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CMA Foundation · Fundamentals of Business Economics and Management · Stewardship Theory and Agency Theory of Management

Which motivation is considered by stewardship theory to drive a steward more strongly than monetary rewards alone?

Stewardship theory holds that stewards are driven mainly by intrinsic motivation, such as achievement, responsibility, recognition and identification with the organisation, rather than only by money or fear. Hence satisfaction from achievement and responsibility is the correct motivator in this theory.

  1. AIntrinsic satisfaction from achievement, responsibility and recognitionCorrect
  2. BFear of being dismissed by shareholders
  3. COpportunity to maximise personal perquisites
  4. DDesire to avoid all risk-taking

Explanation

Stewardship theory, drawing on psychology and sociology, holds that stewards are motivated by intrinsic factors such as achievement, responsibility, and recognition. Fear and perquisite-seeking are features of the agency model's control-and-incentive logic.

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