Optimal organizational hierarchies in firms

    Sergey Mishin Info
DOI: https://doi.org/10.3846/16111699.2007.9636156

Abstract

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.

First Published Online: 14 Oct 2010

Keywords:

optimal hierarchy, control cost, structure, firm

How to Cite

Mishin, S. (2007). Optimal organizational hierarchies in firms. Journal of Business Economics and Management, 8(2), 79-99. https://doi.org/10.3846/16111699.2007.9636156

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June 30, 2007
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Copyright (c) 2007 The Author(s). Published by Vilnius Gediminas Technical University.

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Published

2007-06-30

Issue

Vol 8 No 2 (2007)

Section

Articles

Copyright

Copyright (c) 2007 The Author(s). Published by Vilnius Gediminas Technical University.

License

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Mishin, S. (2007). Optimal organizational hierarchies in firms. Journal of Business Economics and Management, 8(2), 79-99. https://doi.org/10.3846/16111699.2007.9636156

Share