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Organizational control and culture: A test of property rights theory

Posted on:1994-03-26Degree:Ph.DType:Dissertation
University:Texas A&M UniversityCandidate:Kowtha, Narasimha RaoFull Text:PDF
GTID:1479390014492373Subject:Business Administration
Abstract/Summary:
This dissertation examined organizational control from a property rights perspective. The primary objective was to develop a framework which aligns technology, skills and organizational control, and test this framework. A secondary objective was to establish the existence of distinct types of organizational control. A model was developed using the fundamentals of property rights theory, organizational control, and group norms. The model identified three independent variables which affect transaction costs in an employment relationship. These are, task visibility, skill specificity and task uncertainty. The three independent variables predict five dimensions of control. The dimensions of control are: situational control (monitoring), discretion, outcome-based rewards, professional control (enforcement) and inclusion (residual rights). The model also identified two work orientations, cooperation and competition, which are predicted by the independent variables. One production norm was also specified in the model. This norm is predicted by the controls. Occupational socialization was specified as a mediator between the independent variables and work orientations.; It was hypothesized that task visibility will be negatively related to situational control, and positively to, outcome-based rewards and cooperation: that skill specificity will be positively related to inclusion, professional control and occupational socialization. Task uncertainty was hypothesized to be negatively related to discretion and outcome-based rewards. Occupational socialization was hypothesized to predict cooperation. The degree of inclusion and professional control were linked to the peak and range of the production norm. Expected interaction effects were also specified.; Data was collected from the shipboard crews of two merchant shipping companies. Results show that task visibility is positively related to personal monitoring and outcome-based rewards. Skill specificity is positively related to professional control, occupational socialization, and within-group competition. Task uncertainty is negatively related to discretion. Professional control was positively related to the range of the production norm. Results of confirmatory factor analysis show that there are five types of control in the organization.; No interaction effects were found. The results of the study also identified three factors which influence the control systems. These are, the strategic context of the organization, institutional pressures and institutionalized industry practices.
Keywords/Search Tags:Organizational control, Property rights, Professional control, Outcome-based rewards, Occupational socialization, Positively related, Independent variables
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