| A
| B | C | D | E
| F | H | I | J
| L | M N
| O | P | Q | R
| S | T | U | W
A A-12
attack plane example, 12, 44, 196 Aerostyling example, 56
Agency theory, 8, 9, 32ff., 191 Agent, 33ff., 44, 45, 48-51,
52ff., 58-65, 66ff., 74ff., 87-89, 92ff., 103, 108-9, 114-17, 126, 128, 131, 133,
137ff., 142, 164, 166-69, 173ff., 191, 205 (see also Disutility; Effort;
Self-interest; Utility) best-mix path of, 56,
69 choice path of, 64-65, 78-79 delegatory
management and, 87-89, 93-95, 103 dysfunction and, 73, 140
effort capacity, 48, 133-34 incentives,
66-73, 78-79, 131, 164 informational measurement and, 114-17
opportunism, 168-69, 174, 178 payment, 33-39, 45, 66-67, 69,
75-78 role of, 33, 44, 74-75, 191 supervision
of, 58-65, 76-79, 92-94, 115-16, 126, 128, 194 system exploitation,
138-40
top B Behavioral
science, 8-9, 38, 87, 125 Best-mix path, 49-51, 53, 56, 75-76,
92-94 of agent vs. customer, 56 choice
path vs., 64-65, 135 delegation and, 94, 108-9 distortion and, 50-51,
78 full supervision and, 61, 69, 92-94 partial supervision and, 63,
93-94 principal and, 66, 135 unsupervised behavior and, 59-61, 88-89
Blau employment agency example, 6ff.,
11-12, 17, 25, 37, 39, 44-46, 53, 61, 62, 64, 68, 74ff., 127
top
C Capability
Maturity Model (CMM), 162 Card, D., 26, 70, 112, 118, 122
Choice path, 64-65, 78-79, 134-35 Cockpit analogy, 27-28,
122, 173 Consultants, 158, 160, 163, 164-65, 174
Contracts, 23-25, 52, 98, 179 employment, 24,
203 forcing, 34, 52, 53, 61 social, 171-72
Control, 25, 38, 81, 112-13, 127, 128, 129-31,
135 Control, 25, 38, 81, 112-13, 127, 128, 129-31, 13
internal motivation and, 38, 81 physical
systems of, 129-31 Cost-benefit model analysis,
34ff., 54, 66-67, 173 Criminal justice system example, 13-14,
171ff. Critical dimensions, 39-40, 60-62, 68-70, 94, 115,
126, 128, 164, 191, 194 cost of measuring, 68,
100 Culture, 98, 181-82
non-attributional, 140-46 Customer, 44ff., 73,
74ff., 87, 88, 93-94, 108-9, 126, 138, 163-64, 167-70, 192 (see also Customer
value) as arbiter of value, 167 preferences
for effort allocation, 45-51, 52-53, 56-57, 75, 108 principal
compared with, 44-45, 167-69 Customer value,
45ff., 53, 65, 66, 75ff., 88, 93-94, 108-9, 163-64, 167-69 agent
utility and, 55-56 delegation and, 94
full supervision and, 61, 126, 134 importance of, 44-45
incentive system and, 58-59 Customization, 105-6,
128
top D
Delegatory management, 87-91, 92-101,
103, 106ff., 112, 123, 135-36, 138, 140ff., 155-56, 177, 192, 193
converting situation for, 103, 106-8 costs,
89, 92ff., 102ff., 140ff. customer value and, 94
dysfunction and, 88 informational measurement and, 123 Japanese
firms and, 142ff. leadership and, 107, 140
measurement-based vs., 89-91, 92-101, 108-13, 135-36, 142ff.
not recommended, 102-13 of software development, 155-56 subtlety
of, 107-8, 109 DeMarco, T., 5, 66, 70-71, 89-90,
105, 110-12, 113, 118-19, 122-23, 128-29, 141, 167, 199 Deming
Award, 165 Deming's Fourteen Points, 111
Department of Defense example, 12, 15, 44, 102, 163 Distortion,
see Incentive distortion Disutility, 34, 52, 59, 63, 67, 87-89, 192
from cost of delegation, 89 forcing contract
and, 52 Dysfunction, 5ff., 10ff., 21ff., 30-31,
37ff., 42-51, 59ff., 69, 73, 88, 94, 108, 111-12, 124-36, 137-46, 147ff., 157-58,
163, 166-67, 171ff., 180, 185, 189, 192 Baldrige
Award and, 166 consultants and, 158, 164-65, 174
cynical explanation of, 126, 137-46, 174 delegatory management
and, 88, 94 distortion and, 47-48 earnest
explanation of, 125-27, 137, 139, 189 expert interviews about,
147-53, 157-58 incentive systems and, 59, 63-65, 138
inevitable, 140-46 management evaluation methods and, 163,
166-67 measurement and, 42-51 measurement-based
management and, 88 partial supervision and, 64, 69, 73, 94
prevented by full supervision, 61-62, 69, 94 software development
and, 111-12, 147 targets of performance and, 94, 108 top E
Economic Theory of Agency, 8, 32-41
Economist, The, 3, 12, 85, 86, 107, 165, 195, 198, 199, 205,
208 Effort, 18, 33ff., 45ff., 52ff., 58ff., 66-69, 73, 75-79,
81, 87-89, 92-96, 108-9, 133-34, 173, 176, 191, 192-93, 194 capacity,
48-49, 93, 133-34 cost of, 33-36, 66-67, 76-78, 89, 95-96 customer
preferences and, 45-51, 75 delegation and, 92-94, 108-9 forcing
contract and, 52 fully supervised, 60-62, 65, 108 incentive
distortion and, 47-51, 59, 65, 78 incentive systems and, 50-51
internal motivation and, 81 mix problem,
37-41, 45, 55 observability of, 35-36, 52-55, 68, 97, 172-73,
176 partially supervised, 62-65, 69 revenue
and, 35-36 unsupervised, 58-60, 61, 64, 88-89, 92, 194 Employee,
4, 24, 98-99, 108-9, 191 (see also Organizational identification)
accountability, 4, 108 lifetime employment
of, 87, 89, 99, 107, 142 performance reviews, 53
trust, 107, 109 Environmental covariates, 97
Expert interviews, 147-58, 183-90 Expert X, 4, 70, 114
External motivation, 81ff., 172, 181 debasing
effect of, 89-90 internal vs., 81-87
top F
Full supervision, 58, 60-62, 68ff.,
77, 80, 92ff., 108, 139, 164, 193 control vs.,
128 cost of, 70, 72, 95-97, 100, 104, 164
critical dimensions and, 61-62, 68, 115-16 distinguished from
partial, 126-27, 133-34 distortion prevented, 65, 69
experts' views of, 152 incentives and, 152 internal motivation
and, 90 partial mistaken for, 73, 79, 126-27, 132 probabilistic
measurement and, 173 top
H Harvard
Business Review (HBR), 2-3, 198, 199, 200, 201, 202, 203, 205, 206
Holmstrom and Milgrom (H-M) model, 37-41, 42-44, 54 Human
Relations School (HRS), 84, 86, 142
top I
Incentive distortion, 17, 47-51, 53-54,
59, 108-9, 177 best-mix path and, 60, 61, 78,
93 delegatory management without, 88, 109
extra effort vs., 47-51 full supervision and, 69
partial supervision and, 65, 108 Incentives dysfunction
and, 59, 63-65, 79 electronics factory example,
143-44 experts' views of, 152-54 internal
motivation and, 38, 141 law and, 172, 174 organizational
model of, 68-73 salary increases vs., 22 systems
of, 35, 50-51, 54, 55, 58-59, 63-65, 66-73, 79, 108, 143-44 targets, 61
Inducements and contributions framework, 24, 83 Internal motivation,
38, 52-57, 81-91, 92, 123, 172ff., 181 consultants
and, 174 delegatory management and, 123
external vs., 81-87, 89-90 incentives and, 38, 108, 141
laws and, 172 measurement, 81-91, 181
model of, 52-57 no supervision and, 58 International
Standards Organization (ISO) 9000 Certification, 110, 159, 160-62, 164-65, 200,
204
top J
Job redesign, 70,
103ff., 128, 132-33, 135, 137 Jones, C., 27, 70
top
L
Loose-cannon problem, 119-20, 146
top M
Malcolm Baldrige Quality Award, 110,
159-60, 164-66, 200 Management-By-Objectives (MBO), 109-12,
134 Management methods of
evaluation, 159-70 self-assessment
tool, 121-23
Measurement (see also Critical dimensions; Dysfunction; Measurement-based
management; Motivational measurement) aggregation,
118-19, 121 analogy to physical control systems, 62, 129-31
coordination, 26, 29, 185 corruption of,
2, 31, 55, 131 cost of, 5, 34-35, 66-71, 92ff., 104, 108,
133, 155-57, 164 culture, 181-82 informational,
21-22, 25ff., 81, 114-23, 151-52, 184-86, 193 internal motivation
and, 81-91, 173 of key area criteria, 40-41 lines
of code (LOC) example, 112, 117 management evaluation methods
and, 159-70 model of, 42-51 optimal investment
in, 92, 94 probabilistic, 35, 36, 55, 172-74 problem,
180-82 process refinement, 25-26, 29, 120-21, 128, 185
of quality, 18, 67, 72-73 redesign for, 103ff., 128, 132,
135, 137 reward and, 22 as self-assessment
tool, 121-23 stockholder view of, 2, 15, 139
of true output, 18, 38-39, 44, 116 of true quality, 18
uses of, 2, 21-31 Measurement-based management,
71, 81, 87ff., 92-101, 102-13, 127, 133, 135-36, 192, 193
converting for, 103ff. delegatory vs., 87-88, 92-101, 108-12,
135-36 dysfunction and, 88, 146, 163 evaluation
methods as, 163-64 inappropriate practices, 109-11
software and, 147 Metrics, 154, 156-58, 187,
188 Model assumptions of, 42-44, 55-57, 124-25, 133
of organizational incentives, 68-73 societal
implications of, 171-79 summary of, 74-80 Motivation,
see External motivation; Internal motivation Motivational
measurement, 5, 21ff., 29-31, 32ff., 47, 51, 68-69, 114ff., 123, 151-52, 173,
184-86, 187, 189, 190, 193 aggregation and, 118
experts' views of, 151-52 informational
vs., 29-31, 114-16, 123, 151-52, 186 prevention of, 190
probabilistic measurement and, 173 Musa, J.,
118-19 top
N Naive continuous improvement,
133 No supervision, 58-60, 62, 67, 68-69, 77, 80, 88, 92,
94, 95, 104, 194 delegatory management and, 88,
94, 95 measurement cost and, 67, 104. top O
Organization, 97ff.,
106ff., 140
incentives model, 68-73 intimacy, 106-7,
109 measurement in, 2, 21-31 public vs.
private, 98, 100, 140 Organizational identification,
38, 84, 87, 89, 95, 97, 140ff., 158, 172, 178, 181
consultants' lack of, 158
delegatory management and, 89, 95, 97 group identity, 142,
144, 172, 178 internal motivation and, 38, 84, 181
top
P Partial
supervision, 58, 62-65, 67ff., 72-73, 77, 79, 80, 92ff., 100, 104, 108, 126ff.,
133-34, 185, 194 dysfunction and, 94, 127
measurement costs and, 67, 68, 104 mistaken for full, 73,
79, 126-27, 133-34 performance targets and, 69, 134, 185
Paulish, D., 4, 119 Payment, see Agent payment Performance,
4ff., 54-55, 97 (see also Agent effort; Effort) Pluralization
of consumption, 103, 203 Principal, 32-38, 44-45, 48, 52ff.,
60ff., 66ff., 74ff., 89, 92-95, 98, 102-4, 115-17, 125-29, 132-36, 137-39, 167-69,
191, 194, 196, 205 as agent, 137, 167
agent payment by, 33-39 cost situations, 76ff.
as customer, 44-45, 167-69 customer preferences and, 56-57
cynical explanation of behavior, 137-46 earnest explanation
of behavior, 125, 126-27, 137 exploitation of system, 138ff.
forcing contract and, 52-53, 61 inference problem, 127, 133-36
management method of choice, 92-95, 103 mistakes
partial supervision for full, 73, 79, 127 motivational measurement
and, 68ff. standardization reflex, 127-28, 132-33, 137 supervision
mode of choice, 67, 70, 79-80 target-setting, 61-63, 65, 67,
69, 73, 116 Produce standards example, 13, 19-20,
30-31, 44 Putnam, L., 69, 112
top Q
Quality Function Deployment (QFD),
56-57
Quantity, mystique of, 127, 131-33
top R
Red pen example, 120, 141
Repetitiveness of task, 95, 102, 103, 105, 106 Ross-Holmstrom
(R-H) model, 32-33, 35-37, 43-44, 52, 54, 86
top
S
Same-value lines, 47-49, 53, 64, 66, 135 Schwab, C., example,
1, 2, 5 Self-interest, 83, 84, 126, 138, 140, 141, 178-79
Semco example, 85-86, 87 Software Capability
Evaluation (SCE), 110, 159, 162-63, 165-67 Software development,
55-56, 73, 102, 103-6, 111-12, 131, 132-33, 135, 141, 147, 151-52, 155-58, 171-72,
180 delegatory management and, 102, 155-56
dysfunction and, 111-12, 147 factory analogy, 105-6, 108
job redesign and, 132-33, 135 measurement
comprehensiveness, 151-52 metrics, 154, 156-58
standardization, 103, 104, 132-33 Software Engineering
Institute (SEI), 149, 159, 183 (see also Author Index)
Software Productivity Consortium, 129ff., 206 Soviet industry
example, 5, 14, 196 Specification, 103-5, 108, 128
Standardization, 103, 104-5, 108, 127-28 reflex,
127-28, 132-33, 137 Subdivision, 104-5, 108,
128 Supervision, 58-65, 76-79 (see also Agent supervision;
Full supervision; No supervision; Partial supervision)
top T
Theory X and Theory Y management
methods, 84, 86 Tilford, E., 70, 72, 110, 112, 114-15, 118,
119-20, 141, 167 Trans World Airlines (TWA) example, 1-2,
10
top U
U.S.S. Omaha example, 12, 13
Utility, 34, 55, 59, 63, 87-89, 92, 93, 133, 192, 194
top W
Weimar Republic census example, 119,
141 Word processor example, 169-70 6
A | B | C | D
| E | F | H | I
| J | L | M
N | O | P | Q
| R | S | T | U
| W
Return
to Book Page
|
