Inefficient job assignments are usually explained with incomplete information about employees' abilities or contractual imperfections. We show that inefficient assignments arise even with full information about employees' types and complete contracts. Our further results provide a new...

The Peter Principle captures two stylized facts about hierarchies: first, promotions often place employees into jobs for which they are less well suited than for that previously held. Second, demotions are extremely rare. Why do organizations not correct 'wrong' promotion decision? This paper...

Using a concurrent validation strategy, we examine the incremental value of a measure of actual person-organization fit (P-O fit) as a selection tool beyond cognitive ability for predicting continued length of service and performance for call center agents, a job with historically high turnover....