MG4B6      Half Unit
Design and Management of Organisations (formerly MN426)

This information is for the 2015/16 session.

Teacher responsible

Dr Yona Rubinstein


This course is compulsory on the MSc in Management and Strategy. This course is available on the MSc in Management and MSc in Management (CEMS MIM). This course is available with permission as an outside option to students on other programmes where regulations permit.

Course content

In this course we investigate aspects of management and the internal organisation of the firm. We start by discussing management decision making in the light of general heuristics and biases exhibited by individuals and groups and ask how organisations might help to mitigate negative consequences arising from these predispositions. We also shed light on the management of teams and non-monetary aspects of motivation. Other topics include formal and informal structures of organisations, leadership, power, authority, delegation, entrepreneurship, innovation, promotions and careers. We conclude by looking at two intangible assets of organisations: corporate culture and corporate social responsibility. Students are introduced to a set of frameworks which will enable them to critically evaluate contemporary management approaches. The organising principle of much of the content of the course has its origins in economic theory and empirical behavioural observations which are applied to issues and ideas relevant to management. Additionally we draw upon findings form psychology and sociology. The course complements MN404 (Incentives and Governance in Organisations) but can be taken as a stand-alone course. Whereas MN404 focuses on incentive contracts, principal-agent models and topics in finance, this course focuses more on aspects of informal structure.


20 hours of lectures and 10 hours of seminars in the LT.

Students on this course will have a reading week in Week 6, in line with Departmental policy.

Formative coursework

Students will be expected to produce 1 problem sets in the LT.

Indicative reading

Rayo, Luis, and Gary S. Becker (2007), “Habits, Peers, and Happiness: An Evolutionary Perspective,” The American Economic Review P&P 97(2): 487-491. Available through JSTOR.

Garicano, Luis and Richard A. Posner (2005), “Intelligence Failures: An Organizational Economics Perspectives,” Journal of Economic Perspectives 19(4): 151-170. Available through JSTOR.

Lazear, Edward P. (2004), “Balanced Skills and Entrepreneurship,” The American Economic Review P&P 94(2): 208-211. Available through JSTOR.

How Pixar Fosters Collective Creativity, HBS case R0809D-PDF-ENG.


Exam (100%, duration: 2 hours) in the main exam period.

Key facts

Department: Management

Total students 2014/15: Unavailable

Average class size 2014/15: Unavailable

Controlled access 2014/15: No

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Problem solving
  • Communication
  • Commercial awareness

Course survey results

(2011/12 - 2013/14 combined)

1 = "best" score, 5 = "worst" score

The scores below are average responses.

Response rate: 62%



Reading list (Q2.1)


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