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Fallibility In Human Organizations And Political Systems

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Author Info

  • SAH, R.K.

Abstract

This paper presents a perspective on some organizational consequences of human fallibility. It may be easier to get a flavor of the relevant issues by examining the role of fallibility in specific settings, rather than through abstract arguments. So, in the next three sections, I consider several different settings: the question of diversification versus concentration of political authority, the managerial succession process in organizations, and the choice of ideas and projects (including innovation-oriented projects) in organizations. In the last section, I highlight some aspects of the approach underlying the analyses of human fallibility, in particular: the premises concerning an individual decisionmaker, the potential association between the motivation of an organization's employees and their fallibility, and the nature and the aims of the analysis of organizations.

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Bibliographic Info

Paper provided by Yale - Economic Growth Center in its series Papers with number 625.

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Length: 26 pages
Date of creation: 1991
Date of revision:
Handle: RePEc:fth:yalegr:625

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Postal: U.S.A.; YALE UNIVERSITY, ECONOMIC GROWTH CENTER, YALE STATION NEW-HAVEN CONNECTICUT 06520 U.S.A
Phone: (203) 432-3610
Fax: (203) 432-3898
Web page: http://www.econ.yale.edu/~egcenter/
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Related research

Keywords: political systems ; political power;

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References

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  1. Rose-Ackerman, Susan, 1986. "Reforming Public Bureaucracy through Economic Incentives?," Journal of Law, Economics and Organization, Oxford University Press, vol. 2(1), pages 131-61, Spring.
  2. Alvin K. Klevorick & Michael Rothschild & Christopher Winship, 1982. "Information Processing and Jury Decisionmaking," Cowles Foundation Discussion Papers 635, Cowles Foundation for Research in Economics, Yale University.
  3. Baker, George P & Jensen, Michael C & Murphy, Kevin J, 1988. " Compensation and Incentives: Practice vs. Theory," Journal of Finance, American Finance Association, vol. 43(3), pages 593-616, July.
  4. Holmström, Bengt, 1989. "Agency Costs and Innovation," Working Paper Series 214, Research Institute of Industrial Economics.
  5. Rosen, Sherwin, 1986. "Prizes and Incentives in Elimination Tournaments," American Economic Review, American Economic Association, vol. 76(4), pages 701-15, September.
  6. Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-54, May-June.
  7. Joesph E. Stiglitz, 1975. "Incentives, Risk, and Information: Notes Towards a Theory of Hierarchy," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 552-579, Autumn.
  8. Holmstrom, Bengt, 1989. "Agency costs and innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 12(3), pages 305-327, December.
  9. James G. March, 1978. "Bounded Rationality, Ambiguity, and the Engineering of Choice," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 587-608, Autumn.
  10. Sherwin Rosen, 1982. "Authority, Control, and the Distribution of Earnings," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 311-323, Autumn.
  11. Clive Bull & Janusz A. Ordover, 1987. "Market Structure and Optimal Management Organizations," RAND Journal of Economics, The RAND Corporation, vol. 18(4), pages 480-491, Winter.
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