Watercooler chat, organizational structure and corporate culture

Jonathan Newton, Andrew Wait, Simon D. Angus

Abstract: Modeling firms as networks of employees, occasional collaborative decision making around the office watercooler changes long run employee behavior (corporate culture). The culture that emerges in a given team of employees depends on team size and on how the team is connected to the wider firm. The implications of the model for organizational structure are explored and related to trends in the design of hierarchies.