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Team governance: Empowerment or hierarchical control

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  • Friebel, Guido
  • Schnedler, Wendelin

Abstract

We investigate the costs and benefits of managerial interventions with a team in which workers care to different degrees about output. We show that if there are complementarities in production and if the team manager has some information about team members, interventions by the manager may have destructive effects: they can distort how workers perceive their co-workers and may lead to a reduction of effort by those workers who care most about output. Moreover, interventions may hinder the development of a cooperative organizational culture in which workers trust each other.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 78 (2011)
Issue (Month): 1 ()
Pages: 1-13

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Handle: RePEc:eee:jeborg:v:78:y:2011:i:1:p:1-13

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Web page: http://www.elsevier.com/locate/jebo

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Keywords: Team work; Incentives; Informed principal; Intrinsic motivation;

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References

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Citations

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Cited by:
  1. Wendelin Schnedler & Radovan Vadovic, 2011. "Legitimacy of Control," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(4), pages 985-1009, December.
  2. Wendelin Schnedler, 2009. "You Don't Always Get What You Pay For: Bonuses, Perceived Income, and Effort," The Centre for Market and Public Organisation 09/226, Department of Economics, University of Bristol, UK.
  3. Paul Grout & Wendelin Schnedler, 2008. "Non-Profit Organizations in a Bureaucratic Environment," Working Papers 0474, University of Heidelberg, Department of Economics, revised Sep 2008.
  4. Jurjen J.A. Kamphorst & Otto H. Swank, 2010. "When Galatea cares about her Reputation: How having Faith in your Workers reduces their Motivation to shine," Tinbergen Institute Discussion Papers 10-123/1, Tinbergen Institute.
  5. Roberto Galbiatiy & Karl Schlagz & Joel van der Weele, 2010. "Sanctions that Signal: an Experiment," Levine's Working Paper Archive 661465000000001104, David K. Levine.
  6. Schnedler, Wendelin & Vanberg, Christoph, 2014. "Playing 'Hard to Get': An Economic Rationale for Crowding Out of Intrinsically Motivated Behavior," IZA Discussion Papers 8108, Institute for the Study of Labor (IZA).
  7. von Siemens, Ferdinand A., 2013. "Intention-based reciprocity and the hidden costs of control," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 55-65.
  8. Danilov, Anastasia & Sliwka, Dirk, 2013. "Can Contracts Signal Social Norms? Experimental Evidence," IZA Discussion Papers 7477, Institute for the Study of Labor (IZA).
  9. Herold, Florian, 2010. "Contractual incompleteness as a signal of trust," Games and Economic Behavior, Elsevier, vol. 68(1), pages 180-191, January.

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