... as a result, bonuses from the government. During the long period of time, the ordinary workers were receiving only intangible rewards for the high-quality work, because the work was supposed to be praised itself as a joy. For example, the reward was to have the one's picture on, so called, Board of Respect. Therefore, a strong reverse side developed due to this approach: laziness, inactivity and lack of organization. Later during the Soviet era, the monetary rewards were introduced more widely on all levels. But increases in salaries and bonuses were still dependent on the fulfillment of the plans. This approach has continuously discouraged quality production compared to quantity. Innovations were poorly rewarded, because they interrupted the fixed schedules, and required new resources, which was perceived as the threat to the fulfilling of the plan. Theory The agency system reflects the differences in the goals between the government (the principal) ...

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