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About ECON 3123, Week 12: 1 Hierarchies As Decentralized Information Processors
The document discusses hierarchies as a way to decentralize information processing and decision making in organizations. It provides examples of how hierarchies can speed up tasks that require collecting and processing multiple pieces of information from different divisions or sources. Specifically, it shows how a simple two-layer hierarchy can reduce the time to complete an addition task from three days with a single agent to two days. More generally, it finds that a hierarchy with the appropriate number of layers can minimize delays in information processing. However, larger hierarchies are more costly to maintain due to higher wages. Therefore, organizations with less complex information processing needs may prefer less complex hierarchies.
Detailed Information
| Author: | ['yizzy'] |
|---|---|
| Publication Year: | 2016 |
| Pages: | 7 |
| Language: | English |
| Format: | |
| Price: | FREE |
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