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Understanding Local Networks

This document discusses local networks and social networks. It defines what a network is and explains that networks are made up of interconnected individuals bonded by relationships. Social networks specifically are made up of social actors and the connections between them. The document then analyzes different aspects of networks such as density, hierarchy, complexity, interdependence, and embeddedness. It also discusses intuitive thinking and different heuristics used in decision making. Finally, it covers strategic analysis tools like SWOT and PEST.
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0% found this document useful (0 votes)
90 views4 pages

Understanding Local Networks

This document discusses local networks and social networks. It defines what a network is and explains that networks are made up of interconnected individuals bonded by relationships. Social networks specifically are made up of social actors and the connections between them. The document then analyzes different aspects of networks such as density, hierarchy, complexity, interdependence, and embeddedness. It also discusses intuitive thinking and different heuristics used in decision making. Finally, it covers strategic analysis tools like SWOT and PEST.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SH1736

Understanding Local Networks


Network is a usually informally interconnected group or association of persons such as friends or
professional colleagues (Merriam-Webster.com, n.d.).
Networks are bonded by relations or ties that can either strengthen or weaken its members. A
strong network allows fast and efficient exchange of information and resources. If the actors or
members are aware of the connections that are present in their network, they have more
opportunities to interact with more people and maximize their activities.
Social Network is a social structure made up of a set of social actors, sets of dyadic ties, and other
social interactions between actors (Faust, 1994)
Social networks are formed when the social actors are bound by interpersonal relationship rather
than being an acquaintance. For example, Sheryl and Julius works in a construction firm and they
are best friends since high school (dyadic tie). Together with them in the firm are the newly wedded
couple Jayvee and Imee (another set of dyadic ties), Kenneth, and Erwin who are their friends
since they were in elementary. They also work with Rob, Peter, and Eunice in their department.
These people form a social network in their workplace.
According to Kilduff and Tsai (2003) cited in Dela Cruz and Dela Cruz (2017), networks are
analyzed in terms of the following:
1. Density
It is measured by the number of connection between actors. A collective number of people
in a train station has lower density than people who are at a family reunion. Though more
people is in a train station, their interaction is short even if they know each other. In
contrast, the members of a family at a reunion is bonded by their interaction and knowledge
of each other.
2. Hierarchy
Actors can establish relations in other groups in the community rather than establish all of
their relationships with members of one group. One of the significant characteristics of
network is reciprocity between and among individual actors. There are two (2) types of ties
that describe reciprocity in a network: symmetric or reciprocated and asymmetric or
nonreciprocated.
3. Complexity
It is the extent to which a link between actors serves a multiplicity of interest in the
community. For example, two (2) individuals have a complex relationship if they are bound
to each other in different social grounds (e.g. brothers and basketball teammates). Luigi
and Carlo interact as siblings at home and teammates in their barangay’s basketball team.
They have a higher tie value compared with Klarence and Lawrence who are just
officemates.
4. Interdependence
It refers to the dependence of two (2) or more people or things on each other
(en.oxforddictionaries.com, n.d.). Interdependence promotes cooperation and creates
social capital necessary for the progress of the community. Social capital is the
accumulated benefits as a result of the maintenance of a positive relationship between
groups and associations in the community (Dela Cruz & Dela Cruz, 2017).

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SH1736

5. Embeddedness
It refers to the dependence of a phenomenon on its environment which may be defined
alternatively in institutional, social, cognitive, or cultural terms. An analysis that is using
the concept of embeddedness focus on the different conditions within which various modes
of social action take place and upon which they depend (www.britannica.com).

I. Intuitive Thinking and Heuristics


• Intuition – the ability to understand something instinctively, without the need for
conscious reasoning (en.oxforddictionaries.com).
• Heuristic - involving or serving as an aid to learning, discovery, or problem-solving by
experimental and especially trial-and-error methods (www.merriam-webster.com).
A. Satisficing Heuristic
Satisficing came from combining the words “satisfying” and “sufficing.” This heuristic
is at work when we settle for a decision or a choice that is good enough to satisfy
ourselves.
B. Risk-Aversion Heuristic
This is at work when we make decisions or judgments based on what we think is a
“sure thing.” Because of this belief, people naturally settle for a sure advantage or even
disadvantage than to take risks to get a better advantage or a lesser loss.
C. Loss-Aversion Heuristic
This is at work when we give more weight to disadvantages than advantages in making
decisions or judgments. Naturally, people would waive their chance of gaining in order
not to lose what they already have (Facione, 2013 cited in Dela Cruz & Dela Cruz,
2017). If this kind of heuristic prevailed, it would result to a strong tendency to remain
at the “status quo” because the fear of losing is given more importance than the possible
gains.
D. Availability Heuristic
This is at work when our belief, that a related story or experience will happen again,
affects our decision or judgment.
E. Affect Heuristic
It is sometimes called “gut reaction” or “gut feeling.” This affective response is at
work when it brings an immediate positive or negative emotional reaction to our
decision or judgment.
F. Association Heuristic
This heuristic is at work when we make decisions or judgment on the basis of what a
word or an idea reminds us of. This association may be beneficial to an individual, as
for example, if associating “cancer” with “death” leads you to change your lifestyle,
add greens to your diet, and go in for regular checkups. It may also influence a person
to make an unwise decision, as for example if associating cancer with “death” were to
lead a person not to seek diagnosis and treatment of a cancer symptom because of fear.
G. Simulation Heuristic
This heuristic is at work when we make decisions or judgment on the basis of how we
imagine various scenarios will happen. These simulations may help us to prepare and

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SH1736

do a better job when the actual moment arrives but they can also lead us to false
expectations.
H. Similarity Heuristic
This heuristic is at work when we make decisions or judgment on the basis of a belief
that what happened to someone else with whom we have certain similarities will
happen to us as well. For example, if Student A believes that he will fail Mathematics
due to low assessment scores and poor attendance because Student B failed the subject
due to the same reasons, his belief has a high degree of probability. But if the
consideration is irrelevant, like similarity in height, weight, or zodiac signs, the belief
has a low degree of probability
I. Anchoring-and-Adjustment Heuristic
This heuristic is at work when a person uses a specific target number or value as a
starting point, known as an anchor, and then adjusts that information until an acceptable
value is reached over time. For example, the buyer and the seller is negotiating for a
price of a good at a bazaar, let’s say a dress. The seller offered ₱250.00 for the dress,
that price will become the anchor of their negotiation.

II. Strategic Analysis


A. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis
It assesses what an entity can and cannot do, for factors both internal (strengths and
weaknesses) as well as external (opportunities and threats).
i. Elements of SWOT Analysis
• Strengths describe what an organization excels at and separates it from the
competition.
• Weaknesses are things that stop an organization from performing at its
optimum level.
• Opportunities are external factors that an organization can use to give it a
competitive advantage.
• Threats refer to factors that have the potential to harm an organization.
B. Political, Economic, Social, and Technological (PEST) Analysis
It examines the effects of relevant external factors, or the macro environmental factors,
on what is being decided on.
i. Elements of PEST Analysis
• Political – includes the government regulations and legal factors that affect
the decision-making
• Economics – includes factors like inflation, interest rates, economic growth,
and business cycle followed in the country
• Social – includes demographics, cultural limitations, lifestyle attitude, and
education
• Technological – includes technological advancements, role of the Internet,
and popular gadgets

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SH1736

C. Cost-benefit Analysis (CBA)


It calculates the strengths (benefits, advantages) and weaknesses (costs, disadvantages)
of each of the alternative solutions given to a problem in monetary values. The
calculation for this analysis is specific because it uses monetary values to represent the
costs and benefits of a program or an action but there are areas which would not be
appropriately measured in terms of monetary value like health and satisfaction.
D. Cost-effectiveness Analysis (CEA)
This technique compares the relative cost to the outcomes or relative effects of the
course of action taken by a group or an organization. Quality-adjusted life years
(QALY) or the improvement in the quality of life given the number of years one is
expected to live, can also be used to measure effectiveness. For example, Healthcare
Programs A and B have the same cost or monetary value but option A results in greater
QALY, it is a better choice than program B.
Aside from that, effectiveness can be measured by utility or satisfying one’s interest or
preferences and performance. Let’s say you are deciding on which brand of cellphone
to buy. You compare the cost of the brands that you are considering in relation to their
effectiveness in terms of utility and performance, like storage capacity, battery life, and
speed.

References:
Cost-benefit analysis. (n.d.). Retrieved on July 5, 2017 from http://www.investopedia.com/terms/c/cost-
benefitanalysis.asp.
Cost effectiveness analysis. (n.d.). Retrieved on July 5, 2017 from https://www.betterevaluation.org/en/evaluation-
options/CostEffectivenessAnalysis.
Dela Cruz, A. D., Fadrigon, C. C., & Mabaquiao, N. M., (2017). Trends, networks, and critical thinking in the 21st
Century Culture. Quezon City: Phoenix Publishing House, Inc.
Dela Cruz, R. T. & Dela Cruz, R. P., (2017). Wired! trends, networks, and critical thinking skills in the 21st century.
Quezon City: Phoenix Publishing House, Inc.
Interdependence. (n.d.). Retrieved on July 4, 2017 from https://en.oxforddictionaries.com/definition/interdependence.
Mangiduyos, G. P., (2017). Trends, networks, and critical thinking in the 21st Century. Quezon City: Rex Bookstore,
Inc.
SWOT Analysis. (n.d.) Retrieved on July 4, 2017 from http://www.investopedia.com/terms/s/swot.asp.
“Thinking” in cognitive science. (n.d.) Retrieved on July 5, 2017 from
http://www.telacommunications.com/nutshell/cthinking5.htm.
Understanding pest analysis with definitions and examples. (2013). Retrieved on July 4, 2017 from
http://pestleanalysis.com/pest-analysis/.

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