Abstract

There is a great deal of evidence that almost all organizational structures tend to produce false images in the decision-maker, and that the larger and more authoritarian the organization, the better the chance that its top decision-makers will be operating in purely imaginary worlds. This perhaps is the most fundamental reason for supposing that there are ultimately diminishing returns to scale.

Keywords

AuthoritarianismControl (management)Decision makerScale (ratio)Organizational structureEconomicsThe ImaginaryMicroeconomicsComputer scienceManagement scienceManagementPolitical sciencePsychologyPhysicsLaw

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Publication Info

Year
1967
Type
article
Volume
75
Issue
2
Pages
123-138
Citations
1021
Access
Closed

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Oliver E. Williamson (1967). Hierarchical Control and Optimum Firm Size. Journal of Political Economy , 75 (2) , 123-138. https://doi.org/10.1086/259258

Identifiers

DOI
10.1086/259258