Team Governance: Empowerment of Hierarchical Control
We investigate the costs and bene_ts of managerial interventions with a team in which workers care to di_erent degrees about output. We show that if there are complementarities in production and if the team manager has some information about team members, interventions by the manager may have destructive e_ects: they can distort how workers perceive their co-workers and may lead to a reduction of e_ort by those workers who care most about output. Moreover, interventions may hinder the development of a cooperative organizational culture in which workers trust each other.
(This abstract was borrowed from another version of this item.)
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