Trust your workers for better results

10/2/2013 | Quartz

Netflix and Berkshire Hathaway thrive by giving their workers and managers "freedom and responsibility," write David Larcker and Brian Tayan. High-trust governance systems allow both companies to get more out of employees, with the potential downside of abusing that trust. "The key, then, is knowing where to draw the line between too much trust and too little formal corporate governance," Larcker and Tayan write.

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