Confidence Management: On Interpersonal Comparisons in Teams

Benoit Crutzen, Otto Swank () and Bauke Visser

No 07-040/1, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This discussion paper resulted in a publication in the Journal of Economics & Management Strategy . Organization differ in the degree to which they differentiate employees by ability. We analyse how the effect of differentiation on employee morale may explain this variation. By comparing employees using ordinary talk, a manager boosts the self-image of some, but hurts that of others. Whether the net effect is positive for the organization depends on the degree of synergy between employees and on the shape of their objective function. An implication for relative performance pay is that it yields a double dividend or constitutes a double-edged sword.

Keywords: Comparisons; Confidence; Teams; Cheap talk (search for similar items in EconPapers)
JEL-codes: D82 J31 L23 (search for similar items in EconPapers)
Date: 2007-05-30
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Citations: View citations in EconPapers (1)

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Journal Article: Confidence Management: On Interpersonal Comparisons in Teams (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20070040

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