Quite the contrary. The purpose of this course is to use the basic principles of microeconomics, to apply them to problems encountered in modern organizations. That's why our first objective has been to provide managers with a systematic, comprehensive framework for addressing organizational principles. The areas of study will include examining how decision-making authority is distributed within the organization, the evaluation techniques used to measure the performance of organizational members, and the compensation techniques used to reward and keep organizational members. This course is intended to help students think about organizations and organizational structure from a microeconomic perspective.
Management faces increasing amounts of pressure to structure more effective organizations.
This is why it is of utmost importance to understand organizational architecture and the implications of that architecture on the well being of the firm. The approach of this course to organizational economics is a cross-functional one. Understanding the architectural structure of a firm, however, is just the first step in understanding the complexity of the interactions among the different functions within an organization. Sole concern with operations can produce successful managers, but only at the operational level. Operations, however, is just the beginning of a successful career.