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The decision, causing an obvious damage to minority. The head can accept
The decision extremely unprofitable for subordinates which it concerns, without everyone
Coordination with them. Procedures of the collective and centralised acceptance
Decisions closely intertwine, so them happens hardly to carry to any
One category. Very often body of the centralised management
It is formed on a collective basis. Therefore, say, the decision of Board of directors
It is possible to characterise as collective in relation to its members, but as
Centralised in relation to managers and employees of corporation. However in
The theoretical analysis these two aspects can be differentiated.
The organisations which are in the joint property and in management
By which principles of direct or representative democracy are used -
Legislature, clubs, co-operative societies, partnership etc. They
Develop of several elements. First, as it is known from the economic
Theories, decision-making by majority of votes does not provide the optimum
Results (the well-known theorem about it the voter). Secondly,
Process of development of joint decisions can absorb a lot of time, efforts and
Participants, that is than the divergence of their interests is stronger. (Existence
Simple rule of an equilibration of interests - for example, profit distribution
According to size of the enclosed capital - can reduce them considerably.)
Thirdly, resources are spent at attempts of education of coalitions and in a course
Their struggle among themselves. Separate groups can try to use the mechanism
Acceptances of collective decisions for increase of the well-being for the bill
Others. From here - requirement for an establishment of rules and creation special
Supervising structures which would interfere with it. But their maintenance in
The turn happens it is interfaced to considerable expenses.
Serious costs. P.Milgrom and J. Roberts have named them "influence costs".
Originally the analysis arising in this connection problems was conducted on an example
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