Managerial Economics and Organizational Architecture Study Guide

Great overview of economics. Good for managers who want to know how to read economic forces, react to them, and how to use them.

Besides being a well organized and example-packed textbook, I found Managerial Economics and Organizational Architecture to be a compact MBA refresher course -- and a useful reference for day-to-day problems. Thinking about business organizations as rational individuals responding to incentives and new information simply fits the facts. The three basic elements developed in this book allow managers to translate this logical thinking into operational decisions: allocating decision rights, measuring performance, and compensating individuals and groups. The power of this approach in analyzing common management problems equips the reader with a rich set of tools for identifying and solving them.

This book provides a broad, powerful, economics-based framework for examining a wide array of organizational problems--centralization vs decentralization, use of incentive compensation, establishing cost or profit centers. It is well organized, and the numerous examples from the business press help relate the analysis to practice. Because it is based on economics, it provides strong links to finance, accounting, and marketing.

This book uses easy to understand economics to explain how organizations work. Real world examples illustrate the key concepts of how to structure incentive plans, how to design performance measures, and how to design the firm's orginization chart.

This is one of the most insightful approaches I have ever seen toward understanding behavior in organizations and organization structure. It's the best managerial economics text on the market. Very useful for thoughtful readers.