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Promotions Solely Based on Initial Evaluations


  • Sunku Hahn


This paper analyzes a case where a competition for a promotion chance among the employees may cause an inefficiency inside a firm or an organization. It is shown that a firm or an organization can avoid the inefficiency by promoting employees not based on their job performances after entering a firm or an organization, but based on the initial evaluation scores that the employees get before they enter it. This means that there exist some cases where using only the monetary compensation turns out to be more efficient rather than using the promotion chance as an incentive for the employees.

Suggested Citation

  • Sunku Hahn, 2009. "Promotions Solely Based on Initial Evaluations," International Economic Journal, Taylor & Francis Journals, vol. 23(3), pages 325-337.
  • Handle: RePEc:taf:intecj:v:23:y:2009:i:3:p:325-337
    DOI: 10.1080/10168730903119419

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    Promotion; initial evaluation; job performance;


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