MG4A3 Half Unit
Incentives and Governance in Organisations
This information is for the 2025/26 session.
Course Convenor
Dr Catherine Thomas
Dr Pawel Dziewulski
Availability
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 and MSc in Marketing. This course is available with permission as an outside option to students on other programmes where regulations permit. This course uses controlled access as part of the course selection process.
How to apply:
Places on oversubscribed courses will be allocated via a random ballot process with priority given to students with the course in their Programme Regulations, followed by other Department of Management students, then students from elsewhere in the school. Providing you apply before the Department deadline of 10am on Monday 29 September 2025, the time you applied will not be taken into account. Please be aware that places on high demand courses cannot be guaranteed. By submitting an application, students are confirming that they meet any pre-requisites specified. Providing an additional written statement will not aid a student’s chances of being accepted onto a course, and statements are not read.
For further information and updates on course availability during Week 1, please see the Department of Management Electives Moodle page.
Deadline for application:
Please apply by 10am on Monday 29 September 2025 with your first course choices. No allocations are made before this date and time.
For queries contact:
Please view the Department of Management Electives page for contact emails.
This course may be capped/subject to controlled access. For further information about the course's availability, please see the MG Elective Course Selection Moodle page (https://moodle.lse.ac.uk/course/view.php?id=3840).
Requisites
Additional requisites:
A knowledge of Mathematics and Economics.
Course content
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 organisational structures and 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. The implications of asymmetric information are examined. Corporate governance is discussed in a principal-agent framework.
Teaching
30 hours of seminars in the Autumn Term.
2 hours of seminars in the Spring Term.
This course has a reading week in Week 6 of Autumn Term.
In its Ethics Code, LSE upholds a commitment to intellectual freedom. This means we will protect the freedom of expression of our students and staff and the right to engage in healthy debate in the classroom.
Indicative reading
Main text:
- Roberts J (2004), The Modern Firm. Organizational Design for Performance and Growth, Oxford University Press, UK.
Assessment
Exam (100%), duration: 120 Minutes in the Spring exam period
Key facts
Department: Management
Course Study Period: Autumn Term
Unit value: Half unit
FHEQ Level: Level 7
CEFR Level: Null
Total students 2024/25: 71
Average class size 2024/25: 14
Controlled access 2024/25: YesCourse selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Personal development skills
- Problem solving
- Application of information skills