Organisational Network Analysis
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Organizational Network Analysis
Suresh Bhagavatula NS Raghavan Centre for Entrepreneurial Learning
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• Organizations are social systems with boundaries
• Like any social systems, the social networks of individual permeate within and outside the boundaries
• Who are in these networks? – Colleagues in the same group
– Colleagues from other groups within the same org
– Ex-colleagues
– College mates
– Perhaps friends and family
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Social Capital
Since different networks contain different levels of social capital, researchers are interested in finding out:
• What are the different kinds of benefits?
• How can these benefits be captured?
Social capital operates at three levels:
• Individual
• Group / Organization
• Society / Inter organizational
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Importance of networks in Orgs.
• It was found that in a consulting company with extensive data warehousing system populated by a active knowledge management software
• 85% of the managers contacted other people for knowledge that was critical for the successful completion of the project
• Consistent finding in literature is that who you know often has a great deal to do with what you come to know
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Importance of networks (Contd.)
• One reason why people talk to other people, as opposed to accessing online documents is that:
• Tacit and system dependent knowledge is not ease to document/code
• Even if it can be codified, changes in the context from its original use will require changes. These changes are rarely spelled out by the online sources
• People prefer interacting with other people and like to seek information orally as opposed to seeking out written documents
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Organization Network Analysis
• Org communication : Formal & Informal
• Formal networks : are mapped
• Informal networks : are not mapped
• ONA helps in mapping informal networks
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ONA (Contd.)
• Act as X-ray into inner workings of an organization
• Makes invisible patterns of information flow visible
• Identify strategic important groups
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Organizational Networks
Ref: http://www.robcross.org/network_ona.htm
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ONA (Contd.)
• Identifying people that are central in networks who can impact a group’s communication can help a manager to take steps to improve communication
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ONA (Contd.)
• Understanding who is peripheral and crafting ways to engage these persons ensures – all the expertise that exists within groups is utilized
– Lesser employee turnover
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ONA (Contd.)
• Identifying potential fragmenting junctions in organizations can help integrate disparate groups
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Methodology
• Used a “name generator” instrument
• Was first used by Burt in the 1985 GSS – a nation wide survey to identify personal networks of Americans
o From time to time, most people discuss important matters with other people. Looking back over the last six months – who are the people with whom you discussed an important personal matter? (Baily and Marsden, 1999, pg. 288)
• In this study, this instrument was used for three different networks
– Work related communication networks – Innovation communications networks and – Problem solving networks
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• Results of a study conducted in a IT services company based out Pune, Mumbai and Chennai
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Network patterns in Communication networks (go to people for getting work done)
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Level Location
Interactions between all levels across locations
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Prominent employees in Interactions between levels across locations
Level Location
Chennai
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Networks of B and A level
managers
Location
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High betweeness individuals
Location
Identifying Informal leaders
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Network patterns in problem solving networks (go to people when in a problem)
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Level Location
Problem solving network across locations
Chennai
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Network patterns in innovation networks (go to
people to discuss innovation)
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Innovation network across levels Chennai
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S.No ID Outgoing Ties
1 120 10
2 124 10
3 176 9
4 171 9
5 34 8
6 41 8
7 44 7
8 131 6
9 165 5
10 48 5
11 118 4
12 35 4
13 53 4
Social Isolates in Communication networks
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Situations where network analysis has been used
• Organizational change
– Identifying key influencer for strategic change or restructuring
– Monitor integration of staff following mergers and acquisitions
• Communities of Practice
– Detecting and bridging gaps
– Measuring return on investment
• Organizational effectiveness
– Aligning collaborative activities with strategic objectives
– Team building
• Bridging Relationships
– Mergers and acquisitions
– Partner strategy
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• Leadership development – Identifying high performers – Succession planning
• Innovation – Connecting people and ideas – Identifying key energy sources in an organization
• Knowledge management – Identifying expertise – Assessing connectivity and access of existing knowledge
assets – The lost knowledge problem
Business reasons for a network analysis
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• Thank you and ???