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Relational contracts and job design

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  • Schöttner, Anja

Abstract

This paper analyzes the problem of optimal job design when there is only one contractible and imperfect performance measure for all tasks whose contribution to firm value is non-verifiable. I find that task splitting is optimal when relational contracts based on firm value are not feasible. By contrast, if an agent who performs a given set of tasks receives an implicit bonus, the principal always benefits from assigning an additional task to this agent.

Suggested Citation

  • Schöttner, Anja, 2005. "Relational contracts and job design," SFB 649 Discussion Papers 2005-052, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    • Handle: RePEc:zbw:sfb649:sfb649dp2005-052
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    Cited by:

    1. Thiele, Veikko, 2007. "Performance measurement in multi-task agencies," Research in Economics, Elsevier, vol. 61(3), pages 148-163, September.
    2. Gürtler, Oliver, 2005. "On Delegation under Relational Contracts," Bonn Econ Discussion Papers 32/2005, University of Bonn, Bonn Graduate School of Economics (BGSE).
    3. Thiele, Veikko, 2007. "Task-Specific Abilities in Multi-Task Agency Relations," MPRA Paper 2470, University Library of Munich, Germany.

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    More about this item

    Keywords

    job design; multi-tasking; relational contracts;
    All these keywords.

    JEL classification:

    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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