Effort, Satisfaction and Outcomes in Organisations

In this paper, an agent-based model of bounded-rational agents, who adapt both their effort intensity (by the interaction with other employees) and their stay-on-the-job-intention (by the alignment of their personal values with the Human-Resource Management (HRM) practices implemented by the organisation), is proposed. Our aim is to analyse: (i) the emergence of an organisational culture and its relationship with both formal organisational structures and employees' effort-behaviours; (ii) the increase of organisational performance by retaining valuable-performance employees whereas poor-performance employees are dismissed. We have obtained that: (i) Some possible combinations of both employees-effort behaviours and formal organisational structures can favour the emergence of organisational cultures more than others; (ii) The interaction between employees within matrix structures (balanced or strong) with a democratic team leadership favour the emergence of organisational cultures; (iii) High-effort managers are relevant for the emergence of high-performance organisational cultures; (iv) Turnover (voluntary or involuntary) affects to the emergence of organisational culture negatively. We conclude that the main challenge is to retain high effort managers by adapting the set of HRM practices to them.