Consistency in Organization
24 Pages Posted: 13 Mar 2003
Date Written: February 2003
Recent 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
JEL Classification: L22, L25, J33, J53
Suggested Citation: Suggested Citation