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The Design And Analysis Of Enterprises' Internal Management Institutions Based On Pareto Optimality

Posted on:2005-12-10Degree:DoctorType:Dissertation
Country:ChinaCandidate:W WeiFull Text:PDF
GTID:1116360152468601Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
The design of enterprises' management institutions is one of the most important parts of management system establishments. It is also attract attention of managers and scholars. The traditional way of designing management institutions is based on the theory of management and the experience of enterprises. The paper aim to establish a theory of designing enterprises' management institutions, which comes from the economic perspective. The cases in this paper are from the enterprises' practice and the new theory is proved to explain these well.Firstly, the paper analyzes the viewpoints of institutions in different subjects, such as management, institutional economics and sociology. Then combined with the characteristics of enterprises' inner management institutions, the paper offers an institutional theory and a system, which can descript the degree of management institutional standardization form quantitative analysis. The concept of group of institutions is also brought forward and can explain the equal degree between enterprises and employees.All the economical and social institutions, including the management institutions, come from the external characteristics of different behavior units. The paper establishes the concept of behavior unit and right of behavior, describes the external characteristics through game theory. Every management institution has specific behavior units who own some resources and have the right to control them. The behaviors happened within the management institution were called the right of behaviors. The goal of designing management institutions is obtain the "Nash equilibrium" or "Pareto Optimality". Based on these concepts and theories, the paper analyzes the design process of management institutions, concludes the different types of designing institutions and studies the institution's inner becoming.Definition of different unit's rights of behavior and collocation of management institutions is two of the most important institutions. They decide the identity of different collaborate behavior units, optional feasible behaviors and collaborate structure. Definition of rights and collocation of institutions must follow the moderate principle, normative Coase Theorem and normative Hobbes Theorem. The process of transferring the rights from the side, which was judged lower to the higher side, is called allocation of the rights of behavior and can improve the organizational efficiency. The cost happening in the process includes three parts: the cost of allocating the rights of behaviors, the cost of allocating and the cost of operating institutions. Because the dealing cost of rights' definition and institutions' collocation are different, the optional methods and their efficiency are different.When one side betrays others involuntary, the efficient management institution is responsibility institution. When one side influence on accidents and damage, non-responsibility institution, strict responsibility institution and faulty responsibility institution is the most efficient way. When only the damaged unit take loss, the non-responsibility institution for the damaging unit is efficient; and when only the damaging unit take loss, the strict responsibility institution for the damaged unit is efficient; when both sides take loss, only faulty responsibility institution is efficient. The designing of responsibility institution must consider other factors, including the workload of behavior unit, the cost preventing accidents, management cost of running responsibility institution, the right and strength of behavior units, risky cost and financial restriction. Strict responsibility institution can urge behavior units to take efficient way of preventing and efficient workload. If the cost of preventing a external affair bellows the loss of affair, strict responsibility institution is preferred. Otherwise it should give behavior units some preventing criterion, which means faulty responsibility institution. The management cost of strict responsibility institution usually bellow...
Keywords/Search Tags:behavior unit, the right of behavior, Pareto Efficiency, the design of management institution, commitment institution, responsibility institution
PDF Full Text Request
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