Showing posts with the label bounded rationality

Developing Networks for Economic Growth

Companies exist within a wider context of information, finances, resources, and sociological networks that impact their long-term health. Successful companies can formalize and embrace this interconnected nature to develop enhanced levels of performance. They are semi-open systems that can take in information, transform it into something new, and contribute to their environment while ensuring they are retaining healthy profit margins.  Hubs are made of clusters of competencies  that make up the back bone of local human capital. They form when businesses with similarities work in tandem and share common characteristics. We can see how clusters are formed around competencies in science, entrepreneurship, art, manufacturing, or just about any other industry.  Clusters have socialites who foster and push network creation. Socialites pass out cards, attend meetings, make phone calls, and connect resources and finances to create new things. They are the entrepreneurs and pro-s

The Cost of Embedded Group Networks within the Workplace

Workplace groups create their own values over time through social and economic associations that can damage the efficiency and financial viability of any organization. When organizations develop their own group standards, that lay in productive and accurate perceptions, their premises can encourage higher levels of organizational performance. Inappropriately socialized members often develop their own groups which influence the organizational culture and costs of transactions throughout their networks.   Left untouched the groups’ decisions become less logical and more damaging to the financial success of the total organization. It is important for executives to understand how they groups form and the potential wide reaching problems they can create. It is first beneficial to define what a group is. Groups perceive themselves as belonging to the same social unit (Lawler, Thye, and Yoon 2008). Their place in society is defined by their shared experiences and understandings. To ch