CATEGORY

In their analysis of organizations, the authors build on a number of disciplines: accounting, finance, marketing, management, political science, but especially economics. They apply the tools of economic analysis to provide a dynamic analysis of organizational architecture. They use economics to examine how managers can design organizations to motivate individuals to make choices that enhance firm value. They go beyond the pricing questions routinely analyzed in a managerial economics course to questions like, "What is the impact of alternate strategies for structuring jobs on employee decisions and their implications on firm value?" They ask the questions about the internal structure of the firm and emphasize the managerial implications of decision rights, performance measurement, and even issues like fixed vs. incentive compensation.