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Management Report

Management reports, briefs issued by Samsung Economic Research Institute

Hidden Relationships in Organizations: Organizational Network Analysis

Hidden Relationships in Organizations: Organizational Network Analysis

KANG Min-Hyung

Apr. 26, 2010

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As organizations change horizontally and the need for flexibility and autonomy grows, the importance of informal networks among employees is further emphasized. Though informal networks are difficult to identify and do not appear in an official organizational chart, they serve as important sources of creativity and innovation. Thus, management in organizations should try to better understand them.

Organizational Network Analysis, a type of social network analysis applied to organizational management, is a useful tool in figuring out the characteristics of an informal network and exploring ways to improve an organization. For this reason, many companies have displayed an interest in informal networks; P&G, Pfizer, Boeing, 3M and Goldman Sachs have already utilized organizational network analysis.

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