A data-driven entropy-based approach to analyzing power shifts in organizational decision-making

This is the authors' abstract. We don't add key points for this paper.

Power constitutes a central yet often overlooked factor in organizational decision-making. In companies, it shapes not only formal decision processes but also informal structures and the distribution of influence within hierarchies. This study examines how structural changes in formal organizational hierarchies affect the distribution of power. Building on an entropy-based modeling framework, directed authority relations are translated into a cardinal measure of structural power. The analysis employs the expert system Shell-SPIRIT to derive power potentials from probabilistic representations of organizational structures. Using systematically varied organizational scenarios under ceteris paribus conditions, the study quantitatively substantiates three general theses on steering power through organizational design. The results demonstrate how intuitive mechanisms of power formation can be formally measured and compared, thereby providing a transparent analytical foundation for integrating structural power into organizational analysis and decision-making. • Introduce a cardinal-scale method for measuring relational power in decision-making. • Quantify power dynamics using an entropy-based data-driven evaluation model. • Examine how hierarchical shifts affect power distribution within dynamic organizations. • Present strategic insights for steering power potential in organizational structures. • Derive actionable theses for managing power in complex decision environments.