Preface

Introduction

I. Fundamental Building Blocks of the Theory

1. The Nature of Man

2. Self-Interest, Altruism, Incentives, and Agency Theory

3. Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure

4. Specific and General Knowledge and Organizational Structure

5. Organization Theory and Methodology

II. Residual Claims and Organizational Forms

6. Agency Problems and Residual Claims

7. Separation of Ownership and Control

III. Compensation

8. Compensation and Incentives: Practice versus Theory

9. Performance Pay and Top-Management Incentives

10. CEO Incentives: It's Not How Much You Pay, But How



IV. Organizational Applications of the Theory

11. Science, Specific Knowledge, and Total Quality Management

12. Divisional Performance Measurement

Notes

References

Acknowledgments

Index

Michael C. Jensen is Jesse Isidor Straus Professor of Business Administration Emeritus, Harvard Business School.

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