A monograph by Yanren ZHANG, assistant researcher at Fudan Development Institute, titled Organizational Incentives and Managerial Expansion, was jointly published by Gezhi Publishing House, Shanghai People's Publishing House, and Shanghai Sanlian Bookstore. From the perspective of organizational economics, the book analyzes the intrinsic mechanisms behind the expansion of bureaucratic institutions and explores the implicit constraints that drive this phenomenon.

 In the industrial and pre-industrial eras, such implicit constraints could only be addressed by increasing managerial hierarchies and scale. The study challenges the traditional view of managerial expansion as organizational inefficiency, revealing its economic rationale. It is, in essence, a suboptimal choice made by bureaucratic organizations to maintain personnel redundancy, thereby addressing multiple implicit constraints. However, the revolutionary breakthroughs in digital technology will ultimately undermine the foundational rationale of traditional bureaucratic systems, suggesting a new possibility: future bureaucratic machinery may transcend the conventional creation-expansion-collapse cycle and enter a new era of algorithmic governance.

Translated by Yihan DONG

Full text in Chinese available at:

https://fddi.fudan.edu.cn/71/8d/c19045a749965/page.htm