Dismantling Workplace Norms: Strategies for Cultural Diffusion

Abstract

We consider the problem faced by an organization who wants to replace an existing norm with a new one. In our model, agents (employees) interact in an organizational network and face local complementarities to adoption of the old norm.The organizational network is multiplexed, meaning that agents can have different types of links that serve distinct purposes: the "formal network" contributes to productive behaviors, while the "informal network" enforces social norms. This creates a tradeoff for the firm: policies which cut links to disrupt the old norm may inadvertently weaken productivity. We characterize equilibrium behavior in the limit of a large random network and provide conditions under which multiplexed networks are more or less advantageous for the firm. We then examine the effects of policies— namely, seeding or improving monitoring technologies— on reducing the prevalence of the old norm and provide a number of policy recommendations. Our work contributes to the literature on organizational culture and the diffusion of behaviors in networks.