Complexity, Robustness, and Performance
AbstractThis paper analyses the relationship between organizational complexity ( the degree of detail of information necessary to correctly assign agents to positions), robustness (the relative loss of performance due to mis-allocated agents), and performance. More complex structures are not necessarily more profitable, but are less robust. One of the least complex structures always performs worst. Superior organizational performance may vanish completely due to mis-allocated agents. Organizational performance can be enhanced through training agents; re-assigning them when adequate knowledge about their characteristics is obtained through monitoring; simplifying the organizational structure; and influencing the environment. The trade-offs involved are analysed.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 02-048/1.
Date of creation: 28 May 2002
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-06-13 (All new papers)
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- Yannis M. Ioannides, 2003.
"Complexity and Organizational Architecture,"
Discussion Papers Series, Department of Economics, Tufts University
0313, Department of Economics, Tufts University.
- Guido Fioretti & Bauke Visser, 2004. "A Cognitive Approach to Organizational Complexity," Tinbergen Institute Discussion Papers 04-033/1, Tinbergen Institute.
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