The Motivation Myth: Why Leaders Are Getting It Wrong
Meet Takashi – A Manager Hitting the Wall
Meet Takashi – a pharmaceutical sales leader who's been steering his team through Japan's competitive healthcare market for 15 years. His dashboard displays an impressive track record: deep market expertise, a team of dedicated professionals, and consistent revenue contributions. But lately, he feels like he's driving with the parking brake on.
Takashi believes in structure, accountability, and results - the holy trinity of traditional management. To keep his sales machine running smoothly, he installed a sophisticated system of daily targets, performance tracking software, and bonuses wired directly to sales numbers. His operating manual assumes that without this level of oversight, his team would naturally drift off course. After all, sales is just simple mechanics: apply pressure, reward speed, and watch the numbers climb.
For a while, this engine seemed to run perfectly. Quotas were met, reports gleamed with positive data, and leadership nodded approvingly from the executive floor. But gradually, strange noises began coming from under the hood.
His top performers started taking exit ramps to other companies, citing burnout at their farewell lunches. Those who stayed seemed to be operating on autopilot, technically compliant but missing that spark of enthusiasm that separates true performers from mere participants. The break room conversations centered around pressure gauges constantly in the red zone, performance anxiety, and the feeling that no matter how fast they drove, they'd never reach their destination.
And in quiet moments at his desk, Takashi couldn't shake a troubling question:
“Why does it feel like I’m pressing harder on the accelerator, but the engine is running out of fuel?”
What Takashi hasn't realized is that he's driving a leadership model that's overdue for a major service: one that most leaders follow without questioning whether the manufacturer's recommendations still apply to today's roads.
Two Competing Models: The Leadership Journey as a Road Trip
In this article, we'll explore the fundamental differences between two motivation theories by framing them through a powerful metaphor: the leadership journey as a road trip. This lens will help us understand why some teams race forward with enthusiasm while others seem to be running on fumes despite constant pressure from above.
1. Agency Theory – The Micromanaged Road Trip
Imagine a road trip where the manager sits in the driver's seat, hands gripping the wheel with white knuckles, constantly checking the speedometer and fuel gauge. The employees are passengers who receive turn-by-turn instructions, their performance measured by how quickly they follow directions and how little they deviate from the prescribed route.
This is the model that Takashi, like many leaders, has installed by default. Agency Theory operates on the assumption that employees are like teenagers with new licenses - they'll take detours and joyride unless carefully monitored. Without supervision, the theory suggests, they'll follow their own GPS coordinates instead of the company's destination.
This mindset constructs:
A dashboard crowded with KPIs – success measured by instrument readings rather than arrival at destinations that matter
Short-term incentive programs – fuel points and quick rewards that create sprint drivers rather than endurance racers
A workplace where following the manual trumps improving it – employees drive for the bonus, not for the journey itself
Agency Theory isn't necessarily a lemon; it can certainly deliver short-term performance. But over the long haul, it tends to burn out transmissions, deplete motivation reserves, and ultimately leave drivers scanning roadside billboards for better opportunities. Employees show up because the paycheck demands it, not because the work itself pulls them forward.
2. Self-Determination Theory (SDT) – The Autonomous Convoy
Now picture a different kind of road trip: the leader has shared the destination clearly, provided well-maintained vehicles and excellent maps, and then invited team members to drive themselves. They travel in a convoy, communicating regularly, sometimes taking different routes but all heading toward the same compelling destination.
Self-Determination Theory offers this alternative vehicle altogether. It suggests that people naturally generate their own momentum when three key conditions are met: they have meaningful control over their route (autonomy), they feel increasingly skilled at navigating challenges (competence), and they're connected to fellow travelers on a worthwhile journey (relatedness).
Instead of installing more monitoring devices and pressure systems, SDT argues that leaders should:
Hand over the wheel while keeping the destination clear on the horizon
Upgrade drivers' skills instead of just measuring their speed
Build a convoy of trust rather than isolated vehicles competing for limited resources
However - and this is crucial - autonomy without skill is like a performance car in the hands of a novice. Trust-based leadership works when employees have the capabilities to handle the responsibility. Autonomy without competence leads to crashes, which is why successful leadership requires investing in driver training before removing the guardrails.
Some Japanese companies have already upgraded to this model. Recruit Holdings, one of Japan's largest HR and staffing firms, has rebuilt their corporate vehicle to give employees significant control over their daily routes. Teams design their own work processes, take ownership of projects, and test drive new ideas without managers constantly adjusting their mirrors. This approach fuels intrinsic motivation and innovation - creating a self-perpetuating engine of engagement.
Similarly, Shiseido has been trading in their hierarchical leadership model for a more responsive, team-centered approach. The company encourages employees to take the wheel on projects, collaborate across departmental boundaries, and focus on long-term journeys rather than just quarterly mileage reports.
Companies that embrace SDT tend to see higher engagement, stronger innovation, and lower turnover. But making this shift requires challenging deeply-ingrained leadership beliefs; the same ones Takashi has been operating from since he first took the manager's seat.
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Two influential theories, Agency Theory and Self-Determination Theory (SDT), significantly shape our understanding of workplace motivation. Each theory presents unique assumptions regarding human behavior, resulting in fundamentally different leadership practices.
Agency Theory, developed in the early 1970s by economists Michael Jensen and William Meckling, originates from economics and finance. It views the workplace relationship as a contract between principals (such as company owners or shareholders) and agents (employees or managers), who are assumed to pursue their self-interest above the organization's goals. To align these interests, the theory emphasizes external incentives, close monitoring, performance measurement, and control mechanisms.
Pros of Agency Theory include clear goal-setting, structured performance metrics, and short-term improvements in productivity.
Cons, however, involve employee disengagement, increased stress, reduced intrinsic motivation, and limited creativity, which may lead to high turnover and eventual burnout.
In contrast, Self-Determination Theory (SDT), introduced by psychologists Edward Deci and Richard Ryan in the 1980s, presents an alternative, intrinsically-driven view of motivation. SDT argues that people naturally seek autonomy (the freedom to control their actions), competence (mastery over their tasks), and relatedness (meaningful connections with others). This approach prioritizes creating environments that foster intrinsic motivation through empowerment, meaningful work, professional growth, and trust rather than external rewards and pressure.
Pros include increased employee engagement, creativity, innovation, and long-term well-being, leading to sustainable performance.
However, SDT requires sufficient employee skill and a mature organizational culture that can initially be challenging to establish, especially in hierarchical environments.
While Agency Theory can deliver immediate, measurable outcomes, it risks creating a compliance-driven, transactional culture, potentially leading to stress and disengagement. Conversely, Self-Determination Theory encourages a more holistic, sustainable approach to leadership, though it demands a significant mindset shift and appropriate skill-building among employees to ensure its successful application.
Practical Road Map: What Leaders Can Do Today
If you're in the driver's seat of a team, the first checkpoint is to examine which model you're following. Are you assuming your team members are reluctant passengers needing constant direction, or skilled drivers waiting for a better road map?
1. For Leaders: Recalibrating Your Navigation System
Share the destination, not just the turns – People drive with more purpose when they understand the journey's significance - the underlying ‘why.’
Example: Instead of just announcing sales quotas, Takashi explained how building long-term client relationships creates sustainable growth, helping his team see beyond the next exit.
Trust your drivers – Assume your team wants to reach impressive destinations, and your role is to clear the road, not control the steering.
Example: Rather than requiring daily mileage reports, Takashi shifted to biweekly checkpoints, where his team could highlight key progress and obstacles rather than accounting for every kilometer.
Ensure driving skills before highway speeds – Give employees the training they need before expecting high-performance results.
Example: Before increasing autonomy, Takashi created a skills development program where experienced reps coached newer team members on navigating complex client negotiations.
2. For the Team: Creating Better Driving Conditions
Set the destination, not every turn – Let team members chart their own course within clearly marked boundaries.
Example: Takashi invited his reps to set their own weekly targets instead of assigning standardized call quotas. This small shift in ownership transformed obligation into opportunity.
Install better navigation systems – Offer mentorship, training, and real opportunities to upgrade capabilities.
Example: A high performer was paired with a struggling colleague for mutual benefit. One gained coaching experience while the other developed new techniques—both emerged as better drivers.
Create safety for test drives – Build environments where trying new approaches doesn't mean risking a crash.
Example: Takashi began sharing his own wrong turns and what he learned from them. Gradually, his team felt safe enough to experiment, knowing that calculated risks were viewed as valuable learning, not dangerous detours.
3. At an Organizational Level: Redesigning the Vehicle
Reimagine the fuel system – Look beyond simple performance-based rewards to more sustainable motivation sources.
Example: Takashi's company evolved its compensation structure to balance immediate rewards with long-term growth opportunities and career advancement paths.
Transform inspections into tune-ups – Shift from judging performance to improving it.
Example: Annual performance reviews were replaced with quarterly development conversations, allowing continuous improvement rather than periodic evaluation.
Invite everyone to help navigate – Give employees input on the company's direction.
Example: Sales representatives joined strategic planning sessions, where their frontline insights shaped new market approaches. This participation gave them a sense of co-creating the future, generating motivation no bonus structure could match.
Final Thoughts: The Road Ahead for Japanese Leadership
For many leaders, shifting from Agency Theory to Self-Determination Theory feels like trading a familiar vehicle for an untested model. The instinct to monitor, control, and incentivize is deeply wired into corporate circuitry. But as business landscapes evolve, it's time to question whether yesterday's vehicles can handle tomorrow's journeys.
Remember though - trust without capability is like removing the guardrails before improving the brakes. If employees are invited to drive more independently, they need navigation skills, hazard recognition abilities, and the confidence to handle unexpected road conditions. Simply removing oversight without upgrading capabilities will lead to anxiety and accidents.
Japan's business culture already values many components that make SDT work: commitment to relationships, long-term thinking, and collective success. The challenge is activating these strengths by letting go of outdated control mechanisms and embracing leadership that enables rather than restricts.
Japanese organizations like Recruit Holdings and Shiseido have already proven this transition is possible. They've given employees more control, encouraged collaboration across traditional boundaries, and focused on sustained engagement—demonstrating that motivation accelerates when properly fueled rather than forced.
The question for today's leaders isn't whether this shift makes sense—it's whether you're ready to turn the key.
So if you're leading a team through today's complex business landscape, ask yourself:
Are you building a transportation system that relies on external pressure, or internal drive?
Are your employees moving forward because they must, or because they're eager to see what's around the next bend?
Have you given them the skills they need to navigate confidently in challenging conditions?
The future belongs to leaders who understand that motivation isn't manufactured by management—it's unleashed by creating the right conditions. If you're ready to tap into this reservoir of potential energy, perhaps it's time to trade in your control panel for a better road map.
Source: MIT Sloan Management Review - Marylène Gagné and Rebecca Hewett What Leaders Get Wrong About Employee Motivation, February 2025
ABOUT THE AUTHOR
Karin Wellbrock helps leaders find their authentic voice and create thriving organizations. With extensive experience in both Japanese and global companies, she brings unique insights to bridging cultural perspectives while driving meaningful change.
As Partner and Head of Leadership Effectiveness at Kay Group K.K., a Tokyo-based leadership consultancy, Karin partners with leaders who want to make a real difference – not just hit targets, but build organizations where people genuinely want to work. Through one-on-one coaching, team development, and organizational consulting, she focuses on practical strategies that fit each client's unique context and culture.
Beyond her consulting work, Karin explores leadership and organizational culture through her "Exceptional Leaders in Japan" series, collaborations with NGOs, and work with startups. Her mission is simple: helping leaders create lasting impact while finding genuine fulfillment in their roles.
Connect with Karin to explore how she can help strengthen your leadership and transform your organization.
Discover more of Karin’s insights on leadership and organizational culture in her articles for Brainz Magazine—where she delves into the challenges and opportunities facing today’s leaders.