by Milton Harris and Artur Raviv - Faculty

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Figure 9: Optimal Organization Design for J > Q B(r,p), J > G > Q B(p,r) and 2r+r 2 s max{J,Q K(p,r)} Case 7: J > Q B(r,p), J > G > Q B(p,r), and J 2r+r 2 s Note that, by Lemma 2, J 2r+r 2 s implies that T > Q K(r,p). This case is similar to the previous one, except that, since Q 4p > T > Q K(r,p), D(Q) max{K rp(Q),4p} for Q K(r,p) Q < Q 4p. Therefore, and H(Q) A(Q), for Q Q B (p,r), B pr (Q), Q B (p,r)
L(Q) A(Q), for Q Q B (p,r), C pr (Q), Q B (p,r) Q B(r,p), J > G > Q B(p,r), and J 2r+r 2 s The above cases exhaust the possible configurations. Finally, we state Proposition 4 formally and prove it. Proposition 4. Let [X] = {(Q,F)�the optimal design given synergy s is X}, for X = DF (decentralized flat D:\Userdata\Research\Hierarchies\temp.wpd 46 February 22, 2000 (11:18AM) (29)
Page 1 and 2: ORGANIZATION DESIGN by Milton Harri
Page 3 and 4: eports both to the Project A divisi
Page 5 and 6: CEO President, ABC Norway President
Page 7 and 8: paid if the manager is available to
Page 9 and 10: information at the same time. Delay
Page 11 and 12: (1971), Khandwalla (1974) and Pugh
Page 13 and 14: managers who can discover and coord
Page 15 and 16: order and in which contingencies th
Page 17 and 18: value of the R-hierarchy (net of fi
Page 19 and 20: it is still optimal to use the CEO
Page 21 and 22: hierarchy is that the firm need pay
Page 23 and 24: 5 Comparative Statics For Q Optimal
Page 25 and 26: Figure 5: Optimal Organization Desi
Page 27 and 28: intermediate values of F, the centr
Page 29 and 30: appendix. Proposition 4. Increases
Page 31 and 32: divisional hierarchy. Next we exami
Page 33 and 34: References Baron, David P. and Davi
Page 35 and 36: Recall A(Q) Q(1 p 2 r 2 ) D G Q, B
Page 37 and 38: Similarly, for Q < 2r+r 2 s, K pr(Q
Page 39 and 40: is impossible. Therefore, Q B(p,r)
Page 41 and 42: Case 2: G > Q B(r,p) J and Figure 6
Page 43 and 44: and H(Q) L(Q) A(Q), for Q Q B (r,p)
Page 45: Case 6: J > Q B(r,p), J > G > Q B(p
Page 49: for X = M, CP, CR, and CF implies t

by Milton Harris and Artur Raviv - Faculty

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