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Structuring cooperative relationships between organizations

Article Abstract:

The conceptual framework for alternative mechanisms of governance for multiple organizations characterized by repeated cooperative efforts is presented. Risk and reliance on trust are used in different combinations to explore selectivity of four nodal forms of governance for transactions as determined among transacting parties. The nodal forms of governance are of the discrete, recurrent, relational contracting or hierarchy type. Serving as a core aspect to understanding transactions of the bargaining variety is trust, and as such departs from trust's earlier treatments as a frictional aspect of transactions of the market and hierarchical variety. The proposed framework gives a description of relational contracts based on its antecedents and structural aspects. There are indications of a progressive sequence of contracting beginning with the discrete, followed by the recurrent and then relational contracting.

Organizational effectiveness, Negotiation, Negotiations, Strategic planning (Business)

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Profit center manager compensation: an examination of market, political and human capital factors

Article Abstract:

The compensation of profit center managers (PCMs) was examined in terms of how it is affected by market, political and human capital factors, as well as how much of it is salary and how much is bonus. The data analyzed for the study came from annual compensation surveys conducted from 1982 to 1986, which covered 1,684 observations gathered from 322 companies and involved 524 PCMs. The results supported ten of the eleven hypotheses offered. It was shown that PCM compensation positively correlated with firm size, profit center size, relative firm size, firm tenure, job tenure, age and education. Bonus ratio also proved to have a positive correlation with firm performance and age. No evidence was found to show that firm size was negatively correlated with bonus ratio.

Compensation and benefits, Compensation management, Profit centers

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