A set of ideas on organizational control based on the belief that the separation of the ownership from management creates the potential for the wishes of owners to be ignored refers to the

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Agency theory deals with the relationship between principals (owners) and agents (management). It argues that the separation of ownership from management creates the potential for conflict of interest between the two parties. The agency theory suggests that agents may pursue their own interests rather than the interests of principals, which may lead to the loss of shareholder value. Therefore, organizational control mechanisms such as incentive contracts, monitoring, and governance structures are required to align the interests of agents with those of principals.

A Set of Ideas on Organizational Control Based on the Belief