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Measuring and Managing Performance in Organizations by Robert D. Austin, Timothy Lister, Tom DeMarco

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Chapter Eleven. Comparing Delegatory and Measurement-Based Management

When comparing delegatory and measurement-based management, the principal should weigh the total profits provided by the optimal investment in each individually. The optimal investment in measurement results in no supervision, full supervision, or partial supervision; the optimal investment in delegation results in a particular placement of the unsupervised effort allocation on the best-mix path. The type of supervision that results and where delegation puts the effort allocation after the optimal investment in measurement or delegation, respectively, depend on characteristics of the organization, the task being performed, and the inherent internal motivation of employees. ...

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