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Dilbert-Peter Model of Organization Effectiveness: Computer Simulations

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  • Pawel Sobkowicz

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Abstract

We describe a computer model of general effectiveness of a hierarchical organization depending on two main aspects: effects of promotion to managerial levels and efforts to self-promote of individual employees, reducing their actual productivity. The combination of judgment by appearance in the promotion to higher levels of hierarchy and the Peter Principle (which states that people are promoted to their level of incompetence) results in fast declines in effectiveness of the organization. The model uses a few synthetic parameters aimed at reproduction of realistic conditions in typical multilayer organizations. It is shown that improving organization resiliency to self-promotion and continuity of individual productiveness after a promotion can greatly improve the overall organization effectiveness.

Suggested Citation

  • Pawel Sobkowicz, 2010. "Dilbert-Peter Model of Organization Effectiveness: Computer Simulations," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 13(4), pages 1-4.
  • Handle: RePEc:jas:jasssj:2010-14-2
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    File URL: http://jasss.soc.surrey.ac.uk/13/4/4/4.pdf
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    References listed on IDEAS

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    5. Pluchino, Alessandro & Rapisarda, Andrea & Garofalo, Cesare, 2010. "The Peter principle revisited: A computational study," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(3), pages 467-472.
    6. Alexander K. Koch & Julia Nafziger, 2012. "Job Assignments under Moral Hazard: The Peter Principle Revisited," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(4), pages 1029-1059, December.
    7. Joao Ricardo Faria, 2000. "An Economic Analysis of the Peter and Dilbert Principles," Working Paper Series 101, Finance Discipline Group, UTS Business School, University of Technology, Sydney.
    8. Julius Kane, 1970. "Dynamics of the Peter Principle," Management Science, INFORMS, vol. 16(12), pages 800-811, August.
    9. Edward P. Lazear, 2001. "The Peter Principle: Promotions and Declining Productivity," NBER Working Papers 8094, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Sobkowicz, Pawel, 2016. "Agent based model of effects of task allocation strategies in flat organizations," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 458(C), pages 17-30.
    2. Davide Secchi & Raffaello Seri, 2017. "Controlling for false negatives in agent-based models: a review of power analysis in organizational research," Computational and Mathematical Organization Theory, Springer, vol. 23(1), pages 94-121, March.

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