Comparing Organizational Structures via Alternative Cooperative Game Theoretic Frameworks
Abstract
Due to dynamically changing fiscal and operational environments, the Air Force is seeking a deeper understanding of organizational structure and its impact on organizational effectiveness; however, the issue of identifying an effective organizational structure is a concept constantly revisited by organizations in public, private, and governmental sectors alike. Current methodologies for measuring organizational effectiveness, and thereby evaluating organizational structure, tend towards a point in time perspective from an organizations top management. In this research, we propose analyzing organizational structure from a subordinate organizations or representative agents perspective using coalitional game theory, with particular emphasis on the methodologies of traditional coalitional game theory, Myerson graph theory, and hedonic coalition formation. Upon surveying the literature to assess whether methods exist to classify and analyze contributing elements of organizational effectiveness, we identify three viable alternative methodologies for quantifiably evaluating alternative organizational structures. Considering a representative scenario, we extend the published work by applying and comparing these methodologies. The results of the analysis indicate that, in traditional usage, all three coalitional game theory methodologies perform similarly. However, in cases with situational factors, such as dysfunctional linkages between agents, multi-dimensional levels of preferences, or limitations in the solicitation of effectiveness values or preferences, unique differences emerge between methodologies. We conclude by providing a comparative analysis and discussion with recommendations to help decision-makers and analysts determine the best strategy for evaluating organizational structure from the agent-based view, followed by an examination of the value of respective methodologies when primary assumptions about agent-to-agent relationships do not hold.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 21, 2017
- Accession Number
- AD1055592
Entities
People
- Nicole B. York
Organizations
- Air Force Institute of Technology