predict that the design and implementation of a performance measurement and compensation system affect the motivation of … compensation system and extrinsic motivation. Intrinsic motivation is not affected by the design of monetary compensation, but by …This paper analyzes empirically the relationship between pay and performance. Economic and psychological theories …

as a wage determinant. We furthermore show that a promotion affects both intrinsic and extrinsic motivation significantly …, though in two different ways: An expected promotion increases extrinsic motivation whereas intrinsic motivation is highest … subsequent to a realized promotion. The relationship between extrinsic motivation and expected promotions implies that promotions …