Social networks are one of the most influential forces
within an organization. According to Krackhardt and Hanson (1993), “Often what
needs attention is the informal organization, the networks of relationships
that employees form across functions and divisions to accomplish tasks fast”
(104). This is because during a massive organizational restructure, employee
morale and motivation may be greatly affected. The core of this effect is in
the informal networks employees are associated with.
This reminded me of a recent network analysis conducted at
my job. My particular department has a high turnover rate, and when a new VP of
public relations was announced, the first thing he did was evaluate why this
was the case.
Through an extensive departmental survey, the VP concluded
that employee morale and motivation was low resulting in employees leaving the
company. The questions asked in this survey were very similar to those
suggested by Krackhardt and Hanson (1993). “The survey is designed to solicit
responses about who talks to whom about work, who trusts whom, and who advises
whom on technical matters” (Krackhardt & Hanson, 1993, 106). The questionnaire did just that – it
highlighted where alliances were formed among employees, and where distrust existed.
The results of the departmental survey spotlighted the
attitude that employees didn’t trust the group account director who led the
team. Employees viewed her as a source of information and little more. However,
there was strong communication and trust within the team.
This led to the VP reassigning our director to another
department, and promoted another employee who the team viewed favorably on
trust levels. Since this adjustment, the turnover has significantly decreased and
team morale is much better.
Informal networks in one’s job are very important for
employee morale and motivation. While formal networks provide structure,
informal networks really determine how efficient a team operates and the work
they produce. This is very evident in the situation I was involved with at my
place of work.
Krackhardt, D, and Hanson, J. (1993)
Informal Networks: The Company Behind the Chart, Harvard
Business Review, pp. 104-111 (full article)
Shane,
ReplyDeleteI enjoyed reading your blog. Your posting had a lot similarities with my group's (Group B) Network Design Study this week. We were assessing a hypothetical case where there was a large attrition rate in the sales department after an outsider was promoted to VP of sales. I can certainly see how important it is to use assessments, or surveys as discussed in Krackhardt and Hanson (1993) to assess employee morale and motivation issues. You mentioned that the steps taken at your company were a success. Did you see any drawbacks in the survey process, i.e., did certain employees feel uncomfortable in having to provide information?
Joshua,
DeleteGreat question. The questions were written very well, very discrete in what the survey was trying to ascertain. That being said, I wasn't aware of any employees feeling uncomfortable. In my opinion, the survey didn't have drawbacks as our department is under strong control currently.
Excellent post, Shane, and a great connection to our week's reading. While reading, I wondered about a couple of things: how long from the time the new VP started did she/he conduct the survey? You said it was first thing; did that alone create some nervousness in your working groups? And if so, what did the VP do to try to allay those fears? The survey alone would provoke anxiety in most employee groups and it seems that it would be exacerbated by the already difficult atmosphere. Did you find that was the case? It would be interesting to see the results of another survey in six months or a year to measure the effectiveness of the personnel shifts.
ReplyDeletePeggy,
DeleteYour insights are spot on. The survey was conducted about a month into the new VP's tenure. This did cause a bit of anxiety; however, the anxiety was mainly seen coming from the management levels, and not junior members of the team. The junior members wanted to see change, and therefore gladly took part in the survey. The VP reassured the team that the survey was conducted to gauge current sentiments among the team in order for him to understand what the environment was like.
I identify with your particular experience, Shane. Before I started my public relations firm, I worked for an integrated marketing agency that had advertising and public relations departments. As described by Krackhardt and Hanson (1993), the central individuals that employees went to for information were not the executives, they were individuals that were low in the corporate hierarchy. And the executives were out of contact with the employees, so rumors abounded and employees were always on edg leading to low morale and high turnover. Any idea why the employees didn't trust the former account director? Was it because of personality or do you think the problem with the communication channel between that account director and the executives?
ReplyDeleteKen,
DeleteYou bring up a great question. The trust issues arose from the fact that the account director was quick to throw employees, junior members or management, under the proverbial bus. Not only on the team, but in other departments. So junior employees were literally scared to work with this particular director. For example, when a summer campaign launch didn't show the results the agency expected, mid-level management and junior members of the team were issued warnings, even those who didn't work directly on the project. However, the director, who led the entire activation, went unscathed.
Shane, this is a great example that links directly to our readings from this week. As you know, sometimes these types of surveys can be a "touchy subject" and employees may not always feel comfortable answering them. How did management 'pitch' the survey to your team? Was there anything in particular about the way they presented it that made you more willing to participate?
ReplyDeleteHow did they share they results with you?
Having seen how network analysis can bring about positive change, is this a tool you would consider using in the future?
Hi Shane,
ReplyDeleteThank you for sharing this experience with us. It reminded me of a survey I did awhile ago at a Fortune 50 company that had low employee morale. They told us that it was confidential and we needed to be honest. At the time I reported to a director and he reported to the VP/CFO. I was young and actually thought these were confidential so I proceeded to blast my CFO as the reason for the low morale. A week later we were in a meeting and she pulled out my survey in front of everyone and read it. She was trying to figure out who would say such bad things about her. I still think surveys are beneficial. I am impressed by your VP's decision to replace the director. Did the employee that was promoted have any issues with acclimating from a trusted peer to a boss?