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Self-organizing teams

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  • Kräkel, Matthias

Abstract

In the past decades, firms have decided to replace part of their hierarchical structure by self-organizing teams whose members have been authorized to match themselves to teams. On the one hand, this delegation of matching authority leads to a better use of agents’ decentralized information about optimal team composition. On the other hand, authority can be abused for opportunistic mismatching, which constitutes a new kind of moral-hazard problem. I show, under which conditions this problem arises so that the firm might even forgo self-organizing teams though being efficient.

Suggested Citation

  • Kräkel, Matthias, 2017. "Self-organizing teams," Economics Letters, Elsevier, vol. 159(C), pages 195-197.
  • Handle: RePEc:eee:ecolet:v:159:y:2017:i:c:p:195-197
    DOI: 10.1016/j.econlet.2017.08.012
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    References listed on IDEAS

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