Optimal supervision intensity, collusion and the organization of work
Baç, Mehmet (2006) Optimal supervision intensity, collusion and the organization of work. (Accepted/In Press)
The intensity of supervision. Defined as the proportion of supervisors to bottom-rank productive workers, differs widely across organizations and nations. Analyzing three monitoring systems that differ in their supervision intensity, I show that the possibility of collective shirking arrangements can impose a system- dependent limit on the range of implementable performances. This brings about a tradeoff in the choice of the monitoring systems: the system that economizes on incentive costs may implement an inferior range of performances. Application of the model generate work-disutility-, ethics and job-characteristics-based explanations for variations in the intensity of supervision.
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