Page 1

A Brief Introduction to Managing Social Networks at Work

Page 2Source: Bearman et. al. 2004

Small Worlds and The Oracle of Kevin Bacon

Craig, Brian, and Turtle, boozey undergrads at Allbright College, in PA: Is Kevin Bacon at the center of the Hollywood universe (about 800,000 actors)?

Kevin Bacon at center of Hollywood?

Bacon number: 2.946Connery number: 2.731

Steiger, Rod: 2.67Lee, Christopher: 2.68

Sutherland, Donald: 2.70

http://www.cs.virginia.edu/oracle/

1 2 3 4 5 6 7 8 9

S1S2

0

50000

100000

150000

200000

250000

300000

350000

400000

Series1

Series2

bacon number # of actors

0 1

1 1806

2 145024

3 395126

4 95497

5 7451

6 933

7 106

8 13

Small WorldsIn a highly clustered, ordered network, a single random connection will create a shortcut that lowers L dramatically

Page 6

What does the network (really) look like?

“Even the most psychologically shrewd managers lack critical information about how employees spend their day, and how they feel about peers.

Managers simply cannot be everywhere at once, nor can they read minds. So they’re left to draw conclusions based on superficial observations” (Krackhardt & Hansen, 1993)

Page 11

Example # 3Relative positions of Supervisors and Non-supervisors in Emergent

Communication Network at a high-tech firm

Source: Ajay Mehra, LINKS Center

Formal Reporting Relations in an Italian Company

Source: Dr. Patrizia Vecchi

Source: Dr. Patrizia Vecchi

Emergent Trust Relations in an Italian Company

Why Informal Networks are Important

• Much of the real work happens through the informal chart.

• De-layered organizations: Back to the sandbox.• Informal networks can help or hinder• Formal and informal networks should work in

sync.• Formal structure Routine problem solving• Informal structure Unexpected problems

The Promise of the Network Perspective

• Relationships information flow innovation

• Reveals hidden structure: Emergent ties in workplace

• See structure; identify dysfunctions; leverage capital

• The task of leadership…

Social Capital in Work Organizations

• Silos and bridges

• Tacit versus explicit knowledge

• Private versus public information

• Homogeneity within groups; the logic of exploitation; the echo of reputation; and the dangers of groupthink

Social Capital at Work

• Social capital exists “where people have an advantage because of their location in social structure”

– Private information; access to diverse skill sets and ways of thinking; power (getting things done); professional growth

* Early career: Operational skills and what you can accomplish independently.

* Later career: Ability to develop effective relationships with key people.

Typical concerns:

- Insincere; manipulative; not “real” work

Questions:

- What factors influence the network you have?

- What is the network you need to have?

- How can you build that network?

FILL OUT NETWORK ATTITUDE SURVEY (15 MINUTES)

Assess Your Intelligence System

• Do you feel you tend to be “in the know”? Do you find out quickly about key decisions, activities, events?

• Are you relatively central or marginal within the informal communication network in your work group?

• Do you have personal contacts in a wide range of groups?

• Do you actively share information with superiors, subordinates, peers?

• Do you maintain ties with work related/professional contacts?

• Do you know and talk regularly to peers within your workgroup?

• Are you well connected to your formal workgroup leader?

Source: Ron Burt (2005, AJS)

Which Position is Best?

What Are The Determinants of Power at Work

Determinants of Power at WorkSources of positional power:•Formal authority – position in hierarchy and prescribed responsibilities•Relevance – relationship between task and organizational objectives•Centrality – position in key networks•Autonomy – amount of discretion in a position•Visibility – degree to which performance can be seen by others

Sources of personal power:•Expertise – relevant knowledge and skills•Track record – relevant experience•Attractiveness – attributes that others find appealing and identify with•Effort – expenditure of time and energy

©Whetton and Cameron, Developing Management Skills: Gaining Power and Influence, New York, Harper Collins Publishers 1993

Are Networks A Source of Power?

The Leaders Collaborate

When the leaders collaborate, each loses some power … becauseof less constrained info. flow

Subordinates bridge… and gain power… leaderslose some power

Subordinates Forms Tie with Leader of Other Group

Leader 10 gains power; leader 15 loses powerSubordinate 16 gains power; 11/12/13 gain some power because their leader is now morepowerful

When Subordinates Seize Power

People connect with 16 because of reputationas a bridge/broker (the rich get richer). 16 now more powerful than her boss. 16 letstie to 14 lapse…

Power Struggle Ensues…

Boss 15 cuts tie to Boss 10… making 16even more powerful!

Emergent Network (grey ties formal; purple informal)

Who is more powerful? 10 or 16? Why?

What if 16 builds Intra-Group Ties Instead?

15 and 16 are “structurally equivalent”

But When Everyone is Connected…

Everyone in GroupB is equally powerful

The Power of Informal Brokers

When The Leaders Connect…

Greater dispersion of power…

How Social Network Analysis (SNA) Could Enhance Inter-unit

Integration at XXXX

LINKS Center for Social Network Analysis Gatton College of Business and Economics

Slides Courtesy of Professor Borgatti

Who are the key players in a network?

Note: each node in network is a person; lines represent regular work-related communication (but could represent other relations, such as trust, advice, and so on)

Courtesy of Prof. Borgatti

© 2005 Steve Borgatti

Example # 1Trust ties in a Global Consulting Firm

BM

BS

BR

BS

BW

BS

CRCD

DI

DB

EE

GS

GM

HA

HBHS

JE

KR

KA

LR

LK

MG

MJ

NP

PH

PS

SR

SF

TO

WS

WD

WL

Data from: Cross, R., Parker, A., & Borgatti, S.P. 2002. Making Invisible Work Visible: Using Social Network Analysis to Support Strategic Collaboration. California Management Review. 44(2): 25-46

K % KP-Set1 31 {KR}2 53 {BM,BS}3 72 {BM,BS,NP}4 81 {BM,BS,DI,NP}5 84 {BM,BS,DI,KR,NP}6 91 {BM,BS,DI,HB,KR,TO}7 94 {BM,BS,BS2,DI,HB,PS,TO}8 97 {BM,BS,BS2,CD,DI,HB,PS, TO}9 100 {BM,BS,BW,BS2,CD,DI,HB,PS,TO}

- Trust ties among employees

{BS,BM,NP}y = 31.592Ln(x) + 33.174R2 = 0.987

0

20

40

60

80

100

120

0 2 4 6 8 10

• Major change initiative is planned. Which small set of employees should we select for intensive indoctrination? in hopes they will diffuse positive attitude/knowledge to others

Network influenceability

Courtesy of Prof. Borgatti

Close-to Network at T1: Part-timers versus Full-timers

Note: Separate worlds of part and full timers is very clear in the close-to network.

What kind of Network is ideal?

• What are you trying to do?

– Size– Composition/Diversity/Range– Structure

• Challenges in seeing holes• Challenges in plugging holes• Reputation deficits• The vision advantage• Like over-the-horizon radar

Assessing Your Personal Network

What kind of Network is ideal?

• What are you trying to do?

– Size– Composition/Diversity/Range– Structure

• Challenges in seeing holes• Challenges in plugging holes• Reputation deficits• The vision advantage• Like over-the-horizon radar

Social Capital

• Structure

• Composition

Information benefitsof structural holes

Source: Borgatti 2012

Revere’s network

Dawe’s network

Kinds of Networks

• Operational

• Personal

• Strategic

What Influences Tie Formation?

• Self-similarity: the homophily principle

• Proximity

• Shared activities?

• Social identity

• From Cialdini: Reciprocity/symmetry; and from Heider, transitivity/cognitive dissonance (friends of friends)

• Embedded ties persist longer

© Michael E. Wasserman, 2010

48 Allen & Henn, 2007

What Influences Formation and Persistence of Ties

Effects of Physical Location on Network Structure

50 Mehra et al., 2010

Effects of Tenure on Network Structure

© Michael E. 51 Mehra et al., 2010

Building Networks in the Workplace

Uzzi Exercise

Changing/Maintaining Networks

• Homophily• Contact hypothesis• Propinquity• It’s a small world

• The power of role modelling• Find reasons for interacting (common tasks,

shared purpose, personal passions)• Make time: this is work

Networking Principles• Expectations can be self-fulfilling: Manage expectations/social

identities

• Opportunity for interaction is crucial: Create opportunities for interaction.

• Homophily: what makes you similar and distinctive?

• It’s a small world: The power of a few shortcuts on system efficiency.

• Reciprocate: Give to your network if you hope to get from it.

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Seeing/Evaluating Networks

• Evaluation worksheet at end of this slide presentation

• Experience• Structural Balance• Emotional closeness• Lack of information• Bad versus good sources• Self-report versus observation

The Network You Need

• Whose cooperation do I need?

• Whose compliance do I need?

• Whose opposition can thwart my work plans?

• Who needs my cooperation and compliance?

© Michael E. Wasserman, 2010

56

The Networking Landscape

PeersSubordinatesSuperiors

Your connection to:SuppliersCustomersStake holders - Government officials - Judges; Lawyers; Police - Content Experts - Leaders at other labs

TeamsDepartments/Divisions

Your groups’ connections to:SuppliersCustomersStake holders - Government officials - Judges; Lawyers; Police - Content Experts - Leaders at other labs

© Michael E. Wasserman, 2010

57

Internal External

Inter-Personal

Inter-Group

Practical Tips for Managing Your Personal Network

– Share information that benefits the other; do a favor.• “I wouldn’t be caught dead joining any club that would have me as a member”

Marx, Groucho

– Engineer serendipity: e.g., breakfast meetings

– Reactivate some dormant ties– just lunch?

– Look for bridging roles and positions

– Leverage others’ ties (“Soul of a new machine”): hitch your network to theirs

– Identify keyplayers in informal and formal structure and nurture those roles/ties

– Keep your “enemies” close: invite key “customers”/”suppliers” to informal meeting/event

– Cultivate contacts before you need them

– Attend conferences: keep up your external ties58

The Network Your Group Needs

• What information is critical to your group’s performance (internally/externally)? Who are the groups/people your group needs connections to for this information?

• What are the main uncertainties, threats, and opportunities your group faces (internally/externally)?

Who are the groups/people your group needs connections to for this information?

• Where is your group in the (internal/external) flow of information?

Who are the groups/people your group needs connections to for this information?

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Practical Tips for Managing Your Group’s Network

• Manage identity/manage similarity– Birds of a feather…

• The power of numbers• Perceptions of similarity can be shaped

• Use physical location to anticipate and manage ties• Create joint-tasks • Empower people to pool social capital• Share leadership

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Network Dysfunctions

• Imploded relationships: High internal/Low external

• Irregular communication: Low internal/high external

• Fragile structures: High internal/Limited external

• Holes: Places where ties should exist but don’t

What you can do now

• Start informal breakfast meetings– food is crucial. Extend casual invitations to chat about things

• Reactivate one or two of your previous contacts. Extend an invitation or just stop by to chat

• Share information with a subordinate: creates a virtuous circle.

• Who are the information bridges internally and externally?

• Identify outside suppliers and invite them to lunch• Attend some of those seemingly wasteful events– trade

shows, cocktail parties, etc.62

© Michael E. Wasserman, 2010

63

Current Contact Invest Hold Divest

Managing your Network Portfolio

Resources • Leadership: Online Resource:

http://changingminds.org/disciplines/leadership/theories/leadership_theories.htm• Tracy Kidder’s “Soul of a new machine.”

• Social Networks:• Download and install UCINET (version 6.29) from:

http://www.analytictech.com/downloaduc6.htm• Malcolm Gladwell’s “The Tipping Point”• Alber-Laszlo Barabasi’s “Linked: How everything is connected to everything else and

what it means”• Cross, R. & Parker, A. “The hidden power of social networks: Understanding how

work really gets done in organizations.”

• More specialized books on social networks: http://www.insna.org/INSNA/books_inf.html

• Link to INSNA: http://www.sfu.ca/~insna/• Social Networks Analysis for Newbies

Appendix Material

Page 66

What does the network (really) look like?

“Even the most psychologically shrewd managers lack critical information about how employees spend their day, and how they feel about peers.

Managers simply cannot be everywhere at once, nor can they read minds. So they’re left to draw conclusions based on superficial observations” (Krackhardt & Hansen, 1993)

Relationships at work

• Early career: Operational skills and what you can accomplish independently.

• Later career: Ability to develop effective relationships with key people.

• Networks are important for:– Information gathering (private information; access to diverse skill

sets) – getting things done (power); – developing and growing personally and professionally.

Typical concerns:

- Insincere; manipulative; not “real” work

Assess Your Intelligence System

• Do you feel you tend to be “in the know”? Do you find out quickly about key decisions, activities, events?

• Are you relatively central or marginal within the informal communication network in your work group?

• Do you have personal contacts in a wide range of groups?

• Do you actively share information with superiors, subordinates, peers?

• Do you maintain ties with work related/professional contacts?

• Do you know and talk regularly to peers within your workgroup?

• Are you well connected to your formal workgroup leader?

Popularity of Network Research

Page 70Source: Bearman et. al. 2004

The Power of Networks

• Private Information

• Access to diverse skill sets

• Power

Example of Consulting Work

Questions that a network study would help address

– What is the current state of actual interpersonal collaboration/coordination across members of different units?

– Who are the “key players” in the emergent network of collaboration/coordination?

• Who are the bridges between units?• Who are the central figures within a given unit?• Who are the marginal figures?• Who are the bottlenecks in the flow of information/collaboration?• How is the intended structure different from the emergent one, and what

can be done to “fix” the problem?

– How is the network changing over time?

Formal Reporting Relations in an Italian Company

Source: Dr. Patrizia Vecchi

Source: Dr. Patrizia Vecchi

Emergent Trust Relations in an Italian Company

What Matters More: Real Networks or Perceived Networks?

Sorority DV = leadership nominations

77

Independent Variable 1 2 3 4Satisfaction with organization 0.20 0.14 0.35* .32*

(.14) (.14) (.16) (.16)Officer status 2.05** 1.97** 2.23** 2.18**

(.21) (.20) (.22) (.22)Network size 0.11** -0.06 0.08 -0.09

(.04) (.07) (.04) (.07)

Local density 0.81 1.13*(.48) (.48)

Local bridging 0.21 -0.27(.69) (.77)

Local reach 0.07** .08*(.03) (.03)

Perceived local density -.32* -.36*(.16) (.16)

Perceived local bridging 0.21 .28**(.11) (.17)

Perceived local reach .34* 0.16(.17) (.17)

Pearson χ2 232.04 211.81 181.56 158.69Log likelihood -392.98 -385.44 -.359.77 -352.18Likelihood ratio χ2 97.21** 103.42** 106.00** 115.31*** p < .05; ** p < .01aEntries represent parameter estimates. Standard errors are in parentheses. The intercept parameters were included in the negative binomial regression models but are not reported here.

TABLE

Standardized Regression Coefficients from Analyses Predicting

Leadership Nominations N = 123a

Model

Basking-in-Reflected Glory

• What matters is that you be perceived as having the right ties…

Source: Ron Burt (2005, AJS)

Determinants of Power at WorkSources of positional power:•Formal authority – position in hierarchy and prescribed responsibilities•Relevance – relationship between task and organizational objectives•Centrality – position in key networks•Autonomy – amount of discretion in a position•Visibility – degree to which performance can be seen by others

Sources of personal power:•Expertise – relevant knowledge and skills•Track record – relevant experience•Attractiveness – attributes that others find appealing and identify with•Effort – expenditure of time and energy

©Whetton and Cameron, Developing Management Skills: Gaining Power and Influence, New York, Harper Collins Publishers 1993

Practical Tips for Managing Your Personal Network

– Share information that benefits the other; do a favor.• “I wouldn’t be caught dead joining any club that would have me as a member”

Marx, Groucho

– Engineer serendipity: e.g., breakfast meetings

– Reactivate some dormant ties– just lunch?

– Look for bridging roles and positions

– Leverage others’ ties (“Soul of a new machine”): hitch your network to theirs

– Identify keyplayers in informal and formal structure and nurture those roles/ties

– Keep your “enemies” close: invite key “customers”/”suppliers” to informal meeting/event

– Cultivate contacts before you need them

– Attend conferences: keep up your external ties© Michael E. Wasserman, 2010

81

Data Control Systems

Communications Technologies

Field DesignSoftware

Krackhardt & Hanson, 1993

How the CEO Views the Trust Network

Krackhardt & Hanson, 1993

The Trust Network According to Calder

© Michael E. Wasserman, 2010

84

The Advice Network Reveals the Experts

Krackhardt & Hanson, 1993

But When it Comes to Trust…

Krackhardt & Hanson, 1993

The Network You Need

• What information is critical to your performance (internally/externally)? Who are the people you need connections to if you want this information?

• What are the main uncertainties, threats, and opportunities you face (internally/externally)?

Who are the people you need to be connected to?

• Where are you in the (internal/external) flow of information? Who are the people you need to be connected to?

© Michael E. Wasserman, 2010

87

Uzzi and Dunlap:Social Capital at Work

• Social capital exists “where people have an advantage because of their location in social structure”

– Private information; access to diverse skill sets and ways of thinking; power (getting things done); professional growth

* Early career: Operational skills and what you can accomplish independently.

* Later career: Ability to develop effective relationships with key people.

Typical concerns:

- Insincere; manipulative; not “real” work

Questions:

- What factors influence the network you have?

- What is the network you need to have?

- How can you build that network?

Resources • Leadership: Online Resource:

http://changingminds.org/disciplines/leadership/theories/leadership_theories.htm• Tracy Kidder’s “Soul of a new machine.”

• Social Networks:• Download and install UCINET (version 6.29) from:

http://www.analytictech.com/downloaduc6.htm• Malcolm Gladwell’s “The Tipping Point”• Alber-Laszlo Barabasi’s “Linked: How everything is connected to everything else and

what it means”• Cross, R. & Parker, A. “The hidden power of social networks: Understanding how

work really gets done in organizations.”

• More specialized books on social networks: http://www.insna.org/INSNA/books_inf.html

• Link to INSNA: http://www.sfu.ca/~insna/• Social Networks Analysis for Newbies

Thanks!

Questions?

91