Subjective evaluation and information-efficiency in organizations
Kay Mitusch
No 2001/1, Discussion Papers from Technische Universität Berlin, School of Economics and Management
Abstract:
Subjective performance evaluation is modeled as auditing without commitment. A superior, who has to decide whether an where to audit the work done by a subordinate, takes into account all interim information he has obtained in the meantime. This invites workers to cover up and withhold information in order tomake an audit more difficult and thus divert their superior from making one. Weshow that this strategy usually raises the cost of setting work incentives, so that incentives are softened. However, in some instances the opposite holds. When worker's on-the-job information is valuable for entrepreneurial decisions, work incentives have to be softened in order improve the internal flow of information.
Keywords: Principal-agent relationship; auditing without commitment; internal organization; information transmission; influence activity (search for similar items in EconPapers)
Date: 2001
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
https://www.econstor.eu/bitstream/10419/36403/1/324182007.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:zbw:tubsem:20011
Access Statistics for this paper
More papers in Discussion Papers from Technische Universität Berlin, School of Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().