The behavior of the members of an organization is determined, not only by the objective situation facing them, but also by their attitudes. Thus, the objective of aligning collective goals and individual behavior translates into a problem of alignment of attitudes. An important dimension of the problem of organizational design is, therefore, to choose the organization that best contributes to the alignment of attitudes. This paper shows that the existence of animosity, as opposed to afinity, affects the optimal organizational design.
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Paper provided by Universidade Nova de Lisboa, Faculdade de Economia in its series FEUNL Working Paper Series with number
wp372.
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Find related papers by JEL classification: L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Social Responsibility M20 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - General
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Oliver Hart & Bengt Holmstrom, 1986.
"The Theory of Contracts,"
Working papers
418, Massachusetts Institute of Technology (MIT), Department of Economics.