Journal of Administrative Management, Education and Training (JAMET) Citation:

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1 Journal of Administrative Management, Education and Training (JAMET) ISSN: Volume (12), Issue (2), 16, 38-8 Available online at Citation: A. Sargolzaei, V. Pourshahabi, Identifying the Components of Social Capital and Intellectual Capital of the Organization by the Use of the Rough Set Theory, Journal of Administrative Management, Education and Training, Volume (12), Issue (2), 16, pp. 38-8

2 Journal of Administrative Management, Education and Training (JAMET) Identifying the Components of Social Capital and Intellectual Capital of the Organization by the Use of the Rough Set Theory A. Sargolzaei, V. Pourshahabi ABSTRACT Intellectual capital of all employees includes organizational knowledge and its capabilities to create added value and causes the continual competitive interests. Social capital is also one of the important features and assets of an organization that can help organizations to create and share knowledge. Therefore, in this research, social capital and intellectual capital among employees of the municipality of Zahedan has been studied and the principal components of social capital and intellectual capital were determined. Data analysis of the research was done using the software ROSE2, which is used to analyze the data of the rough set theory. The rough set theory is a method for reduction of extra data, with the use of information systems. Keywords: intellectual capital, social capital, rough set theory, redundant data reduction Introduction In the current world that the process of developments is intense, the management of intellectual capital and intangible assets of organizations, after re-engineering (80s) and Total Quality Management (90s) topics, as an important phenomenon, comprehensively affects the horizon of the developments of management. In the meantime, the newest paradigm that covers the above discussion in the management of the organizations is intellectual capital management. Analysis of the status of social capital in each community is essential, because social capital is useful for understanding that how social elements can strengthen the performance of the individuals in achieving different goals (Lin, 01: 31). Furthermore, social capital plays a very important role of the physical and human capital in communities, and in the absence of social capital, other assets lose their effectiveness and walking on the way of the development and cultural and economic evolution is difficult. Stewart believes that intellectual capital is a plethora of knowledge, information, assets of thought, experience, competition, and organizational learning that can be used to create wealth. In fact, Intellectual capital of all employees includes organizational knowledge and its capabilities to create added value and causes the continual competitive interests (Ghelichi and Moshabbaki, 06). Therefore, intellectual capital in organizations tries to consider the intellectual assets, knowledge, experience, and organizational learning in order to achieve 38

3 comprehensive development. Therefore, with regard to that most important challenge of managing intellectual capital, which is getting people to share what they know, and the challenge still has a social history, in this article, it is tried to study the social capital and intellectual capital among employees of the municipality of Zahedan and to determine the main components of social capital and intellectual capital. Definition of social capital From the organizational perspective, Ghoshal and Nahapiet defined social capital as accumulation of actual and potential interests available within, accessible through and derived from the network of relationships of an individual or a social unit. From their perspective, social capital is one of the important features and assets of an organization that can help organizations to create and share knowledge, and to create, in comparison with other organizations, the stable organizational advantage for them (Nahapiet & Ghoshal, 98: 22). Patnam believes that social capital, as well as other capitals, is productive and provides the possibility of achieving certain goals. For example, the group that its members trust each other a lot, compared to a group that lacks the feature, is more successful and has more efficiency (Patnam, 00: 286). Topics and studies of Fukuyama, like Patnam, about social capital as well, at macro level, have been scrutinized. He examined social capital at the level of countries and in relation to economic growth and development. Thus, his definition of social capital has been a collective definition, and social capital is considered as the assets of groups and societies: "Social capital simply can be defined as a certain set of norms or non-formal values that the members of the group, whom collaboration and cooperation between them are allowed, are the shares. The norms, which generate social capital, basically, should include advantages such as honesty, commitment, and bilateral contacts (Fukuyama, 00: 11-12). Social capital model of Nahapiet and Ghoshal From the organizational perspective, Nahapiet and Ghoshal studied the category of social capital. They placed the different aspects of social capital in the three levels: structural, communicative, and cognitive. In other words, Ghoshal and Nahapiet considered three dimensions for social capital that it can be displayed in the below figure (Ghoshal and Nahapiet, 98; quoted in Samari and Moghimi, 10). Social Capital Cognitive Dimension Communicative Dimension Structural Dimension Chart1. Social capital model of Nahapiet and Ghoshal 39

4 Journal of Administrative Management, Education and Training (JAMET) The dimensions of social capital based on Nahapiet and Ghoshal model By the use of an organizational approach, Nahapiet and Ghoshal placed the different aspects of social capital in the three levels: structural, communicative (customer), and cognitive. Structural element: a structural element of social capital refers to the overall pattern of contacts between individuals. Namely, who and how you have access. The most important aspect of this element is the network relationships between people, the network configuration, and proper organization. Network relationships: the original proposition of social capital theory is that network relationships will provide access to resources (like knowledge). Social relationships create information channels that reduce the amount of time and investment required to gather information. Network configuration of the relations: general configuration of the network relations forms an important aspect of social capital that can affect the development of the intellectual capital. Proper organization: created social capital, including the relations and links, norms, and trust in a specific environment, often can be transferred from a social environment to other social environment, and thus influences the pattern of social exchange. Cognitive element: the element refers to resources that provide trappings, interpretation, and systems of shared meanings among groups. The most important aspects of it include shared language and codes, and the shared anecdotes. Shared language and codes: for various reasons, a common language influences on the conditions of composition and exchange of information and knowledge. First, language has a direct and important role in social relationships, because it is a tool that people communicate with each other through it, exchange information, and do commercial activities by the using of it. Second, the language influences on the perceptions. Codes also provide a frame of reference for viewing and interpretation of the environment. Third, common language increases the ability to combine information. Shared anecdotes: myths, stories, and metaphors provide powerful tools in communities for creating, exchanging, and maintaining of collections of meanings. The emergence of common provisions in a community creates and transfers new interpretations of events and combines different forms of knowledge, which are generally hidden. Cognitive element: this element describes a sort of personal relationships that individuals have with each other because of a history of established deals. The most important aspects of this dimension of social capital include: trust, norms, requirements and expectations, and identity. Trust: studies shows where relationships, based on trust, are at a high level, people have a great desire for social exchange and collaborative interaction. Norms: norms of cooperation can be strong base to create intellectual capital. The interactive norms, which their importance is shown in the creation of intellectual capital, include: tend to the valuation and respond to the diversity, critical spirit, and failure tolerance. Requirements and expectations: requirements represent a commitment or duty to perform an activity in the future. In the field of creating intellectual capital, Nahapiet and Ghoshal stated that 0

5 the requirements and expectations possibly influences on accessibility and motivation of individuals and groups to exchange and combine knowledge. Identity: identity is a process, in which people feel unitary with other members of a unit or people of other groups. Kramer et al found that feeling of assimilation with a group, or a gathering increases the concern about the processes and collective results, and thus increases the likelihood of the opportunity to exchange the information. Definition of intellectual capital Intellectual capital provides a database of new resources, through which the organization can compete (Bontis, 99: 1-6). Bontis believes that intellectual capital is the effort to effective use of knowledge (final product) against information (raw material). From the perspective of Roos et al, the intellectual capital includes all processes and assets that are not usually shown on the balance sheet, as well as include all non-concrete assets (like trademarks, patent, exploitation right, and commercial names) that are concerned in the modern methods of accounting (Roos & Roos, 97: -26). Stewart believes that intellectual capital is a plethora of knowledge, information, assets of thought, experience, competition, and organizational learning that can be used to create wealth. In fact, Intellectual capital of all employees includes organizational knowledge and its capabilities to create added value and causes the continual competitive interests (Ghelichi and Moshabbaki, 06). Research methodology This research is descriptive surveying, and in terms of objective is applied because the officials of the municipality can use the results of it. In this research, the statistical population consisted of the managers and senior experts of the municipality of Zahedan, who were working in. Among the community, 10 individuals were selected purposefully, and answered the research s questionnaire that contained proper reliability and validity. The reliability of the questionnaire in this research using Cronbach's Alpha and SPSS software obtained 0.7 that is proper and acceptable. To confirm, the questionnaire was also verified by experts and university professors. Then the data were analyzed using rough set theory. The rough set theory The purpose of the application of the rough set is to deal with uncertainty and ambiguity that we are facing with in some issues. This theory is a generalization of the classic theories based on the three-value logic to work with incomplete and inconsistent data and to reduce redundant data of the required database. Rough sets theory developed in the early 80s by Professor Zdzisław I. Pawlak. The first pioneer article about the rough sets was written in 82 in the International Journal of Computer Information Sciences by Pawlak. In this theory the data table can be measured by an expert or certified individuals. The main purpose of the analysis of the rough set is to obtain approximate concepts from the acquired data. This theory is a powerful tool for mathematical reasoning in cases of ambiguity and uncertainty. The logic of classical mathematics does not have the ability to deal with ambiguity contained in language words such as very important, strong relationship and so on that can be found in abundance, for example, in quality expansion model. Accordingly, the rough sets theory and its related analysis can generate proper solutions to the vague and conflicting data. The theory is a powerful mathematical tool for 1

6 Journal of Administrative Management, Education and Training (JAMET) reasoning in cases of ambiguity and uncertainty that delivers methods to clear the redundant data (Rowghanian and Ehsanbakhsh, 12: 3). Definition of the concept of rough sets If X is a subset of U, the aim is to describe the set X in relation to R. Accordingly, the need to find more information about the principles of the rough sets theory seems inevitable. Classes of equivalence of R by the element x is determined as R(x). Each class of equivalence of R(x) is called a cell or a small class. Classes of equivalence of relation R, which indicate low approximations in relation to R, display the main components of knowledge that are able to be received based on R. Using only inseparable relationship will not allow for the view of unique objects of U; just available low approximations of knowledge is described with the use of this relationship (Pawlak, 82). Therefore, the set of all objects, which with certainty can be classified as members of X in relation to the R, is called lower approximation of a set X with respect to R and is determined as R*(X). R * (X) ={x: R(x) X} The set of all objects, which can just be classified as possible members of X in respect to R, is called upper approximation of a set X with respect to R and is determined as R*(X). R * (X) ={x: R(x) X } The set of all objects, which definitely are members of X but not in respect to R, is called Boundary Region of set X with respect to R and is determined as RN R (X). RN R (X) =R * (X)-R * (X) Now, it is time to formulate the definition of the rough sets theory: - Set X in respect to R is called ordinary and common if and only if the Boundary Region of X is null. - Sets X in respect to R is called rough if and only if the Boundary Region X is not null (Chart 2). Granules of knowledge Set of Objects Lower Approximation Set Higher Approximation Chart2. Rough Sets 2

7 Information systems Considering the increase in the volume of information and data on different issues and fields, and also the need to make decision in the shortest possible time, the rough sets theory, by reducing the raw data to main data, can play an important role in decision-making based on tables and databases (Rowghanian and Ehsanbakhsh, 12: 3). The data that are described by the objects can be shown by a structure called information system. In information systems, data set is shown as a table that each row displays a case, event, participant, or simply one object. Each column displays a feature or attribute (variable, observation, characteristic, etc.) that can be examined by any object. Also, property may be supplied by experts or users. After the data were placed in the information system, using special rules and concepts of the rough sets theory, they were analyzed by the using of the theory and by ROSE2 software. In order to analyze the data using the rough sets theory, the software was designed by a group of researchers in the field of intelligent decision support system (IDSS) at the Poznan University, Poland. Data analysis of the research To analyze data, by the using of rough sets theory, ROSE2 software was used. The data analysis stages were explained by the software as follows: In the first stage, the data obtained from the questionnaires were categorized and entered in the information system. Table 1 and Table 2 show data derived from the questionnaire related to intellectual capital, and data obtained from the questionnaires related to social capital, respectively. Table 3 and Table show categorized data related to Table 1, and categorized data related to Table 2, respectively. For the table data in this research the following classification was used: 1 [0.6, 1.) & 2 [1., 2.2) & 3 [2.2, 3) & [3, 3.8) & 5 [3.8,.6) & 6 [.6, 5.) Table 1 Raw data obtained from the questionnaire of intellectual capital Decision Client Capital Structural Capital Human Capital Subject U Respondent No.1 Respondent No.2 Respondent No.3 Respondent No. Respondent No.5 Respondent No.6 Respondent No.7 Respondent No.8 Respondent No.9 Respondent No.10 x1 x2 x3 x x5 x6 x7 x8 x9 x10 3

8 Journal of Administrative Management, Education and Training (JAMET) Decision Table 2 Raw data obtained from the questionnaire of social capital Structural Dimension Cognitive Dimension Communicative Dimension Subject Respondent No.1 Respondent No.2 Respondent No.3 Respondent No. Respondent No.5 Respondent No.6 Respondent No.7 Respondent No.8 Respondent No.9 Respondent No.10 Decision variable in Table 1 is determined by the respondents based on the following classification by: Number 1: In this organization, intellectual/ social capital is very weak. Number 2: In this organization, intellectual/ social capital is weak. Number 3: In this organization, intellectual/ social capital is within acceptable limits. Number : In this organization, intellectual/ social capital is goodish. Number 5: In this organization, intellectual/ social capital is good. Number 6: In this organization, intellectual/ social capital is excellent. Table 3 Categorized data of intellectual capital Human = H Structure = S Customer = C Decision = D U x1 x2 x3 x x5 x6 x7 x8 x9 x10

9 Table Categorized data of social capital Communication = C Recognition = R Structure = S Decision = D In the second stage, the method of data analysis in the software was selected as a Local. In the third stage, searching for the approximate categories of decision-making (atoms) was performed. According to the results of software operations, there are 5 atoms for intellectual capital and atoms for the social capital in the information system. In the fourth stage, which is the production of features core, as Table 5 and Table 6 display, for intellectual capital, Structure and for the social capital, Communication, Recognition, and Structure belong to the features core. Table 5 Core of features for intellectual capital Attributes in Core: Core Structure Number of attributes in core:1 Decision: Sociability Table 6 Core of features for intellectual Social Attributes in Core: Core Communication Core Recognition Core Structure Number of attributes in core:3 Decision: Sociability In the fifth stage, which includes reduction operation, Table 7 shows the number of reductions. The number of reductions derived from the data analysis of the research is only one reduction. Table 7 Number of Reductions for intellectual Capital # Reduct 1 Structure Number of reducts: 1 Length 2 5

10 Journal of Administrative Management, Education and Training (JAMET) Table 8 Number of Reductions for intellectual Social # Reduct 1 Communication, Recognition, Structure Number of reducts: 1 Length 2 With the use of Tables 1 and 2, the resolution matrices for intellectual capital and social capital are computed as Tables 9 and 10. Table 9 The values of the resolution matrix for intellectual capital U x1 x2 x3 x x5 x6 x7 x8 x9 x10 x1 x2 s, c x3 h, s h, c x c s h, s, c x5 s c h s, c x6 h, s h, c h, s, c h x7 s h, c h s, c h x8 s, c h, c s c h, c c x9 s c h s, c h h, c c x10 h, s h, c h, s, c h h h, c Table 10 The values of the resolution matrix for intellectual social U x1 x2 x3 x x5 x6 x7 x8 x9 x10 x1 x2 x3 s s x c, s c, s c x5 s c, s x6 s c, s x7 s c, s x8 s c, s x9 s c, s x10 r r r, s c, r, s r r r r r In the sixth stage, which is rule production, minimalist covering method was used in this research. Pictures number 1 and 2 display generated rules by the software. 6

11 Image 1 - The generated rules for intellectual capital by the software Image 2 - The generated rules for intellectual social by the software In the seventh stage, which is obtaining exact and approximate rules, by the use of the Rule Induction order in software ROSE2, they were obtained as in the pictures number 3 and. Image 3 - The exact and approximate rules for intellectual capital Image - The exact and approximate rules for intellectual social 7

12 Journal of Administrative Management, Education and Training (JAMET) Conclusion As the tables 5 and 6 indicate, the structural capital dimension for intellectual capital, and the communicative, cognitive, and structural dimensions for social capital are at the core of the features. Therefore, according to the above process, it can be concluded that using only the structural capital dimension will suffice to measure the intellectual capital in the municipality of Zahedan and the human capital and client capital dimensions are redundant data and can be ignored. But to measure the social capital, studying the three dimensions of the model is needed. Finally, the obtained data from the image number 1 show that the rules number 3 and and the rules number 1 and 2 are the most and the least frequent, respectively. The obtained data derived from the image number 2 also shows that the rule number is the most frequent, and other rules have the frequency. Thus, according to the findings of the research it is suggested that to achieve higher levels of intellectual capital and its derived benefits and to achieve higher levels of social capital, the municipality of Zahedan must pay attention to capital structural, and all three communicative, cognitive, and structural dimensions with the priority of cognitive and structural dimensions, respectively. References Alvani, Seyed Mehdi (01). "Social capital: concepts and theories, Journal of management studies, No. 33 and 3, PP Bontis, N. (99). "Managing Organizational Knowledge by disagnosing intellectual capital: framing and advancing the state of the field", International Journal of technology management, Vol. 18, No. 5/6. Fukuyama, Francis (00). The End of the Order (studying the social capital and maintaining it", translation Gholam Abbas Tavassoli, Tehran: Jame ey-e Iranian, First edition. Ghelichli, Behrooz, and Moshabaki, Asghar (06). "The role of social capital in creating intellectual capital of organization", Journal of management science, No Lin, N. (01). Building a Network Theory of Social Capital. In Social Capital: Theory and Research. N. Lin, R. S. Burt and K. S. Cook (eds). New York, Aldine de Gruyter: Nahapiet, J., &Ghoshal, S. (98). "Social Capital, Intellectual Capital and the organizational advantage", Academy of Management Review, Vol. 23, No. 2, PP Parandi, Mansour (09), "the relationship of social capital by sharing knowledge between high school teachers of Sanandaj, thesis Master of Tarbiat Modares University. Patnam, R (00). "Democracy and civil traditions, translation Mohammad Taghi Delforooz, Tehran, Salam Publication. Roos, J. &Roos, G. (97). "Dragonetti, N.C. and edvinson, L." Intellectual capital: Navigating in the new business landscape", machmilan, houndmills, basingtoke. Rowghanian, emad, and Ehsanbakhsh, Hamid (12). "The use of the rough sets theory to reduce redundant data in databases", First National Conference on the application of intelligent systems (soft computing) in Sciences and Industry, Islamic Azad University, Quchan. Samari, Touraj, and Moghimi, Seyed Mohammad (10), "the effect of social capital on organizational transcendence", studies in strategic management, Issue 3, PP: ALIREZA SARGOLZAEI, Department of management, Zahedan Branch, Islamic Azad University, Zahedan, Iran sargolzaei1@yahoo.com VAHID POURSHAHABI,Young Researchers and Elite Club, Zahedan Branch, Islamic Azad University, Zahedan, Iran 8