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Some Transaction Cost Effects of Authoritarian Management

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  • Vasilev, Aleksandar
  • Todorova, Tamara

Abstract

This paper studies the transaction-cost economizing effects of authoritarian management in organizations and systems subject to higher transaction costs originating from various sources. We analyze the nature, mechanisms and transaction-cost aspects of the authoritarian management style. We argue that the higher the transaction costs of internal organization, the more autocratic the manager is likely to be. We study the features of authoritarian managers in general but more specifically in the context of high transaction cost systems such as East European societies with significant transactional or organizational opportunism as well as other sources of market failure.

Suggested Citation

  • Vasilev, Aleksandar & Todorova, Tamara, 2016. "Some Transaction Cost Effects of Authoritarian Management," EconStor Preprints 145297, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:145297
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    File URL: https://www.econstor.eu/bitstream/10419/145297/1/Authoriarian_management.pdf
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    References listed on IDEAS

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    1. Taylor, Frederick Winslow, 1911. "The Principles of Scientific Management," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number taylor1911.
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    Cited by:

    1. Murat Ozturan & Beliz Ulgen, 2017. "The Effect of Managers’ Emotional Intelligence Level and Management Styles on their Organizational Alienation," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(12), pages 761-782, December.
    2. Tamara TODOROVA & Aleksandar VASILEV, 2022. "A new institutional approach to the study of the Soviet-type economy," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 13, pages 290-308, June.
    3. Todorova, Tamara, 2022. "Оливър Уилямсън: Новатор На 20 Век И Основател На Новата Институционална Икономика [Oliver Williamson: an innovator of the 20th century and founder of the new institutional economics]," MPRA Paper 121077, University Library of Munich, Germany.

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    More about this item

    Keywords

    authoritarian management; transaction costs; opportunism; multidivisional structure; information transfer;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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