1. Reconceptualizing Human Resource
Management by Inclusion of Social
Networks – A Theoretical Approach
1st Interdisciplinary Workshop
“Decentralization and Networks”
Siegen, 25.11.2011
Tobias M. Scholz
Chair for Human Resources and Organizational Behavior
University of Siegen

2. Social Networks?
Christakis, Nicholas A./Fowler, James H.,
Connected: Amazing Power of Social Networks
and How They Shape Our Lives, New York
(Little, Brown and Company) 2009.
Tobias M. Scholz pmg.uni-siegen.de 2

3. Social Networks?
“As companies face an information
explosion and an unprecedented need for
flexibility in a rapidly changing
marketplace, the corporate model is in the
midst of a complete makeover.“
(Barabási, 2003:201)
Tobias M. Scholz pmg.uni-siegen.de 3

4. Social Networks?
• Social Networks are part of research
for a long period (Borgatti et al., 2009)
• Increase in Popularity
Globalization (Feiock et al., 2008)
Decentralization (Moore et al., 2003)
Digital Networks (Bollen et al., 2011)
• Improvements in Research
Data Collection (Eagle/Pentland, 2006)
Prediction Algorithms (Barabási, 2011)
Fostering (Zhang et al., 2008)
Maintenance (Bramoullé/Saint-Paul, 2010)
Tobias M. Scholz pmg.uni-siegen.de 4

5. Social Networks and Human Resource Management
• Self Positioning
Strategic Business Partner (Lawler/Mohrman, 2003)
Specialized Service Partner (Greer et al., 1999)
• Shift in the Organization
Centralization  Decentralization (Moore et al.,
2003)
Hierarchy-Based  Market-Based (Scholz, 2003)
Search for Competitive Advantage
Tobias M. Scholz pmg.uni-siegen.de 5

6. Path Dependence
Increase in Competition
Hierachy-Based or Rise of Complexity
Market-Based Embeddedness
Competitive Advantage:
Social Networks
Sydow, Jörg/Schreyögg, Georg/Koch, Jochen,
Organizational Path Dependence: Opening the
Black Box, in: Academy of Management Review
34 (4/2009), 689-709.
Tobias M. Scholz pmg.uni-siegen.de 6

7. Social Networks – Governing Laws
Barabási, Albert-László, The
Architecture of Complexity, in:
IEEE Control Systems Magazine
27 (4/2007), 33-42.
Tobias M. Scholz pmg.uni-siegen.de 7

8. Theoretical Implications
• Stability
Networks are robust and allow fluctuation to a
certain threshold (Barabási, 2003)
Managing knowledge transfer (Poell et al. 2008)
Cooperation can lead to self-sustaining
“organisms” (Christakis/Fowler, 2009)
• Burstiness
short timeframes of intense activity followed by
long times of no or reduced activity (Barabási, 2011)
• Heterogenity
Each person is different (Christakis/Fowler, 2009)
Preferential attachment (Barabási, 2003)
Outliers increase complexity (Barabási, 2011)
Tobias M. Scholz pmg.uni-siegen.de 8

9. Short Term vs. Long Term
• Short-Term (Reactive)
Visualize emergent structures
Problem-solving and trust repair (Dirks et al., 2009)
Support information flow through hub targeting
(Burt, 1992; Christakis/Fowler, 2009)
• Long-Term (Active)
Influence design parameters
Finding right mix of „orderly creativity“
(Christakis/Fowler, 2009) and stability (Farjoun, 2010)
and vitality of the organization
Dynamic and Flexible Approach
Professionalization of HRM (Stein,
2010) © Julia Christophers
Tobias M. Scholz pmg.uni-siegen.de 9

10. Next Steps
• Is an organization really a scale-free
network?
• Further Obstacles
Design, organization and management of
complex networks (Alderson 2008)
Controllability of complex networks (Liu et al., 2011)
Identification of key players (Ballester et al., 2006)
Autopoiesis
History matters (Barabási, 2011)
Influence of stakeholders
Data collection (e.g. Reality Mining)
Privacy
© Julia Christophers
Tobias M. Scholz pmg.uni-siegen.de 10

11. Literaturverzeichnis
Alderson, D. L. Catching the “Network Science” Bug: Insight and Opportunity for the Operations Researcher, in: Operations Research 56 (5/2008),
1047-1065.
Ballester, C./Calvó-Armengol, A./Zenou, Y., Who's Who in Networks. Wanted: The Key Player, in: Econometrica 74 (5/2006), 1403-1417.
Barabási, Albert-László, Linked: How Everything is Connected to Everything Else and What It Means for Business, Science, and Everyday Life. London
(PLUME Books) 2003.
Barabási, Albert-László, The Architecture of Complexity, in: IEEE Control Systems Magazine 27 (4/2007), 33-42.
Barabási, Albert-László, Scale-Free Networks: A Decade and Beyond, in: Science 325 (5939/2009), 412-413.
Barabási, Albert-László, Bursts: The Hidden Patterns Behind Everything We Do, from Your E-Mail to Bloody Crusades. London (PLUME) 20011.
Bollen, J./Goncalves, B./Ruan, G./Mao, H., Happiness Is Assortative in Online Networks, in: Artifical Life 17 (3/2011), 237-256.
Borgatti, S. P.,/Mehra, A./Brass, D. J./Labianca, G., Network Analyisis in the Social Sciences, in: Science 323(5916/2009), 892-895.
Bramoullé, Y./Saint-Paul, G., Social Networks and Labor Market Transitions, in: Labour Economics 17 (1/2010), 188-195.
Burt, R. S. Structural Holes: The Social Structure of Competition. Cambridge (Harvard University Press) 1992.
Christakis, Nicholas A./Fowler, James H., Connected: Amazing Power of Social Networks and How They Shape Our Lives, New York (Little, Brown and
Company) 2009.
Dirks, K. T./Lewicki, R. J./Zaheer, A., Repairing Relationships Withing and Between Organizations, in Academy of Management Review 34 (1/2009), 68-84.
Eagle, N./Pentland, A. S. Reality mining: sensing complex social systems, in: Personal and Ubiquitous Computing 10 (4/2006), 255–268 .
Farjoun, M., Beyond Dualism: Stability and Change as a Duality, in: Academy of Management 35 (2/2010), 202-225.
Feiock, R. C./Jae Moon, M./Park, H. J., Is the World Flat or Spiky? Rethinking the Governance Implications of Globalization for Economic Development, in:
Public Administration Review 68 (1/2008), 24-35.
Greer, C. R./Youngblood, S. A./Gray, D. A., Human Resource Management Outsourcing: The Make or Buy Decision, in: Academy of Management Executive
13 (3/1999), 85-96.
Lawler, E. E./Mohrman, S. A., HR as a Strategic Partner: What Does it Take to Make it Happen, in: Human Resource Planning 26 (3/2003), 15-29.
Liu, Y./Slotine, J./Barabási, A., Controllability of Complex Networks, in: Nature 473 (2011), 167-173.
Moore, S./Eng, E./Daniel, M., International NGOs and the Role of Network Centrality in Humanitarion Aid Operations, in: Disasters 27(4/2003), 305-318.
Poell, R. F./Van der Krogt, F. J., The Role of Social Networks in Managing Organizational Talent, Knowledge and Employee Learning, in: Vaiman, V./Vance,
C. M. (eds), Smart Talent Management, Cheltenham (Edward Elgar Publishing) 2008, 93-118.
Scholz C., Die Saarbrücker MO5-Wertschöpfungskette, in: Scholz, C./Gutmann, J. (eds.), Webbaserte Personalwertschöpfung. Wiesbaden (Gabler) 2003,
123-144.
Stein, V., Professionalisierung des Personalmanagements: Selbstverpflichtung als Weg, in: Zeitschrift für Management 5 (3/2010), 201-206.
Sydow, Jörg/Schreyögg, Georg/Koch, Jochen, Organizational Path Dependence: Opening the Black Box, in: Academy of Management Review 34 (4/2009),
689-709.
Zhang, Y./Friend, A. J./Traud, A. L./Porter, M. A./Fowler, J. H./Mucha, P. J., Community Structure in Congresional Cosponsorship Networks, in: Physica A:
Statistical Mechanics and its Applications 387 (7/2008), 1705-1712.
Tobias M. Scholz pmg.uni-siegen.de 11