This article explores how businesses make decisions and organize their operations based on saving money on transaction costs. It argues that private agreements are often better than following strict laws. The researchers assume people have limits to how much they can know and might be selfish. They say companies should create contracts and structures that consider these human traits. Companies are seen as systems for managing contracts, with different forms of organization being compared. The study discusses why big companies sometimes struggle to be as flexible as smaller ones. It delves into how companies use hierarchies to improve efficiency and predict how work is organized. The article also looks at how worker-manager relationships influence organizational structures and union activity. It ends by discussing how this perspective can change our views on business competition and monopolies.