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Supervision

In: Organization in the Economic Firm

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Chapter 4 develops a model of the firm in which supervision is defined in relation to the firm's authority structure as the restrictions imposed by supervisors on the activities in which a subordinate may engage to carry out the requirements of his job. The firm chooses inputs (including the labor time of its employees) to maximize profit while employees select, under supervisory constraint, the activities they perform to maximize their utility. Within this model, the employee characteristics of being incentive motivated and vertically influenced, and internalizing the values of the firm are introduced. The effect of changes in employee skills and modifications in employee preferences (utility) among activities are analyzed.

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  • ., 2021. "Supervision," Chapters, in: Organization in the Economic Firm, chapter 4, pages 37-53, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20866_4
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    Keywords

    Economics and Finance;

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