9781118041581

Organizational Design 597 A corollary to this proposition follows. Organizations should distribute tasks to best generate and ut ...

to about 40 percent of the global commercial aircraft market (to Boeing’s 60 percent). However, critics claimed that Airbus boug ...

Organizational Design 599 Decentralization assigns decision-making responsibilities as closely as possi- ble to the holders of r ...

of large firms with 20 percent or more of their employees in teams grew from 37 percent in 1987 to 61 percent in 1999. The evide ...

Organizational Design 601 according to marginal cost is essential for efficient coordination within the multidivision firm.^20 ( ...

Monitoring and Rewarding Performance The modern firm is built on formal and informal systems of carrots and sticks to motivate m ...

Organizational Design 603 Asymmetric information introduces potential complications. Frequently, the firm cannot observe and mea ...

lists the results of a high-effort contract. The firm pays $60,000 in salary to the worker if and only if the effort level is hi ...

Organizational Design 605 arrangement raise the incentive to supply extra effort? The answer is yes. As shown in item 4 of Table ...

A recent survey that reviewed scores of research studies on franchising shows that the “real world” accords well with the theore ...

Organizational Design 607 Once again, the corporate reward system faces a trade-off. Rather than tie compensation solely to aggr ...

worker’s disutility. The upshot of all attempting a free ride is that no one exerts extra effort. Smaller groups naturally have ...

Organizational Design 609 firm’s other six geographically dispersed lines. The marketing department can electronically make avai ...

shareholder’s shares.) Top executives of U.S. corporations can use corporate funds to solicit proxies. By contrast, insurgent sh ...

Organizational Design 611 prone to expand the firm’s operations far past the point of profit maximization. As the classical econ ...

in its corporate charter? Who should enforce the duties: private investors (through derivative and class-action suits) or the go ...

Organizational Design 613 businesspeople or top managers of other firms) provide general oversight of the corporation. Given the ...

The restricted shares cannot be traded for three years. Finally, executive 3 receives $100,000 cash plus $100,000 worth of warra ...

Organizational Design 615 PFP scheme depends on a trade-off between fostering the desired incentives and insuring the agent agai ...

chief financial officer personally certify the firm’s financial statements. It also requires real-time disclosure of changes in ...