Research indicates that social capital is a result of individuals with similar interest and beliefs coming together and developing a relationship forged out of trust.
Efficient well run organizations foster an environment that promotes trust, the type of trust that allows individuals to interact and freely exchange information, knowledge, and resources in a way that benefits the organization with measurable results .
Many would agree with that “An organization is a tool people use to coordinate their actions to obtain something they either desire or value.” Having said that, then how does an organization create value? “Value takes place in three stages: input, conversion and output and each step is affected by the environment in which the organization operates." Research has shown that both the organizational environment and its effectiveness are strongly influenced by social capital.
As managers, we are only as good as our team. Recruitment strategies play an important role.