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The Dangers of Dispersal of Responsibilities

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  • Adriana Schiopoiu Burlea
  • Joop Remmé

Abstract

Taking into account that it is in the nature of the modern corporat ion that risks are distributed over several agents, we discuss in this paper the organisational behaviour as it results from such dispersal of responsibilities for both the principal and the agent. We explore the hypothesis that dispersal of responsibilities could be the result or a cause of a lack of consensus between the principal and the agent. Our findings suggest that a dispersal of responsibilities has a negative impact on the principal-agent relationship and that it represents a foundation for theoretical and empirical approaches to organisational behaviour. We find that agent perceptions of a dispersal of responsibilities are linked to his/her resistance to the principal’s interests, but this relationship is deeper than was suggested by previous research. However, if the sharing of responsibilities does not run parallel to that, we may have as a result what we call an agency problem.

Suggested Citation

  • Adriana Schiopoiu Burlea & Joop Remmé, 2017. "The Dangers of Dispersal of Responsibilities," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(45), pages 464-464, May.
    • Handle: RePEc:aes:amfeco:v:45:y:2017:i:19:p:464
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    Cited by:

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    6. Irina Andreea Pegulescu & Denisa Maria (Alniti) Cojoaca & Ana Maria Predila, 2022. "European Projects and Programs in Romania and in the South-West Oltenia Region," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 667-675, September.
    7. Piotr Zientara & Paulina Bohdanowicz-Godfrey & Claire Whitely & Grzegorz Maciejewski, 2020. "A Case Study of LightStay (2010–2017)—Hilton’s Corporate Responsibility Management System," Energies, MDPI, vol. 13(9), pages 1-22, May.
    8. Adriana Burlea-Schiopoiu & Laurentiu Stelian Mihai, 2019. "An Integrated Framework on the Sustainability of SMEs," Sustainability, MDPI, vol. 11(21), pages 1-22, October.
    9. Costin Alexandru Panait, 2020. "Study of Employee Motivation in Organizations," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 8(1), pages 114-119, May.
    10. Maria Alexandra Călinoiu, 2018. "The Role And Involvement Of Influencers In Promoting Brands," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(46), pages 73-86, December.
    11. Larisa GRIGORIE (PATRU), 2018. "A Practical Approach Of The Corruption Particularities In Public Sector," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 192-205, November.

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    More about this item

    Keywords

    dispersal of responsibilities; agency theory; risk; information asymmetry;
    All these keywords.

    JEL classification:

    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M59 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Other
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other

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