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Nature of the business relationship with the companies within the authority of the formation of

Author: LiuXiaoLu
Tutor: ZhaoNong
School: Graduate School of the Chinese Academy of Social Sciences
Course: Political Economics
Keywords: Nature of the business Technical efficiency Organizational efficiency Authority relations Compliance costs Centralized authority contracts
CLC: F270
Type: Master's thesis
Year: 2006
Downloads: 146
Quote: 1
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Abstract


In this paper, the nature of the enterprise and the formation of authority relationship within organizations are analyzed. This paper argues that, on the investigation to the enterprise organization form in the free market economy needs to include technical analysis. Traditional transaction cost theory fails to explain why in the presence of a series of alternative technologies, only some of a particular technology choice production coordination way must be optimal. Enterprise is essentially a technical efficiency and the combination of organization efficiency, the purpose of its establishment is to pursue the use of more efficient technologies. In terms of the formation of authority relationship within the organization, this paper Zhao Nong (2004) analysis of the development. In certain employment team formation of authority relationship relies on the authority of trading on the premise of this paper proves that the authoritative trade is necessary and sufficient condition for authority shall make a commitment to fully compensate for the performance cost advance. And usually capital hire labor rather than the opposite because workers are difficult to cover the performance cost of capitalists in advance can be incredibly commitment. Finally, this article from the perspective of participation constraint when group members for a risk neutral, the authority of the optimal concentration contracts more than centralized authority are dominant sex, to show why centralized authority is often necessary, and provides the theoretical support for analysis in front of premise.

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CLC: > Economic > Economic planning and management > Enterprise economy > Economic theory and methods
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