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By Nobuo Takahashi

Organization layout has been mentioned by means of many authors in administration and association idea. they've got received intuitive and prescriptive propositions beautiful that the simplest association layout is contingent at the environmental stipulations. yet their reviews, referred to as contingency thought, are usually in accordance with empirical learn. lots of the "propositions" are drawn as in basic terms inferences from the result of them. however, determination theoretic types of "organizations" within the stochastic surroundings were studied by means of a few economists and administration scientists independently of contingency conception. during this e-book, vital features of association layout difficulties are formulated as statistical choice difficulties within the framework of administration and association concept. half one among this booklet analyzes a short-run adaptive difficulties of the association layout. half One includes an improved exposition of the guidelines and effects released within the expert journals, and that i want to thank the nameless reviewers of the subsequent journals: Behaviormetrika, Human family, Behavioral technological know-how. half of this publication considers a long-run adaptive strategy within the association, and has now not formerly been released in its IV current shape, even though a model of this half is to seem in magazine of the dep. of Liberal Arts, March 1987, The college of Tokyo. The resul ts of half One and half are supported via the empirical learn on eastern companies partially 3. This examine used to be financially supported via Nippon Telegraph and cellphone Public company (NTT). I recognize this gratefully.

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At the j-th decision epoch, the state of the innovation process is denoted by w=Pr{U=1}, where the j-th decision epoch is the decision opportunity to take the j-th action, j=1,2, •••• The state of the innovation process is the probability that the current task is good. Then the state space of the innovation process is 8=[0,1]. The core process of innovation The organization is assumed to obtain the reward R if it succeeds to operate the current task to meet or exceed the satisfactory criteria and the current task is good.

The efficient organization structure is independent of the management system in the sense that, for any fixed q and k, rk(wO,(q,d» is minimized by d * =(dO * , d 1 * , d 2 * , ••• ) • This theorem states that the optimal terminal decision rule d* of the organizational design problem is independent of a management system k and a stopping rule q. Then wi th respect to a prior distribution wO' the organizational design problem occurs in two separate and distinct steps: (1) First fix both a management system k and q, and try to find d (or try to find an organization structure) which minimizes rk(wO,(q,d», then (2) try to find a management system k and q which minimize infdrk(wO,(q,d».

From Definition 1 and the definition of the terminal decision rule, if the Bayes terminal decision rule d*eD', then the efficient organization structure is in the pyramid organizations. Using the results of statistical decision theory, we can prove the following theorem. Theorem 4. There exists an efficient pyramid organization. This theorem does not deny the possibility of the efficient matrix organization, but it is not essential and seldom happens that the matrix organization is efficient as illustrated in the following simple example.

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