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Abstract

This paper aims at analyzing the issue of loyalty in the relationship between employers and employees, comparing the standard approach with a different one, based on cognitive and behavioural hypothesis. Opportunism plays a minor role in the neoclassical theory, more based on substantial rationality. The alternative representation criticises just this idea and builds a new model founded on procedural rationality and on the individual tendency to learn. This alternative explanation allows to understand the role of organisational routines in controlling and motivating workers. Opportunism is still a problem, but should be managed in a different way.

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File URL: http://www.rivistapoliticaeconomica.it/2007/set-ot/novarese.php
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Bibliographic Info

Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 97 (2007)
Issue (Month): 5 (September-October)
Pages: 143-174

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Handle: RePEc:rpo:ripoec:v:97:y:2007:i:5:p:143-174

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Find related papers by JEL classification:

• B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
• D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
• D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
• M5 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics

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