| Unit name | Incentives in Organisations |
|---|---|
| Unit code | ECON30082 |
| Credit points | 20 |
| Level of study | H/6 |
| Teaching block(s) |
Teaching Block 4 (weeks 1-24) |
| Unit director | Dr. Sonderegger |
| Open unit status | Not open |
| Pre-requisites |
Intermediate Microeconomics ECON21133 |
| Co-requisites |
None |
| School/department | School of Economics, Finance and Management |
| Faculty | Faculty of Social Sciences and Law |
The course applies the insights and methodology of economics to a subject matter that has been traditionally within the realm of management theory, namely the principles that govern firms and organizations. Traditional neoclassical economic theory models firms/organizations as unified 'black-boxes', where inputs are transformed into output according to profit-maximizing criteria. In reality, of course, things are more complicated; organizations are composed by many economic agents, who interact with each. This course studies the behaviour of these economic agents. The types of questions we address are: Why are some interactions organized within firms, while others take place through the market?; When is it better to have centralized as opposed to decentralized decision-making?; Who should possess authority over what?; When should bonuses be paid?; What sorts of promotion rules are most efficient?; What are the trade-offs faced by employers when motivating their workers?; Why does reputation matter?; Is an imperfect legal system worse than no legal system at all?; and What are the benefits and drawbacks of Individualist versus Collectivist societies?
