1. (10
pts.) Discuss how organizational architecture and corporate culture are
related. Use an example of a real-life firm and discuss how its corporate
culture blends with its organizational architecture.

2. (10
pts.) Billy Riggan is in charge of all technical developments at Always Round
Tire. He makes all the choices concerning product innovations in the company.
He finds that he is overworked and that several of his research scientists seem
to be spending work hours playing tennis. What is going on?

3. (10
pts.) Always Round Tire tries to base its promotions on seniority (where
education and training requirements are not necessary). The company finds that
this system seems to work most of the time with shop floor supervisors and team
managers. But the system breaks down for higher-level positions. Why?

4. (10
pts.) Economists believe the free rider problem is very important in complex
business organizational structures. Still, businesses continue to build teams
to solve problems or to deliver products to consumers. Often special rewards or
bonuses are provided to the team rather than to the individuals on the team.
Write a brief essay that either defends the economists’ concern or explain why
economists are wrong on this issue.

5. (10
pts.) Many firms today use 360-degree performance evaluations. Make a case for
this type of evaluation based on the informativeness principle. What problems
may be encountered from implementation of such a system?

6. (10
pts.) Reflecting on what you have learned in this course, discuss the relevance
of Responsible Stewardship in the context of economic analysis and
organizational architecture.