Managerial Economics and Organizational Architecture

1. Discuss how organizational architecture and corporate culture
are related. Use an example of a real-life firm and discuss how its
corporate culture blends with its organizational architecture.
2. Billy Riggan is in charge of all technical developments at
Always Round Tire. He makes all the choices concerning product innovations
in the company. He finds that he is overworked and that several of his
research scientists seem to be spending work hours playing tennis. What is
going on?
3. Always Round Tire tries to base its promotions on seniority
(where education and training requirements are not necessary). The company
finds that this system seems to work most of the time with shop floor
supervisors and team managers. But the system breaks down for higher-level
positions. Why?
4. Economists believe the free rider problem is very important in
complex business organizational structures. Still, businesses continue to
build teams to solve problems or to deliver products to consumers. Often
special rewards or bonuses are provided to the team rather than to the
individuals on the team. Write a brief essay that either defends the
economists’ concern or explain why economists are wrong on this issue.
5. Many firms today use 360-degree performance evaluations. Make a
case for this type of evaluation based on the informativeness principle.
What problems may be encountered from implementation of such a system?

6. Reflecting on what you have learned in this course, discuss the
relevance of Responsible Stewardship in the context of economic analysis and
organizational architecture.

APA FORMAT in text citations 2 reference one book
Brickley, J., Smith, C., & Zimmerman, J. (2016). Managerial Economics and Organizational Architecture (6th ed.). New York: McGraw Hill/Irwin.

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