This book explains how methodology of systems analysis and mathematical methods of control theory (including game theory and graph theory) can be applied to the area of organizational management. The theory presented extends the traditional approach of management science by introducing the optimization and game-theoretical tools for systematic accounting of the special nature of human being as a control object (such that opportunism, selfish behavior, information manipulation). Formal methods are used to construct robust and efficient decision-making procedures (the, so called, mechanisms), which support all aspects and stages of management activity (planning, organization, motivation, and monitoring), over all decision horizons, from operational to strategic management. We introduce a version of mechanism design customized to solve the problems of management in organizations. All mathematical models and mechanisms studied are motivated by the problems met by managers in firms and non-profit organizations.
