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A Theory of Employment SystemsMicro-Foundations of Societal Diversity$
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David Marsden

Print publication date: 1999

Print ISBN-13: 9780198294221

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198294220.001.0001

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The Limits of Managerial Authority

The Limits of Managerial Authority

(p.31) Chapter 2 The Limits of Managerial Authority
A Theory of Employment Systems

David Marsden (Contributor Webpage)

Oxford University Press

The work rules that delimit managerial authority have to satisfy two fundamental requirements for there to be an effective contract. They must be easily enforced by ordinary workers and their line managers, and they must match the firm's job demands with workers’ skills. These are necessary and sufficient conditions for a viable employment relationship. Combining these two constraints gives rise to a typology of work rules that is later shown (Ch. 5) to explain international (societal) diversity in employment relations. The way each of these rules deals with common forms of opportunistic behaviour in employment is explored.

Keywords:   contract, employment relations, firms, managerial authority, opportunism, skills, societal diversity, work rules

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