COMM 308 Lecture Notes - Lecture 5: Allied Van Lines, Capital Budgeting, Random House
Document Summary
In contrast to the argument, for empowerment to work, managers should not let go of all control. if a manager gives a worker both decision control and decision management rights over a decision, the agency problems will be substantial. Managers must maintain some level of decision control (for example, monitoring). Workers can still be empowered by being given greater decision management rights (initiation and implementation rights). However, the plan would likely have several undesirable effects. First, it would encourage the police to make arrests even if the reasons for the arrest are questionable. Second, it would encourage police to work on crimes where arrests are easy to make, rather than working on more serious crimes where it is more difficult to make numerous arrests. Third, the plan would not encourage cooperation or teamwork (since the bonus is based on individual arrests).
