Organizational Behavior Literature Review

Running head: ORGANIZATIONAL BEHAVIOUR LITERATURE REVIEW
ORGANIZATIONAL BEHAVIOR LITERATURE REVIEW
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1ORGANIZATIONAL BEHAVIOR LITERATURE REVIEW
Article 1
Title and reference of
article
Pepper, A. and Gore, J., 2015. Behavioral agency theory: New
foundations for theorizing about executive compensation. Journal
of management, 41(4), pp.1045-1068.
Aim/purpose of article To demonstrate that shareholder interests usually align if
executives are motivated to work at their best.
Sample, location,
method of data
collection and analysis
Sample- 46 academic journal articles taken for literature review,
to analyse the outcomes and the processes for the same. Analysis –
Analysis of literature reviews (qualitative).
Findings/Interpretations
reported in the article
The report argues that shareholder interests align if the executives
perform at the very best. In other words, it states that agency
theory provides the best framework for agent behaviour and
incentives or compensation, arguing against the traditional model
of motivation theories. The article finds that behaviour should be
kept at the centre of the model of motivation.
Significance/
contribution of the
article in relation to your
other articles and your
topic
The findings differ from the common view that incentives and
compensation should be kept at the centre of a motivation model.
It is significant in a way that proposes that employee motivation
does not depend on incentives and compensation and rather
shareholder interests align if the executives work at their best.

2ORGANIZATIONAL BEHAVIOR LITERATURE REVIEW
Strengths of article Gives an entirely unique view about employee motivation and
incentives, providing unique recommendations to organizations on
the same.
Weaknesses of article Poorly evidenced, with few samples, biased towards the main
arguments of the article.
Quotes from the article
that you plan to use in
your assignment
“In contrast to the standard agency framework, which focuses on
monitoring costs and incentive alignment, behavioral agency
theory places agent performance at the center of the agency model,
arguing that the interests of shareholders and their agents are most
likely to be aligned if executives are motivated to perform to the
best of their abilities” (Pepper and Gore 2015, p.3).
Quotes from the article
that you plan to use in
your assignment
“A model of economic man predicated on bounded rationality is
proposed, adopting Wiseman and Gomez-Mejia’s assumptions
about risk preferences, but incorporating new assumptions about
time discounting, inequity aversion, and the trade-off between
intrinsic and extrinsic motivation” (Pepper and Gore 2015, p.4)
Quotes from the article
that you plan to use in
your assignment
“We argue that behavioral agency theory provides a better
framework for theorizing about executive compensation, an
enhanced theory of agent behavior, and an improved platform for
making recommendations about the design of executive
compensation plans” (Pepper anf Gore 2015, p.6).