Management Competencies
Session 3:
PROFESSIONAL RELATIONSHIPS
& NETWORKS
Instructor Name
Date

Agenda
1. warm‐up case
2. relationship focus
3. emotional/social intelligence
4. network perspective
5. proactive approach to networks

1. Warm‐Up Case:
how to succeed in business…

a short clip from:
How to Succeed in Business Without Really Trying (1967)
based on satirical novel and broadway
musical
J. Pierpont Finch, believes he can be a
success in the corporate world after he
impulsively picks up the book “How to
Succeed in Business Without Really Trying”.
the book promises its reader that he can
climb the corporate ladder simply and
quickly
the clip begins when Finch is entering the
“World‐Wide Wicket Company” and takes
his first steps towards success

2. relationship focus
Centrality of human and social issues in business

research program emphasis of human /social issues
Mary Parker Follett (1868–1933): management
is “the art of getting things done through
people”
humans are central asset of organizations
Hawthorne Studies (1920s) and “human
relations” school
humans want attention and motivation
Carnegie School research program on
“Administrative Behavior” (1950s‐60s)
humans behave boundedly rational,…
Organizational climate and culture research
(1970s‐1990s)
humans thirst for meaning
Emotional intelligence (1990s‐today) emotions are central to individual and
collective functioning
Social Network Analysis (~1970‐today) configuration and nature of social relations is
central to individual behavior

Brainstorming:
What do people expect out of relationships at work?

3. Emotional / Social Intelligence
Multiple Intelligences
Howard Gardner proposed that
people don’t possess one
intelligence but multiple
intelligences
Gardner identified 8 specific
intelligences and argued that
individuals differs in how much
of each of these intelligences
they possess
the intra‐personal and inter‐
personal intelligences have
been a foundation for Daniel
Goleman’s popular concept of
Emotional Intelligence (EQ)
Source: http://www.connectionsacademy.com/
Example: Self‐Recognition and Regulation
HIGH ENERGY
LOW ENERGY
NEGATIVE MOOD POSITIVE MOOD

EQ domains
self‐
management
self‐control
adaptability
drive / motivation
articulateness
relationship
management
expressive empathy
relationship/trust
building
inspiration/coaching
conflict management
self‐
awareness
accurate self‐
assessment
self‐confidence
social
awareness
attentiveness
social / contextual
acumen
empathy
self social
recognition
regulation
adapted from READING:
Goleman, D. (2004). “What makes a leader?”
Harvard Business Review 82(1): 82‐91.

Example: Other Recognition
situational adaptiveness
EQ requires swift adaptation to changing social contingencies (e.g.
changing moods of interaction partner)
that is what makes social recognition / empathy so important
recent search on ”reversal learning” (Ronay & von Hippel 2014 SPPS)
ability to “read” and adapt to changing circumstances and expectations of social
interaction
connected to IQ: good reversal learners become more socially adapt with higher
IQ; lower reversal learners become less socially adapt with higher IQ (the
“Sheldon Effect”, from big bang theory)

Example: Other Recognition
cultural adaptiveness
emotional intelligence requires
adaptation to the cultural
context
you need to calibrate your
perception of others emotions
and expression of your own
emotions accordingly

relational perspective … takeaways
(adapted from Gottman’s 7 principles to making marriage work)
1. build familiarity: understanding of a person’s
characteristics, values, key events, etc.
2. nurture admiration and respect
3. turn towards each other and foster
interactions
4. let others influence you: share
power/influence, show that you are willing
to yield and follow
5. focus on solvable problems in case of
conflicts (not intractable personality clashes)
6. overcome gridlock when fundamental
aspirations are not addressed or respected
7. create shared meaning (i.e. shared values,
rituals, culture)
1. broad (character) criticism (concrete
complaint is ok)
2. contempt (e.g. sarcasm, cynicism, mockery)
3. defensiveness
4. stonewalling (tuning out)
avoid ! do !
4. network perspective
Introduction
It is important to manage social networks:
Network relationships are a distinct form of capital (social capital) for
leaders that they can use to influence others and affect change;
Through social capital leaders can often tap into the financial and
intellectual capital of their network contacts;
It is important not to be too instrumental with social capital.
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Social Networks: Characteristics
In order to think more systematically about networks we can think
about three classes of characteristics:
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1. Nodes
The people who are part of the network.
2. Ties
The relationships between people
Tie type: e.g. friendship, advice, communication,
etc.
Tie quality : how nodes are connected
(positive/negative, strong or weak, reciprocal or
nonreciprocal, simple, or multiplex (co‐workers
+ drinking buddies), trust
3. Structure
Overall topology of the network: (e.g. how
dense is the network (how many ties exist
among the nodes)? is the network clustered into
subgroups or cliques?
cliques
node
tie
(weak)
tie
(strong)
brokers
the TYPE of network matters
depending on what kind of relationship you examine, different structures and key nodes emerge
READING:
Krackhardt, D. and J. R. Hanson (1993). “Informal Networks: The company behind the chart.”
Harvard Business Review 71(4): 104‐111.

What constitutes social capital?
open or closed networks?
Network scholars refer to the value of a social network as Social Capital.
There are two academic ‘schools of thought’ on social capital:
James Samuel Coleman (1990) proposed that social capital comes from
network structures in which network members have many connections
with each other – network scholars call this “closure”.
Since the network members know each other and each others’ needs and
abilities very well, and they can easily coordinate with each other. They typically
build loyalty and trust over time.
Ron Burt (1992) originally suggested the opposite: social capital comes
from “brokerage” in open, or sparse networks.
In such networks many “structural holes” exist in the network, i.e. there are
places where there are no connections between network members. These
“structural holes” can be bridged by brokers, who thus control information
exchange between these otherwise unconnected actors, and who can decide to
facilitate direct connections between disconnected members. More recently
Ron Burt has suggested that a balance between brokerage and closure in
networks is most effective.
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Each one of the 4 colleagues (blue
dots) has 3 ties, but all ties are within
the same group of 4 people.
Each one of the 4 colleagues (blue
dots) still has 3 ties, but now also with
people external to the group. Since
they each have connections to nodes
that noone else has, they can act as
brokers.
see OPTIONAL READING:
Burt, R. S. (2004). Structural holes and good ideas.
American Journal of Sociology
, 110(2), 349‐399.
Antecedents & Consequences
Economic Motivations
self‐interest
social exchange
collective interest
Social Motivations
homophily
proximity
preferential attachment
triadic balance
Different types of network have differential
effects on:
Information flow (e.g. for job
opportunities or innovative ideas)
Informal Power
5. a proactive approach to
relationships and networks

Beware of your natural networking tendencies
There are some “natural” tendencies in how people build their network.
However, these tendencies often prevent individuals from fully tapping
resources, accessing new knowledge, etc. in their organizations and professional
communities.
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NATURAL TENDENCY POTENTIAL DOWNSIDE
Homophily: connect to people who are
similar to us (gender, age, nationality etc)
You are not maximizing your access to
different resources.
Proximity: distance, connect to people
who are closer to us
Connections replicate the formal
organizational structure
Through third parties: a mutual
friend/acquaintance connects two people
Risk to have a closed network (no
brokerage)

Tips to enhance your networks
How to overcome the limitations of your “natural tendencies”?
project what kind of network is suitable for you / your career goals (which
nodes, ties, structures make sense?)
Get out of your ‘comfort zone’ (less homophily)
Meet more individuals in different contexts and environments (e.g. lunch,
conferences, etc.)
Take steps to reach those who are further away (less proximity)
Focus on relationship quality (not quantity): be generous, enforce
reciprocity, give something first
“Networks are not gained, they are earned.”
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Focus on Research:
Feeling icky while networking?
How to feel less dirty while networking:
1. Think about what you can give, not just
what you can get (to avoid psychological
burden of inauthenticity and moral
impurity).
2. Build relationships based on substantive
shared interests, and do your
homework.
3. Think of networking as an act of
discovery and learning – an opportunity
rather than a necessary evil.
Sources: Casciaro, Gino, & Kouchaki (2014). The Contaminating Effects of Building Instrumental Ties: How Networking Can Make Us Feel
Dirty; ASQ; Gino (2015) How to Make Networking at Conferences Feel Less Icky; HBR

5. Key Takeaways
Key Takeaways – BAD IDEA / GOOD IDEA

Bad idea Good Idea
Managers should treat people like
resources.
Managers should not be emotional or
heed the emotions of others.
You should cultivate your emotional
intelligence (EQ) to be able to manipulate
other people more effectively.
When managing your professional
network remember: “Bigger is Better”
Try to become a broker, because brokers
are always the most popular people.