How should a principal reward and support agents when firm performance is characterized by success or failure?

Principal‐agent models with multiple agents typically assume that the principal wishes to maximize the sum of the agents' achievements (net of the rewards paid to them). But in many settings, like R&D, all that the principal “needs” is that at least one agent will be “successful.” We identify settings where the principal actually wants agents to refrain from exerting high effort in order to save expected compensation. We show that the number of agents can decrease in the project's value for the principal. We also consider sequential efforts and investigate settings where the principal can provide support to agents.     

There is no ‘I’ in team: Career concerns,risk‐taking incentives,and team outcomes

The National Basketball Association contracting rules provide plausibly exogenous variation in career concerns near contract end. We use this setting to study how individual career concerns affect risk‐taking behavior and can sabotage team performance. Using the frequency and duration of player injuries from 1991 to 2013 we measure individual risk‐taking behavior. We find that the average player's likelihood of missing a game due to injury falls by 0.06 percentage points (or over 100% relative to the mean injury rate) in the final 3 months of his contract, and when missing games due to injury is unavoidable, his recovery time drops by 22 days. However, “elite” players with virtually no career concerns actually miss more games due to injury. Finally, we find that elite players missing too many games and “average” players playing before healthy, combine to hurt team performance. For each additional player in the last 3 months on contract, the win probability for that team falls by over 2.6%.     

Expatriate success may depend on a “learning orientation”: Considerations for selection and training

To support globalization, managers increasingly are sent to live and work in other countries. An unsuccessful expatriate assignment is costly for the organization and damaging to the individual's career, yet few companies have adequate processes for selecting and training expatriate managers. The concept of “learning orientation” is proposed as a valuable dimension for assessment and training. Employees with weaker learning orientation tend to withdraw from situations that could result in low judgment of performance; those with stronger learning orientation adapt and continue. The described approach can benefit employees and their families and can increase the organization's chance for international success. © 1999 John Wiley & Sons, Inc.     

Asymmetric sequential search under incomplete information

We study a multistage sequential search model with n agents who compete for one job. The agents arrive sequentially, each one in a different stage. The agents' abilities, which are private information, are derived from heterogeneous distribution functions. In each stage, the designer chooses an ability threshold. If an agent has a higher ability than the threshold in the stage in which he arrives, he gets the job and the search is over. The agent's ability is not revealed when he wins the job and the designer has only an estimation of this ability according to the threshold placed by him. We analyze the optimal ability thresholds imposed by the designer who wishes to maximize the ability estimation of the agent who gets the job net of the search cost. We also investigate the relation between the optimal ability thresholds as well as the optimal order of agents in all stages according to the agents' distributions of abilities.     

The Meaning,Prospects, and Future of the Commons: Revisiting the Legacies of Elinor Ostrom and Henry George

Elinor Ostrom's work on the commons has convinced mainstream economists that “collective” governance of the commons can overcome the “tragedy of the commons” and “free‐rider problems.” Yet, a more systematic appraisal of Ostrom's work shows that it contains no concept of justice. Her idea of rights is extremely limited, often tied to the notion of joint, rather than equal, rights. Indeed, for Ostrom, the notion of the commons is socially separatist and not ecological. Ostrom uses historical examples, but without analyzing how common possession historically evolved and was undermined by external forces. Hence her proposed “collective action” to save the commons actually accelerates the real threats to the commons. A strikingly different and more holistic approach to the commons is offered by Henry George, who posits the commons as the most important path to social, economic, and ecological sustainability. Unlike Ostrom, who studied the commons “scientifically” to show that some goods are neither private, public, nor club‐based, George studied the commons to understand and remove injustice at the roots. His approach is more critical and certainly more relevant today in showing that another world is possible. However, George's work too, requires significant changes to update its framing of the meanings, prospects, and future of the commons.     

Career Tournaments

This paper studies a model of career concerns where (besides agents having different ability levels) principals are heterogeneous. Two types of heterogeneity are considered: principals can differ in their productivities, and in the visibility of the agents working for them. Productivity differences result in convex wage profiles and generate assortative matching between principals and agents. Visibility differences, on the other hand, affect the mobility and career prospects of agents, and can generate nonassortative matching. We characterize the equilibrium in this market, derive implications for the behavior of agents, and examine the incentives to invest in increasing productivity and visibility.     

Team Incentives and Reference‐Dependent Preferences

We investigate a multi‐agent moral‐hazard model where agents have expectation‐based reference‐dependent preferences à la K?szegi and Rabin (2006, 2007). We show that even when each agent's probability of success in a project is independent, a principal may employ team incentives. Because the agents are loss averse, they have first‐order risk aversion to wage uncertainty. This causes the agents to work harder when their own failure is stochastically compensated through other agents' performance. In the optimal contract, agents with high performance are always rewarded, whereas agents with low performance are rewarded if and only if other agents' performance is high.     

On the Economics of Moral Preferences

Abstract . The long‐standing critique of the “economic model of man” has gained new impetus, not least due to the broadening research in behavioral and experimental economics. Many of the critics have focused on the apparent difficulty of traditional rational choice theory to account for the role of moral or ethical concerns in human conduct, and a number of authors have suggested modifications in the standard model in response to such critique. This article takes issue with a quite commonly adopted “revisionist” strategy, namely, seeking to account for moral concerns by including them as additional preferences in an agent's utility function. It is argued that this strategy ignores the critical difference between preferences over outcomes and preferences over actions, and that it fails to recognize that “moral preferences” belong in the second category. Preferences over actions, however, cannot be consistently accounted for within a theoretical framework that focuses on the rationality of single actions. They require a shift of perspective, from a theory of rational choice to a theory of rule‐following behavior.     

Pope Francis on Overcoming Exclusion: A Theological Vision with Economic and Social Implications

The ethical imperative to overcome exclusion is a key component of the social teachings and advocacy efforts of Pope Francis. At the very core of the pastoral and social vision he proposes is a drive to resist the global trend toward growing inequality and to encourage greater solidarity, which includes extending economic opportunities much more broadly. Even more vehemently than his papal predecessors, Francis insists on prioritizing the concrete well‐being of people facing hardship and oppression, so that nobody is relegated to the category of “the throwaway.” While the theme of mercy (a “soft” virtue, inasmuch as it involves voluntary action to overcome indifference and suffering) is prominent in many of his ethical appeals, Francis notably displays a distinctive structural analysis (a “hard” diagnostic tool) when addressing injustices in the global economy. The plights of victims of human trafficking, of global climate change, of restricted work opportunities due to globalization, and other causes of human suffering are best analyzed with ample attention to structures that require transformation. While economists and sociologists may be less interested in the underlying moral anthropology and spirituality that grounds the social teachings of Francis, it is undeniable that a coherent social vision undergirds the insistence of the Jesuit pope on greater social inclusion—a vision that applies to the full range of economic, environmental, and social issues. These concerns are on especially full display in two major teaching documents of Francis: his 2013 exhortation “The Joy of the Gospel” and his 2015 encyclical Laudato Si’. In each, the pope employs an astute structural lens that reveals injustices and allows him to propose strategies to overcome inequality and exclusion.     

Contextual embeddedness of careers: female “nonsurvivors” and their gendered relational context

Our aim is to contribute to a better understanding of the contextual embeddedness of women's careers. To do this, we leverage feminist relational theory (a) to understand the relational context of women's careers in Lebanon, with a particular focus on working‐self and career investments, and (b) to trace the gendered power dynamics of career investments in the relational context of work. Through examining the narratives of 24 Lebanese female “nonsurvivors” (i.e., used to work but are not currently engaged in paid work), our findings paint a complex and nuanced picture of different relational contexts. Represented on a continuum ranging from minimally conducive for women's careers to contexts that are incrementally more conducive, the differences between these contexts are unpacked through drawing attention to the gendered power dynamics shaping women's (dis)connection with their working self, the perceived (mis)alignment of others, and the career investments that they make. Our contribution lies in augmenting our understanding of the contextual embeddedness of women's careers by demonstrating the theoretical and practical utility of bringing a deeper feminist analysis to understand the relational context of work.     

A more ideal system?

“Although American higher education can justifiably take pride in its capacity to develop the student's ability to manipulate the material world through its programs in science, medicine, technology, and commerce, it has paid relatively little attention to the student's “inner” development—the sphere of values and beliefs, emotional maturity, moral development, spirituality, and self‐understanding.” —from the Foreword to Encouraging Authenticity and Spirituality in Higher Education by Alexander W. Astin and Helen S. Astin     

Revisiting spiritual and emotional emptiness in American higher education

“Although American higher education can justifiably take pride in its capacity to develop the student's ability to manipulate the material world through its programs in science, medicine, technology, and commerce, it has paid relatively little attention to the student's “inner” development—the sphere of values and beliefs, emotional maturity, moral development, spirituality, and self‐understanding.” —from the Foreword to Encouraging Authenticity and Spirituality in Higher Education by Alexander W. Astin and Helen S. Astin     

Who says we don't? The perspective from a small Catholic liberal arts college

“Although American higher education can justifiably take pride in its capacity to develop the student's ability to manipulate the material world through its programs in science, medicine, technology, and commerce, it has paid relatively little attention to the student's “inner” development—the sphere of values and beliefs, emotional maturity, moral development, spirituality, and self‐understanding.” —from the Foreword to Encouraging Authenticity and Spirituality in Higher Education by Alexander W. Astin and Helen S. Astin     

Project Management Knowledge and Effects on Construction Project Outcomes: An Empirical Study

This study examines the relationships among the PMBOK® Guide, project performance, customer satisfaction, and project success by assessing the efficacy of management techniques, tools, and skills for implementing infrastructure and building construction. Experienced interviewees from private engineering firms and public agencies were asked to complete a questionnaire, and the responses were analyzed by means of a structural equation model. The analytical results indicate the appropriateness of prioritizing the practice of the PMBOK® Guide in the construction industry. This study contributes to the literature by providing insight into interactions among the PMBOK® Guide and construction project outcomes in engineering practices. Particularly, the “bidder's conference” and “procurement negotiations” are the priority techniques to minimize bidding and legal procurement problems. Moreover, the study recommends the use of “stakeholder analysis,” “communication requirements analysis,” and the “communication methods” to perform effective communication management. Although the conclusions are based on the sample collected in Taiwan, the research findings can be used by project managers and educators to tailor the PMBOK® Guide to their unique needs and to design effective training programs for construction specialists.     

Spirituality and leadership: Engaging both in higher education

“Although American higher education can justifiably take pride in its capacity to develop the student's ability to manipulate the material world through its programs in science, medicine, technology, and commerce, it has paid relatively little attention to the student's “inner” development—the sphere of values and beliefs, emotional maturity, moral development, spirituality, and self‐understanding.” —from the Foreword to Encouraging Authenticity and Spirituality in Higher Education by Alexander W. Astin and Helen S. Astin     

Spirit Guides

“Although American higher education can justifiably take pride in its capacity to develop the student's ability to manipulate the material world through its programs in science, medicine, technology, and commerce, it has paid relatively little attention to the student's “inner” development—the sphere of values and beliefs, emotional maturity, moral development, spirituality, and self‐understanding.” —from the Foreword to Encouraging Authenticity and Spirituality in Higher Education by Alexander W. Astin and Helen S. Astin     

Spiritual leadership as a model for student inner development

“Although American higher education can justifiably take pride in its capacity to develop the student's ability to manipulate the material world through its programs in science, medicine, technology, and commerce, it has paid relatively little attention to the student's “inner” development—the sphere of values and beliefs, emotional maturity, moral development, spirituality, and self‐understanding.” —from the Foreword to Encouraging Authenticity and Spirituality in Higher Education by Alexander W. Astin and Helen S. Astin     

Spirituality: Creating meaning and purpose for students the corporate way

“Although American higher education can justifiably take pride in its capacity to develop the student's ability to manipulate the material world through its programs in science, medicine, technology, and commerce, it has paid relatively little attention to the student's “inner” development—the sphere of values and beliefs, emotional maturity, moral development, spirituality, and self‐understanding.” —from the Foreword to Encouraging Authenticity and Spirituality in Higher Education by Alexander W. Astin and Helen S. Astin     

Symposium

“Although American higher education can justifiably take pride in its capacity to develop the student's ability to manipulate the material world through its programs in science, medicine, technology, and commerce, it has paid relatively little attention to the student's “inner” development—the sphere of values and beliefs, emotional maturity, moral development, spirituality, and self‐understanding.” —from the Foreword to Encouraging Authenticity and Spirituality in Higher Education by Alexander W. Astin and Helen S. Astin     

Project work as an antidote to career plateauing in a declining engineering organization

This is a study of the effects of becoming plateaued on the careers of professionals in a declining organization. An unusual “triple ladder” was studied, one with paths in administration and technical specialization (the two typical components of a dual ladder system), as well as project management (a general practice, technical generalist role). In contrast to earlier studies of plateauing, it was found that occupational characteristics mitigate the effects of plateauing. The plateaued technical specialists experienced the expected declines in job attitudes; however, in project management, and to a lesser extent in administration, it was the plateaued group whose career outlook was most positive. Interview data suggested that the critical factor operating here was not plateauing per se, but the extent to which learning is required and experience and acquired skills are utilized and recognized in the work role. Structural career opportunities, intrinsic job rewards, and recognition were all critical factors in mitigating the effects of the career plateau.