1.

 What are the three components of organizational architecture? Which one is

most important to the success of the firm? 
The three components of the organizational architecture are: assignment of decision
rights, the reward system, and the performance-evaluation system. Wherein, assignment of
decision right is associated with decision-making authority to examine relevant information of
a firm to make good and correct decisions. Correspondingly, the reward system and
performance-evaluation systems of an organization provide self-interested decision-makers
with suitable incentives to craft decisions that can boost the organizations' values.
These three components were constructed based on the correction of Enron's
mistakes that had led to its downfall. The coordination of these three things can heighten a
firm's success. With the question, which one is the most important component that leads to
the firm's success? I believe that you cannot choose only one because success will be
attainable if these three functions together. To support my claim, the chapter had made
mention of it in its explanation on Managerial Economics. Stating that those firms focused on
a particular facet of the organization (whether it be quality control, worker empowerment, or
the compensation system) bears the consequence of a myopic suggestion that can lead to a
firm's collapse. Additionally, the discussion on Economic Darwinism had also mentioned that
for a firm to succeed, the elements of the organization must be carefully coordinated and
must be structured to work together to achieve the firm's goals.
However, there is still as little leverage among them, and the one that carries this
advantage is the component assignment of decision right because it is the firm's brain that
controls every action done in the firm. This component is crucial since important decisions for
the firm are its responsibility, and one mistake might destroy everything. An example of it is
Enron's bankruptcy that, according to Business Week, resulted from a wrong assignment of
young, inexperienced managers with no necessary controls to minimize failures that had
paced the business in bad bets. Furthermore, economic Darwinism also explained that
organizational decisions are very significant in our industry since it has a high competition
that urges intense pressures for efficient choices. If you fail to adapt, you will be weeded out.
Yet, I am still firm in my stand that in attaining the firm's success, the three
components of organizational architecture must work together since they affect each other.
Even though the component assignment of decision right has a slight advantage, it still
cannot guarantee the firm's success since it still needs the structure of systems to evaluate
the performance of both individuals and business units and make a sound and correct
decision. It also requires the aid of the reward system to push workers to actualize the
decision maker's choices and help the business work and flourished. Henceforth, the firm's
success lies in the coordination of the three components, for a missing component results in
a consequence that forecast a great impact on the entire firm, as explained by the economic
Darwinism.

2. How can good management practices be useful in a global economy?

Good management practices sharpen company productions that make them globally
competent, providing them numerous benefits essential in the growth of the global economy.
The example in the chapter about Tianjin Optical & Electrical Communication Group
showcases how management practices became helpful to the global economy. It was stated
in the chapter that through the management practice, adapted from U.S. telecommunications
company's quality-control and management practices, the company was able to bounce back
from bankruptcy. It is due to the effectiveness of management practices that had enhanced
the quality of their outputs and had given them a vital role in a foreign business that has
become an essential conduit for economic reform. As a result, other Chinese partners who
had also adapted the U.S. management practices have been introduced to modern
production technology and a more effective organizational architecture to the Chinese
business community. On top of that, a fifth of China's trillion-dollar economy is contributed
from these collateral benefits, foreign firms, and their joint ventures. Whence, having good
management practices is significant in a global economy because it can aid businesses to
improve the quality of their product, making them globally competent, giving them privileges
that assist in an economy's growth.