A Structural Analysis of the Formation of a Network Organization

The development of network organizations is increasingly necessary in a global information-oriented economy. The network organization is a highly decentralized and densely integrated social system that maximizes mutual influence and communication. An intervention to develop a network organization in the context of a merger conducted by a major multinational corporation is evaluated here, using a network analysis of sociometric survey data. The computer program, STRUCTURE, developed by Burt, was used to compute indexes of the structure of social influence. Repeated measures multivariate analysis of variance indicated a decrease over time in structural differences between hierarchy levels and between geographic divisions. These changes in social networks may be attributable to the organizational merger, particularly the intervention designed to facilitate that merger. Leadership style appeared to be associated in a reciprocal fashion with the structure of social influence. Network analysis may be a practical tool in structural and process approaches to organizational development, especially in network-style organizations.

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