The nature of Managerial Work Seeks to monitor and control individual activities and to coordinate them in such a way that overall purposes are achieved. In the management of human organisations, feedback is often absent, ambiguous or unimformative and points to the complementary processes of mental stimulation which enable management to function in such conditions. Existential - assumes that organisation exists to help the individual achieve his purposes not vice versa. Distinct product markets . Constantly changing variables These two result in top management consciously delegating decision-making authority to lower levels ie.
Information is distributed unevenly and despite monitoring arrangements residual loss is likely.
Because of complexity the principal can only partially know the extent of the agent s effort .