Consistency in Organization

Schlicht, Ekkehart (20. Oktober 2008): Consistency in Organization. Münchener Wirtschaftswissenschaftliche Beiträge (VWL) 2008-20

Abstract

Internal organization relies heavily on psychological consistency requirements. This perspective has been emphasized in modern compensation theory, but has not been extended to organization theory. The idea is developed by starting from Williamson's discussion of idiosyncratic exchange. The perspective sheds new light on several topics in the theory of the firm, like the boundaries of the firm (“Williamson's puzzle”), the importance of fairness concerns within firms, the attenuation of incentives, or the role of routines. It implies a “perceptional” theory of the firm that is “realistic” in the sense advocated by Coase (1937).

• Dokumententyp: Paper
• Publikationsform: Submitted Version
• Keywords: theory of the firm, hierarchy, evolutionary theory of the firm, perceptional theory of the firm, consistency, small numbers, centralization paradox, Williamson's puzzle, compensation, boundaries of the firm, fairness, small numbers, idiosyncratic exchange, entitlements, obligations, routines, framing
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Munich Discussion Papers in Economics ; Volkswirtschaft > Munich Discussion Papers in Economics > Mikroökonomik ; Volkswirtschaft > Munich Discussion Papers in Economics > Verhaltenswissenschaftliche Ökonomik ; Volkswirtschaft > Munich Discussion Papers in Economics > Institutionenökonomik ; Volkswirtschaft > Lehrstühle > Seminar für Theorie und Politik der Einkommensverteilung (aufgelöst)
• Themengebiete: 300 Sozialwissenschaften > 300 Sozialwissenschaft, Soziologie ; 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: B52, D02, L2
• Sprache: Englisch