Networking

Question 1

What is the Grapevine, Who participates in it, Pros and Cons

Answer 1

Grapevine
→ An organization’s informal communication network.
→ The grapevine cuts across formal lines of communication.
→ The grapevine does not just communicate information through word of mouth.
→ Organizations often have several grapevine systems.
→ Transmits information that is relevant to the performance of the organization as well as personal gossip.
→ How accurate is the grapevine?
○ Personal information and emotionally charged information are most likely to be distorted.
○ Only a proportion of those who receive grapevine news pass it on.

Who participates in the Grapevine?
→ Personality characteristics play a role in grapevine participation.
→ The nature of the information also influences who chooses to pass it on.
→ The physical location of organizational members is also related to the opportunity to both receive and transmit information via the grapevine

Pros of the Grapevine
→ Is the grapevine desirable from the organization’s point of view?
○ It can keep employees informed about important organizational matters.
○ It can provide a test of employee reactions to proposed changes without making formal commitments.
○ It can serve as a potent informal recruiting source.

Cons if the Grapevine
→ The grapevine can become a problem when it becomes a constant pipeline for rumors.
○ A rumor is an unverified belief that is in general circulation.
Because people cannot verify the information as accurate, rumors are susceptible to severe distortion as they are passed from person to person.

Question 2

Social Networks

Answer 2

→ A social network is a structure made of nodes that are tied by some form of interdependency:
○ Nodes: the actors, usually people but could be organizations
○ Ties: the relationships or interdependencies between the actors
○ Interdependencies: friendship, advice, information, expertise, financial exchange, helping, etc
○ Density: number of ties out of total number possible
○ Brokers: Persons who bridge different social networks
→ Two powerful social principles:
○ Self similarity (homophily): the tendency to associate and bond with those similar to oneself
Propinquity: the tendency of individuals to associate and communicate with those in close proximity

Question 3

Social Networks vs Organizational Charts

Answer 3

→ Organizational Charts: Formal, prescribed, visible network of relationships
→ Social Networks: Informal, emergent, invisible network of relationships
Diagrams of social networks make the structure of interaction visible and available for analysis.

Question 4

Human and Social Capital

Answer 4

Human Capital: Composite of your education, skills, and experience. Reflects your talent and expertise

Social Capital: The web of personal and business networks of people, information, ideas, leads, business

Question 5

Difference between High Density and Low Density Networks

Answer 5

→ The density of a network determines its usefulness
→ High Density Network: many connections within a single network.
○ Many of the possible relational lines are present, redundancies
○ Strong Ties: Are more motivated and available to help you. But few new ideas, information, etc.
→ Low Density Network: connection of loose ties to individuals beyond main network.
○ You and Acquaintances
○ Many of the possible relational lines are absent
Weak Ties: Introduce new ideas and opportunities.

Question 6

The Strength of Weak Ties

Answer 6

→ Individuals who have connections to a variety of networks rather than many connections within a single network are more successful.
→ Individuals can exercise influence by acting as brokers between two networks that are not directly linked.
→ Weak Ties are crucial bridges between densely knit clumps of contacts
○ Groups would have no connection without weak tie
→ Provides information from distant parts of the social system (versus provincial news and views of close contacts)
○ Means of spreading news, ideas, gossip, opportunities
○ Means of recruiting and organizing people
○ Increases speed and thereby effects outcomes
→ Our weak ties are only valuable if they have different information of an equal or higher value.
→ Can introduce new ideas and opportunities because your strong ties are usually homogenous and closed
→ Weak Ties Can help with
1. Getting a job
○ Most people find jobs through weak ties
2. Pay and promotion
○ People with relatively more social capital are paid more, promoted faster, and promoted at younger ages
3. Venture capital and financing
○ 75 % of start-ups secure financing through informal investing grapevine
4. Quality of life
Mental and physical health correlated with higher measures of social capital.