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By Paul S Myers
The 1st within the readers' sequence known as assets for the Knowledge-Based financial system, wisdom administration and Organizational layout is a special compilation of articles and publication excerpts that describe how the administration of a firm shapes the degrees of data move, innovation and studying. the gathering attracts on fifty years of administration considering and provides key concerns dealing with knowledge-intensive businesses. the decisions are concise, basically written and current a wealthy framework of examples drawn from genuine administration event. prepared thematically, the chapters talk about decision-making, association constitution, innovation, strategic alliances, coping with wisdom staff and tool relatives. Represented during this quantity are the information of influential teachers together with the overdue economist Frederick Hayek and French sociologist Michael Crozier, in addition to world-renowned administration thinkers corresponding to Harvard company tuition Professor Rosabeth Moss Kanter and Charles convenient. a distinct selection of actions and e-book excerpts chosen for his or her perception into the connection among organizational layout and information administration. the 1st compilation of its variety to attract jointly the paintings of prime economists, sociologists, psychologists, administration thinkers and practitionersIncludes an introductory essay which synthesizes many of the rules offered in the course of the quantity.
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Extra info for Knowledge Management and Organizational Design (Resources for the Knowledge-Based Economy)
Example text
There would be nothing left over for the residual claimants in the enterprise, be they entrepreneurs, partners, or stockholders. Firms must obtain advantages from the suppression of alienability that are large enough to offset the costs associated with its absence, or they could not survive open competition with independent agents. Such advantages could come from economies of scale or scope, or from the reduction of transaction costs that could not be obtained by independent contracting agents.
Even family entrepreneurship has taken a step toward bureaucracy with the shift from hosting a hometown diner to owning a franchise. Bureaucracy created a system capable of effectively managing the massive investments, division of labor, and large-scale mechanized production of capitalism. Its organizational power drove the initial rapid growth of the steel, chemical, and automobile industries. Bureaucracy united AT&T as it established a peerless national communication network with rank on rank of managers structured by ”’ Reprinted with permission of the publisher.
When the cost of moving knowledge is higher than the cost of moving decision rights, knowledge holders will value the decision rights more highly and will thus tend to purchase them. In this way, optimizing behavior on the part of individuals causes the distribution of decision-making rights in the economy to reflect the limitations of human mental and sensory systems. Knowledge and the Cost of Transfer The cost of transferring knowledge depends on factors such as the nature of the knowledge, the organizational environment, and technology.