Optimal Contract: an effective tool for resolution of conflicting objectives.
This eight-page graduate paper sheds light on the notion that an organization is a consortium of multiple stakeholders who operate with conflicting objectives. In this connection, the paper also studies the role of optimal contract as a possible effective tool that ensures smooth functioning of contrasting values in a firm. These concepts are studied within the principal-agent framework, which helps in understanding the values of both sides and shows how one side helps the other in achieving their end objectives by granting them their mean objectives through optimal contract system. 8 pgs, bibliography lists 4 sources.
