Brickley/Smith/Zimmerman's 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; and 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 an organization as well.
Table of contents:
Part 1: Basic Concepts Chapter 1 Introduction Chapter 2 Economist's View of Behavior Chapter 3 Markets, Organizations, 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 Organizational Architecture Chapter 11 Organizational Architecture Chapter 12 Decision Rights: The Level of Empowerment Chapter 13 Decision Rights: Bundling Tasks into Jobs and Subunits Chapter 14 Attracting and Retaining Qualified Employees Chapter 15 Incentive Compensation Chapter 16 Individual Performance Evaluation Chapter 17 Divisional Performance Evaluation Chapter 18 Choosing the Legal Form of Organization* Part 4: Applications of Organizational Architecture Chapter 19 Vertical Integration and Outsourcing Chapter 20 Leadership: Motivating Change within Organizations Chapter 21 Understanding the Business Environment: Economics of Regulation Chapter 22 Organizational Architecture and the Process of Management Innovation Chapter 23 Management Innovations and Organizational Architecture * New Chapter
Table of contents:
Part 1: Basic Concepts Chapter 1 Introduction Chapter 2 Economist's View of Behavior Chapter 3 Markets, Organizations, 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 Organizational Architecture Chapter 11 Organizational Architecture Chapter 12 Decision Rights: The Level of Empowerment Chapter 13 Decision Rights: Bundling Tasks into Jobs and Subunits Chapter 14 Attracting and Retaining Qualified Employees Chapter 15 Incentive Compensation Chapter 16 Individual Performance Evaluation Chapter 17 Divisional Performance Evaluation Chapter 18 Choosing the Legal Form of Organization* Part 4: Applications of Organizational Architecture Chapter 19 Vertical Integration and Outsourcing Chapter 20 Leadership: Motivating Change within Organizations Chapter 21 Understanding the Business Environment: Economics of Regulation Chapter 22 Organizational Architecture and the Process of Management Innovation Chapter 23 Management Innovations and Organizational Architecture * New Chapter