Control in Social Economic Systems

An optimal management hierarchy for given groups of executives

S. P. Mishin

Trapeznikov Institute of Control Sciences, Russian Academy of Sciences, Moscow, Russia

Abstract: An important problem in economics is the construction of an effective minimal-cost management hierarchy for an economic system. A model for optimization of a management hierarchy is designed, a cost function is defined on a set of hierarchies consisting of exogenically given subdivisions (managers for supervising given groups), whereas other parts of a hierarchy may be formed arbitrarily and contain multiple subordination, etc. The optimal hierarchy for certain classes of cost functions is determined.

PACS: 02.10.Ox

Presented by the member of Editorial Board: D. A. Novikov

Received: 20.12.2005

 English version: Automation and Remote Control, 2006, 67:7, 1144–1158

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