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Supervise me if you can. Relational feelings, incentive pays and supervisory violations

Author

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  • Stefano Dughera

    (University of Torino
    LABORatorio R. Revelli, Center for Employment Studies)

  • Alain Marciano

    (University of Montpellier)

Abstract

We study a bonus pay setting where a principal hires a supervisor to evaluate a group of potentially shirking workers. The supervisor and her workers develop relational feelings (either positive or negative) after interacting with each other. We analyze a novel class of organizational infractions where the supervisor provides false evaluations of the workers’ performance to accommodate her other-regarding preferences. We show that the workers’ reaction to these supervisory violations and their decision to provide effort depend on their relational concerns. The implication is that incentive pays can be ineffective due to the distortion of relational concerns.

Suggested Citation

  • Stefano Dughera & Alain Marciano, 2022. "Supervise me if you can. Relational feelings, incentive pays and supervisory violations," Journal of Economics, Springer, vol. 136(1), pages 47-72, June.
    • Handle: RePEc:kap:jeczfn:v:136:y:2022:i:1:d:10.1007_s00712-021-00763-7
    DOI: 10.1007/s00712-021-00763-7
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    More about this item

    Keywords

    Other-regarding preferences; Supervision; Incentive pay; Organizational infractions; Shirking;
    All these keywords.

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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