{"id":47282,"date":"2015-04-03T22:36:42","date_gmt":"2015-04-03T17:06:42","guid":{"rendered":"http:\/\/www.vskills.in\/certification\/tutorial\/?p=47282"},"modified":"2024-04-12T14:19:58","modified_gmt":"2024-04-12T08:49:58","slug":"agency-theory","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/agency-theory\/","title":{"rendered":"Supply Chain Management Tutorial | Agency theory (AT)"},"content":{"rendered":"\n

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Agency theory (AT)<\/p>\n

Agency theory is a division of economics that looks at conflicts of interest between people with different interests in the same assets. This primarily addresses the conflicts between shareholders and managers of companies. The distinctive characteristic of the theory is to separate of ownership of the supply chain of a firm from controls of the supply chain. The supply chain is still owned by the shareholders of the organization. However, the control over the day-to-day operations is under professional managers who can be defined as the agents. The consequences of the actions carried out by the agents are largely carried by the owners of the firm. Shareholders put in place authorization, monitoring and sanctioning in the form of compensation and other measures. The authorization measures put in place to authenticate the decisions made by the agent.<\/p>\n

There are two general models of supply chain management i.e. centralized decision-making and the decentralized decision-making. The agency theory places emphasis on the decentralized supply chain with the advantage of more effective cooperation and coordination.<\/p>\n

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Go back to Tutorial Certify and Increase Opportunity.Be Govt. Certified SCM Professional Agency theory (AT) Agency theory is a division of economics that looks at conflicts of interest between people with different interests in the same assets. This primarily addresses the conflicts between shareholders and managers of companies. The distinctive characteristic of the theory is…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[6548],"tags":[],"class_list":["post-47282","page","type-page","status-publish","hentry","category-supply-chain-management-professional"],"acf":[],"yoast_head":"\nSupply Chain Management Tutorial | Agency theory (AT)<\/title>\n<meta name=\"description\" content=\"Agency theory (AT), Join vskills , Govt of India Certification for Supply Chain Management, open avenues for employment in various sectors, Apply today\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/tutorial\/agency-theory\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Supply Chain Management Tutorial | Agency theory (AT)\" \/>\n<meta property=\"og:description\" content=\"Agency theory (AT), Join vskills , Govt of India Certification for Supply Chain Management, open avenues for employment in various sectors, Apply today\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.vskills.in\/certification\/tutorial\/agency-theory\/\" \/>\n<meta property=\"og:site_name\" content=\"Tutorial\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/vskills.in\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-12T08:49:58+00:00\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.vskills.in\/certification\/tutorial\/agency-theory\/\",\"url\":\"https:\/\/www.vskills.in\/certification\/tutorial\/agency-theory\/\",\"name\":\"Supply Chain Management Tutorial | Agency theory (AT)\",\"isPartOf\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/tutorial\/#website\"},\"datePublished\":\"2015-04-03T17:06:42+00:00\",\"dateModified\":\"2024-04-12T08:49:58+00:00\",\"description\":\"Agency theory (AT), Join vskills , Govt of India Certification for Supply Chain Management, open avenues for employment in various sectors, Apply today\",\"breadcrumb\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/tutorial\/agency-theory\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.vskills.in\/certification\/tutorial\/agency-theory\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.vskills.in\/certification\/tutorial\/agency-theory\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.vskills.in\/certification\/tutorial\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Supply Chain Management Tutorial | Agency theory (AT)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.vskills.in\/certification\/tutorial\/#website\",\"url\":\"https:\/\/www.vskills.in\/certification\/tutorial\/\",\"name\":\"Tutorial\",\"description\":\"Vskills - 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