Social capital investment builds stronger relationships among employees.
Strong, trusting relationships among individual members form a key component of successful businesses and other organizations. Sociologists use the term social capital to describe the patterns of trusting relationships that help organizations run smoothly. Like any other form of capital, social capital has to be developed and grown. The Harvard Business Review suggests that social capital is declining, with more people working "off site" and with fewer leaders understanding invest in it. Just as a company can increase its stock of physical capital by investing in additional equipment, managers can take steps to increase the level of social capital in their organizations.
Instructions
1. Foster trusting relationships within your organization by establishing clear rules and then adhering to them. Bloomberg Businessweek reports that leaders can best display trust by trusting their employees. Bloomberg cited the customer service rules of retailer Nordstrom as an example. The company's customer service rules tell representatives to use their own best judgment and that there are no other rules.
2. Build connections among employees, which has the advantage of retaining people for a longer time, creating a more stable organization where the people know each other. Bloomberg reports that promoting from within builds connections. In addition, providing break rooms and other facilities in which employees can bond, sharing interests beyond work, facilitates relationships and builds social capital.
3. Facilitate further relationships among organization members by establishing activities and meetings that foster networks. Bloomberg reports the drivers for United Parcel Service meet for lunch on a regular basis so that they can socialize and share information. Employee lunches held away from the work site provide an opportunity to build organizational cohesion and strong relationships among members.
