Transdisciplinary Approach to a Theory of Performance in Organizations

Article type: Research Article

Authors: Nilakant, V.

Affiliations: Department of Management, University of Canterbury, Private Bag 4800, Christchurch, New Zealand

Abstract: This paper argues that attempts to build a theory of performance in organizations have largely been confined to individual disciplines of psychology, sociology, economics and organization theory. The paper highlights the inadequacies of the agency model of performance from organizational economics. The paper suggests that an integrated model of performance can be built by combining ideas from agency theory in economics and organization theory. The paper presents the first step towards such a model. It is shown that organizational activities can be classified as ‘operational’ or ‘facilitative’ based on the notion of interdependence. Implications of this model are discussed.

Keywords: Theory of performance, agency theory, organizational economics, organization theory, interdependence, uncertainty, performance and incentives, transdisciplinary models, agency relationships, hierarchy

DOI: 10.3233/HSM-1994-13106

Journal: Human Systems Management, vol. 13, no. 1, pp. 41-48, 1994