Consistency in Organization (updated)

Ekkehart Schlicht ()
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Ekkehart Schlicht: University of Munich

No 5644, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Internal organization relies heavily on psychological consistency requirements. This thought has been emphasized in modern compensation theory, but has not been extended to organization theory. The perspective sheds new light on several topics in the theory of the firm, like the boundaries of the firm, the importance of fairness concerns within firms, the attenuation of incentives, or the role of routines and incentives. It implies a perceptional theory of the firm that is realistic in the sense advocated by Ronald Coase (1937).

Keywords: disruptive technologies; skunkworks; ownership effect; fairness; employment relationship; Simon; theory of the firm; hierarchy; evolutionary theory of the firm; perceptional theory of the firm; consistency; small numbers; Williamson’s puzzle; centralization paradox; compensation; boundaries of the firm; fairness; idiosyncratic exchange; entitlements; obligations; routines; framing; Tayloristic organization; holistic organization (search for similar items in EconPapers)
JEL-codes: B52 D02 L2 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2011-04
New Economics Papers: this item is included in nep-bec and nep-hme
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Published - earlier version published in: Journal of Institutional and Theoretical Economics, 2004, 160 (2), 232-42

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