Firm Growth and Promotion Opportunities
Time:2019-11-19 10:55:18
We develop a model in which a firm makes a sequence of production decisions and has to motivate each of its employees to exert effort. The firm motivates its employees through incentive pay and promotion opportunities, which may differ across different cohorts of workers. We show that the firm benefits from reallocating promotion opportunities across cohorts, resulting in an optimal personnel policy that is seniority-based. We also highlight a novel time-inconsistent motive for firm growth: when the firm adopts an optimal personnel policy, it may pursue future growth precisely to create promotion opportunities for existing employees.Popular Articles
-
International Student Profile: Kevin Kurnia
Oct 12 2017
-
Start your application to join PHBS!
Sep 18 2018
-
PHBS Opening a Campus in UK: Se...
Feb 22 2017
Latest News
-
Peking University HSBC Business S...
Time:Dec 20 2019
-
Studious and Aspiring | Dean Hai...
Time:Dec 20 2019
-
PHBS Holds the Second PHBS Works...
Time:Dec 19 2019
Campus Events