Organizational Communication Structure and Performance
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The effect of organizational communication structure on performance is studied using a project selection framework in which heterogeneous, rational agents can reject or accept projects. A hierarchy performs better than a polyarchy in tough environments, whereas the reverse holds in friendly environments. Hierarchies can be too strict from a social welfare point of view. Indeed, if the value of profitable but rejected projects is taken into account, a single agent can perform better than a hierarchy.
- D70 : Analysis of Collective Decision-Making: General
- D80 : Information, Knowledge, and Uncertainty: General
- D21 : Firm Behavior