MG4A3 Half Unit
Incentives and Governance in Organisations
This information is for the 2021/22 session.
Dr Catherine Thomas
This course is compulsory on the MSc in Management and Strategy. This course is available on the CEMS Exchange, Global MSc in Management, Global MSc in Management (CEMS MiM), Global MSc in Management (MBA Exchange), MBA Exchange, MPA Dual Degree (LSE and Columbia), MPA Dual Degree (LSE and Hertie), MPA Dual Degree (LSE and NUS), MPA Dual Degree (LSE and Sciences Po), MPA Dual Degree (LSE and Tokyo), MSc in Marketing and Master of Public Administration. This course is available with permission as an outside option to students on other programmes where regulations permit.
A knowledge of Mathematics and Economics.
The course uses economic theory to gain insight into issues related to internal organisation, structure, and management of firms. The course will draw on various fields including management science, industrial organisation and microeconomics.
The course deals with three main topics:
- the provision of incentives in organisations;
- the use of information in markets and firms, and;
- the relationship between corporate finance and organisational decisions.
A major theme concerns the question of how to provide incentives efficiently in organisations. Other important themes include efficiency, coordination, incompleteness of contracts and the use of the market versus internal exchange. A section of the course deals with capital structure. The implications of asymmetric information are examined. Corporate governance is discussed in a principal-agent framework.
20 hours of lectures and 9 hours of seminars in the MT.
Students on this course will have a reading week in Week 6, in line with Departmental policy.
- Roberts J (2004), The Modern Firm. Organizational Design for Performance and Growth, Oxford University Press, UK;
- Brealey, RS, Myers, and F Allen (2006), Corporate Finance, 8th edition (older editions are fine too);
- McGraw-Hill International Edition (US edition is titled "principles of corporate finance"; older versions by Brealey and Myers only).
Exam (100%, duration: 2 hours) in the summer exam period.
Course selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Important information in response to COVID-19
Please note that during 2021/22 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the differing needs of students in attendance on campus and those who might be studying online. For example, this may involve changes to the mode of teaching delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.
Total students 2020/21: 91
Average class size 2020/21: 19
Controlled access 2020/21: Yes
Value: Half Unit
Personal development skills
- Problem solving
- Application of information skills