Open AccessOPTIMAL ORGANIZATIONAL HIERARCHIES IN FIRMS
Author(s) -
С. П. Мишин
Publication year - 2007
Publication title -
journal of business economics and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.485
H-Index - 37
eISSN - 1611-1699
pISSN - 2029-4433
DOI - 10.3846/16111699.2007.9636156
Subject(s) - hierarchy , construct (python library) , tree (set theory) , mathematics , mathematical optimization , computer science , mathematical economics , economics , combinatorics , market economy , programming language
One of the main problems in modern economy is to construct an efficient organizational hierarchy allowing to control the firm with minimal cost. This paper describes the mathematical model of optimal hierarchies in firms. Optimal hierarchies for several classes of cost functions are obtained. Particularly, sufficient conditions for tree optimality, 2hier‐archy (any manager has two immediate subordinates) optimality and two‐tier hierarchy optimality are defined.