This paper analyzes the problem of optimal job design when there is only one contractible and imperfect performance measure for all tasks whose contribution to firm value is non-verifiable. I find that task splitting is optimal when relational contracts based on firm value are not feasible. By contrast, if an agent who performs a given set of tasks receives an implicit bonus, the principal alwa...

Remark 1.3. One can see that if BG exists, it is unique up to weak equivalence by the Yoneda lemma and the fact that every space is weakly equivalent to a CW complex. We will construct two different models of BG, the classical one from Milnor, and one from Segal. The latter will have the advantage that B(G× G′) ∼= BG× BG′ Proposition 1.4. If EG is a weakly contractible space with a free action ...