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Network Science applications in Human Resources
Networks are present in many areas of life, such as telecommunication, computer networks, biological networks, social networks, etc.



The Hungarian writer Frigyes Karinthy published a volume of short stories titled Everything is Different in 1929, where he introduced his theory on Six degrees of separation (the theory that everyone and everything is six or fewer steps away, by way of introduction, from any other person in the world). http://en.wikipedia.org/wiki/Six_degrees_of_separation

Networks in private relations and company's internal information flows play a very important role. Human Resource consultants often use social networks to find talents for their company, to check the candidate’s background, personality and network. We should distinguish between internal and external business relationships of employees. The first could enhance internal communication, while the latter is a valuable asset for salespersons and employees responsible for external communication or business development.

Inter-company networks Every organization has two types of workplace relationships among the employees. The Formal Hierachy represents the official role and command line structure of the company. A hierarchical organization (http://en.wikipedia.org/wiki/Hierarchical_organization) is an organizational structure where every entity in the organization, except one, is subordinate to a single other entity. This arrangement is a form of a hierarchy. Formal Hierarchy Informal network within an organization shows interpersonal relationships. Informal connections often play more important role in internal company communication or change management than formal links.

Informal Network

A study published in Harvard Business Review described the importance of well connected employees. The study says than “change agents” who were central in the organization’s informal network had a clear advantage, regardless of their position in the formal hierarchy. Moreover, these “central nodes” are more effective at implementing dramatic reforms, while those with cohesive networks were better at instituting minor changes. http://hbr.org/2013/07/the-network-secrets-of-great-change-agents/ar/pr

In most organizations, how people work together is more important than the quality of the individual involved. Social network analysis can what types of people are most able to work together as a community. https://en.wikipedia.org/wiki/Social_network_analysis Companies such us OrgMapper (http://orgmapper.com/) specialized organizational network analysis. It measures and analyzes the company’s network and offer consulting services for cooperations to maximize impact of interconnected individuals and business units.

External business relationships Employees have a several external business connections. They deal with subcontractors, clients, business partners, affiliate companies, authorities, etc. Through their career path they get acquaintances from former employers, university alumni and everyday business. Those personal networks are quite valuable for HR consultants, who can easily find right candidates by exploring professional networks and asking for recommendations. Reason for social network analysis could be surveillance of current employees, gathering qualitative information about candidates, or just as a part of market intelligence system.