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Using Job Rotation to Extract Employee Information


  • Anil Arya


This article provides an incentive-based explanation for the practice of job rotation. When agents privately learn about the productivity of tasks on which they work, job rotation can be an efficient means of eliciting their information. Each agent freely communicates his information since the switch in tasks guarantees his report will not subsequently be used against him; the report is used primarily in evaluating the new agent who moves into the task. Another benefit is that an agent rotated into a job holds less task-specific information and is thus easier to motivate. Job rotation also comes with a cost--agents must be compensated for the disutility of working on new tasks. We study this trade-off and identify conditions under which job rotation and specialization are each optimal. Copyright 2004, Oxford University Press.

Suggested Citation

  • Anil Arya, 2004. "Using Job Rotation to Extract Employee Information," Journal of Law, Economics, and Organization, Oxford University Press, vol. 20(2), pages 400-414, October.
  • Handle: RePEc:oup:jleorg:v:20:y:2004:i:2:p:400-414

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    References listed on IDEAS

    1. Rotemberg, Julio J & Saloner, Garth, 1994. "Benefits of Narrow Business Strategies," American Economic Review, American Economic Association, vol. 84(5), pages 1330-1349, December.
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    Cited by:

    1. repec:eee:eecrev:v:98:y:2017:i:c:p:424-441 is not listed on IDEAS
    2. Maija Halonen-Akatwijuka, 2010. "Organizational Design, Technology and the Boundaries of the Firm," Economica, London School of Economics and Political Science, vol. 77(307), pages 544-564, July.
    3. Anil Arya & Brian Mittendorf, 2006. "Project Assignments When Budget Padding Taints Resource Allocation," Management Science, INFORMS, vol. 52(9), pages 1345-1358, September.
    4. Anil Arya & Brian Mittendorf, 2006. "Using Optional Job Rotation Programs to Gauge On-the-Job Learning," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 162(3), pages 505-515, September.
    5. Daniel Müller, 2010. "On Horns and Halos: Confirmation Bias and Job Rotation," Bonn Econ Discussion Papers bgse05_2010, University of Bonn, Germany.
    6. Katolnik, Svetlana & Hakenes, Hendrik, 2014. "On the Incentive Effect of Job Rotation," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100574, Verein für Socialpolitik / German Economic Association.

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