The Economics and Sociology of Management Consulting

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Cambridge University Press, 2006 M11 16
Management consultancy is a key sector in the economic change toward a service and knowledge economy. Originally published in 2006, this book explains the mechanisms of the management consulting market and the management of consulting firms from both economic and sociological perspectives. It also examines the strategies, marketing approaches, knowledge management and human resource management techniques of consulting firms. After outlining the relationships between transaction cost economics, signaling theory, embeddedness theory and sociological neoinstitutionalism, Thomas Armbrüster applies these theories to central questions such as: Why does the consulting sector exist and grow? Which institutions connect supply and demand? And which factors influence the relationship between clients and consultants? By applying both economic and sociological approaches, the book explains the general economic changes of the previous thirty years and sharpens the relationship between the academic disciplines.

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Contenido

Sección 1
32
Sección 2
41
Sección 3
48
Sección 4
51
Sección 5
65
Sección 6
68
Sección 7
86
Sección 8
93
Sección 11
106
Sección 12
119
Sección 13
140
Sección 14
144
Sección 15
146
Sección 16
148
Sección 17
152
Sección 18
178

Sección 9
101
Sección 10
104
Sección 19
205

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Página 169 - Invest moderately in IT; the goal is to facilitate conversations and the exchange of tacit knowledge. Hire new college graduates who are well suited to the reuse of knowledge and the Implementation of solutions.
Página 13 - ... called the firm's owner and the employer. No authoritarian control is involved; the arrangement is simply a contractual structure subject to continuous renegotiation with the central agent. The contractual structure arises as a means of enhancing efficient organization of team production. In particular, the ability to detect shirking among owners of jointly used inputs in team production is enhanced (detection costs are reduced) by this arrangement and the discipline (by revision of contracts)...
Página 22 - ... networks") of such relations in generating trust and discouraging malfeasance. The widespread preference for transacting with individuals of known reputation implies that few are actually content to rely on either generalized morality or institutional arrangements to guard against trouble. Economists have pointed out that one incentive not to cheat is the cost of damage to one's reputation; but this is an undersocialized conception of reputation as a generalized commodity, a ratio of cheating...
Página 36 - A rational and fruitful discussion is impossible unless the participants share a common framework of basic assumptions or, at least, unless they have agreed on such a framework for the purpose of the discussion.
Página 169 - Hire new College graduates who are well suited to the reuse of knowledge and the Implementation of Solutions. Train people in groups and through Computerbased distance learning. Reward people for using and contributing to document databases.
Página 35 - One of the more disturbing aspects of the intellectual life of our time is the way in which irrationalism is so widely advocated, and the way in which irrationalist doctrines are taken for granted. One of the components of modern irrationalism is relativism (the doctrine that truth is relative to our intellectual background, which is supposed to determine somehow the framework within which we are able to think: that truth may change from one framework to another), and...
Página 169 - ... problems by channeling individual expertise. REUSE ECONOMICS: Invest once in a Knowledge asset; reuse it many times. Use large teams with a high ratio of associates to partners. Focus on generating large overall revenues. Economic Model EXPERT ECONOMICS: Charge high fees for highly customized solutions to unique problems. Use small teams with a Iow ratio of associates to partners. Focus on maintaining high profit margins. PEOPLE-TO-DOCUMENTS: Develop an electronic document system that codifies,...
Página 170 - In other companies, knowledge is closely tied to the person who developed it and is shared mainly through direct person-to-person contacts. The chief purpose of computers at such companies is to help people communicate knowledge, not to store it. These companies focus on dialogue between individuals, not knowledge objects in a database. Knowledge that has not been codified is transferred in brainstorming sessions and oneon-one conversations.
Página 35 - The proponents of relativism put before us standards of mutual understanding which are unrealistically high. And when we fail to meet those standards, they claim that understanding is impossible.
Página 78 - Better than the statement that someone is known to be reliable is information from a trusted informant that he has dealt with that individual and found him so. Even better is information from one's own past dealings with that person. This is better information for four reasons: (1) it is cheap; (2) one trusts one's own information best — it is richer, more detailed, and known to be accurate; (3) individuals with whom one has a continuing relation have an...

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