Pia Shannen Odin 2nd year BSA-D

Assignment #1:

1. Define organizational architecture and discuss how economics can be used to

help managers solve organizational problems and structure more effective
organizational architectures.

- Organizational architecture is a description of the organization's existing

systems. It also integrates human activities and capital resource utilization within
a task allocation and coordination structure to achieve desired outcomes and
performance in both the short and long run. Knowing the context of
organizational architecture should assist/helps managers in assessing the
expected benefits and costs of management innovations for their respective
businesses and assist managers, given the highly valuable set of organizational
changes in identifying other aspects of the organization that require attention and
possibly complementary changes. An effective organizational architecture not
only connects decision-making authority to people with relevant information but
also ensures that decision-makers are appropriately rewarded for making real
worth choices.

2. Define Economic Darwinism and discuss its implications related to the

benchmarking of business practices.

- Economic Darwinism is a process that combines two ideas: mutation and

economical selection. It is the belief that businesses that are the most efficient
and adaptable to change will thrive, while those that are less efficient and less
adaptable will fail. The concept of survival of the fittest underpins this theory.
Businesses that can adapt and change will thrive, while those that cannot adapt
will fail. This theory applies to businesses of all sizes, from small to large
corporations. Economic Darwinism has significant implications for benchmarking
business practices. The ability of businesses to adapt and change should be
considered when benchmarking business practices. Businesses that cannot
adapt and change should be measured against those that can. Business
practices should be benchmarked using the survival of the fittest principle.