Our new paper in the International Journal of Organization Theory & Behavior explores how modularity and conformity impact organizational performance. The study examines modularity, which involves breaking down tasks into smaller, interdependent parts, and conformity, where individuals adjust their behavior to fit in with others.
Using agent-based modeling and simulation, we researchers modeled organizations as complex systems. We found that concentrating interdependent tasks within fewer departments boosts overall performance. However, conformity generally reduces performance, except when departments handle very similar tasks. This finding may explain why functional structures, which are less modular but have lower levels of conformity, are still commonly used.
Interestingly, the study also found that in highly complex environments, increasing complexity within departments can improve performance. We are among the first to explore the combined effects of modularity and conformity in organizational structures, offering new insights into organizational theory and behavior.
For more details, check out the full paper in the International Journal of Organization Theory & Behavior.