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The co-evolution of organizational performance and emotional contagion

Author

Listed:
  • Cowan, Robin

    () (UNU-MERIT, and SBE, Maastricht University)

  • Jonard, Nicolas

    () (University of Luxemburg)

  • Weehuizen, Rifka

    () (UNU-MERIT)

Abstract

In this paper we model interactions between organizational structures, job stress, emotional contagion and organization performance. An organization is modelled as solving problems or performing tasks. Tasks enter the organization and can be addressed by a subset of its members. Organization structure determines which agents can address which problems. Members address the task by applying energy to it. An agent's available energy is determined by his stress level, which is in turn determined by his workload. However agents' stress levels are moderated by social interactions that take place in parallel to the work environment. Organizations can be structured as a group of specialized individuals or as hierarchies of varying depths. We explore the effects of organizational structure and social interactions on performance.

Suggested Citation

  • Cowan, Robin & Jonard, Nicolas & Weehuizen, Rifka, 2012. "The co-evolution of organizational performance and emotional contagion," MERIT Working Papers 012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2012012
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    File URL: https://www.merit.unu.edu/publications/wppdf/2012/wp2012-012.pdf
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    References listed on IDEAS

    as
    1. John Conlisk, 1996. "Why Bounded Rationality?," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 669-700, June.
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    More about this item

    Keywords

    stress; emotional contagion; social networks; organization structure; productivity;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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