Author： Hahn Sunku
Publisher： Routledge Ltd
ISSN： 1016-8737
Source： International Economic Journal, Vol.23, Iss.3, 2009-09, pp. : 325-337
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
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.
Related content
Access to resources
Recommend
Attendance and promotions in minor league baseball: the Carolina League
By Cebula Richard Toma Michael Carmichael Jay
Applied Economics, Vol. 41, Iss. 25, 2009-11 ,pp. :