Organisation Theory: The Principal-Agent Perspective

Organisation Theory: The Principal-Agent Perspective

Jan-Erik Lane

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University of Freiburg

Organisation Theory: The Principal-Agent Perspective

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Abstract

Today much relevant questions concern Who get what, when and how?, due to the incredible rise in the remuneration of the economic, cultural and political elites in the large organisations around the world. A suitable conceptual framework for the analysis of the fundamental question, namely Cui Bono?, is the principal-agent approach from recent advances in game theory. The skyrocketing of the salaries and bonuses of CEO:s in the private sector and the spreading out of corrupt practices in the public sector forces the social science to ask the quid pro quo question about the relationship between the remuneration of agents and their delivery of outputs to the principal. It is truly fruitful for the understanding of political organisation in whatever form it takes. Politics everywhere is about contracting, introducing a web of contracts between principal and agents. The shape of these contracts determines the real constitution of a country.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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How to Cite This Article

. 2014. \u201cOrganisation Theory: The Principal-Agent Perspective\u201d. Global Journal of Human-Social Science - F: Political Science GJHSS-F Volume 14 (GJHSS Volume 14 Issue F7): .

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GJHSS Volume 14 Issue F7
Pg. 45- 51

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Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

Keywords

asymmetric information considerations in contracts contracting cui bono incentives organisation theory quid pro quo simple contracts – comple

Submission ReceivedDecember 9, 2013
Peer Review Double Blind
Handling Editor
Accepted December 31, 2013
Published January 15, 2014

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v1.2

Issue date

December 16, 2014

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Article Matrices

Total Score: 101

Country: Unknown

Subject: Global Journal of Human-Social Science - F: Political Science

Authors: Jan-Erik Lane (PhD/Dr. count: 0)

View Count (all-time): 149

Total Views (Real + Logic): 4208

Total Downloads (simulated): 2192

Publish Date: 2014 12, Tue

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Total Views: 4208

Total Downloads: 2192

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