Many individuals are motivated to exert effort because they care about their jobs, rather than because there are monetary consequences to their actions. The intrinsic motivation of bureaucrats is the focus of this paper, and three primary results are shown. First, bureaucrats should be biased....

This paper illustrates an incentive for workers to conform to the opinion of their supervisors when firms use subjective performance evaluation. This desire to conform arises endogenously from the firm's need to induce the worker to exert effort. The author shows that firms may optimally eschew...