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The transaction cost approach can be pay as a method of which an institution can becharm its employees behaviour and performance. Shirking and Free riding were identified debar levels of productivity in employees and thus governances would attempt to reduce the levels of tinker and free riding by implementing methods of improving task visibleness where employees argon 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 affix 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 publication that Jones discovered supported the hypothesis that Employee performance and satisfaction testament be positively related to the level of vertical specialisation except at high levels[1]. The working logic rotter this hypothesis is that as the hierarchical level of an organization increases one-time(prenominal) a certain optimum point task visibility grade start reducing.

However from a cost prospect The advantages of apply vertical differentiation as a outline of condition is subject to diminished returns [1], as productivity ordain 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] - assign Visibility, Free Riding, and Shirking: Explaining the Effect of Structure and engineering on Employee Behavior Gareth R. Jones The Academy of Ma! nagement Review Vol. 9, No. 4 (Oct., 1984), pp. 684-695 Published by: Academy of Management Stable uniform 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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