Year of Graduation
Non-Monetary Incentives in Team Governance: The Case of Asymmetric Information
A few literature pay attention to non-monetary methods of team governance in comparison with monetary ones. However, a series of works, both theoretical and empirical, show that the effect of monetary incentives on team performance is not always clear, and it leads to unexpected results sometimes. Hence, non-monetary methods of team governance should be analyzed more intensively. This research reveals the role of monitoring in team production in case of sequential task execution. It turned out that monitoring helps to prevent the loss of output, but it’s unable to solve the free-rider problem (as it sends undesirable signal to free-riders). Moreover, high monitoring costs lead to autonomous team, but this autonomy can’t improve performance in comparison with self-organized team without manager.