Reputation Record System Enhances the Company Trust and Productivity

Abstract

In this paper we study how reputation record system affects the company trust and employees’ behavior. Employers have to choose to offer a high discretion high efficiency job and a low discretion low efficiency job. Employees have to choose the efforts that expend into their jobs. There were two treatments based Bartling, Fehr & Schmidt’s experiment. In base treatment, employers do not have any pervious information about their employees; in screening treatment employers can observe the record of their employees. Overall, introducing the reputation record system (screening treatment) can enhances the productivity.