Managerial Economics &
Organizational Architecture 2/e
by:Brickley
This new approach to
managerial economics takes models from recent economics research and applies this research
to the internal structure of the firm. After teaching basic applied economics, the authors
look inside the firm and apply this analysis to management decision making. The general
model used for this application is organizational architecture. Organizational
architecture consists of three aspects of corporate organization: the assignment of
decision rights within the company; methods of rewarding individuals; the structure of
systems to evaluate the performance of both individuals and business units. These three
components can be likened to a stool with three legs. If one of the legs is shorter, the
stool is out of balance. These three elements must be in balance in the organization as
well.
- Theme
of Organizational Architecture, consisting of the assignment of decision rights, the
performance evaluation system and the reward system.
- Basic
economic tools of analysis help the manager design organizations that motivate individuals
to make choices that will increase firm value.
Table of Contents
Part 1: Basic Concepts.
Chapter 1: Introduction.
Chapter 2: The Economists View of Behaviour. Chapter 3: Markets, Organisations and the
Role of Knowledge.
Part 2: Managerial Economics.
Chapter 4: Demand. Chapter 5:
Production and Cost. Chapter 6: Market Structure. Chapter 7: Pricing with Market Power.
Chapter 8: Economics of Strategy: Creating and Capturing Value. Chapter 9: Economics of
Strategy: Game Theory. Chapter 10: Incentive Conflicts and Contracts.
Part 3: Designing
Organisational Architecture.
Chapter 11: Organisational
Architecture. Chapter 12 Decision Rights: The Level of Empowerment. Chapter 13: Decision
Rights: Bundling Tasks into Jobs and Subunits. Chapter 14: Attractive and Retaining
Qualified Employees. Chapter 15 Incentive Compensation. Chapter 16: Individual Performance
Evaluation. Chapter 17: Divisional Performance Evaluation.
Part 4: Applications of
Organisational Architecture.
Chapter 18: Vertical
Integration and Outsourcing. Chapter 19: Leadership: Motivating Change within
Organizations. Chapter 20: Understanding the Business Environment: The Economics of
Regulation. Chapter 21: Ethics and Organisational Architecture. Chapter 22: Organisational
Architectures and the Process of Management Innovation. Glossary. Index.
616 pages