The Optimal Structure of Incent ives and Authority within an Organization
This chapter discusses a number of models that can help explain the distribution of incomes within the firm, and to explain the existence of authoritative relationships. These models also help derive a hierarchical structure and investigate its effects on production. One of the assumptions of these models is that workers are able to predict their own activity and rewards within the organization.
Keywords: models, incomes, authoritative relationships, hierarchical structure, production, rewards, workers, organization
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