Abstract The paper highlights the potential of network analysis as a diagnostic and analytic tool, and illustrates the application of several methods on an hypothetical organizational structure. • Mathematical analysis of social networks is an emerging tool used by social scientists in various areas. • The applications of network methods to the study of organizational structure can be used comparatively—by comparing cross‐sectionally various structures and groups, and longitudinal—by comparing changes in structure over time. • Network analysis can introduce deep structure of information flow, social and instrumental exchanges, and power within an organization or a group, and can reflect individual as well as structural characteristics.