While firms develop a multitude of mechanisms to mitigate their impact, they aren't always thesis statement to completely eliminate them. The first essay studies the advantages and disadvantages of frequent performance reviews over intermittent performance reviews in situations where firms are unable to observe payoff relevant characteristics.
Performance reviews are one of the tools used by firms to weed out ill-matched employees. How often they should be held has been check this out subject of a lot of debate recently. The key trade-off is the timing of information practicws and the amount of information.
In frequent reviews managers learn about the employees sooner, but in intermittent reviews they have more information to go by. Each review regime performs better under different conditions.
Thus, a priori frequent reviews do not always achieve better results than intermittent reviews. The second essay studies the problem of management practices thesis effort when the employee has to plan and execute the project in the presence of limited liability. The employer is unable to observe the effort involved in information acquisition management practices thesis the information itself giving vitae practitioner to moral hazard.
Thus, limited liability constraints not only raise the cost of contracting, they also change the level of risk taking. The third management practices thesis extends the model in the second essay management practices thesis two periods.
It is shown that the time of contracting affects management practices thesis feasibility of the first-best solution. Appears in collections Dissertations . Description University of Minnesota Pracctices. August Major: Economics. Advisor: Jan Werner. Suggested Citation Mohanty, Ruchika. Search the library website Go.