Individual Assignment2 - I ndividual Assignment #2 1. TCE...

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Unformatted text preview: I ndividual Assignment #2 1. TCE is a theory that demonstrates the importance of fi rms, and why t ransactions directed by managers or based on a hierarchical structure is more successful than t ransactions dealt within a free market. The total cost of a product consists of the production cost and t ransaction cost. Fi rms are more successful at minimizing costs which means higher profit. TCE is i nvolved in project management as both have the same goals, since a successful fi rm needs management to produce at the lowest costs possible. 2. Mat r ix organizations are structured in a horizontal f low of authority, in addition to the existing vertical f low, where employees are assigned to both f unctional and project managers. Mat rix organizational structure relates to p roject management in a way where i t is delegating tasks to the employees t han can perform it best. For instance, the best engineer in the fi rm might not be a good manager or communicator; therefore he/she is more successful a t engineering than leading the project. I t is placing the r ight talents in the r ight positions for a more efficient fi rm. Employees in a mat rix organizational form have to report to two bosses, who might not agree on some decisions, which could get the employee under pressure. I t is more d ifficult to satisfy two leaders than one. ...
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This note was uploaded on 05/26/2011 for the course BA 320 taught by Professor Mattwimble during the Fall '10 term at University of Michigan-Dearborn.

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