Modeling Formal and Informal Ties Within an Organization: A Multiple Model Integration

Abstract

We present a simulation designed to capture the impact of both formal authority ties and informal socialization ties on the performance of an organization adapting to a turbulent world. We present a summary of three key models that informed our approach and then outline and describe the operation of our resulting simulation. Using an experiment that manipulated both the authority network structure and the stress the organization placed on socialization, we show inefficient authority structures harm performance, and also that socialization has a strong and nonlinear impact on peak organizational performance and on the performance of top management. We also present a case study, instantiating the general model with the specific context of a real-world organization. Finally, our integrated multimodel suggests that companies should pursue different strategies in hiring key strategic actors than they do for other actors.

Citation

Morgan, G.P. and Carley, K.M. (2012), "Modeling Formal and Informal Ties Within an Organization: A Multiple Model Integration", Lomi, A. and Harrison, J.R. (Ed.) The Garbage Can Model of Organizational Choice: Looking Forward at Forty (Research in the Sociology of Organizations, Vol. 36), Emerald Group Publishing Limited, Leeds, pp. 253-292. https://doi.org/10.1108/S0733-558X(2012)0000036013