TOPIC: SOCIAL NETWORKS

PPT OUTLINE:

9. DEFINITION: SOCIAL NETWORKS

 It is the Invisible organization- pathways through which communication and
resources flow and how work actually gets done.
 3 unique advantages: 1. Access to information and knowledge 2. Access to
diverse skills sets 3. Power
 Patterned set of relationships between two or more people (actors- individuals,
groups, organizations or supraorganizations that constitute the network)
 The characteristics of a social network also are the determinants of social capital
(resources- such as ideas, information, money, trust- available in and through
personal and business networks). Since social capital is based on relationships,
no single person can claim ownership of it, but it is important and manageable.

9.1 LEXICON OF SOCIAL NETWORKS

 People rely heavily on their networks of relationships to find information and solve
problems – one of the most consistent findings in the social science literature is that
who you know often has a great deal to do what you come to know
 SOCIAL NETWORK ANALYSIS AND QUALITY OF WORK INTERACTIONS:
- Network tie- connection and relationships between actors
- Node- actor or point on the network
- Give example of diagram?
- Network size- number of actors
 SOCIAL NETWORK CHARACTERISTICS
- Centrality – extent to which a given actor is in the middle of the network. Centrality is
good because it puts the actor in a position to gather information and to serve as broker
between the parties that are connected via that actor
- Density – reflects how many people in a network are connected
 SAMPLING OF SOCIAL NETWORK TYPES
- Communication network- informal structure of an organization as represented in
ongoing patters of interaction, either in general or with respect to a given issue. Social
networks focus on the informal network- the pattern of interactions among employees
that aren’t a direct consequence of the organization chart, job descriptions and so on.
- Information network- shows who goes to whom for advice on work-related matters:
Problem solving network- who goes to whom to engage in dialogue that helps people
solve problems at work. Knowledge network- captures who is aware of whose
knowledge and skills. Access network- shows who has access to whose knowledge and
expertise.
 KEY TAKEAWAYS:
- Social networks are the invisible structure in the organization- they capture the actual
pathways of how information flows and how work is done.
- Network size, centrality, and density were identified as key features of social networks
- Five types of social networks: communication, information, problem solving, knowledge
and access

9.2 HOW MANAGERS CAN USE SOCIAL NETWORKS TO CREATE VALUE

 RECIPROCITY, EXCHANGE AND SIMILARITY
- Principle of Reciprocity- degree to which you trade favors with others. Managers have
the ability to get things done by providing services to others in exchange for the services
they require. Two outcomes are important: success in achieving the objective and
success in improving the relationship.
- Principle of Exchange- there may be greater opportunity for trading favors when the
actors are different from one another. According to network theory, difference is what
makes network ties useful. Since you were different, the value of the exchange was
greater.
- Principle of Similarity- relationships and therefore network ties tend to develop
simultaneously between people with common backgrounds, values and interests. To the
extent that your networks is composed only of like-minded folks makes it more likely
that an individual may be dependent on a handful of people with common interests.
- It is important to understand these principles because as a manager, you will find your
network useful to the extent that you can balance the effects of the three principles. It is
easier to build networks, this similarity makes the network less useful is you need new
ideas that are not in your current group. A critical mistake is to become overly
dependent. Diversity makes the difference. For reciprocity to work, you have to be
willing and able to trade or reciprocate favors, you might need access to other people or
resources outside the current network.
 SOCIAL NETWORK AND CAREERS
- Job seekers are more likely to find a job through weak ties than strong ties.
- Strong ties- exist among individuals who know one another well and engage in relatively
frequent, ongoing resource exchanges. Weak ties exist among individuals who know one
another but do not engage in a regular exchange. The value of weak ties is highly
counterintuitive, we tend to think of relationships being more valuable when we have
strong ties to others- it is typically a bridging tie.
- Social networking should be a central element in any job-search strategy. Penelope
Trunk argues that it is more important to network than it is to read want ads. Building a
network is adding value to lots of people’s lives so that they in turn will want to add
value to yours.
- Dunbar’s number- there is some natural upper limit to the size of network you can
effectively maintain. The existence of upper boundary makes sense- each contact you
add to your network require some amount of time to sustain.
 MAKING INVISIBLE WORK VISIBLE
- Rob Cross, Steve Borghatti and Andrew Parker theorized that social networks and not
the structure presented on the organization chart, might be a better indicator of the
flow of knowledge, information and other vital strategic resources in the organization.
They found that SNA uniquely effective in: 1. Promoting effectively collaboration 2.
Supporting critical junctures and 3. Ensuring integration within groups.
 CONNECT AND DEVELOP
- P&G pioneered
- Definition: developing new products and services through a vast social network spanning
parts of P&G and many external organizations
- To discuss about P&G story?
 THE INNOVATION NETWORK
- Networked employees can realize their innovations and make them catch on more
quickly than nonnetworked employees can.
- McKinsey & Company has observed four important steps in the innovation network
process: 1. Connect- identification of key people in the organization with an innovation
mind-set 2. Set boundaries and engage- it is where network’s goals and objectives are
defined. 3. Support and govern- leadership structure of the network is decided on. This
included gaining sponsorship and buy-in from other parts of the organization, including
upper management. 4. Managing and tracking- covers spectrum of needs, ranging from
how network members will be recognized and rewarded for their contributions,
agreement about process-tracking criteria and some guidelines on how new members
join the network and others leave.
- You can fine-tune the network’s goals by identifying the appropriate mix and balance of
employees. Innovation networks require different skills and attitudes. They include
combinations of several archetypes. – 1. Idea generators- come up with ideas, asking the
right questions is more important than having the right answers, and willing to take
risks. 2. Researchers- mine data to find patters, seek consumer insights and regard such
insights as a primary input. 3. Experts- value proficiency in a single domain and relish
opportunities to get things done. 4. Producers- orchestrate the activities of the network,
making connections across teams and groups.
 KEY TAKEAWAY
- How social network create value
- Social network theory concepts of reciprocity, exchange, and similarity.
- Using social network as a vehicle for advancing your own career

9.3 ETHICAL CONSIDERATIONS WITH SOCIAL NETWORK ANALYSIS

 SOCIAL NETWORK ANALYSIS
- Definition: mapping and measuring of relationships and flows between people, groups,
organizations, computers, web sites and other information/ knowledge processing
entities.
- Social networks are the invisible organization- they are the actual organization behind
the printed organization chart.
 ETHICAL IMPLICATIONS
- 3 top ethical concerns: 1. Violation of privacy 2. Psychological harm 3. Harm to individual
standing
- Violation of privacy: care must be taken that participants are aware of the survey’s
objectives and applications.
- Harm to Individual Standing- violation of privacy might lead to unforeseen, and possibly
unwarranted, disciplinary action. The purpose of network analysis may be to identify
 areas of the firm that just aren’t critical to its mission, vision and strategy. One of the
roles of management is to determine the efficient and effective allocation of resources.
SNA can be a useful tool in this determination, but the purpose of the analysis should be
made clear to participants from the outset.
- Psychological Harm: might arise when information is used in a way that manipulates the
behavior of individuals. “It is dangerous, however, because of the powerful emotions it
engenders in a group setting and this can put the researcher in the position of practicing
therapy without a license.
 FRAMEWORK FOR MANAGING THE ETHICAL ISSUES OF SNA
- Six steps: 1. Assess the situation 2. Identify stakeholders and consider the situation from
their point of view 3. Consider the alternatives and how they affect the stakeholders. 4.
Consider the effects of your actions. 5. Make a decision 6. Monitor outcomes. There are
three specific ways that you might manage SNA related ethical concerns- 1. Full
disclosure 2. Anonymization and opt-out options 3. Participant training and feedback.
- 1. Applying the notion of informed consent- each person included in the mapping
process would be told the purpose along with the outcome.
- 2. Different ways of making the process anonymous or giving opt-out options
- 3. Application of SNA in conjunction with a larger employee development program
 ETHICAL ARGUMENT IN FAVOR OF MANAGING SOCIAL NETWORKS
- Social network exists and that the social capital they provide is an important and
powerful vehicle for getting work done. That means that the ethical manager should not
neglect them.
- We must recognize our moral duty to consciously manage relationships. No one can
evade this duty- not managing relationships is managing them. Using social capital
means putting our networks into action and service for others. By contributing to others,
you are helped in return, often far in excess of what anyone would expect or predict.

9.4 PERSONAL, OPERATIONAL, AND STRATEGIC NETWORKS

- To succeed as a manager, Ibarra recommends building three types of networks: 1.
Personal- kindred spirits outside your organization who can help you with personal
advancement 2. Operational- people you need to accomplish your assigned, routine
tasks. 3. Strategic- people outside your control who will enable you to reach key
organizational objectives.
- Leaders need to possess all three types of networks.
- Personal networks- one’s circle of casual acquaintances, composed of people outside of
the company you work for. The challenge is to convert them into network resources that
also help with operational and strategic needs.
- Operational Networks- the purpose of this type of networking is to ensure coordination
and cooperation among people who have to know and trust one another in order to
accomplish their immediate tasks. Operational networks was geared toward doing one’s
assigned tasks more effectively. Your personal network provides access to external
resources and referrals.
- Strategic Networks- involves lateral and vertical ties to stakeholders inside and outside
of the firm. Strategic networking is the ability to marshal information, support, and
 resources from one sector of a network to achieve results in another. Effective leaders
are highly dependent on others to get things done. Individuals in your network are also
individuals who are likely to be outside of your immediate control.
 MAKING IT HAPPEN
- Personal networking will not help a manager through the leadership transition unless he
or she learns how to bring those connections to bear on organizational strategy.
Networking requires you to apply the principle of reciprocity- give and take continually.
Take every opportunity to give to-and receive from- people in your networks
 KEY TAKEAWAY
- Effective leaders are effective networkers and you will need to figure out the style of
networking that works for you as you move higher in an organization

9.5 MAPPING AND YOUR OWN SOCIAL NETWORK

- SNA is not the same thing as networking- networking is the activities you might engage
in to build your social network.
- Step One: Purpose: Communication network is the informal structure of an organization
as represented in ongoing patterns of interaction. Second, an information network
shows who goes to whom for advice on work-related matters. Problem solving network
indicates who goes to whom to engage in dialogue that helps people solve problems.
Fourth, knowledge network captures who is aware of whose knowledge and skills. Fifth,
access network shoes who has access to whose knowledge and expertise. Sixth and final
purpose is a career network- reflects those individuals in your network who are likely to
be helpful in your search for a new job or quest for a promotion.
- Step Two: Who are your contacts and your relationship with them: The goal is to develop
a fairly complete list. The following questions are sometimes useful in drafting out the
initial list: 1. Who are the people with whom you have discussed important school or
work matters? 2. What people have been most helpful and useful in accomplishing your
job, in a work, school or volunteer setting? 3. Who has directly influenced your career?
- Then briefly categorize the names based on 1. Strength of relationship 2. Who they are
and where they come from
- Step Three: Who knows whom?: Note your relationship with them from very close to
distant
- Step Four: Assess and Take Action: How to make sure your network is creating value for
you: 1. Identify the people on whom they depend for getting things done and focus their
energies on cultivating relationships with those people. 2. Effective managers consider
others as potential allies. They develop awareness of key goals and resources valued by
the potential ally and attempt to find areas of mutual benefit 3. Relationships with
people who are dissimilar on multiple dimensions are the most difficult to cultivate and
therefore require the most explicit strategies. 4. Keenly aware of their personal
preferences and interaction styles for developing their networks
 COMPUTING NETWORK DENSITY- related to step 3
- Insert screenshot from the book
- A good number for density is between .40 and .60. The advantage of having people in
your network who know one another is that they are likely to communicate more
 frequently and provide a set of shared relationships that you can use to move
information, ideas, and other resources forward.
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