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- W4232182656 abstract "This paper develops a theory of the allocation of formal authority (the right to decide) and real authority (the effective control over decisions) within organizations, and it illustrates how a formally integrated structure can accommodate various degrees of real integration. Real authority is determined by the structure of information, which in turn depends on the allocation of formal authority. An increase in an agent's real authority promotes initiative but results in a loss of control for the principal. After spelling out (some of) the main determinants of the delegation of formal authority within organizations, the paper examines a number of factors that increase the subordinates' real authority in a formally integrated structure: overload, lenient rules, urgency of decision, reputation, performance measurement, and multiplicity of superiors. Finally, the amount of communication in an organization is shown to depend on the allocation of formal authority." @default.
- W4232182656 created "2022-05-12" @default.
- W4232182656 date "1997-01-01" @default.
- W4232182656 modified "2023-09-27" @default.
- W4232182656 doi "https://doi.org/10.1086/jpe.1997.105.issue-1" @default.
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