Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/28044
Authors: 
Puschke, Kerstin
Year of Publication: 
2006
Series/Report no.: 
Diskussionsbeiträge des Fachbereichs Wirtschaftswissenschaft der Freien Universität Berlin 2006/19
Abstract: 
This paper shows that a firm prefers a process-based task assignment compared to a function based one if the tasks are from functional areas which are neither too complementary nor too substitutable. We consider several projects with contributions from several functional areas. The organization can be structured along processes like product lines (M-form) or along functional areas like marketing or production (U-form). The U-form enables cost savings due to specialization or scale economies. We show that the more effective incentives under the M-form might outweigh these savings if the functions are neither too complementary nor too substitutable.
Subjects: 
Task Assignment
Organizational Form
Incomplete Contracts
JEL: 
D02
L23
ISBN: 
3938369442
Document Type: 
Working Paper

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