Coordination mechanisms in multi objective setups: Results of an agent-based simulation

Abstract

In this paper, we analyze how different modes of coordination and different approaches of of multi objective decision making interfere with organizational performance and speed at which performance improves. The investigation is based on an agent-based simulation of a stylized hierarchical business organization. In particular, we employ a model based on the idea of NK-fitness landscapes, where we map multi objective decision making as adaptive walk on multiple performance landscapes. In our model, each landscape represents one objective. We find that the effect of coordination mode on performance and speed of performance improvement is critically shaped by the choice of multi objective decision making approach. In certain setups, more complex approaches of multi objective decision making turn out to be less sensitive to the choice of coordination mode.