Confidence Management: On Interpersonal Comparisons in Teams

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 07-040/1

Classification and Topics

• Classification: Wirtschaft ; Asymmetric and Private Information; Mechanism Design ; Organization of Production ; Wage Level and Structure; Wage Differentials
• Subject: Comparisons ; Confidence ; Teams ; Cheap talk ; Lohnstruktur ; Leistungsmotivation ; Asymmetrische Information ; Verhalten in Organisationen

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Crutzen, Benoît S.Y. ; Swank, Otto H. ; Visser, Bauke
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/86199
• Last update: 10.03.2025, 11:43 AM CET