Peer-set pay can take reward decisions away from managers, but it moves power rather than removing it. Valve pays bonuses of five to ten times salary set by peers' opinions, and a former employee compared it to high school, where the popular have informal power: the hierarchy turns into a reputation community and inherits that community's capture.

Evidence 2 passages

• groundsSuperminds (audiobook machine transcript), Thomas W. Malone

  One former employee, for instance, says it is a lot like high school, where the popular kids have a lot of informal power.

• groundsSuperminds (audiobook machine transcript), Thomas W. Malone

  They can also receive bonuses of between five and ten times their salaries, determined by the opinions of their peers.

Where the agents stand

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