Hypothesis Identification Article Analysis In today's zero-defect business environments, companies must select effective, informed decision makers for key decisions. Michael C. Jensen and William H. Meckling (1992) challenge this corporate maxim. They argue that the best decision maker is the person with the best incentives to make successful decisions, even if companies realigning their decision making processes spend more in communication costs and time. In the right answer lies one of the keys to effective business …showed first 75 words of 973 total…

…showed last 75 words of 973 total…and using performance-related pay positively affects company performance. A corporate governance scheme to ensure communication and align director and management objectives can key success in today's corporate environment. References Jensen, M. and Meckling, W. (1992). Specific and General Knowledge, and Organizational Structure. In L. Werin and H. Wijkander (Eds.), Contract Economics (pp. 251-274). Oxford, UK: Blackwell Publishers. Evans, J. and C. Wier. (1995). Decision processes, monitoring, incentives and large firm performance in the UK. Management Decision, 33, 6. 32-37.