This paper empirically investigates how the level of authority delegation is related to the performance of an organization. Decentralized, horizontal organizational structure takes advantage of more efficient decision making, mainly due to more efficient use of "soft" information. The cost of...

In this paper, I examine the complementarity of performance measurement, performance pay for production workers, and delegation of decisions to production workers in German manufacturing. I argue and find that combining the three management practices yields higher financial performance than the...