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Team Governance: Empowerment of Hierarchical Control

Listed author(s):
  • Friebel, Guido
  • Schnedler, Wendelin

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.

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Paper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 520.

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Date of creation: Sep 2007
Handle: RePEc:ide:wpaper:9341
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