Abstract
The more the two representative individuals contact, the more transaction cost been resolved. The employment contract encloses the transaction counterpart for the employees. It therefore increases the frequency of contacts and decrease the transaction cost among peer. The spontaneous organizational norms, which effect the mitigation of transaction cost and affect the distribution of the resource of the firm, emerge if there are sufficient human contacts. However, there is necessary condition for the organizational norms. It is the sharing rule. The longer the hierarchy length, the much the cost of the conveyance of the sharing rule. If the managers obey the respective organizational norms of the CEO and of the workers, the managers are the middleman for prevailing the sharing rule and therefore preserve the spontaneous norms. It promotes the production cooperation.