> This then encourages free riding, no? It's more likely to do so the bigger the team. In a team of 500, someone might think "my personal contribution doesn't

> This then encourages free riding, no? It's more likely to do so the bigger the team. In a team of 500, someone might think "my personal contribution doesn't matter much", but they are less likely to think so in a team of 5. Furthermore, in small teams social pressures are likely to deter free riding. > In the general case, the goals of the company and the employee are not always aligned so I don't think this is an easy problem to solve. Yes. It's the principal-agent problem -- http://en.wikipedia.org/wiki/Principal%E2%80%93agent_problem http://en.wikipedia.org/wiki/Principal%E2%80%93agent_problem