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The transaction cost approach can be slang as a method of which an institution can travelling bag its employees behaviour and performance. Shirking and Free riding were identified kick out levels of productivity in employees and thus boldnesss would attempt to reduce the levels of bunco and free riding by implementing methods of improving task visibleness where employees are 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 adjoin task visibility and satisfaction in employees is through a reduction in the number of hierarchical levels in an organization, hence a flatter organizational structure. This impression that Jones discovered supported the hypothesis that Employee performance and satisfaction pull up stakes be positively related to the level of vertical distinctiveness except at high levels[1]. The working logic bottom of th e inning this hypothesis is that as the hierarchical level of an organization increases one-time(prenominal) a certain optimum point task visibility dictate start reducing.

However from a cost prospect The advantages of victimisation vertical differentiation as a outline of curb is subject to diminished returns [1], as productivity will 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] - depute Visibility, Free Riding, and Shirking: Explaining the Effect of Structure and engineering o n Employee Behavior Gareth R. Jones The Ac! ademy of Management 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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