Archive for year: 2023

Case study: TOMS shoes Company

Founded in 2006 by blake mycoskie TOMS Shoes was an American footwear company based in Santa Monica, California. Although TOMS Shoes was a for-profit business, its mission was more like that of a not-for-profit organization. The firm’s reason for existence was to donate to children in need one new pair of shoes for every pair of shoes sold. Blake Mycoskie referred to it as the company’s “One for One” business model.

While vacationing in Argentina during 2006, Mycoskie befriended children who had no shoes to protect them during long walks to obtain food and water, as well as attend school. Going barefoot was a common practice in rural farming regions of developing countries, where many subsistence farmers could not afford even a single pair of shoes. Mycoskie learned that going barefoot could lead to some serious health problems. Podoconiosis was one such disease in which feet and legs swelled, formed ulcers, emitted a foul smell, and caused intense pain. It affected millions of people across 10 countries in tropical Africa, Central America, and northern India. For millions, not wearing shoes could deepen the cycle of poverty and ruin lives. Upset that such a simple need was being unmet, Mycoskie founded TOMS Shoes in order to provide them the shoes they needed.

Realizing that a not-for-profit organization would be heavily dependent upon sponsors and constant fundraising, Mycoskie chose to create an innovative for-profit business model to achieve a charitable purpose. For every pair of shoes that the company sold, it would donate one pair to a child in need. Mycoskie felt that this model would be more economically sustainable than a charity because sales would be used to achieve the company’s mission. He saw this to be a form of social entrepreneurship in which a new business venture acted to improve society through product donations at the same time it lived off society through its sales.

Mycoskie believed that the firm’s One-for-One model would be self-sustaining because the company could make and sell shoes at a price similar to other shoe companies, but with lower costs. “Selling online (www.toms.com) has allowed us to grow pretty rapidly, but we’re not going to make as much as another shoes company and the margins are definitely lower,” he admits. “But what we do helps us to get publicity. Lots of companies give a percentage of their revenue to charity, but we can’t find anyone who matches one for one.”

TOMS Shoes kept expenses low by spending only minimally on marketing and promotion. The company’s marketing was primarily composed of presentations by Blake Mycoskie, fan word-of-mouth, and promotional events sponsored by the firm. The company won the 2007 People’s Design Award at Cooper-Hewitt’s National Design Awards. Two years later, Mycoskie and TOMS received the annual ACE award given by U.S. Secretary of State Hillary Clinton. This award recognized companies’ commitment to corporate social responsibility, innovation, exemplary practices, and democratic values worldwide. Mycoskie spoke along with President Bill Clinton at the Opening Plenary session of the Second Annual Clinton Global Initiative Conference in 2007. With other business leaders, he also met with President Obama’s senior administration in March 2009 to present solutions and ideas to support small businesses. He was also featured in a CNBC segment titled “The Entrepreneurs,” in which he and TOMS Shoes was profiled.

Mycoskie explained why he spent so much time speaking to others about TOMS Shoes. “My goal is to inspire the next generation of entrepreneurs and company leaders to think differently about how they incorporate giving into their business models. Plus, many of the people who hear me speak eventually purchase a pair of Toms, share the story with others, or support our campaigns like One Day Without Shoes, which has people go barefoot for one day a year to raise awareness about the children we serve.”

Celebrities like OliviaWilde, Karl Lagerfeld, and Scarlett Johansson loved the brand and what it stood for. Actress Demi Moore promoted the 2010 One DayWithout Shoes campaign on The Tonight Show with Jay Leno. It didn’t hurt that Mycoskie’s fame was supported by his

Bill Clinton-like charisma, Hollywood good looks, and his living on a boat in Marina del Rey with “TOMS” sails. Famed designer Ralph Lauren asked Mycoskie to work with him on a few styles for his Rugby collection, the first time Lauren had collaborated with another brand.

By early 2007, TOMS Shoes had orders from 300 retail stores, including Nordstrom’s, Urban Outfitters, and Bloomingdale’s, for 41,000 pairs of shoes from its spring and summer collections. The company introduced a line of children’s shoes called Tiny Toms in May 2007 and unveiled a pair of leather shoes in Fall of that year. By September 2010, the company added Whole Foods to its distribution network and had given over 1,000,000 pairs of new shoes to children in need living in more than 20 countries in the Americas (Argentina, El Salvador, Guatemala, Haiti, Honduras, Nicaragua, and Peru), Africa (Burundi, Ethiopia, Lesotho, Malawi, Mali, Niger, Rwanda, South Africa, Swaziland, Uganda, and Zambia), Asia (Cambodia and Mongolia), and Eurasia (Armenia). The shoes were now selling for $45 to $85 a pair.

TOMS shoes were manufactured in Argentina, China, and Ethiopia. The company required the factories to operate under sound labor conditions, pay fair wages, and follow local labor standards. A code of conduct was signed by all factories. In addition to its production staff routinely visiting the factories to ensure that they were maintaining good working standards, third parties annually audited the factories. The company’s original line of al pargata shoes was expanded to include children’s shoes, leather shoes, cordones youth shoes, botas, and wedges. In January 2009, the company collaborated with Element Skateboards to create a line of shoes, skate decks, and longboards. For each pair of TOMS Element shoes and/or skateboard bought, one of the same was given to children at the Indigo Skate Camp in the village of Isithumba in Durban, South Africa.

Blake Mycoskie was the company’s Chief Executive Officer and joked that he was also its “Chief Shoe Giver.” He spent much of his time traveling the country to speak at universities and companies about the TOMS Shoes’ business model. According to CEO Mycoskie in a June 2010 article in Inc., “The reason I can travel so much is that I’ve put together a strong team of about ten people who pretty much lead the company while I am gone. Candice Wolfswinkel is my chief of staff and the keeper of the culture. . . . I have an amazing CFO, Jeff Tyler, and I’ll check in with him twice a week. I talk to my sales managers on a weekly basis. I also call my younger brother,

Tyler, a lot—he’s head of corporate sales.” The company had 85 employees plus interns and volunteers. In 2009, more than 1,000 people applied for 15 summer internship positions.

The company depended upon many volunteers to promote the company and to distribute its shoes to needy children. For example, Friends of TOMS was a registered nonprofit affiliate of TOMS Shoes that had been formed to coordinate volunteer activities and all shoe drops.

The company sponsored an annual “Vagabond Tour” to reach college campuses. Volunteers were divided into five regional teams to reach campuses throughout the United States to spread information about the One-for-One movement. To capture volunteer enthusiasm, the company formed a network of college representatives at 200 schools to host events, screen a documentary about the brand, or throw shoe decorating parties.

Mycoskie believed that a key to success for his company was his generation’s desire to become involved in the world. “This generation is one that thrives off of action. We don’t dream about change, we make it happen. We don’t imagine a way to incorporate giving into our daily lives—we do it. TOMS has so many young supporters who are passionate about the One for One movement, and who share the story and inspire others every day they wear their TOMS. Seeing them support this business model is proof that this generation is ready and able to create a better tomorrow.”

Reference : Hunger, J.D (2014)- (Mini Case 23, Textbook, pp. 765-768).

Questions.

Read carefully the above text and answer the following questions:

1) What is the competitive strategy used by TOMS Shoes Company?

2) Identify opportunities and threats as well as strengths and weakness of the company. (Illustrate them within a table ).

3) Describe the roles of directional, marketing, operations and human resource strategies in the overall well-being of TOMS Shoes Company.

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Each student will treat this as an individual assignment. Your response should be well-rounded and analytical and should not just provide a conclusion or an opinion without explaining the reason for the choice. For full credit, you need to use the material from the week’s lectures, text and/or discussions when responding to the questions. Post a case analysis of a listed problem for the week in the corresponding weeks assignment drop box. The case assignments are posted below in the Case Assignments.

The assignment should consist of a Word Document. It should include a summary of the relevant facts, the law, judicial opinion and answer the case questions. All that is necessary for an understanding of the case is important and required.

The report must go beyond the discussion of the problem posed in the textbook, to achieve a superior grade. Do research outside the textbook- this must include research outside the case citation such as the Lexus-Nexis in the DeVry Library or FindLaw.com, do research on the parties and circumstances of the case itself and incorporate some visual modality as a part of the case analysis. Something about one of the parties, as well as some background contained in the legal opinion. Doing significant research outside the textbook is essential.

Utilize the case format below.

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1

Running head: USE OF SOCIAL MEDIA DURING WORK HOURS

25

USE OF SOCIAL MEDIA DURING WORK HOURS

Use of Social Media during Work Hours on Employees Specifically Facebook

Contents

Abstract……………………………………………………………………………………………………………………… 4

Introduction………………………………………………………………………………………………………………… 5

Justification for the Study……………………………………………………………………………………………….6

Internal factors………………………………………………………………………………………………………………8

Company Value………………………………………………………………………………………………… 9

Company Vision and Mission………………………………………………………………………………9

Conflict of Interest……………………………………………………………………………………………. 9

Company Reputation………………………………………………………………………………………… 10 Failure to Meet Set Deadlines and Targets………………………………………………………….. 10

Loss of Employment………………………………………………………………………………………….11

Waste of Time…………………………………………………………………………………………………..11

Customer Needs………………………………………………………………………………………………..12

Customer Handling………………………………………………………………………………………….. 13

Poor Quality Goods…………………………………………………………………………………………..13

Injuries…………………………………………………………………………………………………………….14

Discontent Employee………………………………………………………………………………………..14

Low Productivity………………………………………………………………………………………………15

Increased Operation Costs and Low Revenues……………………………………………………..15

Loss of Focus on Work……………………………………………………………………………………..16

Employee Self-Esteem………………………………………………………………………………………17

External Factors………………………………………………………………………………………………………….18

Employee Relations………………………………………………………………………………………….18

Confidentiality of Company Information……………………………………………………….. 18

Technology Advancement……………………………………………………………………………. 19 Public Relations………………………………………………………………………………………….. 19

Disruption………………………………………………………………………………………………….. 20

Switching Services……………………………………………………………………………………… 20

Complaints………………………………………………………………………………………………….21

Recommendations…………………………………………………………………………………………………..22

Conclusion……………………………………………………………………………………………………………. 27 References…………………………………………………………………………………………………………….. 28

Abstract

The advancement of technology continues to pose a major challenge in the workplace. The emergence of social media specifically Facebook has changed the performance of employees and hindered the progress of organizations. There are benefits affiliated to Facebook use at the workplace such as online sales, and customer relationship. However, there are negative impacts as employees are increasingly accessing Facebook during working hours unlike focusing on their duties. Employees are an organization’s asset, and the success of the business relies on their ability. Facebook’s impact on employees performance and even changed their perception and attitude towards work. Most employees utilize Facebook for personal gains and not the intended purpose of increasing productivity and revenues. As a result, the company’s productivity reduces because of rising operational costs and decreasing revenues. It is worth noting that Facebook use during working hours should operate towards improving socialization and building relationships between the company and its customers. It has been difficult to achieve as employees have resorted to Facebook use during working hours to address their boredom issues and even lack of motivation and interest to work. These shortcomings have considerable impacts on an organization’s reputation thus resulting in the loss of customers. Employees need to consider Facebook as a tool that aids their working and not a tool for personal gains. This paper will discuss in detail the internal and external factors regarding the adverse effects of Facebook use by employees during working hours. Recommendations will also be discussed to help organizations improve and facilitate employee competence in the workplace.

Keywords: social media, Facebook, technology, employees, and organization.

Use of Social Media during Work Hours on Employees Specifically Facebook

Introduction

Facebook use in the workplace by employees has a considerable impact. Although employees gain insights regarding productivity, marketing, communication, and interactions, there is the need to consider the negative impact Facebook poses (Aral, Dellarocas & Godes, 2013). Although Facebook use at the workplace helps bring more customers through online interactions, simple mistakes such as failure to focus on client needs could expose a company’s weakness and endanger its reputation. The success of an organization relies on the efforts of employees regarding increasing productivity and working towards achieving organizational goals. Organizations pursue goals and employees are responsible for ensuring the success in achieving these objectives. It implies the need to cooperate with the rest of the workers and the top management in order work collaboratively.

Facebook, however, has changed the direction of task performance among employees. Most employees consider Facebook as a platform that relieves stress (Goodfellow, 2012). As a result, they resort to accessing Facebook even as a customer waits to be served simply due to lack of motivation or interest at work. It in turn, affects company productivity because employees get paid to work so that the business gets value for money. Employees use Facebook during working hours because they feel unwanted or not engaged in organizational plans. As a result, they waste time including company resources by increasing operation costs through accessing Facebook instead of working. It derails their ability to deliver on their duties and even the company’s reputation among customers and competitors (Bargh & McKenna, 2004). Facebook use during working hours reduces productivity hours thus competitors gain a competitive edge over the company because of an unskilled workforce. Facebook has therefore changed the attitude of workers towards work thus resulting in a waste of time and low productivity for the enterprise.

Justification for the Study

Employers from different companies have experienced reduced productivity from their employees due to the rise of employees browsing Facebook during working hours. That leads to a decreased quality of services and goods for the customers, the effect of the company’s reputation, the waste of time without benefits or productivity from the employees and employers feeling anxious and try to find solutions to this negative phenomenon. The research paper is very significant in that it explores the how the use of social networking lowers employees’ productivity, specifically Facebook. Also, the research can help both employers and employees in understanding how the continuous use of Facebook can affect their productivity. This is especially when the employees use the Facebook for a long time, which will reduce their contribution to the organization. Many sources, and arguments indicated about some negative aspects, which affect the employees in their work when they use Facebook during work hours. In John’s study (2011), employees are known to reduce their focus on their assigned duties when they spend their time on Facebook.

This has resulted in different problems to employers, which are related to services and products of low quality offered to the customers. In Das & Sahoo study (2010), employers need to understand that uncontrolled use of Facebook increases their operation costs and reduces their revenue generation because most employees rely on computers and the internet. As a result, it will reduce working hours that the employees are expected to be working for their organization. Further, the research paper highlights statistics that show that employees who engage in Facebook during working hours waste more time. It is important for employers in that it helps them understand how to control regular employees’ use of Facebook and how this relates to increased productivity. Employers have the responsibility of ensuring that employees are paid for work done which should be measured by their output (Coovert & Thompson, 2013). Using this approach is important in that employees are discouraged to spend more time in their workplace as this reduces their overall output. When output is used as measure of productivity, it ensures that employees reduce time used on Facebook (In, 2014). Aguenza & Som (2012) notes that when more hours are used on Facebook, employees have reduced output to show at the end of a working day. Therefore, through the research, it is possible for employers to understand that use of overall hours worked by employees may be erroneous to determine output.

Employees who regularly browse through Facebook get to work as a routine and leave at the specific time which further denies employers productive hours (Lue, 2010). Another researcher, Philippe (2015), argued about some employers are challenged to limit the use Facebook by employees during working hours. This is through the development of measures that ensure that employees take responsibility for their actions. On the other hand, Philippe also challenges the employees to maximize their working hours on productive activities instead of Facebook. Based on the identified supporting information, the research is relevant in understanding how use of Facebook negatively affects productivity of employees. Facebook usage in the workplace has resulted to workers hurting employee self- esteem. As a result, it has affected their productivity towards their organization greatly in a negative way.

The research has showed that people will tend to do what they can to match their fellow colleagues, despite their capability being at different levels. Further, workers will tend to carry out tasks that are beyond their ability to prove to the rest, that their potentials are immeasurable which results to incomplete tasks due to difficulties. As people tend to do what is beyond their potentials, it results in the increased waste of time, since it will need someone else to be assigned the same task for its completion (Kawasaki & Fitzpatrick, 2014). Moreover, the company will end up using more resources in production, because a task will be done twice by two different people, which means repetition of work. Therefore, it is the responsibility of the organization to ensure that tasks are assigned to qualified personnel, whom will ensure they are completed in time and without repeating. The study has shown that use of Facebook in the workplace has affected the productivity of individuals significantly, thus resulting in poor outcome.

The use of Facebook, involves changing and updating settings regularly in order for people to retain their privacy. Research has shown that users have ended up exposing their privacy to the outside world, thus becoming more prone to the threat of hacking. Therefore, managers should understand the limits that employees should be exposed to the Facebook. Further, this will expose the company’s confidential information globally as a result of hacking. Studies indicate that many organizations have experienced low productivity and loss of marketing power due to this problem. The organization will end up using capital and time to clean up its information from the hackers, which leads to business owners incurring costs, which were not in the budget of production. Employers should ensure that employees maintain privacy by spending less time on Facebook and more time on their assigned duties for maximum productivity, since every worker is paid according to his output towards the company (Leu, 2010). This study clearly shows how Facebook has affected the efficiency of staff in their respective duties negatively.

Internal factors

These are the factors that directly hinder an organization’s productivity due to Facebook use among employees or matters within the organization framework.

Company Value

Organizations are scheduled to operate within a set period. As a result, employees need to adjust to these schedules so that the business gets value and profitability. However, these time limits have caused workers to lose motivation towards work because it comes with set targets to achieve on a daily basis (Kaplan & Haenlein, 2010). An increasing workload in the workplace makes employees susceptible to accessing Facebook during work hours to relieve stress. A motivated workforce is necessary for ensuring that company goals and objectives are met. However, the unrealistic aspect of setting targets for organizations diverts employee attention to Facebook. Employees consider interactions with friends on Facebook necessary to help keep them up to date (De Vries, Gensler & Leeflang, 2012). However, the company is negatively affected as most time devoted to Facebook use during working hours drains its resources and productivity reduces.

Company Vision and Mission

Employees are usually employed to ensure that company goals and objectives are met. They are required to meet working standards based on the mission and vision of the organization. It may be complex for a worker to retain attention in the workplace because of the advancing technology (John, 2011). However, the company policy requires employees to uphold honesty and truthfulness to duty so that their tasks can be accomplished within the set time (Aral et al., 2013). The failure of an employee to meet company standards results in the conflict of interest between employers and themselves.

Conflict of Interest

The conflict of interest arises when employees fail to meet production expectations. Facebook use hinders increased productivity in the workplace because employees focus on what they are not employed to do (Hanna, Rohm & Crittenden, 2011). Employers expect employees to work and meet company standards so that operations and productivity remain consistent. Conflicts in the workplace are also derailing the progress of the company because there is a need for employers and employees to work in a friendly environment (Aguenza and Som, 2012). However, the use of Facebook during working hours may be acceptable to employees but unacceptable to employers; thus the conflict of interest arises.

Company Reputation

Employees are expected to ensure that customer needs are met entirely. Satisfied customers return, but dissatisfied ones ensure that many other customers leave the company. In service industries, employees are supposed to ensure quality is of the essence in all their activities (Kawasaki & Fitzpatrick, 2014). Quality, in this case, builds company reputation, and customers can either give good feedbacks or attack an employee for bad services. Employees use Facebook especially when there are fewer customers, and the activity seems slow (Kim & Ko, 2012). As a result, they end up serving the right product to the wrong customer because of the confusion and lack of concentration. Facebook attracts the attention of the user and forces the employee to appear confused when work demands confidence and due diligence while discharging duties (Goodfellow, 2012). As a result, customers end up dissatisfied and leave the company for competitors whose employees are careful enough to offer better and quality services.

Failure to Meet Set Deadlines and Targets

Facebook use during working hours implies that the daily tasks are not accomplished on time. As a result, the company’s schedule lags behind, and its operations tend to be slower than usual. It has a considerable impact on the performance of the company in the long run (Coovert & Thompson, 2013). The use of Facebook by employees during working hours results in the introduction of extra time. This concept is not beneficial to the company because it brings forth additional cost as the company is forced to supply additional resources and bills increase as well. Employees use Facebook during the day or working hours when they are supposed to be focusing on their work details. Employees who work extra time always demand a higher pay which drains the company regarding profits and revenues (Aral et al., 2013). The ability of employees to work and avert Facebook use would mean smaller pay and efficiency in the workplace.

Loss of Employment

Facebook use in the workplace also results in the loss of employment. It is possible for an employee to prove his or her hard work in the company throughout the years. However, a simple mistake of engaging in Facebook while working could see the job taken away and offered to a competent person (In, 2014). Companies are governed by policies and procedures as well as vision and mission which require an employee to uphold. The use of Facebook in the workplace is an act of dishonesty because an employee gets paid for work not done. The productivity and profitability of the company are crucial in sustaining operations (Aguenza et al., 2012). On the other hand, Facebook is a platform for socializing with friends and making new friends while commenting on posts. As a result, it is difficult and impossible for productivity and Facebook use to work together. It forms the basis for the loss of employment among incompetent and unjust employees who derail the progress of the company (Valkenburg, Peter & Schouten, 2006).

Waste of Time

During working hours, employees access Facebook to update statuses, like posts and comment on their friend’s posts. This results in a waste of time because work could have been done instead of spending time communicating and exchanging ideas with people that do not positively contribute to company success (Das and Sahoo, 2010). It is worth noting that Facebook use is addictive and changes the perception of the employee to work. Although Facebook use during working hours helps in idea generation; most employees access it for personal reasons and not business. Working hours are usually scheduled so that employees deliver and contribute positively to the success of the company (Bargh et al., 2004). Facebook use during working hours, therefore, increases the interest of the employee towards searching friends, their recent posts, lifestyles and even connecting with new people. All these activities are unnecessary to company framework because employees get paid for what they have not done.

Customer Needs

Customers look up to employees for successful delivery of services in the workplace. It is, therefore, the responsibility of employees to ensure customers are served well and according to the acceptable policies of the company. However, employees fail to deliver the services because of Facebook use during working hours (Aguenza et al., 2012). Instead of attending to customer needs, employees focus on Facebook resulting in loss of interest among customers to purchase goods and services (Kawasaki et al., 2014). Facebook, therefore, reduces the working hours yet the employee is supposed to be working. The reduction of working hours means the company does not get any contribution from the workforce. Customer retention is also better compared to customer acquisition (Das et al., 2010). The loss of customers would mean that the company is reducing its sales and can end up collapsing due to the lack of commitment among employees to serve customers well.

Customer Handling

Customers are valuable assets of the company. Every company takes pride in the number of frequent customers served on a daily basis. These clients help in determining the building or breaking a company’s reputation (Coovert et al., 2013). Businesses take a very long time to build company reputation. It is unfair for an employee to break it within a short period through Facebook use during working hours. Customers depend on the ability of workers to conduct themselves professionally in the workplace. The presence of an employee on Facebook when a client is demanding for services damages the reputation of the company (Aral et al., 2013). The customer may inform other customers of the dissatisfaction faced while seeking services in the enterprise. Ideally, the wide customer base of the company reduces and so does its profitability. Employees need to consider company image before embarking on non-business related activities during working hours (De Vries et al., 2010). Customers build company image but poor services from employees because of being on Facebook during working hours damage the good image.

Poor Quality Goods

Employees, especially those working in production industries, are expected to produce quality goods and services (Kim et al., 2012). Customer impression plays a significant role in the success of any business thus the need to carefully examine their needs and serve them well. However, Facebook has distracted employees such that any time they get is dedicated to Facebook. They do not look into the interests of the customer first, and goods of poor quality end up being delivered (In, 2014). Facebook affects the ability of competent employees to provide quality services to customers. As a result, customers get no value for their money thus gaining preference among competitors (Lue, 2010). It costs the company because the production of those goods is involved resources and time whose value keeps the business in progress (Bargh et al., 2004). Facebook, therefore, affects employee performance and productivity such that customers lose value for their money through faulty goods and services.

Injuries

Assembly industries are sensitive areas to work. As a result, an employee’s attention should be at its paramount. Employees consistently use Facebook regardless of their field of operation, which endangers their health and even lives to an extreme. There is a need for utmost care when working in assembly industries because materials are moved from one place to another while machines are in constant motion (Hutter , Hautz, Dennhardt & Füller, 2013). A simple mistake of losing focus could end an employee’s life. As a result, Facebook use while working exposes an employee to more risky situations because injuries are common in assembly industries. While an employee is busy updating a status about how exhausting the day has been and commenting on friend’s Facebook posts, the excitement could bring an arm into contact with the rotating machines (Kaplan et al., 2011). The injuries are usually severe, and some employees have even lost their jobs and remained disabled due to lack of attention and care in a sensitive working environment.

Discontent Employee

An employee who is discontented and dissatisfied with the operations of a company may decide to post false information on Facebook (Malthouse, Haenlein, Skiera, Wege & Zhang, 2013). It will affect the company’s performance because rumors are usually difficult to dismiss. Customers and competitors look up to employees for organizational strategies (Das et al., 2010). As a result, a simple mistake of posting false information on Facebook may result in most people believing after seeing, hearing, or reading it for a while. The false information usually occurs when an employee decides to leave the company after his or her grievances are ignored by the management (Heller Baird & Parasnis, 2011). A discontent employee can tarnish a company’s reputation and return it to the initial stage of trying to attract customers and widen the sales base (Aral et al., 2013). Facebook during working hours is dangerous especially when the company has denied employees the attention to address their issues and discomfort.

Low Productivity

Facebook has resulted in the waste of time among employees. It is worth noting that Facebook is only beneficial when marketing things online while utilizing working hours (Hanna et al., 2011). Other Facebook activities should be reserved for after working hours so that the company gets value for its money. Employees waste a lot of time on Facebook struggling to search for friends, update status and like posts while they should be working. Aguenza (2012) found that the company is faced with challenges of low productivity because most time is devoted to Facebook. Employees need to realize that their wages could reduce if the company profitability continues to decline. The profitability decreases because of employee incompetence and lack of dedication to work (De Vries et al., 2010). It is impossible for companies to pay more than what they earn. As a result, the waste of time through Facebook use by employees during working hours ends up destroying the overall operations of the company.

Increased Operation Costs and Low Revenues

Businesses are based on revenue generation and operation costs on a daily basis. It is the desire of every company that revenues increase at the end of the day while operation costs reduce. However, this has been difficult to achieve because employees focus so much on Facebook use rather than concentrating on what brought them to the workplace (Coovert et al., 2013). Companies have increased operating costs because employees use company resources to access Facebook rather than market goods online or communicate with customers through email and other business websites (Goodfellow, 2012). Most operational costs are attributed to Internet use in most organizations unlike other menial tasks such as attending to visitors and noting down important managerial records. At the end of the day, companies end up with low revenues and increasing operational costs. Employees use the internet for their personal gains while ignoring company activities and even ending up postponing tasks instead of working to completion (Bargh et al., 2004). It reduces the benefits that a company gets from installing the Internet as bills get paid for what is not beneficial but rather destructive.

Loss of Focus on Work

Employees who access Facebook during working hours because their employers have given them access to social media sites end up being less productive. Facebook has features such as status updates, games, and applications that make it tempting for employees. Aral et al. (2013) found that employees are forced to check the comments of friends continuously and to comment on posts that interest them. Lue in 2010 stated that the time that is spent on Facebook could have been used to yield better results for the company. Employees also update statuses regarding their feelings or workload, which may create a perception of laziness among customers who are Facebook friends. The act of businesses allowing employees access to Facebook during working hours means that productivity is derailed by things that do not positively contribute to the program of the company (Aguenza et al., 2012). Facebook hinders employees from focusing on their tasks thus low productivity becomes evident. It is worth noting that in this digital age, preventing access to Facebook may be a challenge because everyone wants to be up to date (Philippe, 2015). However, this activity in the workplace affects productivity and a waste of resources.

Employee Self-Esteem

Use of Facebook at the place of work can hurt employee relations. As much as employees relate to making new friends and share ideas, there is a need for boundaries so that someone does not get hurt in the process (Coovert et al., 2013). Facebook allows the sending of messages, which may harass a person and lower their self-esteem. As a result of the negative message that caused embarrassment, the employee relationship is affected, and staff can no longer work collaboratively for the success of the company (Hutter et al., 2013). It affects company productivity because employees should work towards a common goal. An employee who is having a bad day at work may decide to place an innocent post on Facebook. Another employee decides to relay that post to the supervisor, which results in workplace tension and employee resentment (Valkenburg et al., 2006).

As a result of this move, an employee may lose his or her job because of being considered unfit to work in challenging environments (Das et al., 2010). When an employees’ self-esteem is hurt, it will be difficult to remain productive and thus causing losses to the company. Facebook destroys employee self-esteem because interactions can at times get personal resulting in enmity in the workplace (Evans, 2010). Facebook paves the way for employees to communicate silently and without attracting the attention of others. As a result, the day ends when no work has been done as required thus derailing company efforts of being successful. The increasing conversation that is happening off-task denies the company an opportunity to get value for its money (John, 2011).

External Factors

These factors that affect an organization’s productivity indirectly due to Facebook use among employees to relate to the outside world such as employee relations, disruption, technology advancement, complaints, confidentiality, switching service, and public relations.

Employee Relations

Employees access Facebook during working hours to connect with colleagues and even the boss. These connections need to be directed towards company benefits (Vitak, Lampe, Gray & Ellison, 2012). However, in most cases, employees connect with friends to interact and update each other regarding the day’s activities. Workers in an organization have different levels of perceptions towards work and self-esteem. As much as some prefer to keep their job information confidential from colleagues, they end up being harassed through Facebook posts (Bargh et al., 2004). It is evident between superiors and subordinates which result in low self-esteem. Considering that collaborative effort and common goals are necessary for achieving company success, enmity among employees derails this achievement and the company suffers major losses or loses a competitive edge (Hutter et al., 2013).

Confidentiality of Company Information

Company information should be safeguarded at all costs. Businesses continue to progress and become successful because their information is kept and handled with confidentiality (Malthouse et al., 2013). However, employees who access Facebook during working hours could risk the privacy. In most instances, not all online interactions with people claiming to be customers are true. Some may be competitors trying to acquire the most crucial information so as to reduce the value of the company. The access to Facebook during working hours may end up in strangers engaging an employee to gain sufficient company information (GoodFellow, 2012). The company website ends up getting hacked and crucial information accessed. Hacking causes low productivity and marketing power loss because the reputation of the company is already destroyed. Employees may also end up disclosing information to friends who may end up hacking company systems for their gains (In, 2014). Facebook indeed affects the productivity of a business and hinders progress due to waste of a lot of time on irrelevant activities.

Technology Advancement

Internet use among employees in the workplace is unavoidable. This technological era has made almost every area of business to revolve around Internet use. However, the Internet can be misused through accessing Facebook instead of working. Companies create and maintain social media profiles that facilitate easy access (Coovert et al., 2013). This online profile facilitates the ease of reaching new clients as it becomes a promotional tool. However, employees mishandle and take advantage of this profile to access Facebook while trying to reach out to customers. The addictive nature of Facebook has contributed to frequent access, which has tampered with company profile. In cases where the corporation appoints an irresponsible person to handle the profile, the Internet access will concern logging onto Facebook and posting information (Aral et al., 2013). The addiction to Facebook hinders an employee’s ability to respond to client concerns and feedback thus resulting in the loss of customers or reduced customer base.

Public Relations

Facebook use in the workplace may be allowed as a public relations tool. As a result, the company can be in a position to measure transparency through pictures, blogs, and posts so that customers can easily connect with the company. However, the challenge arises with the employees left in charge of monitoring online activities (Hanna et al., 2011). The responsible employee for this task may end up failing to direct the customer through posting pictures that do not coincide with what the company does. As a result, the customer gets a negative insight and ceases to demand company services. Das in 2010 found that employees can affect the relationship between the business and the clients due to poor networking in the Facebook platform. Facebook usage can tamper with information intended to reach the customer because the employee is too concerned with a personal profile and not company profile (John, 2011). As a result, the company’s performance reduces and so does it’s rating among customers while the employee enjoys wages for what was not done as required.

Disruption

The rate at which technology is advancing cannot be ignored regardless of either it is an employer or employee. Facebook has ensured that people are always up to date. As a result, employees have found the use of Facebook during working hours as a way to pass time maybe due to tedious work (Bargh et al., 2004). This act of wanting to give time has a considerable impact on the company because its benefits are reaped without measuring the drawbacks. Facebook use disrupts company operations, and an employee may even forget his or her position in the workplace (Vitak et al., 2012). The use of Facebook in work-related environments depicts an embarrassing perspective. Employees are supposed to be working and not checking online sites for entertainment during working hours (Aral et al., 2013). Facebook distracts operations, and special details can be kept out due to carelessness and too much attention on Facebook.

Switching Services

Facebook use during working hours increases the chances of customers switching to competitors. Customers require attention and when their access to it is denied, they tend to prefer other companies with good and friendly services. Facebook denies employees an opportunity to concentrate on work because the content is so tempting and one is forced to move from page to page. As much as this is a waste of time, customer’s precious time is also lost because they have other things to attend (Coovert et al., 2013). The company’s operation costs increase and the revenue declines because the sales are lower due to too much focus on Facebook during working hours. Competitors get an upper hand to humiliate the company because most of its customers complain about poor services and lack of attention as they give a description of what they want. Hutter in 2013 found that competition in business is usual, but it can be averted when employees give customers attention by avoiding Facebook browsing during working hours.

Complaints

Facebook use during working hours can increase the intensity and consequences of a complaint. An employee feeling aggrieved in the workplace and decides to post it on Facebook may create a magnifying impact. Complaints are prevalent in the workplace because the company may fail to meet all the requirements of employees. As a result, employees end up posting their grievances on Facebook thus different interpretations come forth (De Vries et al., 2010). The manner in which employees address their grievances through Facebook can change the perception and attitude of customers towards the business or company. A discontented statement can fuel other employees to fire their complaints as well, which places the reputation of the company in bad light. The ballooning of these complaints makes it difficult for the management to stop the accusations (Vitak et al., 2012). It is worth realizing that claims and other aspects that put a company’s reputation in bad light spread fast especially among competitors and customers (Das et al., 2010). This implies that the productivity of the company will end up declining and the sales will reduce as well because customers will seek alternative companies for service delivery.

Recommendations

Employers need to develop policies regarding what is acceptable in the workplace. These policies will govern the conduct of employees in the workplace regarding using the internet, smartphones, social media and emails. Employees need to be aware upon recruitment that the company operations are due to regulations. The restriction of internet use for personal reasons in the workplace will help avert the negative consequences of accessing Facebook instead of working (Hutter et al., 2013). Company policies help provide directions for employees on a daily basis, so that the interests of the enterprise can be safeguarded.

Frequent meetings in the workplace will contribute to refresh the vision and mission of the company. As a result, employees are always reminded of the guidelines and standards of the enterprise (Heller Baird et al., 2011). Companies operate based on the objectives that are put forth upon establishment. Workers should know the objectives and the consequences that follow upon violation. Employers need to talk to the staff by informing and consulting with employees regarding the challenges of using Facebook during work (Hanna et al., 2011). It will create a balance that is beneficial to the company and the employees. A business owner has to understand workers’ needs during working hours so that work-life balance is achieved. The emergence of technology has reduced the relationship between work and home (Coovert et al., 2013). Employees rely on Facebook to pass information to caretakers at home, an aspect that employers need to take into account or provide measures that solve this problem amicably.

The employers need to develop the perception among employees that Facebook use during working hours is a privilege that can easily be taken away (In, 2014). As a result, employees will embrace open dialogue with management to ensure that everyone understands the appropriate use of Facebook during working hours. Employers can install software that ensures the monitoring of time spent on Facebook on a daily basis. It can be implemented without employee consent so that employers can know the employees who derail the progress and productivity of the company (Aguenza et al., 2012). As much as the employees will not be denied the freedom to use Facebook, they will have to be accountable for their actions.

Most companies attribute Facebook use during working hours to the younger generation. These are employees who are beginning to climb the ranks of management and social media use is their priority as a way of communicating (Kim et al., 2012). The younger generation does not consider Facebook use during work hours as problematic. As a result, they will require being informed otherwise they will continue with that trend without thoughts of wrongdoing.

Facebook use interferes with the interpersonal skills because employees prefer to email rather than talk to fellow employees face to face (De Vries et al., 2010). The company or management should encourage collaboration and interaction among employees. As much as Facebook can be used to exchange ideas, personal contact with other employees helps build confidence.

Employers need to consider Facebook use among prospective employees during recruitment. Although some employees may give up the opportunity for feeling their privacy is invaded, and the managers can determine the likelihood of mistakes in hiring (Valkenburg et al., 2006). Hiring procedures should see to it that Facebook use and history is prioritized to determine the suitability of employees. An employee who is always available on Facebook for lack of critical and constructive reasons can easily derail the productivity of the company (Aral et al., 2013). The company would have avoided the awaiting disasters if they were to employ that person.

Training is also essential in restricting Facebook use during working hours. Employees should be informed of the relevance of upholding company policies throughout their stay in the business (Skeels & Grudin, 2009). Training ensures that employees are consistent and conversant with the objectives and policies of the company. Employees also get an education regarding the consequences of wasting time during working hours on things that do not benefit the business (Das et al., 2010). The company can also outline the disciplinary measures that await incompetent employees when the guidelines provided during training are violated.

The productivity of organizations is vital for its maintenance in the long term. As a result, employees need to consider embracing productivity during working hours unlike using Facebook for the wrong reason. There is the need for employees to realize that their wages are based on the amount of productivity (Aguenza et al., 2012). Employers should let employees know that their work will be assessed depending on the efforts put forth to boost organization performance. It will motivate employees to work hard and meet set targets so that other benefits, besides salaries, can be evident.

Facebook use in the workplace should be a source of collaboration and safe working environment. Employees should be enriched with learning experiences through the use of Facebook (In, 2014). However, employers need first to tame the professionalism among employees to ensure that they look after the interests of the organization. Employees should undergo education regarding professionalism while handling online tasks (Mangold & Faulds, 2009). They should also be informed of the risks involved in updating inaccurate statements, posting inappropriate comments and pictures on Facebook. It will help ensure that employees are focused on the goals of the organization.

Employee efforts also need to be appreciated by the employers (Bargh et al., 2004). The realization that their efforts are valuable will motivate them to work towards achieving organizational goals. The contributions of employees towards the company will yield success and staff will feel satisfied with the outcome of their efforts. Employee appreciation is also based on addressing their grievances as they occur so that they do not make it public. The company’s reputation can be protected when employers are looking into the interest of employees.

Use of Facebook has either changed or tarnished the company’s image. It is necessary for employees to apply knowledge and competence in everything they do upon reporting to work. It will help safeguard the company’s reputation because of the awareness of the direction and goals of the enterprise. Employers should strive to create an equilibrium regarding the positive impact and negative impact of Facebook use during working hours (Aguenza et al., 2012). It is through human interactions that employees engage in aspects that ensure the regulation of Facebook use. The collaborative effort of management and staff to use Facebook in a particular way and for specified reasons facilitates their ability to reason together upon difficulty. As a result, Facebook use should be directed towards contributing, preserving and enhancing knowledge in the workplace.

Facebook use during working hours can be tamed through setting clear work goals and deadlines of work. Employees will report to the company and know what is expected of them. When employees are not too busy, they tend to look for entertainment from the most convenient places (John, 2011). Facebook is tempting, especially when boredom in the workplace strikes. However, employers should ensure that employees are fully packed with work throughout the day or night depending on their working hours (Mangold et al., 2009). The work is checked before employees leave after their hours lapse to determine their efforts and level of commitment towards meeting set deadlines.

Enough work distribution among employees during working hours also helps the company get value for its money (Aral et al., 2013). Idle employees derail the company’s productivity by using Facebook instead of working. As a result, it is important that wages are set by working hours so that employees can work hard to earn more.

Employees need to feel wanted in the organization. Employers should make employees feel invested in the success of the company (Vitak et al., 2012). This implies the need for involvement in all company operations so that employees are aware of their position. The company should outline the short term and long term goals to ensure that employees fit into the plans (Hutter et al., 2013). Employees tend to be attentive to detail when their skills and competence are acknowledged and put to good use.

Some companies employ individuals who are not competent enough for the job. As a result, the person gets bored quickly and chooses alternative ways to regain comfort during working hours. Employers should check a person’s ability to perform and increase company productivity before hiring. Employees should be motivated to work and also remain committed to the strategies and goals of the organization (Aguenza et al., 2012). There is no need to subject an employee to a task that will create difficulty in accomplishing. The consideration of employee skills makes motivation and commitment easier. It also prevents an employee from distractions such as Facebook use during working hours because of the awareness of what they need to pursue. Employees should be educated on customer handling services so that the clients return and not prefer the competitors (GoodFellow, 2012).

Conclusion

The use of Facebook in the workplace has become rampant in the recent years. Employees continue to rely on Facebook as a means to address their grievances, make new friends, post updates and comment. They fail to recognize the negative impact of using Facebook during working hours. Companies have experienced low productivity and even closed down because of employee incompetence during working hours. Employers need to develop policies that govern Facebook use in the workplace. Employers and employees should have clear goals to pursue, and deadlines should be set to ensure employees remain focused throughout working hours. Although Facebook facilitates company performance because of ease of communication, productivity is also of the essence when employees concentrate on work during working hours.

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