Hierarchies, ties and power in organisational networks: Model and analysis

An organisational structure consists of a network where employees are connected by working and social ties. Analysing this network, one can discover valuable insights into information flow within the organisation. Moreover, properly defined centrality measures reveal the distribution of power and, therefore, important individuals in the network. We develop this idea and propose a model that is consistent with management theory, and that captures main traits of large corporations. The carcass of the model is an organisational hierarchy. We extend it by allowing additional types of connections such as collaboration, consultation, and friendship. Having both reporting and non-reporting interpersonal ties, our model supports a multilevel approach to social networks. We then formally define power and stability in organisations. These notions enable us to analyse a range of organisational phenomena such as limited hierarchy height, restructuring through flattening, and impact of non-reporting ties. We support our framework with examples and case studies.