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The transaction cost approach can be lend oneself as a method of which an institution can intrigue its employees behaviour and performance. Shirking and Free riding were identified negative levels of productivity in employees and thus plaques would attempt to reduce the levels of avoid and free riding by implementing methods of improving task visibleness where employees be acknowledged discretely for good performance from the tasks they undertake and are thus satisfied for performing tasks well. Jones discovered that the way that an organization can augment task visibility and satisfaction in employees is through a reduction in the number of graded levels in an organization, hence a flatter organizational structure. This number that Jones discovered supported the hypothesis that Employee performance and satisfaction volition be positively related to the level of vertical specialty except at high levels[1]. The working logic back end this hypothesis is that as the hierarchical level of an organization increases one-time(prenominal) a certain optimum point task visibility put start reducing.

However from a cost prospect The advantages of victimization vertical differentiation as a outline of chequer is subject to diminished returns [1], as productivity volition increase with a Flatter and broader management structure be will also increase due to the need of particular managerial supervision and thus these costs may outmatch the benefits. References [1] - line Visibility, Free Riding, and Shirking: Explaining the Effect of Structure and engineering on Employee Behavior Gareth R. Jones The Academy of M! anagement Review Vol. 9, No. 4 (Oct., 1984), pp. 684-695 Published by: Academy of Management Stable universal resource locator: hypertext transfer protocol://www.jstor.org/stable/258490If you want to get a full essay, high society it on our website: BestEssayCheap.com

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