Abstract
Cindy Zoghi (2002) "The Distribution of Decision
Rights within the Workplace: Evidence from Canadian, Australian, and
UK Establishments."
The optimal allocation of decision rights in an organization reflects a
trade-off between the costs of transferring relevant information within
the hierarchy and the costs that occur when decision-making agents have
different objectives than the principal. This paper is a first attempt to
quantitatively analyze the allocation of decision rights within the
workplace. I use detailed questions on decision-making from three
separate data sets to measure the decentralization of decision rights
within the hierarchy, to determine what establishment characteristics are
related to the location of decision rights, and to examine what human
resource practices are correlated with centralization.
Last Modified Date: July 19, 2008
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