This book adopts the decision theoretic viewpoint in the organization design problems in management and organization theory. The first part considers a short-run adaptive process in the organization. The organization design is represented by a combination of the organization structure and the management system and constitutes a part of the sequential decision problem of the work. The second part considers the long-run adaptive process for modifying and improving the work. This process is formulated as a partially observable Markov decision process. The final part restates the theoretical...