Managers 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, Pakistan
NOVEMBER, 2011

Managers Perception on the Social Websites Utility

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.

Managers Perception on the Social Websites Utility

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.

Managers Perception on the Social Websites Utility

TABLE OF CONTENT
1. ACKNOWLEDGMENT

2. ABSTRACT

3. CHAPTER 1: INTRODUCTION

1.1 Over View

1.2 Problem statement
1.3 Hypothesis
1.4 Outline of the Study
1.5 Definitions

4. CHAPTER 2: LITERATURE REVIEW

10

5. CHAPTER 3: RESEARCH METHODS

17

3.1 Methods of Data Collection

3.2 Sampling Technique
3.3 Sample Size
3.4 Instrument of Data collection
3.4.1 Validity and Reliability
3.5 Research Model Developed
3.6 Statistical Technique

6. CHAPTER 4: RESULTS
4.1 Finding and Interpretation of the Results
4.2 Hypothesis Assessment Summary

19

7. CHAPTER 5: CONCLUSION, DISCUSSIONS,

IMPLICATIONS AND FUTURE RESEARCH
5.1 Discussions
5.2 Implications and Recommendations
5.3 Future Research
5.4 Conclusion

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Managers Perception on the Social Websites Utility

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 organizations physical boundaries. Further it is also helpful for employees to stay

Managers Perception on the Social Websites Utility

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

Managers Perception on the Social Websites Utility

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
promotion of use among employees
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
has a significant impact on their promotion of use among employees
H9; Social websites expands market research, implementation marketing campaigns, deliver
communications and directs interested people to specific websites has a significant impact on
their promotion of use among employees
1.4 Outline of the Study

Managers Perception on the Social Websites Utility

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

Managers Perception on the Social Websites Utility

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).

Managers Perception on the Social Websites Utility

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).

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Managers Perception on the Social Websites Utility

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

11

Managers Perception on the Social Websites Utility

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:

12

Managers Perception on the Social Websites Utility

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 dont 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).

13

Managers Perception on the Social Websites Utility

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

14

Managers Perception on the Social Websites Utility

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

15

Managers Perception on the Social Websites Utility

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 dont 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 others 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).

16

Managers Perception on the Social Websites Utility

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

17

Managers Perception on the Social Websites Utility

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.

Social websites
utility

3.6 Statistical Technique

Promotion of use
among employees

18

Managers Perception on the Social Websites Utility

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

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
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
promotion of use among employees

19

Managers Perception on the Social Websites Utility

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
has a significant impact on their promotion of use among employees
H9; Social websites expands market research, implementation marketing campaigns, deliver
communications and directs interested people to specific websites has a significant impact on
their promotion of use among employees
Interpretation:
After analyzing the output it was found that only two independent variables that is H 4 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

20

Managers Perception on the Social Websites Utility

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

Status

Ho;

Level
Social Website provides a platform to build .401

Rejected

H1;

relationships
Social website helps eliminate the fatigues cause .431

Rejected

H2;

by the work
Social websites can bring employees in closer ties .086

Rejected

H3;

Employees can fight against the negative things .469

Rejected

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

H4;

news etc)
Social websites facilitates open communication, .000

Accepted

leading to enhance information, discovery and

H5;

delivery
Social website provides an opportunity to widen .182

Rejected

H6;

business contacts
Social websites allow employees to discuss ideas, .307

Rejected

post news, ask questions and share links

H7;

Social websites helps in targeting a wide .748

Rejected

audience, making it a useful and effective

H8;

recruitment tool
Social websites improve business reputation and .968

Rejected

H9;

client base with minimal use of advertising

Social websites expands market research, .000

Accepted

21

Managers Perception on the Social Websites Utility

implementation marketing campaigns, deliver

communications and directs interested people to
specific websites

CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS

AND FUTURE RESEARCH
5.1 Discussions
Previously there had been researches done on employees 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
managers or employers about the utility of social websites, internet and benefits associated with
it. Managers or employers do have an idea that internet is a benefit in todays 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 managers 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 its 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

22

Managers Perception on the Social Websites Utility

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
organizations productivity.

5.3 Future Research

According to the research and this study it is concluded that managers 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 managers 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 managers perception.

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Managers Perception on the Social Websites Utility

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