Individuals’ power and their social network accuracy: A situated cognition perspective

Abstract

Individuals differ in how accurately they perceive their social environment, but research and theory provide conflicting predictions on whether powerful people are more or less accurate than others. Drawing on social network theory and the situated cognition theory of power, we examine the relationship between individuals’ formal and informal power and their perceptual accuracy of social network relationships. We propose that individuals’ perceptual accuracy is related to: 1) their formal and informal power in the organization; 2) the type of relationship being perceived (positive/negative valence) and its relevance to task and goal completion; and 3) the dependence relationship with the target of perception (i.e., whether the perceiver is dependent on the perceived to get their work done). Predictions were tested using cognitive social structure data collected from a technical call center. Results showed that power was generally linked to increased perceptual accuracy, particularly for the types of relationships most relevant for task and goal completion. We further demonstrated that social network accuracy was related to employees’ outcomes, including subsequent transfer, promotion, and exit from the organization.