Introduction
In recent past, social networking has been on the rise. Many companies and individuals have embraced use of social networks because of their many benefits. For example, companies are using social networks to interact with customers.
Many companies have successfully used social networks to improve their understanding of the modern marketplace (Jue and Kassotakis 45). For example, Del Monte uses social networks to reach out to its customers in a process referred to as customer intimacy (Rainer and Ceglieski 160).
The company has developed three platforms to facilitate communication and interaction with customers. Social networks are beneficial to both individuals and companies.
However, they have several disadvantages that limit their reliability and efficiency. Disadvantages include exposure of data to security risks, possible reduction in employee performance, reduced ability to monitor employees, and reduced organizational efficiency and productivity.
Advantages of social networks
Social networks have many advantages that have resulted in increased demand and use. They provide information, enable businesses do things in new and more efficient ways, facilitate communication, and enhance collaboration (Jue and Kassotakis 55).
Common social media tools that organizations and individuals use include Twitter, Facebook, blogs, MySpace, and others that allow free interaction with customers.
Social intranets area common aspect of communication in many organizations. Many organizations sue them as a tool for internal communication.
Social networks transform computers into reliable and efficient sources of information. As such, individuals can access information from numerous sources on the internet.
On the other hand, companies and individuals can conduct research because adequate information is available on different topics and disciplines (Haigh 77). Availability of adequate and relevant information has transformed ways in which organizations conduct business.
Reliability of social networks is the main reason why many organizations choose them as primary sources of information. In addition, retrieval of information is fast and cost-effective (Haigh 78).
In olden days, organizations hired research companies to collect information from customers. However, with advent of social networks, organizations collect first hand information from customers through social networking services such as Facebook, Twitter, and MySpace.
Another advantage of social networks is that they facilitate communication (Rainer and Ceglieski 167). They promote communication channels such as chat rooms, emails, call centres, and voice messages that reduce costs of operations.
A study conducted on more than 290 organizations located in America, Asia, and Europe found out that more than half of them rely on use of social intranets for communication within the organization (Rainer and Ceglieski 169).
Among them, the most common social networking tool used was instant messaging. It was used by 77 percent of surveyed organizations. Other commonly used tools included streaming audio and video.
However, the study found out that even though many organizations use social networking tools for internal communication, their use among employees is still poor. In many organizations, social media is used to facilitate communication between employees, and team members.
It has been used for top-down communication between employees and management. For example, blogging promotes communication between employees and managers in organizations that have large teams of employees (Rainer and Ceglieski 169).
One advantage of use of social networks is because many of them do not compromise privacy. In addition, communication between employees and managers promotes effective organizational dialogue between different levels in an organization (Jue and Kassotakis 58).
Another advantage of using social networks for communication in organizations is enhancement of relationships and efficiency.
It is easy for employees to give their ideas, opinions, and feedback regarding any organizational mater without fear of victimization by supervisors or managers (Haigh 81).
For example, during a crisis, communication between different levels of an organization is quick and effective in solving the crisis.
Social networks support new ways of conducting business (Rainer and Ceglieski 160). For example, they support new ways of marketing and advertising, supply chain management, customer service, and human resource management.
New methods of conducting business enable organizations and businesses develop competitive advantage strategies that enhance survival in the highly volatile and uncertain modern business environment (Haigh 41).
For example, many organizations save a lot of money that was traditionally used to advertise products by using social networks.
Instead of conducting expensive marketing and advertisement, organizations rely on social networks to share experiences with customer on certain products introduced in the market (Haigh 44).
In addition, customers share information regarding products and companies on social networks. This serves as an efficient marketing strategy for many organizations. On the other hand, many organizations use social networks to build their corporate images.
For example, organizations use twitter to share short messages with customers on their corporate social responsibility activities and projects (Jue and Kassotakis 61). These messages improve the images of organizations thus attracting and more customers and investors.
In addition, they have introduced a new business paradigm that is necessary in the social media era. Companies and organizations that were little known have become famous in many areas because of use of social networks.
They facilitate use of new communication methods, new ways of developing relationships between managers and employees, and facilitate new ways of solving organizational problems and challenges.
Many organizations embrace use of social networks because they promote open communication, strong relationships, and transparency among employees and employers (Jue and Kassotakis 63).
Finally, social networks facilitate collaboration between employees in achievement of organizational goal and objectives (Rainer and Ceglieski 168). Social networks have made collaboration between virtual teams easy.
Teams in different locations can conduct virtual meetings and perform certain tasks together. This has contributed to cost reduction and proper use of time by organizations (Rainer and Ceglieski 168).
For example, social networks facilitate crowd sourcing, which is a new concept that has improved efficiency and productivity of many organizations.
Disadvantages of social networks
Social networks have disadvantages that limit their reliability and usefulness. They include feelings of isolation from other employees, lack of socialization, reduced chances of promotion at the workplace, and exposure of data to online fraudsters (Golden 48).
Many organizations conduct many business activities on social networks. Activities such as research, marketing, human resource management, and recruitment are now conducted through social networks.
Therefore, employees spend a lot of time online interacting with customers and potential employees. This has reduced physical interaction and as a result created a feeling of isolation in employees (Dahln, Lange, and Smith 83).
It is important for employees to feel that they are part of an organization and corporate culture. However, social network have widened the gap and facilitated development of isolated work environments that have affected employees adversely.
There is no physical contact between employees and customers or potential employees. This has reduced socialization because many activities and tasks are executed virtually.
Socialization between employees is one of the most important aspect of improving employee performance and productivity. However, social networks promote virtual socialization that does not offer benefits of social interaction.
In traditional marketing, employees interacted physically with customers. This was a very effective way of convincing customers because employees could use emotions to connect with customers (Dahln, Lange, and Smith 85).
In contrast, social networks do not facilitate emotional connection between employees and customers, which is an important marketing strategy (Haigh 47). Even though successful, use of social networks has reduced effectiveness s of certain organizational activities.
Use of social networks has reduced employee monitoring. Therefore, it is difficult for an employer to promote an employee because social networks do not facilitate measurement of employee performance.
In addition, employees may lose certain benefits and be subject to lower remuneration (Dahln, Lange, and Smith 84). This is because social networks have made execution of tasks easier and faster.
For example, employees do not need to travel or make phone calls to convince customers to buy their products. These activities are conducted online through social networks.
Employee monitoring is important in order to measure employee performance and productivity, parameters that are used to promote and demote employees (Dahln, Lange, and Smith 88).
However, these activities have become difficult with advent of social networks in organizations because managers cannot monitor employees virtually.
Another disadvantage of social networks is threat to data security. Sustained use of social networks exposes an organization’s data to risk of compromise (Golden 50). With absence of fraudsters on the internet, companies risk losing data that could be used to compromise their operations.
Many rival organizations hire fraudsters to obtain data illegally form companies that rely on social networks to perform organizational activities.
For example, marketing and strategic data of organizations may be obtained from social networks during interaction between managers and employees. In most cases, data and useful information is compromised in cases where competition is stiff between organizations or companies.
Certain organizations hack into databases of other organizations and obtain information that helps them gain competitive advantage in the market. In addition, information on customer and marketing strategies could be used to compete with companies that dominate certain markets.
Use of social networks makes it difficult for employers to monitor employees (Dahln, Lange, and Smith 86). This may lead to poor performance and low productivity. In addition, cost of purchasing, installing, and maintaining technological gadgets is high.
Additional costs arise from training employees on ways of using social networks effectively in order to achieve organizational goals and objectives in desired ways (Dahln, Lange, and Smith 87).
Conclusion
Social networking has introduced new business concepts in the field of communication that have benefited organizations and individuals. Social networks are used for communication and information retrieval. In addition, they allow organizations do business in new ways.
They present cost-effective ways of doing business such as cheap marketing and advertisement. Organizations save a lot of money by avoiding traditional methods of marketing and advertisement by focusing on marketing and advertising using tools availed by social networks.
However, they have disadvantages too. They contribute to low employee performance, increase costs of operations, create a feeling of isolation in employees, and expose organizations’ data to online fraudsters.
For example, rival companies hack into each other’s databases and gain access to useful information that enables them gain competitive advantage over each other.
Works Cited
Dahln, Micael, Lange, Fredrik, and Smith Terry. Marketing Communications: A Brand Narrative Approach. New York: John Wiley & Sons, 2007. Print.
Golden, Michelle. Social Media Strategies for Professionals and Their Firms: The Guide to Establishing Credibility and Accelerating Relationships. New York: John Wiley & Sons, 2010. Print.
Haigh, Paul. Social Network Websites: Their Benefits and Risks. New York: Optimus Education eBooks, 2009. Print.
Jue, Arthur, and Kassotakis Mary. Social Media at Work: How Networking Tools Propel Organizational Performance. New York: John Wiley & Sons, 2003. Print.
Rainer, Robert, and Ceglieski Casey. Introduction to Information Systems: Enabling and Transforming Business. New York: John Wiley & Sons, 2010. Print.