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  • Essay / Organizational success and the concept of social capital

    Due to the emphasis on establishing and maintaining professional relationships in order to create a chain of information, contact and networking, the concept of social capital has become essential to individual and organizational success. In today's global and high-tech environment, the willingness and comfort of networking can particularly impact a person's ability to make contacts, secure job interviews, and identify and encourage mentors. Networking is a specific career skill that is essential in this era of borderless careers. Current research defines networking as behaviors aimed at building, maintaining, and utilizing formal and informal relationships that contain the potential benefit of facilitating work-related activities by voluntarily granting access to resources and maximizing joint benefits (Forret & Dougherty 2004). build and maintain networks by calling and visiting people, socializing at meetings, engaging in social activities, returning favors, providing mentoring and advice, and/or engaging in informal conversations (Michael and Yuk 1993). It is not an end in itself, but an essential resource for individual and organizational success. Networking Networking is distinguished from social capital, which focuses on the quality and extent of existing constellations of relationships (Adler & Kwon, 2002; Seibert, Krainer & Liden, 2001), which will be discussed in turn. Networking, however, is an individual-level construct and focuses on individual behavior. Networking represents proactive attempts by individuals to develop and maintain relationships with others for the purpose of mutual benefit in their work or career (Forret and Dougherty 2001). Networking as a career management strategy... middle of document ...... prerequisite for organizational learning, adaptability and agility. Conclusion An organization is made up of individuals and groups who work collaboratively and establish and maintain a foundation of trust. relationships and a network of contacts. Organizations that recognize and integrate social capital as an input into their operations will have an advantage over competitors who cannot. Organizations compete in complex environments that are technically demanding, information sensitive, and require coordination between different actors and different stages of their operations. It is assumed that social capital can make a significant contribution to organizational performance by providing access to information and reducing procurement and coordination costs. Failure to explicitly recognize and incorporate the concept as an input can limit organizational performance.