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Relational Contracts and Job Design

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  • Anja Schöttner

Abstract

This paper analyzes the problem of optimal job design when there is only one contractible and imperfect performance measure for all tasks whose contribution to firm value is non-veritable. I find that task splitting is optimal when relational contracts based on firm value are not feasible. By contrast, if an agent who performs a given set of tasks receives an implicit bonus, the principal always benefits from assigning an additional task to this agent.

Suggested Citation

  • Anja Schöttner, 2005. "Relational Contracts and Job Design," SFB 649 Discussion Papers SFB649DP2005-052, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    • Handle: RePEc:hum:wpaper:sfb649dp2005-052
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    File URL: http://sfb649.wiwi.hu-berlin.de/papers/pdf/SFB649DP2005-052.pdf
    File Function: Revised version, 2005
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    References listed on IDEAS

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    Cited by:

    1. Gürtler, Oliver, 2005. "On Delegation under Relational Contracts," Bonn Econ Discussion Papers 32/2005, University of Bonn, Bonn Graduate School of Economics (BGSE).
    2. Thiele, Veikko, 2007. "Task-Specific Abilities in Multi-Task Agency Relations," MPRA Paper 2470, University Library of Munich, Germany.
    3. Thiele, Veikko, 2007. "Performance measurement in multi-task agencies," Research in Economics, Elsevier, vol. 61(3), pages 148-163, September.

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    More about this item

    Keywords

    job design; multi-tasking; relational contracts;
    All these keywords.

    JEL classification:

    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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