Chapter Review&Answers - Brickeley et al V5

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1、Chapter01-IntroductionCHAPTER1INTRODUCTIONCHAPTERSUMMARYThischapterintroducesthebook.ItbeginswiththecollapseofEnronCorporationin2001.Thisexampleillustrateshowacompany’sorganizationaldesigncanaffectitsprofitandlikelihoodofsurvival.Itpointstothreecriticaleleme

2、ntsoforganizationaldesign,whichwerefertoasorganizationalarchitecture.Theseelementsincludetheassignmentofdecisionrights,therewardsystem,andperformanceevaluationsystem.Thechapterdiscussesthebasicsideasbehindeconomicanalysisandhowthisframeworkcanbeusedbymanager

3、stomakebetterorganizational,production,andpricingdecisions.ThechapterintroducestheimportantconceptofeconomicDarwinismandprovidesanoverviewofthebook.CHAPTEROUTLINESMANAGERIALECONOMICSANDORGANIZATIONALARCHITECTUREOrganizationalArchitectureEconomicAnalysisAcade

4、micApplication:R&DandExecutiveTurnoverManagerialApplication:EconomicIncentivesandtheSubprimeMortgageCrisisManagerialApplication:CreativeResponsestoaPoorlyDesignedIncentiveSystemECONOMICDARWINISMManagerialApplication:EconomicDarwinism—GeneralMotorsandChrysler

5、SurvivaloftheFittestEconomicDarwinismandBenchmarkingPURPOSEOFTHEBOOKManagerialApplication:TransfersofOrganizationalArchitectureacrosstheGlobalEconomyOurApproachtoOrganizationsOverviewoftheBookTEACHINGTHECHAPTERChapter1isanimportantchaptersinceitintroducesthe

6、perspectivethatisusedthroughouttherestofthetext.ThereareseveralManagerialApplicationsthatcanbeusedtogenerateclassdiscussion.Theexamplesfromthischaptercanalsobereferredtoastheseconceptsarereintroducedlaterinthetext.1-1Chapter01-IntroductionTherearetwoSelf-Eva

7、luationProblemsandthreeReviewQuestionsattheendofthechapterthatcanbeusedforclassdiscussiontodeterminewhetherstudentsunderstandthefundamentalconceptsofthechapterbeforediscussingtheAnalyzingManagerialDecisionsscenariopresentedattheendofthechapter.TherearetwoAna

8、lyzingManagerialDecisionsscenariospresentedinthechapter.Thefirst,“OrganizingXeroxServiceCenter”,asksstudentstoevaluatetheincentivesthatresultfromthecurrentcompensationstructureofthecallcenter.Th