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Networking in Organizations

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Given that organizations are trying to be more adaptive, more efficient at processing information, more innovative, and quicker to respond to the business environment, it is not surprising that organizations are trying to be more collegial and rely more on horzontal contacts rather than vertical hierarchical communication channels. As an organization becomes more "horizontal" there is more reliance on self-managing teams, committees, steering committes, and informal networking to coordinate work, adjust to a changing environment, and produce innovations. In contrast to a concern with economic capital defined as financial resources, or human capital defined as individual qualities such as education or skills, those who are expert at networking build on their relational networks ties and are said to have "social capital". This social capital leads to access to information and may lead to influence for the social networker.

There are a number of ways of increasing your social capital:

1. You can become a "boundary spanner" for your group or organization. A boundary spanner crosses the boundaries between groups and acts as a liaison between groups. This position leads to access to information of value to the group and will often lead to influence. Formally defined managers in the organization function as boundary spanners between groups and employees reporting to them, as well as acting as a liaison to managers at higher levels of the organization.

2. Similar to becoming a boundary spanner, you can become a broker. A broker brings together to other people, groups, or organizations that do not have contacts with each other. Through your brokerage position as a bridge between entities you can develop a position of influence. Formal managers in a hierarchy are defined as brokers between subordinate people and units, but informal brokers can develop in the organization. Individuals and organizations also act as brokers in markets bringing together interested parties for business transactions.

3. You can also become centrally located in a group or the organization. Those with high centrality are those who have many ties to others. If many people are coming to you for advice you are likely to be an influential person. Similarly, if you develop a large set contacts that you go to for information and advice, you will have access to a wide range of information and are likely to become influential.

Organizations emphasizing a more horizontal, informal focus for interaction as opposed to a reliance on formal, vertical reporting relationships generate many informal networks within and between organizations and provide many opportunities for individuals to develop boundary spanning, brokerage and centrality. Valdis Krebs has many interesting essays on his website that discuss a network perspective on organizational processes. For example, he diagrams how decision making crosses over the formal lines of authority in organizations in his short essay on decision making.

This page last modified on 2/11/07