Managerial Economics

Good Essays
Topics: Economics
a
1. Define the three aspects of organizational architecture.

The three aspects of organizational structures as highlighted in the synopsis of Managerial Economics and Organizational Architecture are as follows :

1. The assignment of decision rights within the firm 2. The methods of rewarding individuals 3. The structure of systems to evaluate the performance of individuals and units

These three components are often referred 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. 1

The study the three aspects is very significant as it is related to the achievements of goals and objectives set by management which will be carried out by the employees whose attitudes and morale can directly affect the financial outcomes and even the survival of their own company, as a result of the organizational architecture designed and made decisions by management board’s strategy. Among the three legs, the rewarding system is reminded in the fact that it can create backward effects when individual benefits are more observed than the business reputation as the case, in page 29 of the text, of Sue Chen’s, a Merrill Lynch sales person, whose utility function of money and integrity are challenged with the company picture being blurred by ethics melt- down trends when she only tries to obtain sweet bonus by resorting to any tactics possible to allure customers.
Many companies wonder about which reward systems to be used: to set purely on the ''pay-for-results'' financial rewards or to focus on the evaluation of efforts and skills. While some are positive in mechanically determining the rewards using sophisticated programs such as the MAS200 information technology, a Sage accounting system that tracks the salespersons’ achievements through their financial transactions with customers
In conclusion, organizational structures are highly concerned by

You May Also Find These Documents Helpful

  • Good Essays

    Economics and Managerial Economics Economics may be defined as a branch of knowledge dealing with allocation of scarce resources among competing ends. Managerial Economics may be defined as application of eco for problem solving at corporate level. Factors affecting Managerial decision Often only pure logic does not contribute to decision making Human Factor Human behavioral considerations often influences a manager into compromising or moderation a decision which would otherwise have made…

    • 600 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Managerial Economics

    • 3683 Words
    • 15 Pages

    Managerial Economics and Economics Managerial Economics has been described as economics applied to decision making. It may be viewed as a special branch of economics bridging the gulf between pure economic theory and managerial practice. Economics has two main divisions :- (i) Microeconomics and (ii) Macroeconomics. Microeconomics has been defined as that branch of economics where the unit of study is an individual or a firm. Macroeconomics, on the other hand, is aggregate in character and has…

    • 3683 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Managerial Economics

    • 632 Words
    • 3 Pages

    103-Managerial Economics OBJECTIVES: The course in Managerial Economics attempts to build a strong theoretical foundation for Management students. The course is mainly analytical in nature and focuses on clarifying fundamental concepts from microeconomic viewpoint. The students are expected to study and analyses the dynamics of managerial decision making through this course. Also wherever possible, students are expected to study, analyses and interpret empirical evidence and case studies available…

    • 632 Words
    • 3 Pages
    Powerful Essays
  • Best Essays

    Managerial Economics

    • 737 Words
    • 3 Pages

    Term- I Course Title : Managerial Economics Course Credits : 3 Course Faculty : Prof. Animesh Singh Learning Objectives At the end of this course, the student should be able to: • develop a basic understanding of economics as an important tool for taking effective managerial decisions; • develop the concept of managerial economics and its applications; and • to apprise how managers need to understand…

    • 737 Words
    • 3 Pages
    Best Essays
  • Satisfactory Essays

    Managerial Economics

    • 533 Words
    • 3 Pages

    UNIVERSITY OF GUYANA FACULTY OF SOCIAL SCIENCES DEPARTMENT OF ECONOMICS ECN 213 - MANAGERIAL ECONOMICS COURSE OUTLINE SUMMER - 2010 LECTURER: Roger Rogers E-mail: rogers.roger@gmail.com INTRODUCTION Managerial Economics provides a foundation of economic understanding for use in managerial decision-making. Both microeconomic and macroeconomic relations have implications for this decision-making process. Since the demand for a firm’s products plays a major role in determining its…

    • 533 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Managerial Economics

    • 302 Words
    • 2 Pages

    Managerial Economics Introduction Economic principles inform good business decision making. Although economics is sometimes dismissed as a discourse of practical relevance to only a relatively small circle of academicians and policy analysts who call themselves economists, sound economic reasoning benefits any manager of a business, whether they are involved with production/operations, marketing, finance, or corporate strategy. Along with enhancing decision making, the field of economics provides…

    • 302 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Managerial Economics

    • 1217 Words
    • 5 Pages

    ECONOMICS FOR MANAGERS UNIT I Introduction: Economics can be divided into two broad categories: microeconomics and macroeconomics. Macroeconomics is the study of the economic system as a whole. It includes techniques for analysing changes in total output, total employment, the consumer price index, the unemployment rate, and exports and imports. Macroeconomics addresses questions about the effect of changes in investment, government spending, and tax policy on exports, output, employment and prices…

    • 1217 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Managerial Economics

    • 345 Words
    • 2 Pages

    Managerial Economics Meaning: - Managerial Economics deals with money/income. It helps in decision making regarding sales, production, and profit. It is a branch of economics that applies microeconomics analysis to decision methods of businesses or other management units. Artha – Money/Income Shasthra – Body of Knowledge Economics – Body of knowledge which deals with the management of money. DEFINITIONS OF MANAGERIAL ECONOMICS • According to…

    • 345 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Managerial Economics

    • 484 Words
    • 2 Pages

    ------------------------------------------------- ------------------------------------------------- MG 640 Managerial Economics ------------------------------------------------- Homework Assignment | Week 1 Chapter 1: The Fundamentals of Managerial EconomicsFor this week read Chapter 1 and the Headline: Amcott Loses $3.5 Million: Manager Fired.Answer the following questions:Question 1. Page 27Levi Strauss & Co. paid $46,532 for a 110-year-old pair of Levi’s jeans-the oldest known…

    • 484 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Managerial Economics

    • 12399 Words
    • 50 Pages

    |Managerial Economics | | | |UNIT -I | | | |[Pick the date]…

    • 12399 Words
    • 50 Pages
    Powerful Essays