MANAGE - An interactive simulation model for evaluating the effects of management structure on organization performance

Abstract

This research reports on progress to date in developing a com puterized simulation-optimization model of the general man agement structure of a firm. This model, called MANAGE, of fers a framework wherein the profit performance of a company can be simulated and assessed under a variety of structural con figurations. MANAGE also incorporates certain behavioral parameters that impact upon successful communication within corporate organizations. The paper describes the general framework of the model; the manner in which various struc tural, behavioral, and economic variables are incorporated into the model or can be set as desired by the user; and the nature of the outputs that are produced. Also described is the man ner in which MANAGE generates profit solutions under various combinations of behavioral, hierarchical, and economic con ditions and compares them with traditional optimal economic results. The paper concludes with a brief discussion of the potential applications of MANAGE.