies a lot of freedom and, because of this freedom, also a lot of confidence experienced. In this function this works as a direct motivator in functioning. This direct motivator is underpinned by the following quote from a knowledge-expert:

However, in the specific call center fitted department of YBC the management team also notes that a consultant and his/her team leader experiences less freedom. But herein not a clear link with their motivation is established. Based on the statements of a consultant this function group indeed experiences limited freedom in a considerable degree. On the other hand, this is mitigated by a handhold that the boundaries provide. The consultant knows where he / she what is asked in this function and that ensures a certain peace and security.

§ 4.2.3 – Diagnostic systems

Within the YBC department of ABN AMRO the diagnostic controls are conducted on team and individual level. Control and assessment takes place on the basis of different Key Performance Indicators (KPIs) and these KPIs are part of someone's Personal Development Plan. The objectives of the department are translated into these KPIs and this is partly based on experience and expectations. By these KPIs it is attempted that the management team is able to control and assess employee’s performance on the most objective basis. At the moment YBC performs active ‘diagnostic control’ on five areas, namely

 Efficiency; in this control and assessment is taking place on e.g. handling time of calls; “how efficient can we handle our calls?”, times of customers in the queue, etc… So here is looked at the time which adds nothing to the customer. The focus is on limiting the ‘hold-time’ and handling-time, and on this calculations are made by the Traffic Management.

 Sales; this has much to do with external circumstances in the market. At certain points the bank needs e.g. credit money or more insurances sold. On this basis, calculations and thus a targets based.

 Quality; in the field of quality a standard is drawn up. Where does the management team think where the department must meet on quality? This has e.g. to do with quality of information provision and therefore knowledge and skills of the employees. These goals are presented to the Business Management of the whole corporation. This department checks if standards are met before these goals are implemented in the KPIs.

 Compliance; It is checked whether the employees adhere to laws and regulations. On this, many developments have taken place in recent years. Within ABN AMRO a strong monitoring role takes place on compliance.

§ 4.2.3.2 – Understanding and agreement

Creating understanding for these KPIs and the subsequent goals and targets is, according to YBC’s management team, crucial to make these things work within the department. In this, also the guiding role of the diagnostic systems are important according to them. To underpin this, the Operational Manager stated the following about this:

‘Yes, I think you should give your consultants and team leaders some clarity; “What is expected of them?” We also want to create a certain focus and you do that by setting a goal. So in terms of setting goals and targets, I am a definite advocate.

Additionally, we've tried it the other way. So we had quarter in which all the objectives and targets were released and we said to the team leaders and advisor: “prove us that you can rise above yourselves without the targets”, but it turned out that this went well for a week or so and then the sharpness was lost. So it appears that it is really important that you have captured a particular focus together and you also challenge each other in this.’

On this topic, also a knowledge-expert gave some interesting insights. This person is a former consultant and team leader and in this way he seems well able to make a comparison in the area of understanding. In this the coaching role of a superior is very important. The most important question in this is “How can we improve our results and why should we do this?”

‘The biggest mistake a team leader in my consultant's period could make was just assessing me on hard numbers. That's not the point, there must be understanding of the results created. It could be that my sales lagged behind, but the team leader should have to talk with me in a coaching way and we should discuss how we can ensure that this is will go on the rise again. I notice this in my current job actually even more. I do feel that customer satisfaction, but ultimately the motivation for me comes from the smiling faces I see at the consultants. That consultants compliment me that it is awesome that a particular process has been modified and that it works much better now. Rather than the hard output, which is just a result, which is where I definitely get the motivation from.’

§ 4.2.3.3 – Motivating role

Due to many external influences and amendments, incentive payments within the banking sector are under pressure and not as excessive as before. The result of this and the case of the specific interviewed departments is that the incentives that are paid are more in the sense of a thirteenth or fourteenth month. It is a nice extra, but this specific extra is not experienced as an outspoken motivator for the functioning of all of the interviewed employees. The motivation is more directly found in the appreciation that comes from the reward, but also this appears to be nuanced. A consultant stated clearly that this appreciation is more found in individual valuation, so more on the soft side of the spectrum. She said the following about this:

‘For me personally the piece of individual valuation is more valuable than the financial reward. I do not even think during the year about the possible reward I will receive. I try to do what is expected of me. I certainly have goals and objective in my work, and I experience these objectives more as a guide in my performance.’

Thereby the motivating side of the objectives is also found in the guidance and security that the objectives can give. This is also supported by the knowledge-expert within YBC:

‘My function is very comprehensive and not very specific and tangible. This cause that my tasks and duties are very uncertain and unclear. The stated objectives and targets help me to see what the ultimate goal of my job is. In that sense, this indeed gives me guidance in the uncertainty and ambiguity of my job.’

§ 4.2.4 – Interactive systems

Interaction between the management team and the more operational functions is done in various ways. Especially the Operational Manager is in direct contact with the entire work floor on daily basis. In addition there are diverse meetings held to continue the performance dialogue within the YBC department on each level:

 Daily stand up meetings for Teams; in the stand up a performance dialogue is held between team leader and his/her consultants. Do we have some problems? What can we do about this and in which way? Members of the management team attend these meetings about once per week per team. In this way compliments, critics and tips are given in a very direct and active manner. Also bottom-up ideas and opinions from the working floor are ventilated to superiors.

 Monthly performance meeting Operational Manager & team leader: Conversation about the achieved team results. Discussed: How is the team performing compared to the other teams? Where are difficulties within the team? Etc...

 Progress meetings per employee

§ 4.2.4.2 – Involvement

According to the Operation Manager, YBC develops and improves itself towards a bottom-up culture. In this, the management team aims to involve the more operational functions in improving the overall department. The Operational Manager states the following about this involvement of the operational functions:

‘An improvement idea is introduced by a consultant when he/she bumps into something in practice. As the management team, we subsequently assess this idea in order to look if this “improvement” really adds something. I think this culture is really alive and that also the advisors feel this way. In my opinion they are heard en involved. Previously this was less clearly present, but at this time we have a clear system in which also consultants can make a contribution and difference in this bulky organization’ In addition, in the following quote the Head of Sales adds to this claim that the final decision of the increased involvement remains with the management team:

‘I absolutely believe that employees themselves can exercise influence on improvements within the department. Anyone can make themselves known in the meetings and exercise influence on the course of events. However, this does not mean that all of these ideas will really be implemented. In consideration we examine whether the suggested ideas are in line with our vision for the future and whether this really contributes on this. The actual decision remains, of course, at the management team.’

If this opinion of the management team is in accordance with the feeling in the workplace will be evidenced by the statements of more operational employees. In general, it appears that these function groups indeed feel that they are taken serious in the involvement in the drafting of the performance measures. This finding emerges clearly from the following quote from a consultant:

‘Yes, I have absolutely no idea that it is a sham in a sense of "boys, just think along with us, but eventually we draw up entirely our own plan anyway." I certainly feel that there are people in management who are open to it and they really want to think about our ideas and also want to do something with it. I also do not really feel that there are big differences between functional groups in this. Of course, there is a clear difference in control, a team leader has more power than an advisor, but at the moment that there are 10 consultants saying the same thing about something, it is just as valuable as an opinion of one team leader.’

could create more understanding for this. In addition on this, she indicates that this is a process that is improving at YBC. This is also clearly illustrated in the following statement:

‘But that is over time also something I have learned to ask for. Last year the personal development plan was, in my opinion, quite imposed in way that Management said “This is the development plan; just go for it!” In this year more communication has taken place. The development plan was still quite imposed, but I already saw a lot of input from us. In this I see a good development for coming years, in a way that we as team leaders also actively help in determining the development plans.’

§ 4.2.4.3 – Strategy

According to the Operational Manager there is a clear link between performance plans and measures and the view on the future. In 2015, YBC wants to handle 90% of the contact with the customer via telephone and internet. This means that they continuously have to focus on the efficient design of these more efficient communication channels. Thereby YBC states that there is a continuous look at market developments. Performance measures have to respond to these developments on time and in an accurate way.

§ 4.3 – How can Management Control Systems influence motivation

§ 4.3.1 – Influence on motivation in general

According to the Head of Sales of YBC MCS can positively influence motivation by incorporating and explaining achievable and reasonable targets. Thereby you have to assess your employees in a fair and rational way and via these assessments you should help your employees in getting better in their job, the coaching role in MCS is, in the eyes of the Head of Sales, very important. This is evidently shown in the following statement:

‘… So that relationship of setting goals towards the development of someone’s performance and the associated impact on his / her motivation is absolutely crucial.’

In addition the Operational Manager of YBC adds that it is decisive that the employees can agree with the MCS. To obtain this agreement the management team should continuously listen to the opinions and noises of the workplace. In this they can compose, adjust and implement their MCS in a rational and ‘fair’ way. Thus, according to the management team, involvement with regard to the MCS is very important.

This bottom-up way of thinking is also underwritten by the opinions of the more operational employees. In addition a team leader also stated that the interests of the customer should also be taken into account. About these interest she state the following:

Thereby the team leader also stated that it is very important that the results of the performance measures are topical. When these results lie further in the past, it is difficult to give direction on these results. The meanings of these results are faded. In this way the results are hard to interpret. Employees will be more motivated if they know where the can develop and improve themselves.

According to a consultant, motivation would also rise if the MCS are more focused on personal growth & development. About this topic the consultant stated the following:

‘… More a focus on that the employees themselves can choose whether they want to develop in an area where his / her interests lie. This is just one example of what attracts me, but I think if you focus a little more on a personal level what someone wants, this will definitely be a boost for the motivation of that person. I also experience this in the momentary function that I hold right now. In this position, I can develop and evolve myself and myself very much and this absolutely influences my motivation in my work in a positive way.’

§ 4.3.2 – Intrinsic motivation

According to the Head of Sales and the Operational Manager the intrinsic motivation is mainly found in someone’s ambition. The MCS in this is designed to positively contribute to an employee’s development. So the MCS should enable employees to develop themselves. This is supported by the following statements of the Operational Manager:

‘For themselves, consultants would like to be good in their profession. I think we are a beautiful breeding ground to grow and advance within the company and I believe that the intrinsic motivation lies in there. Therefor this is a piece of ambition. If someone performs well and ensures that all performance parts are in order, this will be seen soon enough and will subsequently lead to appreciation and thus, motivation. I think that continuous development, learning and growth is for many employees an intrinsic motivation, but not for everyone. There are of course also plenty of advisors who find their work just fine and are satisfied with what they do. Even though these employees are in the same function for 10 years, for them the intrinsic motivation is found in that they would get the best out of themselves and their job every day. In continuously challenging themselves in their job. I think that this challenge can be found in the established objectives included in the MCS of the department as well as their own day to day targets. For instance these own targets are found in feedback from the customer. In this way also the people who are satisfied with their function continue to evolve, can continue to grow and get better in what they do.’ That intrinsic motivation can be found in challenges is also endorsed by the knowledge-expert. He thinks that prescribed objectives could generate a feeling that someone really wants to employ his/her own knowledge and skills in a way that these challenges actually will be achieved.

is experiencing that there are certain issues that she considers important, but what she cannot change by herself. In a situation in which her influence on this is more present, she thinks that this would give a boost to her motivation in order to change these things in a (own) better way.

§ 4.3.3 – Extrinsic motivation

The extrinsic motivation of the employees at YBC is mainly extracted from the rewards given with respect to the achieved performance of the employees. In this area of extrinsic motivation, the statements of a knowledge-expert very interesting:

‘In the field of payments and bonuses I have to say that this is absolutely important for me. Of course this contains also your normal wage. The money you get each month on your account, and that amount should be in proportion to the level of your function. If you feel that you are underpaid, this can be very demoralizing and consequence may be that you go to work with reluctance. On the other hand, negative effects could also arise in case you get overpaid. It may be that you are exaggerating to prove yourself or that habituation occurs with regard the amount of wages.

In addition you have a performance bonus that you must experience as fair. Here you have to agree with the performance assessment of your superior. This assessment must be experienced as fair. If there is a miss match in it can also work terribly demotivating.’

§ 4.3.3.1 – Autonomous motivation

At YBC, autonomous motivation is experienced in various forms. With respect to the black / white view on intrinsic and extrinsic motivation, a bright nuance is made by a knowledge-expert:

‘In my opinion motivation is never completely out of yourself and completely autonomous, then I would favor to be independent and even then you still have to adjust because you choose a company in a particular sport. I think that autonomous motivation is present with me for a very large portion. Within the frames that have been given to me, I experience almost complete freedom regarding the content of my function. I think that I find this autonomous motivation I a piece of empowerment.’

A clear statement about, and experience with, autonomous motivation can be recognized in a statement of a team leader. As can be seen in the following quote, she sees autonomous motivation as clearly visible within the YBC department.