Department of public management
Course:-principle and theories of public
management(MAPM5014)
Article Review on Organizational economics
and management theory
Submitted to:-Dr. Desalegn Sherkabu.
(Ass.Professor).
Reviewed By:Demelash Dagnaw
Main Body Of The Article
• 1.definition and clarification of the problem
• this article discuss the nature and potentiality of
organizational economics in order to identify key issues or
problems and to point out the way towards a path for their
resolution.
• Definition based on the material organizational economics
is composed of the agency theory and transaction cost
economics. Agency theory contains the relationship of many
social concerns it helps to understand as a principal of and
an agent or two parties. On the other hand transactional cost
economics concernce on the problem of one economic actor
can not giving ful value to another in an economic market.
Cont…
2. summary of earlier research to inform the reader of what the
research status is material
• Relationships : there is the relationship between agency theory and
transactional cost economics approach for defining economics as a
managerial principle because they related as the agency theory
stated that social relationship must be understood for princeling
activities..
• Contradiction: There are a contradiction between negative moral
evaluation and normative or positive theory of social science in this
material.
• Gap: There is a gap between their views of management the gaps
present in both aproachment between economics and management
theories and a problem for the ready absorption of organizational
economics with in management theories..
abstract section of the article review
1. A summary of the problem being investigated
• This article have been investigated the relationship
between organizational economics and management
using agency theory and transaction cost economics
concept as well as stepwardship theory so the
investigator investigated solutions like to embrace the
positive approach of the original economic formulation
and the potentialities and pitfalls of organizational
economics are illustrated byreference to matrix
organization structures, vertical disintegration and in
insurance organizations and coorporate governance
Cont…
2.A summary of the main results with emphasis on Ethiopian public sectors
•
In this material the main result of the investigation mainly focus on analyzing the
theories of economics by this reason different theories state different managemenet
principles. From these results positive economical formulation, best organizational
structure, vertical disintegration and coorporate governance. These results has great
emphasis for Ethiopian public sector, because it is important to develop positive
economic formulation, minimizing vertical disintegration, and developed coorporate
govrnance system are very important investigation for organizational management and
maximization of economy for our country(Ethiopia).
Cont..
1. The conclusion and implication for theory, policy or practies
 they are situationally dependent and, as the context within which an
organisation changes, they may become inappropriate. Yesterday’s
solutions do not always match tomorrow’s problems.
 It does not follow the concept of ‘universality of principles’
which often apply to specific management situations
 Problems of Goal Setting
 The Short Run Nature of Goals
 It does not have a theoretical base