Financial Management Policy

1Manager’s Perception on the Social Websites Utility

To study the effects of managerial perception about social websites utility on their promotion of use among employees.

BY

Syed Ramiz Hussain

Syeda Maheen Ahsan

Arooba Siddiqui

M.Safwan Bin Tahir

Omer Farooque

Muzammil Paracha

A research submitted in partial fulfillment of the requirements for the degree of Bachelors of Business Administration to Iqra University Research Centre (IURC) at the Iqra University, main

campus, Karachi.

Karachi, PakistanNOVEMBER, 2011


ACKNOWLEDGMENT

This research report would not have been possible without the support of few people who

have always been kind and supportive with our research. Above all we would like to thanks

Allah Almighty who has always been kind and merciful and without whose consent nothing is

possible.

Moreover this research would not have been possible without the guidance, support and

patience of our supervisor Dr. M. I. Subhani, it is due to his immense knowledge, dedication

towards his students, our university and research projects that today we are able to complete this

report. Along with him the support and knowledge of our another supervisor Dr. Akif Hasan has

been really vulnerable and knowledge gaining, for which we are really grateful to them

We would like show our gratitude towards academic and technical staff of our university

specially the department of IURC who has been really helpful and provided their support

whenever we required. We would also like to thanks all the managers who were our respondents

and gave us their precious time.

In the end we would like to thanks all our friends and fellow students who helped us

throughout our research with their support, kindness and encouragement. However, the chances

of errors do remain, for which of course we are entirely to be held responsible.


ABSTRACT

In this report we would like to highlight the most used technology of today that is social website,

its usage in the organization and the way it is being perceived by the managers. Self developed

questionnaires were developed as per our dependent and independent variable that were filled by

300 managers from all over Karachi. This research helped us in analyzing the perception of

managers about the utility of social websites and their promotion of use among employees. The

finding of this research were estimated by applying Multi Nominal Regression on our data at

SPSS, which helped us in evaluating 10 sets of hypothesis relating to our title, which were

rejected and accepted according to the data filled by respondent.


TABLE OF CONTENT

1. ACKNOWLEDGMENT 2

2. ABSTRACT 3

3. CHAPTER 1: INTRODUCTION

1.1 Over View1.2 Problem statement1.3 Hypothesis1.4 Outline of the Study1.5 Definitions

5

4. CHAPTER 2: LITERATURE REVIEW 10

5. CHAPTER 3: RESEARCH METHODS

3.1 Methods of Data Collection3.2 Sampling Technique3.3 Sample Size3.4 Instrument of Data collection

3.4.1 Validity and Reliability3.5 Research Model Developed3.6 Statistical Technique

17

6. CHAPTER 4: RESULTS4.1 Finding and Interpretation of the Results4.2 Hypothesis Assessment Summary

19

7. CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS AND FUTURE RESEARCH

5.1 Discussions5.2 Implications and Recommendations5.3 Future Research5.4 Conclusion

22

8. References 25


CHAPTER 1: INTRODUCTION

1.1 Overview

As the world has stepped into 21st century, new technologies are also emerging with time and

it cannot be ignored by corporate world easily. Even if organization avoids bringing few

technologies probably because of the expense of running it or analyzing it, employees or

associates introduces it anyhow. Information and communication technologies are such one

technology which cannot be ignored despite of its disadvantages (Mattioli, 2009).

It is observed that having an Internet connection can be provide numerous benefits if it is

accessible at home, universities and organizations. Like at universities it helps students enhance

and increase their knowledge through various websites, moreover it also provide them a platform

through which they can get involve in healthy activates relating to their studies, general

knowledge, task related activities etc. It is also beneficial for virtual universities (Budden, et.al,

2007). Athavaley (2007) states that in modern era, internet helps in connecting customers and

suppliers from all over the world, making it more convenient to work through communication with

people outside the organization’s physical boundaries. Further it is also helpful for employees to stay

in touch with other globally. A supervisor can easily stay connected to its team member through a

medium which is effective and cost effective as well. Kadlec (2007) explains that making the use of

information available on internet, management can come up with new and innovative ideas. Online

training and workshop tutorial can help in providing less expensive coaching to employees who

makes them more efficient, productive, and career oriented. Along with organizations being able to

establish and manage their other branches across the global more easily.


However, Hoffman (2007) explains that like benefits there are also various disadvantages

relating to use of internet and social websites during work hours. The first and foremost

disadvantage is employees taking benefit of the internet access being provided to them, personal

use of internet during work hours in the absence of bosses or supervisors secondly organization

fear of losing confidential information, misuse of internet can lead to destructive step causing

loss of money in settlements, protecting computers, systems from viruses and above all the

misuse effecting employees efficiency and productivity level (Finder, 2006).

1.2 Problem statement

To study the effects of managerial perception about social websites utility on their promotion of

use among employees.

1.3 Hypothesis

Ho; Social Website provides a platform to build relationships has a significant impact on their

promotion of use among employees

H1; Social website helps eliminate the fatigues cause by the work has a significant impact on

their promotion of use among employees

H2; Social websites can bring employees in closer ties has a significant impact on their


H3; Employees can fight against the negative things about the company floating in market (i.e.

blogs, news etc) has a significant impact on their promotion of use among employees


H4; Social websites facilitates open communication, leading to enhance information, discovery

and delivery has a significant impact on their promotion of use among employees

H5; Social website provides an opportunity to widen business contacts has a significant impact

on their promotion of use among employees

H6; Social websites allow employees to discuss ideas, post news, ask questions and share links

has a significant impact on their promotion of use among employees

H7; Social websites helps in targeting a wide audience, making it a useful and effective

recruitment tool has a significant impact on their promotion of use among employees

H8; Social websites improve business reputation and client base with minimal use of advertising


H9; Social websites expands market research, implementation marketing campaigns, deliver

communications and directs interested people to specific websites has a significant impact on


1.4 Outline of the Study

The study is done on finding the managers perception about the social website utility on

their perception of use among employees. To find how different managers reacts about the usage

of social website from different organizations of Karachi. This study finds out whether

employers feels acceptable about the open access of Internet during work hours, or providing

limited access with complete supervision is necessary. Further this study also helps in

highlighting to what extent employers feels safe about the use of social website and internet and


how many hours in a day during work time is acceptable for them. Relationships between both

the variables are to be discussed in the report.

1.5 Definitions

1.5.1 Social Websites Utility

Studies has showed that use of social websites can prove to be beneficial if employees use it for

increasing their productivity, here productivity means that they use it in knowing their job better

(the one for which they are hired for).They can use it to make their links stronger with their

colleagues while it can also be used to built a stronger relationship with employees from other

organization working for them (Ferreira,2009).

Employees can also make use of these websites in communicating with their

customers which is in practices commonly these days. Social websites also helps in gaining

knowledge by giving them a platform to discuss common topics of interest, including work

colleague discussing internal and external information creating a healthy relationship among

employees and making the atmosphere of organization good in return (Ferreira,2009).

1.5.2 Promotion of Use among Employees

Anandarajan & Simmers (2003) highlights the fact that employees from different organization do

use internet during their work hours and even at home to socialize or increase their public

relations which can both be beneficial as well as harmful for the organization. It is helpful

because if employees are increasing their contacts then they are also introducing their

organizations hence, increasing the public image of the company and bringing it into highlights.

While the harmful aspect is leak of private information, chances of frauds increase as well. Apart


from socializing few job seekers also follow the internet regularly to look for job advertisements

apart from newspapers.

With the advancement in technology employees also take helps from internet as it covers

knowledge on every other topic which is very helpful for them like any other internet users these

days. Online activities, training, workshops help them in gaining knowledge according to their

job requirements (Buddin & Buddin, 2009).


CHAPTER 2: LITERATURE REVIEW

Advancement in technology and the growth of Internet has resulted in employers

adopting measures to limit and restrict the use of Internet and computer by employees (Shu &

Ambra, 2010). This is done to ensure maximum productivity, maximize utilization of time and

to reduce the misuse of resources (Sipior & Ward, 1995; Alder et al, 2007). Although through

these measures efficiency can be controlled which leads to organizational effectiveness,

however, breach of ethics can also occur (Lease & Gordon, 2005, p.3). This can decrease the

satisfaction and trust in the employees (Lease & Gordon, 2005; Nord, McCubbins & Nord,

2006) thus makes one think whether enforcing these policies can have a consequence on the

productivity. The effects of electronic monitoring have been researched previously as well as a

topic of discussion among scholars (Shu & Ambra, 2010).

Definition of Social Network:

Using Internet, individuals find each other with common interests and allow them to ‘meet’

online (Mohmed & Rahman, 2010).

Increase in the use of Internet and computers have increased the risk of viruses, hacking and

other security issues (Vorvoreanu & Botan, 2000). This can result adversely on organizations

because of leakage of information and low productivity (Alder et al, 2006; Sipior & Ward, 1995;

Vorvoreanu, & Botan, 2000). Trying to have maximum utilization of time will cause fewer

distractions for the employees and will enable them to concentrate more on their work (Aral,

Brynjolfsson, & Van Alstyne, 2007). This way, employees will be more professionals about their

responsibilities inside the organization (Aral, Brynjolfsson & Van Alstyne, 2007).


Restricting the use of Internet can avoid the abuse of resources such as “excessive use of

bandwidth” (Cooke & Kroeze, 2004). The offences can include using personal files and music

files and major can include use of pornography (Pownell & Bailey, 2001; Cooke & Kroeze,

2004).

Employees Job Satisfaction:

The satisfaction level of employees is directly linked with change in work conditions and

environment (Oz, Glass & Behling, 1999; Nebeker & Tatus, 1993). Very strict monitoring can

also become a reason for high stress levels specially when it directly can impact on performance

(Nebeker & Tatus, 1993,p. 528). The belief-attitude-behavioral model by Ajzen (1980) says that

the attitude of employees like personality, traits etc can be checked in the same manner as

employees seek to find information. These can have an impact on satisfaction and performance

(Anandarajan & Simmers, 2003; Stanton & Weiss, 2000).

Privacy of Employees:

It has been found that the higher monitoring of employees performance and work can make

employees have a feeling of less privacy and freedom while working (Lane, 2003; Nord, Mc

Cubbins & Nord, 2006). This can become a reason for violation of the personal rights of

employees. Because of the different perceptions of privacy, the trust between the organization

and the employees is also greatly affected (Alder et al, 2006; Introna, 2000).

Perceived usefulness can be described as policy monitoring and its effectiveness as perceived by

the employee (Shu & Ambra, 2010). It becomes useless if employees fail to understand it or

refuse to follow it (Pownell & Bailey, 1999; Anandarajan & Simmers, 2003). Therefore, the

efficiency of policy monitoring cannot be fully attained ( Whitty, 2004).


Instead of monitoring by the organization, employees should self- monitor themselves which can

lead to positive effects on performance and individuals (Stanton & Weiss, 2000). Results show

that the attitudes of employees remain more or less the same and may not necessarily change

through monitoring the behavior (Anandarajan & Simmers, 2003). Even if strict monitoring is

done, employees make take long breaks; coffee breaks and socializes more (Anandarajan &

Simmers, 2003; Pownell & Bailey, 2001). Oz, Glass and Behling (1999) found that females

accept electronic monitoring more than males (Oz, Glass & Behling, 1999; Alder et al, 2006).

Growth of Social Networking sites:

In a survey (Marshall Kirkpatrick 2006), a growth of number of visitors to social networking

website has been observed. Few of these sites help in strangers connecting based on shared

interests and views (Mohmed & Rahman, 2010). All these sites expect one main factor from

each other while connecting, Trust (Mohmed & Rahman, 2010).

Trust and Privacy:

Mayer, Davis, and Schoolman (1995) defined trust as “ the willingness of a party to be

vulnerable to the actions of another party based on the expectation that the other will perform a

particular action important to the tractor, irrespective of the ability to monitor or control the other

party (Mohmed & Rahman, 2010). Trust is a main component of Social Exchange Theory

Roloff, (1981).

Groups on social networking websites allow people to share knowledge, share files and upload

pictures and videos (Mohmed & Rahman, 2010). Sharing information and work can be an

efficient source of communication and production for a company (Mohmed & Rahman, 2010).


With sources like Word, Excel and Powerpoint, employees can use and make their files of work

swiftly and effortlessly (Mohmed & Rahman, 2010).

Benefits of Internet:

There can be lot of benefits that can be gained from using Internet at home or work. Students

who have access to Internet can get more knowledge and information then those who don’t have

it (Alampay & Hechanova, 2010). For example in universities, teachers use information to teach

students with the most advanced and recent knowledge. Organizations can use their employees to

link to external world which makes coordination with global customers more cost-effective

(Gupta 2004). This enables employees to work in coordination with employees in different

geographical locations (Zweig 2001). Using social networking websites, distant employees can

be connected for communication through technology and helps supervision (Alampay &

Hechanova, 2010). Social networking websites enable file sharing of documents and other

information easier (Alampay & Hechanova, 2010). Also, the information that Internet provides

can be helpful in innovation and new forms of thinking (Alampay & Hechanova, 2010).

Misuse of Social Networking Websites:

Problems associated with misuse of Internet majorly include that employees can use these for

their self purposes that can go against official purposes (Gupta 2004). Also, misuse of computer

and email by employees in offices can cost heavily to organizations resulting in litigation,

lawsuits, theft and waste of resources (Alampay & Hechanova, 2010). Others include protection


of secrets, confidential information inorder to prevent viruses and consumption of storage space

(Overly 1999).

Internet use can be restricted by applying restrictions to some sites (Alampay & Hechanova,

2010). Also, employees should be monitored and their use on Internet should be regulated

(Alampay & Hechanova, 2010). Employees can be monitored through several ways. Wakefield

(2004) suggests two forms of employee monitoring of electronic activities. Firstly network

surveillance. This is done to track the visited sites (Alampay & Hechanova, 2010). The other

way is email-monitoring which monitors the emails sent by the employee (Alampay &

Hechanova, 2010).

Background of Social Websites:

Social activities of Internet have enabled marketers to reach their target markets and have given

them several opportunities (Buddin & Buddin, 2009). Three years back, Facebook came

exploding but was initially only limited to college students but now can be accessed by anyone

with a valid email id (Kornblum, 2006). It was found that students in Budden, et.al (2007) that

they spend major part of their routine time using social network websites. The total of the time

that they use on Facebook, My Space and other sites equal to 6.8 hours per week (Buddin &

Buddin, 2009).

Weiskirich & Murphy (2004) found that as the connectivity speed of Internet and its widespread

use is increasing so does the potential of students to use these sites even more. Davis et al found

that male students of public universities use internet much more then female students or students

of private universities.


Human Resource implications on use of Social Networking websites:

The use of Social networking websites is increasing at accelerating pace. Its major implications

come for HR managers (Buddin & Buddin, 2009). These websites are heavily used by

employers and job seekers (Buddin & Buddin, 2009). These websites are also used to improve

resumes with the skills that students develop by using them overtime (Buddin & Buddin, 2009).

A lot of organizations have started using these websites to look for candidates for vacant

positions (Buddin & Buddin, 2009). Companies use these sites to conduct background checks

for the resumes and applicants (Buddin & Buddin, 2009). Graduates have started using social

networking websites to market themselves and their skills for employment purposes (Buddin &

Buddin, 2009). Mattioli(2007) states that candidates should use newer technologies to market

themselves rather than using social networking websites.

Recruiters are using Facebook, LinkedIn and MySpace to search for new candidates (Athavaley,

2007). They say that using these sites, they can save their money and time which otherwise

would have caused them to waste a lot of time and money. Recruiters also use these sites for

relationship building with employees and to get their information (Buddin & Buddin, 2009).

Also, recruiters use these sites for background checks of potential employees (Buddin & Buddin,

2009). The websites become helpful for employees of business opportunities (Buddin & Buddin,

2009). Using these, professionals should connect to only those whi they can be helpful to and

those who can be helpful to them (Buddin & Buddin, 2009). Also, they should make sure that

these people don’t leak their personal information, infact this is important for all those who use

Internet (Buddin & Buddin, 2009).


Social networking websites such as Facebook have started allowing high level of surveillance as

users can go and get each other’s information and check out the profiles (Bosch, 2009). Some

studies show how librarians utilize the popularity of Facebook and its growing users to promote

awareness of cultural interests (Bosch, 2009). Downes (2007) claims that Facebook is different

from other sites as it provides stronger academic resources and its distinctive facilities can be

used better in educational context.

Virtual Workplace:

Nowadays, the information age we are living in is beyond space and time (McGregor, 2000). The

advancement in technology has made the business go boundary less, beyond buildings and

environments (Bennett, Owers, Pitt & Tucker, 2009). This is specially for organizations that are

very dispersed over different geographical boundaries (Bennett, Owers, Pitt & Tucker, 2009).

Bell et al. (2008) says that a workforce that is dispersed, its management can be done by assuring

great team work and generate new ideas which social networking websites can facilitate.

Through these advancements in technology, work can be done anywhere around the globe, office

have just become a mere a place to practice values and beliefs of organization (Bell et al., 2008).

Social networking websites facilitate in knowledge transfer and communication as it provides

formal and informal communication with other employees and clients (Bennett, Owers, Pitt &

Tucker, 2009). These sites also provide with games in order to maintain team spirit and

coordination among employees in distant places (Bennett, Owers, Pitt & Tucker, 2009).


CHAPTER 3: RESEARCH METHODS

3.1 Method of Data Collection & Procedure:

The method chosen for data collection & procedure is person survey technique. The

instrument of data collection will be provided to managers through reference or request and

will be convinced by trying to explain the importance of research for future benefits and for

their organization. The hard work on data collection will last for 3 weeks and daily basis

contact will be kept with the managers to keep in track with them.

3.2 Sampling technique and procedures:-

Convenience sampling technique is the non probability sampling which has been

proposed for this research. It is very effective because time and cost of collecting information

is reduced. Researcher can choose the respondents at his convenience. In this research the

respondents will be the managers of the organizations. The respondents must be located in

Karachi.

3.3 Sample Size:

Proposed sample size for the research is 300 managers from different organizations of

Karachi.


3.4 Instrument of Data Collection:

Data collection will be done by developing and designing a questionnaire with sets of

questions to be filled by managers of different organizations. This question will be design in

a way that it satisfies and covers the entire variable.

3.5 Research Model Developed

This research is conducted by developing a model which is being based upon the hypothesis

that shows a multiple nominal regression being applied.

3.6 Statistical Technique

The statistical technique used in the research will be Regression. Multiple nominal

regressions are being applied in this research as multiple output of this research was to be

found

Social websites utility

Promotion of use among employees


CHAPTER 4: RESULTS

4.1 Finding and Interpretation of the result

Findings:

In order to conduct this research, we developed 10 sets of hypothesis which helped us toward the

final conclusion. The following hypotheses are as follows:

Ho; Social Website provides a platform to build relationships has a significant impact on their


H1; Social website helps eliminate the fatigues cause by the work has a significant impact on


H2; Social websites can bring employees in closer ties has a significant impact on their


H3; Employees can fight against the negative things about the company floating in market (i.e

blogs, news etc) has a significant impact on their promotion of use among employees

H4; Social websites facilitates open communication, leading to enhance information, discovery

and delivery has a significant impact on their promotion of use among employees

H5; Social website provides an opportunity to widen business contacts has a significant impact

on their promotion of use among employees

H6; Social websites allow employees to discuss ideas, post news, ask questions and share links



H7; Social websites helps in targeting a wide audience, making it a useful and effective

recruitment tool has a significant impact on their promotion of use among employees

H8; Social websites improve business reputation and client base with minimal use of advertising


H9; Social websites expands market research, implementation marketing campaigns, deliver

communications and directs interested people to specific websites has a significant impact on


Interpretation:

After analyzing the output it was found that only two independent variables that is H4 and H9 are

accepted as they have a significant effect on the dependent variables. While all other hypothesis

has been rejected as they does not have a significant effect on the dependent variables. It is

therefore concluded that social websites are helpful

In open communication, leading to enhance information discovery and delivery

It helps in expanding market research, implementing marketing campaigns, delivering

communications and directing interested people to specific websites.

4.2 Hypothesis Assessment Summary

Hypothesis Significance

Level

Status

Ho; Social Website provides a platform to build

relationships

.401 Rejected

H1; Social website helps eliminate the fatigues cause .431 Rejected


by the work

H2; Social websites can bring employees in closer ties .086 Rejected

H3; Employees can fight against the negative things

about the company floating in market (i.e. blogs,

news etc)

.469 Rejected

H4; Social websites facilitates open communication,

leading to enhance information, discovery and

delivery

.000 Accepted

H5; Social website provides an opportunity to widen

business contacts

.182 Rejected

H6; Social websites allow employees to discuss ideas,

post news, ask questions and share links

.307 Rejected

H7; Social websites helps in targeting a wide

audience, making it a useful and effective

recruitment tool

.748 Rejected

H8; Social websites improve business reputation and

client base with minimal use of advertising

.968 Rejected

H9; Social websites expands market research,

implementation marketing campaigns, deliver

communications and directs interested people to

specific websites

.000 Accepted


CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS

AND FUTURE RESEARCH

5.1 Discussions

Previously there had been researches done on employee’s productivity and the use of internet

in the organization. In an organization the work environment has the most important role which

is being supervised by the manager which is been highlighted by many authors. While few

authors have also discussed the role of internet in modern era, including the perception of

manager’s or employers about the utility of social websites, internet and benefits associated with

it. Manager’s or employers do have an idea that internet is a benefit in today’s world and help

them in process like recruiting, advertising, training etc while there negative consequences has

also been discussed by several authors along with employees approach in this regard.

In this context, it is needed to understand that manager’s perception about the usage of social

website has an important role on the working environment and the way culture of organization is

to be shaped up. Like any other technology internet also has both its advantages and

disadvantages and it’s not the technology but the way it is used makes it beneficial or harmful for

others. Therefore managers and employees both have to understand their roles in this regard.

5.2 Implications

This research has a very significant as above mentioned variables that are social websites utility

and its promotion of usage among employees both are very important for employees and

organization’s productivity.


5.3 Future Research

According to the research and this study it is concluded that manager’s perception about the

social website utility and their promotion of use among employees is somewhat positive. In

future other researches taking the same topic can be done by adding more variables while the

relationship among variables can also be managed in different way to study their effects.

5.4 Conclusion

This study on the effects of manager’s perception about the social website utility on their

promotion of use among employees has concluded that only to some extent the use of social

websites are beneficial for the organizations. It helps in opening communication mediums,

enhancing and promoting easy information discovery and delivery. Moreover it also helps in

expanding market research, implementing marketing campaigns, delivering communication and

directing the interested people towards the specific useful websites. Apart from these benefits,

social website does not have any other useful benefits on the employees or organizations

according to the manager’s perception.


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Financial Management Policy