Performance, promotion, and the Peter Principle

This paper considers why organizations use promotions, rather than just monetary bonuses, to motivate employees even though this may conflict with efficient assignment of employees to jobs. When performance is unverifiable, use of promotion reduces the incentive for managers to be affected by influe...

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Bibliographic Details
Published in:The Review of economic studies 2001-01, Vol.68 (234), p.45-66
Main Authors: Fairburn, James A, Malcomson, James M
Format: Article
Language:English
Subjects:
Bonus systems
Bonuses
Economic incentives
Employee promotions
Employees
Employers
Employment
Incentives
Individual performance
Labour economics
Managers
Occupational promotion
Occupations
Organizational effectiveness
Performance appraisal
Personnel policies
Reputations
Roles
Tournaments & championships
Online Access:Get full text
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