Managerial Economics

Managerial Economics Textbooks: Brickley, J., Smith, C., & Zimmerman, J. (2009). Managerial economics and organizational architecture (5th ed.). New York: McGraw Hill/Irwin. ISBN: 978-0-07-337582-3. MBA 540 Final Exam 1. (10 pts.) 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. (10 pts.) 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. (10 pts.) 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. (10 pts.) 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. (10 pts.) 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. (10 pts.) Reflecting on what you have learned in this course, discuss the relevance of Responsible Stewardship in the context of economic analysis and organizational architecture. This is my final exam*** I really do need an A on this paper. Please use proper grammar and some of the following economics terminology: Ratchet effect Relative performance evaluation Subjective performance evaluation Objective performance evaluation Reservation utilities Human capital Compensating wage differential Explicit contracts Internal labor market Implicit contracts Efficiency wages Fringe benefits Optimal risk sharing Risk aversion Principal-agent model Incentive compensation Informativeness principle Centralization Decentralization Empowerment Influence activities and costs Specialized task assignment Broad task assignment U-form organizations M-form organizations Matrix organizations PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT :)