Economics of Organisational Management

The details
Colchester Campus
Undergraduate: Level 5
Thursday 03 October 2024
Friday 13 December 2024
20 February 2024


Requisites for this module
(EC111 or IA151 or IA153) and EC115



Key module for

BA 9L11 Management Economics (Including Placement Year),
BA L108 Management Economics,
BA L190 Management Economics (Including Foundation Year),
BA L192 Management Economics (Including Year Abroad),
BSC 5M00 Management Economics (Including Placement Year),
BSC L109 Management Economics,
BSC L191 Management Economics (Including Foundation Year),
BSC L193 Management Economics (Including Year Abroad),
MECNL133 Management Economics,
MECNL134 Management Economics (Including Placement Year),
MECNL135 Management Economics (Including Year Abroad),
BA LN10 Business Economics,
BA LN11 Business Economics (Including Year Abroad),
BA LN12 Business Economics (Including Placement Year),
BA LX10 Business Economics (Including Foundation Year)

Module description

This module applies economic ideas to examine the organisational design of firms and how this design interacts with their environment and their competitive strategies. Although the module will adopt several perspectives, the primary perspective is that of incentive theory within the economic analysis of decision making.

The module first explores theoretically the fundamental concepts of contractual incompleteness, adverse selection, and moral hazard. These concepts serve as building blocks to understanding barriers that organizations face in achieving efficient coordination. The module then progresses to discuss concrete issues such as executive compensation, career paths within the firm, or team-based incentive schemes.

Module aims

The aims of this module are:

  • To provide students with an understanding of the economic principles that determine the relative performance of different organisational arrangements.

  • To apply these principles to provide insights into the economic aspects of decisions that confront the managers of private firms or public organisations.

Module learning outcomes

By the end of this module, students will be expected to be able to:

  1. Apply economic analysis to address issues involving the nature of organisational decision-making.

  2. Sort through a complex managerial situation and identify the crucial facts and issues.

  3. Identify the economic concepts that can help address these crucial issues.

  4. Evaluate actual managerial decisions.

  5. Convert the theoretical insights provided by the economic literature into recommendations for managerial decisions.

Transferable Skills

The module provides students with the following employability skills:

  1. Academic skills are enhanced through essay-writing, mathematical problem-solving and the use of ICT equipment.

  2. Students are encouraged to carry out research and information gathering for term papers and as background reading.

  3. External awareness, and in particular knowledge of work and organisational culture, is promoted through real world case studies.

Module information


  • Organisations, Efficiency and Contracts

  • Private Information and Adverse Selection

  • Overcoming Adverse Selection

  • Moral Hazard

  • Incentive Contracts

  • Executive Compensation

  • Internal Labour Markets

  • Team Incentives

  • Behavioural Economics and Incentives

  • Revision

  • Learning and teaching methods

    The module will be delivered via:

    • One 2-hour lecture per week, in one term.

    Lectures will be a mixture of formal presentations of the necessary theoretical tools and case discussions, where students are invited to apply these tools to concrete situations.


    This module does not appear to have any essential texts. To see non - essential items, please refer to the module's reading list.

    Assessment items, weightings and deadlines

    Coursework / exam Description Deadline Coursework weighting
    Coursework   Assignment    100% 
    Exam  Main exam: In-Person, Open Book, 120 minutes during Summer (Main Period) 
    Exam  Reassessment Main exam: In-Person, Open Book, 120 minutes during September (Reassessment Period) 

    Exam format definitions

    • Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
    • In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
    • In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
    • In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary, for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.

    Your department will provide further guidance before your exams.

    Overall assessment

    Coursework Exam
    50% 50%


    Coursework Exam
    50% 50%
    Module supervisor and teaching staff
    Dr Thomas Brzustowski, email:
    Lectures: Dr Thomas Brzustowski
    For further information, send an email message to



    External examiner

    Dr Giancarlo Ianulardo
    University of Exeter Business School
    Lecturer in Economics
    Available via Moodle
    Of 20 hours, 20 (100%) hours available to students:
    0 hours not recorded due to service coverage or fault;
    0 hours not recorded due to opt-out by lecturer(s).


    Further information

    * Please note: due to differing publication schedules, items marked with an asterisk (*) base their information upon the previous academic year.

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