List and Briefly Explain Each of the Four Key Principles

question 97

Essay

List and briefly explain each of the four key principles for thinking like an economist.

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Definitions:

Hierarchy of Authority

The structured ranking of positions within an organization, where every level is subordinate to the one above it.

Departmentalization

The method an organization uses to structure itself by dividing responsibilities among different departments or units based on task, function, product, geography, or customer.

James D. Thompson

A sociologist known for his contributions to organizational theory, particularly for his work on organizations as open systems and technologies.

W. Edward Deming

An American engineer, statistician, and management consultant known for his work in the field of quality management and his contribution to Japan's industrial recovery post-World War II.