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SOCIAL NETWORKS OF PEOPLE IN ORGANIZATIONS DISCUSSION “Economic and organizational sociologists have increasingly demonstrated that the actions of individuals and firms are affected by the social networks within which they are embedded” - Mizruchi, Stearns, and Marquis (2006) “‘ Economic action can be fully understood only by an examination of the social relation within which actors are embedded’ has become a widely accepted staple of sociological thought” - Granovetter (1985) DISCUSSION What are the most important ways in which intra-organizational networks can affect firm performance? DISCUSSION Intra-organizational Networks Firm Performance FIRM PERFORMANCE Degrees of Certainty Innovation Loyalty Work Attitudes Retention Organizational Commitment Job Satisfaction Information Sharing Motivation EFFICIENCY Approval Networks For support Information Networks For knowledge TURNOVER & ABSENTEEISM A Micro Perspective – Positive/Negative Consideration – Friendship Ties CLOSE TO LEAVERS/ABSENTEES NOT CLOSE TO LEAVERS/ABSENTEES NOT CLOSE TO STAYERS Highest Impact Neutral Impact CLOSE TO STAYERS Neutral Impact Lowest Impact MOTIVATION & WORK ATTITUDE Equity Theory (Stacy Adams, 1965) Comparison with others Strong Ties Similarity in Roles or Status