We analyze the effects of wage floors on optimal job design in a moral-hazard model with asymmetric tasks and imperfect aggregate performance measurement. Due to cost advantages of specialization, assigning the tasks to different agents is efficient. A sufficiently high wage floor, however,...

We analyze the effects of lower bounds on wages on optimal job design within firms. In our model, two tasks affect firm value and an imperfect performance measure. Due to cost advantages of specialization, assigning the tasks to different agents is efficient. Yet a sufficiently large wage floor...

We analyze the effects of lower bounds on wages, e.g., minimum wages or liability limits, on job design within firms. In our model, two tasks contribute to non-veriable firm value and affect an imperfect performance measure. The tasks can be assigned to either one or two agents. In the absence...

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...

In this paper, a principal's decision between delegating two tasks or handling one of the two tasks herself is analyzed. We assume that the principal uses both, formal contracts and informal agreements sustained by the value of future relationships (relational contracts) as incentive device. It...

The career concerns literature predicts that incentives for effort decline as beliefs about ability become more precise (Holmström, 1982/1999). In contrast, we show that effort can increase with belief precision if promotions to better-paid jobs make the returns to reputation non-linear. In...

Despite repeated predictions of its demise, lifetime employment remains the core institution of the Japanese management system, and regular employment in a large and prestigious organization continues to be the aspiration of the majority of Japanese younger people. Although organizations have...

El control de la eficiencia de las prácticas de RRHH ha recibido una atención escasa en la literatura académica. En este trabajo hemos contrastado cuál es el nivel de aplicación de las teorías acerca de la cuantificación de los efectos de las políticas de RRHH. Hemos desarrollado una...

High Performance Work Systems are generally considered to have a positive impact on workers’ well-being. But is this actually the case? This classroom-material will discuss this question from the point of view of “End of Fun”, a controversial and widely-discussed book by Judith Mair...

Particularly in present times, meaning hereby that from last more than two decades, due to phenomenal changes all round, issue of quality man power has become a variable having significant importance. The situation turned too much grave with the noticing of the phenomenon called recession since...