Chapter

The Limits of Managerial Authority

David Marsden

in A Theory of Employment Systems

Published in print September 1999 | ISBN: 9780198294221
Published online November 2003 | e-ISBN: 9780191596612 | DOI: http://dx.doi.org/10.1093/0198294220.003.0002
 The Limits of Managerial Authority

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The work rules that delimit managerial authority have to satisfy two fundamental requirements for there to be an effective contract. They must be easily enforced by ordinary workers and their line managers, and they must match the firm's job demands with workers’ skills. These are necessary and sufficient conditions for a viable employment relationship. Combining these two constraints gives rise to a typology of work rules that is later shown (Ch. 5) to explain international (societal) diversity in employment relations. The way each of these rules deals with common forms of opportunistic behaviour in employment is explored.

Keywords: contract; employment relations; firms; managerial authority; opportunism; skills; societal diversity; work rules

Chapter.  13998 words.  Illustrated.

Subjects: Macroeconomics and Monetary Economics

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