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Conflict and Consensus: A Theory of Control in Organisations

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Author Info
Priyodorshi Banerjee (Planning Unit, Indian Statistical Institute)
Abstract

A principal, requiring a team to implement a project by proposing and jointly executing a technique, may benefit from choosing one with internal disharmony. When superior policy proposition by a member is rewarded with unitary executive control, the benefit of control is increasing in the degree of conflict. Hence, the presence of discord can raise incentives to take effort towards technique proposition by inducing competition for control, and thereby enhance average proposal quality. The principal may thus choose a fractious team when the losses from lower consensus in project execution are limited. These effects can be exacerbated in large teams, and lead to teamwork dominating individual production.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Topics in Theoretical Economics.

Volume (Year): 8 (2008)
Issue (Month): 1 ()
Pages: 1421-1421
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Handle: RePEc:bep:thetop:v:8:y:2008:i:1:p:1421-1421

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Related research
Keywords: conflict consensus competition for control in organisations

Find related papers by JEL classification:
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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