Job Allocation Rules and Sorting Efficiency: Experimental Outcomes in a Peter Principle Environment.

An important issue in personnel economics is the design of efficient job allocation rules. Firms often use promotions both to sort workers across jobs and to provide them with incentives. However, the Peter Principle states that employees' output tends to fall after a promotion. Lazear (2004) sugges...

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Publicado en:Southern Economic Journal Vol. 78; no. 3; pp. 842 - 860
Autores principales: Dickinson, David L., Villeval, Marie Claire
Formato: Artículo
Publicado: Wiley-Blackwell Jan2012
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Job Allocation Rules and Sorting Efficiency: Experimental Outcomes in a Peter Principle Environment.
      aug:
        au:
          Dickinson, David L.
          Villeval, Marie Claire
        affil:
          Appalachian State University, Department of Economics, Boone, NC 28608, USA
          University of Lyon, Lyon, F-69007, France; Centre Nationale de Recherche Scientifique, Groupe d'Analyse et de Théorie Economique, 93 chemin des Mouilles, Ecully, F-69130, France (current address); Institute for the Study of Labor, Bonn, Germany
      su:
        Employee promotions
        Organizational effectiveness
        Organization
        Wages
        Management
      sug:
        subj:
          Employee promotions
          Organizational effectiveness
          Organization
          Wages
          Management
      ab: An important issue in personnel economics is the design of efficient job allocation rules. Firms often use promotions both to sort workers across jobs and to provide them with incentives. However, the Peter Principle states that employees' output tends to fall after a promotion. Lazear (2004) suggests that self-selection may improve job allocation efficiency while preserving incentive effects. We reproduce this Peter Principle in the laboratory and compare the efficiency of a promotion standard with subjects self-selecting their task. We find no evidence of effort distortion, as predicted by theory. Furthermore, we find that when the Peter Principle is not severe, promotion rules often dominate self-selection efficiency of task assignment. Results are consistent with imperfect appraisal of transitory ability and a lack of strategic behavior.
      pubtype: Academic Journal
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      src: R
    language: English
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