The incentive effect of PFP on employee behavior has been
widely acknowledged by both economic and behavioral scholars.
In economics, agency theorists, for example, assume that the goals
of an employer (principal) and employee (agent) often diverge
(Eisenhardt, 1989). Since the principal and agent are motivated by
self-interest, the behaviors of an agent are not always directed
toward advancing the interests (organizational goals) of the
principal (Fama, 1980).