an evolutionary theory of the principal agent-relation
Author: Dunn, Malcolm
Publisher: Universitätsverlag Potsdam
Category: Business enterprises
This book deals with the inner life of the capitalist firm. There we find numerous conflicts, the most important of which concerns the individual employment relationship which is understood as a principal-agent problem between the manager, the principal, who issues orders that are to be followed by the employee, the agent. Whereas economic theory traditionally analyses this relationship from a (normative) perspective of the firm in order to support the manager in finding ways to influence the behavior of the employees, such that the latter – ideally – act on behalf of their superior, this book takes a neutral stance. It focusses on explaining individual behavioral patterns and the resulting interactions between the actors in the firm by taking sociological, institutional, and above all, psychological research into consideration. In doing so, insights are gained which challenge many assertions economists take for granted.
Traditionally resources for R and D projects are allocated via planning and budgeting procedures, evaluation methods and hierarchical decision-committees. This book presents resource allocation via internal markets as an alternative to such hierarchical decision procedures. Internal R and D markets can help to overcome the weaknesses of traditional hierarchical structures, since they are characterised by short communication and decision procedures and thus contribute to the reduction of information asymmetries.
Proceedings of an International Symposium, University of Fribourg, Switzerland, October 14–15, 1976
Category: Juvenile Nonfiction
0.1 Gaps in Optimizing A comparison of the levels of development of Operations Research, Simulation Technique and Optimal Control Theory appears to gain increasing interest. Operations Research Sciences achieved very high mathematical standards and solved a great amount of important optimization problems, mainly at the level of management of private corporation and civil or military government tasks, however, these achievements are seldom incorporated in the mathematical curriculum of modern universities. Nevertheless, Operations Research seems to have failed in solving long range or strategical problems as they arise in any broader social, economical or political context (MUller-Merbach, 1976). Also for the weakest task, namely that of improving theory building, system simulation works as an optimization tool. Simulation models of large complex systems, like socio economical or political ones, failed until now to fit large empirical data bases. This was, in fact, one of the few serious objections against the form in which Forrester solved some problems modelling and simulating urban and world de velopments (Forrester, 1969; Forrester, 1971; IEEE-SCC October 197o; IEEE-SMC April 1972; Mass, 1974; Schroeder, 1975).