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A conceptual framework for the design of organizational control mechanisms

  • William G. Ouchi

Abstract

The problem of organization is the problem of obtaining cooperation among a collection of individuals or units who share only partially congruent objectives. When a team of individuals collectively produces a single output, there develops the problem of how to distribute the rewards emanating from that output in such a manner that each team member is equitably rewarded. If equitable rewards are not forthcoming, members will, in future cooperative ventures, adjust their efforts in such a manner that all will be somewhat worse off (cf. Simon [41], Marschak [26], Alchian and Demsetz [1]).

Keywords

Market Mechanism Behavior Control Transfer Price Price Mechanism Organizational Control 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media Dordrecht 1979

Authors and Affiliations

  • William G. Ouchi

There are no affiliations available

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