Task assignment and organizational form

Kerstin Puschke

No 2006/19, Discussion Papers from Free University Berlin, School of Business & Economics

Abstract: This paper shows that a firm prefers a process-based task assignment compared to a function based one if the tasks are from functional areas which are neither too complementary nor too substitutable. We consider several projects with contributions from several functional areas. The organization can be structured along processes like product lines (M-form) or along functional areas like marketing or production (U-form). The U-form enables cost savings due to specialization or scale economies. We show that the more effective incentives under the M-form might outweigh these savings if the functions are neither too complementary nor too substitutable.

Keywords: Task Assignment; Organizational Form; Incomplete Contracts (search for similar items in EconPapers)
JEL-codes: D02 L23 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Task assignment and organizational form (2009)
Working Paper: Task Assignment and Organizational Form
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:fubsbe:200619

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