Subordinates as Threats to Leaders
A leader of an organization may view a subordinate as threatening or weakening the leader's position. The threat may increase with the subordinate's ability and reduce the rents the leader wins. In particular, a leader who trains his subordinate reduces the cost to the owner of a firm in replacing the leader, and so reduces the leader's bargaining power. The leader therefore provides inefficiently low training for the subordinate.
|Date of creation:||21 Jan 2001|
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