TAILIEUCHUNG - Microeconomics for MBAs 57

Microeconomics for MBAs 57. The Economic Way of Thinking for Managers. Microeconomics for MBAs develops the economic way of thinking through problems that MBA students will find relevant to their career goals. Maths is kept simple and the theory is illustrated with real-life scenarios | Chapter 16 Public Choice Politics in Government and the Workplace 19 As the diversity within a decision-making unit increases more disciplines included with more divergent views on how analyses should be organized and pursued the demand for tenure will increase. Should universities become more constrained in their capacities to fund established faculty positions tenure may be perceived as even more valuable. Financial exigencies can translate into the loss of faculty positions with nontenured positions becoming prime targets so it should not be surprising that faculty will seek with greater diligence to redistribute remaining positions and rents. It also means universities will probably have to spend considerable resources seeking to instill academic values -- not the least of which will be the pursuit of honest dealings and academic excellence. This emphasis may cause faculty members to shun an important incentive inherent in the political process especially in large group settings that is the tendency to pursue strictly private objectives at the expense of larger university Why Business People Don t Have Tenure If professors have tenure why don t business people have provision for the same kind of job security The quick answer to that question is that businesses unlike universities typically are not labor managed. Those that are like universities should be expected to use some form of tenure. As noted in business goals are usually well defined. Perhaps more importantly success can usually be identified with relative ease by using an agreed-upon measure that is profit or the expected profit stream captured in the market prices of traded securities . The owners who are residual claimants have an interest in maintaining the firm s focus on profits. Moreover people who work for businesses tend to have a stake in honest evaluations of potential employees given that their decisions on better recruits can increase the firm s profits and the incomes and job .

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• Principles of Rational Behavior
• Society and Business
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