2022 Volume 30 Issue 1 Pages 55-71
This study extends the model of Heinle et al. (2012) to reveal the effect of identity on the allocation of behavioral target decision rights and performance evaluation system using a multi-task LEN model. Specifically, we show which of the two behavioral target decision rights should be delegated and the conditions for such delegation. The results show that, depending on the relative strength of one’s identity with the organization, it is desirable in some cases to delegate part of the authority to determine targets to the agent and in others to reserve all to the principal, and these conditions are affected by the productivity of effort in the performance measure. The contribution of this study is that it theoretically illustrates the role of identity in organizational architecture.
