Multitasking and performance measurement

Niels Nannerup () and Kasper Krogh Olsen ()
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Niels Nannerup: Department of Business and Economics, Postal: University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark
Kasper Krogh Olsen: Department of Business and Economics, Postal: University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark

No 20/2014, Discussion Papers on Economics from University of Southern Denmark, Department of Economics

Abstract: In a principal-agent setting, we consider a combined problem of multitasking and performance measurement. The principal can choose to reward the agent both directly for providing effort into a specific activity, and based on the outcome delivered to the principal. Both the issue of multitasking and any private knowledge the agent might possess will lead the principal to use a performance measurement more. This applies even if the measurement is poorly correlated with the actual outcome to the principal.

Keywords: Multitasking; pay for performance (search for similar items in EconPapers)
JEL-codes: D82 D86 L51 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2014-12-16
New Economics Papers: this item is included in nep-hrm and nep-mic
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Citations: View citations in EconPapers (1)

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