CHAPTER 4

MANAGING
Chapter
NETWORK4 :INManaging
THE
network within organization
ORGANIZATIO
N
(internal network)
(INTERNAL
NETWORK)
 Understand internal network
management

Identify the formula for managing the

internal network

OBJECTIVE Discuss relationship contract

S
Manage relationships

Upward, Downward and Sideways

4.1 MAINTAINING NETWORK
IN ORGANIZATION

Introduction
• Most entrepreneurs start earning
wages before building their own
business organization.
• Working within an organization
requires you to work with others.
 Organizational members consist of 3 groups:
1. Top management staff
2. Colleagues or supervisors
3. Staff under your supervision & responsibility

It is important to build & maintain a good working relationship

with all parties/groups within the organization.
 The main focus of this chapter - how to
manage the relationship with the three
groups:
1. Managing relationships with superiors
2. Managing relationships with
subordinates
3. Managing relationships with side-by-
side (colleagues, peers or peers).
 4.2 FORMULA FOR MANAGING
THE INTERNAL NETWORK
MANAGING GOOD RELATIONSHIPS
IS DIFFICULT. IT TAKES TIME,
EFFORT AND ENERGY.
SEVERAL FORMULAS MANAGE
RELATIONSHIPS WITHIN
ORGANIZATIONS IS:
1. BOTH SIDES MUST BE MATURE &
READY TO BUILD RELATIONSHIPS
2. RELATIONSHIPS SHOULD
INVOLVE BASIC ELEMENTS OF
MUTUAL UNDERSTANDING &
GOODNESS/MUTUAL BENEFITS
 Understanding & Mutual Benefits

(Mutual Understanding & Mutual Benefits)

There are 2 basic elements in relation to

construction:

1. Understanding
2. Goodness/mutual benefits
1. UNDERSTANDING
(MUTUAL UNDERSTANDING)

1 2
Understanding means both sides Accepting this situation even
are trying to build relationships to though these features may be
know each other: unpleasant to one or both parties
1. Thoughts and feelings who want to build relationships.
2. Behavior
3. Other individual motives
 To achieve understanding – its
requires high interpersonal skills:
Understand the reasons why
individuals behave in such a way
and accepting such treatment is
either liked or hated it.
1. to differentiate humans as
individuals
2. to differentiate the treatment or
behavior as something else
Keep in mind, individual
treatments are not the same when
alone & in groups.
INTERPERSONAL SKILLS/SOFT
SKILLS

Mutual understanding and goodness can be achieved with

interpersonal /softskill skills

Interpersonal skills can be constructed and acquired

through:
• 1. Education and training
• 2. Experience
3. Observation
4. Listen well
5. Give & receive feedback
6. Communicating effectively
7. Engagement in groups
The skills to increase the effectiveness of
interpersonal relationships is what is called as soft
skills.

Having soft skills can help individuals build mutual

understanding & achieve common good in
interacting with other individuals who have
different interests & interests.
2. MUTUAL BENEFIT
(MUTUAL BENEFITS)
Mutual benefit means, the
benefits gained by both Mutual benefit comes - Giving and receiving
parties for the sake of the through: something in the relationship
results of the relationship.

Co-operation
Creating a
Mutual and planned
win-win
understanding action by both
situation
parties
According to Social Exchange Theory
in any exchange, if the gift is considered to be in excess of
revenue, over the time the person is inclined to break and abandon
the relationship.
Evaluation of this exchange is often not clearly stated.

But there is truth about this theory because it is not wrong to have
a balanced relationship taking place in any relationship as long as
it is ethical & mutual good can be created.
4.3 RELATIONSHIP
CONTRACT
 a relationship in the context of network is said as either
a contract or an unwritten agreement or a mutual
agreement between the two parties.

 when this relationship involves 2 individuals, the terms

commonly used are psychological contract and
interpersonal contract.

 when we summarize it all as the relationship between

individuals among individuals in the relationship
between the organization and the other organizations;

-interorganisational contract
-formal relationship contract
-involving compulsory exchange relationship often
made in writing
 the relationship between the individuals in the
organization is a contractual relationship that exist

- up, down and sides

- built in stages

- when 2 individuals start working together, their

relationship begins with each party forming an initial
impression on the other

- this notion is the basis for the construction of relationships

Stage of relationship contract:

 In the initial stage (initial impression) still the relationship contract is

not yet stable / strong.

 Then expectations or expectations of this relationship are detailed &

refined, tested & evaluated on an ongoing basis.

 If the relationship continues to be good, contractual relationships

become more stable.

 As time passes, interactions & exchanges, the contract of the

relationship is mature & said to have formed strongly.

 This contractual relationship process is not ending only because it

may return to its unstable state.
 If there are changes in the requirements and needs of
one or both parties in this relationship, the
relationship contracts may become unstable.

 This change causes the phase relationship contract

negotiations and reassessment.

 Contract relation to an individual either up, down and

to the side will always evaluated the effectiveness and
the common good.
4.4
MANAGING RELATIONSHIPS
UPWARD, DOWNWARD AND
SIDEWAYS
 Managing the relationship upward

 Intends to make a conscious and deliberate process for

creating a healthy relationship that to obtain the best
results for us, superiors and the organization.

 Benefits:
i. Our effectiveness & performance in the organization
increased
ii. positions & careers are more secure
iii. increase in career.
How to manage?

1. Creating an understanding with them.

• Many individuals are competent in creating mutual

understanding with their colleagues and subordinates,
but weak & inadequate to establish understanding with
the superiors.

• Understanding can be fostered with the superior if we

understand their duties & responsibilities.

• Also able to feel the pressure of various stakeholders

who have to be met & handled by the superior.
 The best way to build this understanding is to understand
the concept

• 'need each other'

• 'Interdependence' to each other (we & boss)

 Head or boss need our cooperation to achieve the

objectives of its work

 We also need her support & assistance to fulfill the task of

the organization's duties and responsibilities more easily.
 How to create an understanding with the leader:

• Imagine as if we were placed or in place.

-we can feel the situation, the motives & feelings that the
leader feels clearer.

• Try to understand the chief's objectives & strategy through

official / informal communication.

• Try to adjust our objectives & strategies with objective &

strategy leaders.

 Creating understanding with the leader needs us to know the

leader's 'management & leadership style'.

• There are some leadership styles (work-oriented, human-

oriented, oriented authority, co-oriented & friendly, formal &
informal).
2. The creation of mutual advantages or benefits.

• Through our understanding (boss & us), we should be clear &

understand what kind of benefits are required from the relationship
(knowing what kind of good the boss wants, what kind of good we
want from that relationship).

• When these two elements exist (understanding & knowing the

advantages & benefits of the relationship) the next task is to help them
in the pursuit of those benefits and benefits, namely the goals of the
relationship.

• In any case there must be an 'exchange' relationship. Each leader has

their weaknesses. We need to cope with the weakness & needs of the
leader as an 'exchange' element. Hence, the chairman also needs to
offer 'exchange' which is necessary for us.
 Managing the relationship downward

 Although subordinated instructed to carry out any tasks that

need to be in accordance with its terms of reference in order
to achieve the organization's objectives, in the context of
building a good relationship and network, they must be
considered as co-workers (partners).

 We as a leader, very dependent on them, because our duties &

responsibilities are carried out through them. Encouragement
and motivation as well as services with respect is more
effective to work towards the achievement of command and
control over the subordinate excessive.
 As managing relationships with our superiors, we must
also establish a mutual understanding with subordinates
(supervisors, technicians, clerical staff & other support
workers). Understanding them as they understand us as
the leader is a critical thing.

 Understanding built if each knows the responsibility that

should be implemented and the problems to be solved.
Head also need to know the background and the
sensitivity of each subordinate diverse (race, religion,
gender, culture, style, temperament, and other issues).
 Understanding & subordinate reverence requires that we have
some skills:

i. Technical skills (must be proficient in the field of work)

ii. Conceptual skills (skillful identification & problem solving, thus
efficiently thinking analytically)
iii. Human skills - ability to interact well with people in order to get
things done) motivate & inspire ability, ability to gain trust &
ability to communicate & build relationships with subordinates.

 Better human skills could increase subordinate's productivity -

Maslow, 1943 & McGregor, 1960.
 The understanding to be nurtured between the chiefs and
the subordinates also requires the chief to convey their
feedback to the subordinate. The positive feedback from
the head seeks to strengthen the good conduct that has
been implemented.

 For example, if a subordinate performs an outstandingly

entrusted assignment, the chair will express a sense of
satisfaction & may be praised. Followed by good
performance appraisal, further recommended for
promotion / salary, excellent service awards and other
recognition.
 Negative feedback from the head is intended to allow
subordinates to correct and not repeat past mistakes.

 If the subordinate makes a mistake or there is a decline

in the performance of the job, the chief will reprimand &
provide corrective proposals to improve work
performance again. Motivate & teach, give training if the
training needs analysis finds that she needs training /
course. If subordinates repeatedly disciplinary errors,
disciplinary action is required (after counseling,
counseling & martial law)
 In addition, to building consensus, managing relationships downward also need
the element of 'the common good', the benefits to be obtained by both parties (us
and subordinated).

 As a leader, we control or at least know how to acquire the various resources

within the organization that are required to be subordinate. These resources
include basic materials or equipment (PCs, stationery, uniforms, machines &
tools, equipment for work safety etc.) that are required subordinate to do daily
tasks.

 Additionally, financial resources can be (personal loans, car loans, housing

loans), counseling (career / personal), political support for something, or making
us a liaison with others and so on.

 The best benefit that can be given as a 'exchange' by the subordinate to the chief
is to perform well-defined tasks. Diligent, motivated & unobtrusive subordinates
and high achievers are the bearers of good names & their reputation (our).
 Managing the relationship sideway / side to side

 In addition to managing the relationship vertically, it is important for us

to maintain a horizontal relationship.

 Our success in the organization depends largely on how we manage

relationships with colleagues or peers.

 The co-workers are the other officers / executives in the same

department or in the different departments of the same position / rank
in the organizational hierarchy. These colleagues or peers have control
over various sources within the organization.

 They are able to supply us with information, technical skills, advice,

moral and political support needed to succeed in an organization. If
healthy relationships are not built with them, our position within the
organization may be threatened.
 We must know that we need support from peers & at the
same time they need our support.

 In our 'organization chart' we will only see who we are

reporting & who reports to us only (vertical relationship).

 We have no official authority over them (peers) & they

have no official authority over us.

 One thing to be noted is the relationship with peers does

not involve any power or authority, but more akin to the
relationship of cooperation, persuasion, not command.
However, networking with peers is important for personal
& organizational success.
 'Understanding' is the key to managing the side. This relationship is
rather awkward & unique because for us, peers are competitors to
organizational resources & promotion opportunities.

 Peers from other departments have different interests, objectives & work
cultures with our department. Hence, these factors make the
'understanding' element a little difficult to achieve.

 An obvious example to see this difference is the manager's relationship

with the Quality Control department with the manager at the Production
department. Production Managers will work hard to produce as much
product quantity as possible to achieve organizational targets, but
Quality Control managers will make every possible effort to ensure that
the products produced meet the standards set by the organization.
(increase of rejects will decrease quantity)
 Peers need each others' contribution to an organization.

 The task flow chart - each department needs another

department to achieve the organization's goals.

 The key to communication with peers is the establishment

of a bridge to reach the 'mutual understanding &
goodness'.

END OF CHAPTER 4
THANKYOU