We propose a new perspective on organizations, emphasizing the role of instructions in providing incentives. In our framework, there is a conflict of interest between a principal and agent over the course of action. Instructions from the principal about how to execute her preferred course lead to a more informed decision by the agent when executing it, which steers him towards her desired course. Because less able (less confident) agents are more responsive to instructions, hiring these types of agents can be beneficial. Our theory helps us understand how management practices improve performance, why and when firms are reluctant to hire overqualified (high-ability) workers, why more able managers both delegate authority and instruct their workers more, and how worker risk aversion can be valuable to an organization.