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Monitoring within the Firm and Manager Relations

Author

Listed:
  • Gil Epstein
  • Uriel Spiegel

Abstract

Many managers face the problem of employee assessment. Face to face meetings are the only source of basic information concerning employee activity and productivity. This unavoidable situation creates an opening for dishonest and misleading behavior whereby employees invest in 'manager relations' and misrepresent their actual contribution to total output. Furthermore, employees who have an advantage in creating favorable 'manager relations' force others who are less accomplished in creating 'manager relations' to invest time in this activity. Their purpose being to correct unjust income distribution. However, these activities lead to a reduction in productivity and consequently to a loss of total production and income.

Suggested Citation

  • Gil Epstein & Uriel Spiegel, 1997. "Monitoring within the Firm and Manager Relations," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 4(1), pages 51-61.
    • Handle: RePEc:taf:ijecbs:v:4:y:1997:i:1:p:51-61
    DOI: 10.1080/758532193
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    Citations

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    Cited by:

    1. Epstein, Gil S., 2012. "Employer's Information and Promotion-Seeking Activities," IZA Discussion Papers 7023, Institute of Labor Economics (IZA).
    2. Gil S Epstein, 2012. "Employer’s information and promotion-seeking activities," Economics and Business Letters, Oviedo University Press, vol. 1(4), pages 21-32.
    3. Epstein, Gil S. & Spiegel, Uriel, 2001. "Natural inequality, production and economic growth," Labour Economics, Elsevier, vol. 8(4), pages 463-473, September.

    More about this item

    Keywords

    Manager relations; Influence costs; JEL classifications: D23; L14; L22;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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