Applying Rational Actor Model to I-deals-Team Effectiveness Relationship

Stuart School of Business research presentation by: Associate Professor of Management Smriti Anand and Assistant Professor of Economics Priyanka Sharma





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Applying Rational Actor Model to I-deals-Team Effectiveness Relationship


We propose a theoretical model built on the foundations of rational actor model to examine idiosyncratic deals, informal contracts negotiated by employees to fulfill their unique needs and goals unmet by the organization’s formal policies and procedures. I-deals effectively create wage differentials between members of the same workgroup, and the resulting social comparison has implications for group harmony and performance. When one member has an i-deal and another doesn’t, it may evoke feelings of envy and disrupt group dynamics. On the other hand, if group members support each other, then they might benefit from one member’s deal (e.g., special training for one group member can benefit the entire group). We therefore draw on theories of economics to develop a mathematical model to explore when i-deals are most effective in group settings.


All Illinois Tech faculty, students, and staff are invited to attend.

The Friday Research Presentations series showcases ongoing academic research projects conducted by Stuart School of Business faculty and students, as well as guest presentations by Illinois Tech colleagues, business professionals, and faculty from other leading business schools.

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