Collaboration, Motivation, and the Size of Organizations
AbstractWe present an analytical model of an organization that offers operational drivers of limits on team size. The model trades off benefits from collaborative problem solving against the disadvantages of diminishing motivation when groups get large. When the performance increase is linear with the number of team members, there is a barrier that prevents cooperation for large teams. When the performance increase is superlinear however, collaborative problem solving benefits balance motivational effects. Thus effective problem solving methods are of double value, improving direct productivity and mitigating the social dilemma of team production. The resuls imply that managers should enlarge their organizations up to the minimum limit set by the cooperation barrier and the exogenous performance limit.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Xerox Research Park in its series Working Papers with number _005.
Date of creation: Jan 1995
Date of revision:
Contact details of provider:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Calvo, Guillermo A & Wellisz, Stanislaw, 1978. "Supervision, Loss of Control, and the Optimum Size of the Firm," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 943-52, October.
- Erik Brynjolfsson & Thomas W. Malone & Vijay Gurbaxani & Ajit Kambil, 1994.
"Does Information Technology Lead to Smaller Firms?,"
INFORMS, vol. 40(12), pages 1628-1644, December.
- Erik J. Brynjolfsson & Thomas Malone & Vijay Gurbaxani & Ajit Kambil, 1991. "Does Information Technology Lead to Smaller Firms?," Working Paper Series 123, MIT Center for Coordination Science.
- Paul Milgrom & John Roberts, 1988. "Economic Theories of the Firm: Past, Present, and Future," Canadian Journal of Economics, Canadian Economics Association, vol. 21(3), pages 444-58, August.
- Armen A. Alchian & Harold Demsetz, 1971.
"Production, Information Costs and Economic Organizations,"
UCLA Economics Working Papers
10A, UCLA Department of Economics.
- Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-95, December.
- Erik Brynjolfsson & Haim Mendelson, 1997. "Information Systems and the Organization of Modern Enterprise," Working Paper Series 200, MIT Center for Coordination Science.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If references are entirely missing, you can add them using this form.