This paper investigates the optimal provision of monetary and non-monetary motivation in the presence of multitasking. The base is a multitasking model, where the worker has to exert two tasks. The principal has the opportunity to use monetary and non-monetary incentives to motivate the worker. Monetary incentives are modeled as incentive payments that are additionally paid to a fixed wage. They depend on a performance measure which assigns performance parameters to each task. In most firms performance measure is distorted. Hence, the marginal benefit of each task representing the true...