Skip to main content
Log in

An optimal management hierarchy for given groups of executives

  • Control in Social Economic Systems
  • Published:
Automation and Remote Control Aims and scope Submit manuscript

Abstract

An important problem in economics is the construction of an effective minimal-cost management hierarchy for an economic system. A model for optimization of a management hierarchy is designed, a cost function is defined on a set of hierarchies consisting of exogenically given subdivisions (managers for supervising given groups), whereas other parts of a hierarchy may be formed arbitrarily and contain multiple subordination, etc. The optimal hierarchy for certain classes of cost functions is determined.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  1. Burkov, V.N. and Novikov, D.A., Teoriya aktivnykh sistem: sostoyanie i perspektivy (Theory of Active Systems: State-of-the-Art and Future), Moscow: Sinteg, 1999.

    Google Scholar 

  2. Novikov, D.A., Setevye struktury i organizatsionnye sistemy (Network Structures and Organizational Systems), Moscow: Inst. Probl. Upravlen., 2003.

    Google Scholar 

  3. Novikov, D.A., Mekhanizmy funktsionirovanniya mnogourovnevykh organizatsionnykh sistem (The Mechanisms of Functioning of Multilevel Organization Sistems), Moscow: Fond “Problemy Upravleniya,” 1999.

    Google Scholar 

  4. Ovsievich, B.I., Modeli formirovaniya organizatsionnykh struktur (Models of Formation of Organizational Structures), Leningrad: Nauka, 1979.

    Google Scholar 

  5. Tsvirkun, A.D., Osnovy sinteza struktury slozhnykh sistem (The Structure of Complicated Systems: Principles of Design), Moscow: Nauka, 1982.

    Google Scholar 

  6. Dement’ev, V.T., Erzin, A.I., Larin, R.M., and Shamardin, Yu.V., Zadachi optimizatsii ierarkhicheskikh struktur (Optimization of Hierarchical Structures), Novosibirsk: Novosib. Univ., 1996.

    Google Scholar 

  7. Voronin, A.A. and Mishin, S.P., A Model of Optimal Control for Structural Variations of an Organizational Systems, Avtom. Telemekh., 2002, no. 8, pp. 136–150.

  8. Voronin, A.A. and Mishin, S.P., Algorithms for Determining the Optimal Structure of an Organizational System, Avtom. Telemekh., 2002, no. 5, pp. 120–132.

  9. Voronin, A.A. and Mishin, S.P., Optimal’nye ierarkhicheskie struktury (Optimal Hierarchical Structures), Moscow: Inst. Probl. Upravlen., 2003.

    Google Scholar 

  10. Gubko, M.V., The Structure of the Optimal Organization of a Continuum of Executives, Avtom. Telemekh., 2002, no. 12, pp. 116–130.

  11. Mishin, S.P., Optimal Stimulation in Multilevel Hierarchical Structures, Avtom. Telemekh., 2004, no. 5, pp. 96–119.

  12. Mishin, S.P., Optimal’nye ierarkhii upravleniya v ekonomicheskikh sistemakh (Optimal Administrative Hierarchies for Economic Systems), Moscow: Inst. Probl. Upravlen., 2004.

    Google Scholar 

  13. Marschak, T.A. and Radner, R., Economic Theory of Teams, New Haven: Yale Univ. Press, 1972.

    Google Scholar 

  14. Keren, M. and Levhari, D., Decentralization, Aggregation, Control Loss, and Costs in a Hierarchical Model of a Firm, J. Econom. Behavior Organiz., 1989, no. 11, pp. 213–236.

  15. Keren, M. and Levhari, D., The Internal Organization of a Firm and the Shape of Average Costs, Bell J. Econom., 1983, no. 14, pp. 474–486.

  16. Radner, R., The Organization of Decentralized Information Processing, Econometrica, 1993, vol. 61, no. 5, pp. 1109–1146.

    Article  MATH  Google Scholar 

  17. Van Zandt, T. Organizations with an Endogenous Number of Information Processing Agents. Organizations with Incomplete Information, Cambridge: Cambridge Univ. Press, 1996.

    Google Scholar 

  18. Bolton, P. and Dewatripont, M., A Firm as a Communication Network, Quarterly J. Econom., 1994, CIX, pp. 809–839.

    Article  Google Scholar 

  19. Radner, R., Hierarchy: The Economics of Managing, J. Econom. Liter., 1992, no. 3, pp. 1382–1415.

Download references

Author information

Authors and Affiliations

Authors

Additional information

Original Russian Text © S.P. Mishin, 2006, published in Avtomatika i Telemekhanika, 2006, No. 7, pp. 144–160.

This work was supported by the Foundation for Aid to Russian Science, President Grant no. MK-8928.2006.1.

This paper was recommended for publication by D.A. Novikov, a member of the Editorial Board

Rights and permissions

Reprints and permissions

About this article

Cite this article

Mishin, S.P. An optimal management hierarchy for given groups of executives. Autom Remote Control 67, 1144–1158 (2006). https://doi.org/10.1134/S0005117906070137

Download citation

  • Received:

  • Issue Date:

  • DOI: https://doi.org/10.1134/S0005117906070137

PACS number

Navigation