Team governance: empowerment or hierarchical control

We investigate a team setting in which workers have different degrees of commitment to the outcome of their work. We show that if there are complementarities in production and if the team manager has some information about team members, interventions that the manager undertakes in order to assure ce...

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Bibliographic Details
Main Authors: Friebel, Guido (Author) , Schnedler, Wendelin (Author)
Format: Book/Monograph Working Paper
Language:English
Published: Heidelberg University of Heidelberg, Department of Economics October 2007
Series:Discussion paper series / Universität Heidelberg, Department of Economics no. 457
In: Discussion paper series (no. 457)

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Online Access:Resolving-System, Volltext: http://hdl.handle.net/10419/127270
Verlag, Volltext: http://www.awi.uni-heidelberg.de/with2/Discussion%20papers/papers/dp457.pdf
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Author Notes:Guido Friebel and Wendelin Schnedler
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Summary:We investigate a team setting in which workers have different degrees of commitment to the outcome of their work. We show that if there are complementarities in production and if the team manager has some information about team members, interventions that the manager undertakes in order to assure certain efforts may have destructive effects: they can distort the way workers perceive their fellow workers and they may also lead to a reduction of effort by those workers that care most about output. Moreover, interventions may hinder the development of a cooperative organizational culture in which workers trust each other. Thus, our framework provides some first insights into the costs and benefits of interventions in teams. It identifies that team governance is driven by the importance of tasks that cannot be monitored. The more important these tasks, the more likely it is that teams are empowered.
Physical Description:Online Resource
Format:Systemvoraussetzungen: Acrobat Reader.