ABSTRACT
In the present chapter we investigate the mathematical models of organizational structure design. In Section 6.1 we illustrate the basic ideas, aspects, and trade-offs of organizational hierarchy design using a simple model of control hierarchy over a technological network. In Section 6.2 we survey the economical literature on optimization models of hierarchical organization. In Section 6.3 we introduce the universal framework of organizational hierarchy optimization and provide some general results on the shape of the optimal hierarchy. Section 6.4 describes the efficient methods for optimization of tree-shaped structures.
