Favoritism in Organizations
Canice Prendergast and
Journal of Political Economy, 1996, vol. 104, issue 5, 958-78
Objective measures of employee performance are rarely available. Instead, firms rely on subjective judgments by supervisors. Subjectivity opens the door to favoritism, where evaluators act on personal preferences toward subordinates to favor some employees over others. Firms must balance the costs of favoritism--arbitrary rewards and less productive job assignments--against supervisors' demands for authority over subordinates. The authors analyze the conditions under which favoritism is costly to organizations and the effects of favoritism on compensation, the optimal extent of authority, and the use of bureaucratic rules. Copyright 1996 by University of Chicago Press.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (211) Track citations by RSS feed
Downloads: (external link)
http://dx.doi.org/10.1086/262048 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.
Working Paper: Favoritism in Organizations (1993)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ucp:jpolec:v:104:y:1996:i:5:p:958-78
Access Statistics for this article
More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().