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Multitasking and performance measurement

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In a principal-agent setting, we consider a combined problem of multitasking and performance measurement. The principal can choose to reward the agent both directly for providing effort into a specific activity, and based on the outcome delivered to the principal. Both the issue of multitasking and any private knowledge the agent might possess will lead the principal to use a performance measurement more. This applies even if the measurement is poorly correlated with the actual outcome to the principal.

Suggested Citation

  • Nannerup, Niels & Olsen, Kasper Krogh, 2014. "Multitasking and performance measurement," Discussion Papers of Business and Economics 20/2014, University of Southern Denmark, Department of Business and Economics.
  • Handle: RePEc:hhs:sdueko:2014_020
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    References listed on IDEAS

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    More about this item

    Keywords

    Multitasking; pay for performance;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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