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.
- ISBN13 9780072828092
- Publish Date 16 June 2003 (first published 22 September 2000)
- Publish Status Out of Print
- Out of Print 25 November 2008
- Publish Country US
- Publisher McGraw-Hill Education - Europe
- Imprint McGraw-Hill Professional
- Edition 3rd edition
- Format Hardcover
- Pages 704
- Language English