Consistency in OrganizationIZA discussion paper no. 718 February 2003
AbstractRecent thinking has emphasized the importance of consistency in a firm’s
compensation policy. By starting from Williamson’s ideas about idiosyncratic
exchange, this view can be supplied with some theoretical foundation. At the
same time, the consistency view can be applied to a number of organizational
issues. It sheds new light on some Williamsonian themes, like the boundaries of
the firm or the attenuation of incentives within firms. Keywords: theory of the firm, command, routines, centralization paradox, Williamson's puzzle, attenuation of incentives
Journal of Economic Literature classification numbers: L22, L25, J33, J53
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