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Course Description
The objective of this course is to develop a rational economic framework for analyzing the
consequences of three key organizational decisions:
♦ how decision rights are allocated within a firm;
♦ how employee performance is measured; and
♦ how employees are compensated.
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Automation Consulting Services. 9-190-053
Pepsi Cola US Beverages (A) 9-390-034
General Dynamics: Compensation and Strategy (A) 9-494-048
Compensation and Performance Evaluation at
Arrow Electronics 9-800-290
Family Feud (A): Anderson v. Anderson 9-800-064
The Enron Collapse IMD164
Schedule of Assignments
Retreat
Assignment: None
Retreat
Topic: Introduction to Managerial Economics
Date: May 12
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Week 1: An Economic View of Behavior
Dates: October 16 – October 22
Lecture: Economic View audio files and slides on Blackboard
Readings: Chapters 1 and 2
Plan Ahead: Lincoln Electric cases will be discussed October 29
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Week 2: Organizational Architecture
Dates: October 23 – October 29
Lecture: Organizational Architecture audio files and slides on Blackboard
Readings: Chapter 3
Web Conference: Sunday, October 29: 5:00 pm CST for Teams 1, 2 and 3
________________________________________________________________
Week 3: Allocating Decision Rights: Empowerment
Dates: October 30 – November 5
Lecture: Empowerment audio files and slides on Blackboard
Readings: Chapter 4
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Case: Pepsi Cola U.S. Beverages
Web Conference: Sunday, November 12: 5:00 pm CST for Teams 1, 2 and 3
________________________________________________________________
Week 5: Performance Measurement and Evaluation
Dates: November 13 - November 19
Lecture: Performance audio files and slides on Blackboard
Readings: Chapters 6 and 7
Web Conference: Sunday, November 19: 5:00 pm CST for Teams 1, 2 and 3
________________________________________________________________
Web Conference: Sunday, December 3: 8:00 pm CST for All Teams 1-3
________________________________________________________________
Web Conference: Sunday, December 10: 5:00 pm CST for Teams 1, 2 and 3
________________________________________________________________
Web Conference: Sunday, December 17: 5:00 pm CST for Teams 1, 2 and 3
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Grading Policy and Evaluation
Grading Formula
A Power Point presentation, lecture notes and case discussion questions will all be posted at
least 3 weeks prior to the web conference. The purpose of the web conferences is to discuss
the week’s case. You are expected to use the Elluminate web conference system to discuss
the case with your team before the web conference. The presentation, lecture notes and
textbook readings will help you understand the discussion topic and prepare your answers to
the case questions.
You should diligently prepare each case with your team regardless of whether or not you
choose to write it up. You will be evaluated based on your attendance and level of participation
in the web conferences.
Choose any one case except Lincoln Electric to write up. You may write up more than one if
you choose; your grade will be based on the best one. All written cases are due no later than
the start of the teleconference at which they will be discussed.
Each student will be required to submit a confidential team peer evaluation at the end of the
semester. These evaluations will be considered in assigning the final course grade.
BE SURE TO NOTIFY THE TEAM THAT YOU ARE ONLY REQUIRED TO PARTICIPATE ON
ONE TEAM ASSIGNMENT.
Submission
Assignments should be posted on Blackboard (Bb) within the course area by the due date.
Assignments are submitted to the Digital Drop Box under Tools tab. Be sure to use the
SEND command to submit to the Drop Box. Do not use ADD command to post.
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Late Assignments
If you need to miss a web conference, please pre-notify the instructor and course manager
before the web conference begins. The following week, you should listen to the posted
audio of the web conference. Missed web conferences cannot be made up. There are no
extensions for team assignments.
For the peer evaluation, each student must allocate 100 points among the team members to
reflect the level of contribution each has made to the case write-ups. Each student has full
discretion to use whatever evaluation criteria he/she thinks is most appropriate. These
evaluations are taken seriously by the faculty, and will be held in strictest confidence.