Generalists, Specialists: Who Gets to the Top

Xuefei Sophie Wang

International Journal of Management and Marketing Research, 2008, vol. 1, issue 1, 99-110

Abstract: This paper tries to analyze the three aspects of hierarchy: (1) generalists or specialists: which should get to the top? (2) How many agents should get to the top? (3) Can the agents who should be at the top in the optimal hierarchy really get to the top? Using a T-period model with promotion, the paper finds that the optimal hierarchy form depends on the size of the externality of coordinating multiple assets by generalists. How many agents should be at the top depends on the elasticity of the externality of coordinating multiple assets. Finally, promotion opportunity gives agents who should at the top more incentive to exert effort, and thus are more likely to get promoted.

Keywords: hierarchy; incentive; promotion; promotion opportunities; generalists; specialists (search for similar items in EconPapers)
JEL-codes: D01 D23 L23 M51 (search for similar items in EconPapers)
Date: 2008
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