The role of transparency in fairness and reciprocity issues in manager-employee relationships

Managers of organizations play a dual role as both principals and agents, which can lead to conflicts of interest between their obligations to the organization and their own self-interest. The first chapter of this dissertation explores such a conflict in the context of promotions and investigates whether more transparency in the promotions process can help ensure that managers support the promotion of their most talented employees. The second chapter examines the capacity of employees to influence their manager’s bonus allocations and considers whether making bonus allocations transparent can reduce it. Finally, the third essay sheds light on the role of managers in the dissemination of knowledge within organizations and provides insights into why knowledge does not always spread efficiently to all parts of the firm. Together, the three chapters of this dissertation investigate how transparency affects fairness and reciprocity issues in the relationships between managers and employees.