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On completing this chapter, you will gain an economic perspective on: The Theory of the Firm Market metaphors for organizational design Specific knowledge and decision authority The effect of organizational design on risk-taking How organizational design can affect Type I and Type II errors
29 trang | Chia sẻ: huyhoang44 | Ngày: 20/03/2020 | Lượt xem: 751 | Lượt tải: 0
The consumer is maximizing utility at every point along the demand curve The marginal rate of substitution falls along the demand curve as the price of x falls (if there was an interior solution). As the price of x falls, it causes the consumer to move down and to the right along the demand curve as utility increases in that direction. The dem...
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Regional trade zones (p. 119) Zones established through trade agreements among several countries in which trade barriers are reduced or eliminated for member countries North American Free Trade Agreement (NAFTA) - involves Canada, Mexico, and the United States European Union – political and economic union of 27 European countries that share a co...
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Location of budget line shows what the income level is. Increase in Income will shift the budget line to the right. More of each product becomes affordable Decrease in Income will shift the budget line to the left. less of each product becomes affordable
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Q: Should you adopt a “No offer matching policy?” A: It depends on whether or not you think the worker will actually leave the firm If workers are likely to leave the firm for better offers, then you want the opportunity to “offer match” if the offer is still equal to or below the workers value to you If workers are not likely to leave the firm,...
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Suppliers (p. 94) Entities that provide an organization with the external resources that it needs to operate, including money, materials, people, and information Regulation (p. 95) Rules set by external governing bodies that dictate standards and procedures for industries, businesses, and professionals Government activism – role played by gover...
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Students take an exam. After the exam, the students are ranked according to their performance. An ordinal ranking lists the students in order of their performance (i.e., Harry did best, Joe did second best, Betty did third best, and so on). A cardinal ranking gives the mark of the exam, based on an absolute marking standard (i.e., Harry got 80, Joe...
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Balancing loop- a reactionary force that attempts to move a current state to a desired state through some level of action Reinforcing loop- a reactionary force, where an action produces a result that causes more of the same action, resulting in either a condition of growth or decline.
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The amount of education individuals will get depends on Factors affecting their current and future earnings Individuals whose earnings are substantially boosted by education are more likely to get more education than those where the effect is smaller (educational ability) Age-earnings profile: lifetime earnings under different scenarios Their ...
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Motion studies – Frank B. Gilbreth (p. 39) Motion picture cameras captured the step-by-step movements taken to complete a task Sought efficiencies by orchestrating the maximum results for the least worker effort Scientific management and the mind – Lillian Gilbreth (p. 40) Studied how managerial perceptions, emotions, and thoughts affected work...
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