Organizational Structure and Product Market Competition

We analyze an interaction between a firm’s choice of organizational structure and competition in the product-market. Two organizational structures are considered, namely a centralized-organization, whereby formal authority is retained by a principal, and a decentralized-organization, whereby formal authority is delegated to an agent. We show that the choice of organizational structure hinges on a trade-off between operating-profit and managerial effort. The principal may prefer to choose an organizational structure that generates lower operating-profit to motivate the agent to work hard. The choice of organizational structure may also determine whether the rival is active in the market or forced to exit the market.Formal and Real Authority, Delegation Structure, Product Market Competition

KWM: Knowledge-based Workflow Model for agile organization

The workflow management system (WFMS) in an agile organization should be highly adaptable to the frequent organizational changes. To increase the adaptability of contemporary WFMSs, a mechanism for managing changes within the organizational structure and changes in business rules needs to be reinforced. In this paper, a knowledge-based approach for workflow modeling is proposed, in which a workflow is defined as a set of business rules. Knowledge on the organizational structure and special workflow, such as role/actor mappings and complex routing rules, can be explicitly modeled in KWM (Knowledge-based Workflow Model). Using knowledge representation scheme and dependency management facility, a change propagation mechanism is provided to adapt to the frequent changes in the organizational structure, business rules, and procedures

Organizational stressors associated with job stress and burnout in correctional officers: a systematic review.

BackgroundIn adult correctional facilities, correctional officers (COs) are responsible for the safety and security of the facility in addition to aiding in offender rehabilitation and preventing recidivism. COs experience higher rates of job stress and burnout that stem from organizational stressors, leading to negative outcomes for not only the CO but the organization as well. Effective interventions could aim at targeting organizational stressors in order to reduce these negative outcomes as well as COs' job stress and burnout. This paper fills a gap in the organizational stress literature among COs by systematically reviewing the relationship between organizational stressors and CO stress and burnout in adult correctional facilities. In doing so, the present review identifies areas that organizational interventions can target in order to reduce CO job stress and burnout.MethodsA systematic search of the literature was conducted using Medline, PsycINFO, Criminal Justice Abstracts, and Sociological Abstracts. All retrieved articles were independently screened based on criteria developed a priori. All included articles underwent quality assessment. Organizational stressors were categorized according to Cooper and Marshall's (1976) model of job stress.ResultsThe systematic review yielded 8 studies that met all inclusion and quality assessment criteria. The five categories of organizational stressors among correctional officers are: stressors intrinsic to the job, role in the organization, rewards at work, supervisory relationships at work and the organizational structure and climate. The organizational structure and climate was demonstrated to have the most consistent relationship with CO job stress and burnout.ConclusionsThe results of this review indicate that the organizational structure and climate of correctional institutions has the most consistent relationship with COs' job stress and burnout. Limitations of the studies reviewed include the cross-sectional design and the use of varying measures for organizational stressors. The results of this review indicate that interventions should aim to improve the organizational structure and climate of the correctional facility by improving communication between management and COs

Environmental Liability and Organizational Structure

This paper presents a multitask principal-agent model to examine how environmental liability rules for individual managers within a corporate hierarchy affect, on the one hand, the incentive schemes the organization provides and, on the other hand, the choice between a functional or a product-based organizational structure. If managers are risk neutral, a product-based organization dominates a functional organization and allows to obtain first-best effort level. If, moreover, there are no diseconomies of span, both organizational forms are equivalent. It is also shown that for the dominant function, effort levels are higher in a product-based organization than in a functional one. With risk averse managers, no organizational structure dominates the other in general, but we are able to identify under which conditions it does not matter who is held liable for environmental damages.contracts, liability, firm structure, principal-agent

Market Structure, Organizational Structure, and R&D Diversity

We examine the effects of market structure and the internal organization of firms on equilibrium R&D projects. We compare a monopolist's choice of R&D portfolio to that of a welfare maximizer. We next show that Sah and Stiglitz's finding that the market portfolio of R&D is independent of the number of firms under Bertrand competition extends to neither Cournot oligopoly nor a cartel. We also show that the ability of firms to pre-empt R&D by rivals along particular research paths can lead to socially excessive R&D diversification. Lastly, using Sah and Stiglitz's definition of hierarchy, we establish conditions under which larger hierarchies invest in smaller portfolios.

A Task-Based Approach to Organization: Knowledge, Communication and Structure

We bridge a gap between organizational economics and strategy research by developing a task-based approach to analyze organizational knowledge, process and structure, and deriving testable implications for the relation between production and organizational structure. We argue that organization emerges to integrate disperse knowledge and to coordinate talent in production and is designed to complement the limitations of human ability. The complexity of the tasks undertaken determines the optimal level of knowledge acquisition and talent. The relations between tasks, namely, complementarities or substitutabilities and synergies, determine the allocation of knowledge among members of the organization. Communication shapes the relation between individual talent, and governs the organizational process and structure that integrates disperse knowledge to perform tasks more efficiently. Organization structure can also be deliberately designed ex ante to correct bias of individual judgement, the extent to which is dependent on the attributes of tasks. Organization process and the routinized organizational structure are the core of organizational capital, which generates rent and sustains organizational growth. This task-based approach enriches the existing body of organization studies, in particular the knowledge-based theory of the firm and the dynamic capabilities theory.task-based approach, complementarities, tacit knowledge, codifiable knowledge, code,vertical communication, horizontal communication, organizational architecture, decision bias

Improving Organizations by Replacing the "Mechanical" Model with the "Organic" one

Organizations are currently viewed as artificial structures. However, in our opinion, organizations seem to match a biological structure much better. This paper explores this new approach with some interesting conclusions and results: organizations aim at perpetual exis-tence and continuous adaptation. We advance the ideas of organizational "instincts", organizational pathology and organizational optimization using genetic algorithms. In competitive markets, organizations are in a natural selection process, which actually is part of a natural genetic algorithm. This process may be simulated in an artificial multidisciplinary optimization environment, based on minimizing a Total Costs and Risks objective function. Unlike the gradient optimization methods, the genetic algorithms may be applied to such problems with thousands of degrees of freedom. This opens the way to the organizational structure optimization through genetic algorithms.organization, genetic algorithms, multidisciplinary optimization, organizational analysis, organizational structure

Survival as a success in the face of a scarcity of resources

From institutional, resource dependence and organizational ecology perspectives, there are two initial requirements for organizational survival: 1) there are sufficient resources in the niche, and 2) the organization can obtain these resources. A new concept, saturation, is created to measure the scarcity of resources by analyzing its influence on survival. However, organizational success also depends on organizational characteristics, which can hinder the securing of the resources necessary for survival. This article researches ownership structure as an organizational characteristic. These influences are tested utilizing data from a population of 1298 Spanish olive oil mills