“Agency theory is an important, yet controversial, theory. This paper reviews agency theory, its contributions to organization theory, and the extant empirical work and develops testable propositions. The conclusions are that agency theory (a) offers unique insight into information systems, outcome uncertainty, incentives, and risk and (b) is an empirically valid perspective, particularly when coupled with complementary perspectives. The principal recommendation is to incorporate an agency perspective in studies of the many problems having a cooperative structure.”

—  Kathleen M. Eisenhardt

Source: "Agency theory: An assessment and review," 1989, p. 57 Abstract

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Kathleen M. Eisenhardt4
American economist

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“Among other related major developments, world systems theory (Wallerstein 2004) should be mentioned. Inspired by Marxist theories, it addresses dependency among nations and imperialism, placing the evolution of capitalist systems in a global and comparative perspective. Another variant of Marxist system theory is that of Pierre Bourdieu (1977) which unifies the material and the symbolic, as well as agency and structure.”

Tom R. Burns (1937) American sociologist

Source: Systems theories (2006), p. 3.

“This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of agency costs, show its relationship to the 'separation and control' issue, investigate the nature of the agency costs generated by the existence of debt and outside equity, demonstrate who bears the costs and why, and investigate the Pareto optimality of their existence. We also provide a new definition of the firm, and show how our analysis of the factors influencing the creation and issuance of debt and equity claims is a special case of the supply side of the completeness of markets problem.”

Michael Jensen (1939) American economist

Source: "Theory of the firm: Managerial behavior, agency costs and ownership structure", 1976, p. 305 Abstract

“As with all theories, we can learn something from agency theory and transaction-costs economics, since they emphasize something others hide. But as with all theories, they also distort; in fact, I will argue that their distortions outweigh the value of what they highlight.”

Charles Perrow (1925–2019) American sociologist

Source: 1970s, Complex organizations, 1972, p. 220

“There is as yet no unified theory of retrieval systems, and a good deal of retrieval practice is still an empirical art, unsullied by theory.”

Brian Campbell Vickery (1918–2009) British information theorist

Preface (1961) p. vi; Partly cited by Stephen E. Robertson (2011) &quot; On retrieval system theory http://www.iskouk.org/conf2011/papers/robertson.pdf&quot;. <br class="br">On Retrieval System Theory (1961)

“Organizational design often focuses on structural alternatives such as matrix, decentralization, and divisionalization. However, control variables (e. g., reward structures, task characteristics, and information systems) offer a more flexible approach. The purpose of this paper is to explore these control variables for organizational design. This is accomplished by integration and testing of two perspectives, organization theory and economics, notably agency theory. The resulting hypotheses link task characteristics, information systems, and business uncertainty to behavior vs. outcome based control strategy. These hypothesized linkages are examined empirically in a field study of the compensation practices for retail salespeople in 54 stores. The findings are that task programmability is strongly related to the choice of compensation package. The amount of behavioral measurement, the cost of measuring outcomes, and the uncertainty of the business also affect compensation. The findings have management implications for the design of compensation and reward packages, performance evaluation systems, and control systems, in general. Such systems should explicitly consider the task, the information system in place to measure performance, and the riskiness of the business. More programmed tasks require behavior based controls while less programmed tasks require more elaborate information systems or outcome based controls.”

Kathleen M. Eisenhardt American economist

Source: "Control: Organizational and economic approaches," 1985, p. 134; Article abstract

Michael J. Sandel photo

“We have seen that Rawls’ theory of justice requires for its coherence a conception of community in the constitutive sense, which requires in turn a notion of agency in the cognitive sense, and we have hound that Rawls’ theory of the good can allow for neither. This calls into question the theory of justice, or the thoery of the good, or both.”

Michael J. Sandel book Liberalism and the Limits of Justice

Ch 4. Justice and the Good
Liberalism and the Limits of Justice, 1998

“I have tried to show that psychiatric research can be empirical and experimental, controlled, and operational and not dependent on inferences, analogies, or anecdotes. Hypotheses can be derived which are testable. Theory is a different matter. At the present we rely heavily on psychoanalytic theory or on still poorly formulated and defined general systems theory, information theory, or transactional theory. To explain the depth and variety of the interrelationship of somatopsychosocial facets of the totality of human behavior in process requires a unified theory of human behavior which we have not yet even approached. Integration or synthesis of biological, psychological, and social theory is not enough.”

Roy R. Grinker, Sr. (1900–1993) American psychiatrist and neurologist

Ginker (1964) as cited in: S. Nassir Ghaemi (2009) The Rise and Fall of the Biopsychosocial Model. p. 24

Rensis Likert photo

“[It remains to be seen whether the newer management theories, based as they are on research in industrial concerns, will be] equally applicable to other kinds of organized human activity, such as schools, voluntary organizations, unions, hospitals, governmental agencies, scientific and professional organizations, and the like.”

Rensis Likert (1903–1981) American statistician

Source: New patterns of management, (1961), p. 4; as cited in: James G. March. Handbook of Organizations (RLE: Organizations). 2013. p. 817

“Within sociology there have been several system theories, differing from one another in the extent to which, for example, human agency, creativity, and entrepreneurship are assumed to play a role in system formation and reformation; conflict and struggle are taken into account; power and stratification are part and parcel of the theory; structural change and transformation – and more generally, historically developments – are taken into account and explained. What the various system theories have in common is a systematic concern with complex and varied interconnections and interdependencies of social life. Complexity has been a central concept for many working in the systems perspective. The tradition is characterized to a great extent by a burning ambition and hope to provide a unifying language and conceptual framework for all the social sciences.”

Tom R. Burns (1937) American sociologist

Source: Systems theories (2006), p. 1.

“System theories have been applied to a wide spectrum of empirical cases and policy issues. Parsons and his followers, in particular, applied their systems theory to diverse empirical phenomena in sociology as well as in other disciplines: modernization, economics, politics, social order, industrialization and development, Fascism and McCarthyism, international relations, social change and evolution, complex organizations, health care, universities, religion, professions, small groups, and family as well as abstract questions such as the place of norms in maintaining social order both historically and cross-nationally. Marxian theory and dynamic system theories have also been applied to a spectrum of diverse empirical and policy subjects.”

Tom R. Burns (1937) American sociologist

Source: Systems theories (2006), p. 4.

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