Classic literature on organizations recognizes that the paramount function of an organization is the coordination of physical and human assets to produce a good or service (e.g., Barnard, 1938; Chisholm, 1989; Schein, 1985). Coordination in this early literature was defined broadly, as for example by...

Management literature focuses on two modes of coordination: formal and informal structures. Informal structure grants significant discretion to individual actions. Yet two impediments are related to such flexibility, those created by opportunism and those created by convergent expectations....

Over time, members of organizations develop entitlements-preferences about how they wish to be treated and beliefs about how they should be treated. The formation of entitlements is an important subject for strategy researchers because employees resist changes that violate their perceived...