Explain the idea of the transaction-cost theory.

3.1 Learning Outcomes:

Recognize the importance of quality management theory, principles, and practices

applied in businesses on national and international levels.

State the importance of standardization and quality standards.

3.2 Action Required: (Read)

Chapter 1. Organizational Structures

Textbook: Thomas Pyzdek & Paul Keller: The Handbook for Quality Management, Second Edition: A Complete Guide to Operational Excellence, McGraw-Hill Professional; 2 edition (December 18, 2012). ISBN-13: 978-0071799249

3.3 Test your Knowledge (Question):

1.Explain the idea of the transaction-cost theory.

2.Discuss two to three limitations of the hierarchical structure.

Requirements: 180 – 220

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