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

This is the first time we have had a virtually complete exposition of Jensen's approach to what has become known as 'positivist agency theory' between one set of hard covers. It should thus be extremely welcome to every scholar who wishes to incorporate an agency perspective in his or her work...Jensen's book is a powerful tool in understanding the implications of this.

• 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.

This is the first time we have had a virtually complete exposition of Jensen's approach to what has become known as 'positivist agency theory' between one set of hard covers. It should thus be extremely welcome to every scholar who wishes to incorporate an agency perspective in his or her work...Jensen's book is a powerful tool in understanding the implications of this.

• 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.

This is the first time we have had a virtually complete exposition of Jensen's approach to what has become known as 'positivist agency theory' between one set of hard covers. It should thus be extremely welcome to every scholar who wishes to incorporate an agency perspective in his or her work...Jensen's book is a powerful tool in understanding the implications of this.

• 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