Skip to main content

Will Social Media Change Company’s Organizational Structure?

I am taking a MBA class on designing high performance organizations this fall. I can tell from the case studies that a company’s organizational structure can make significant impact on its bottom line. Accordingly, I have found it extremely interesting when reading this month’s cover story on Forbes about how social media may cause a new wave of corporate revolution. I wonder what transformational changes social media will make to Corporate America’s organizational structure.

The “new world” demands companies and leaders show “authenticity, fairness, transparency, and good faith,” according to the report. Through social media, people can tell whether a company or a leader cares about employees or customers. The era of dictating CEOs has gone. A successful CEO needs to be exposed and open to share his/her problems. The more s/he shares, the more trustful s/he becomes among customers and employees. Those who are still reluctant to share fail to show transparency and thus, will very likely be eliminated by the system.

Companies can no longer ignore those most powerful social media tools. Facebook is the most influential and can form the “viral consensus.” LinkedIn pushes companies to treat their employees “right” because every employee is “seachable” and "reachable" by recruiters on LinkedIn. Valuable employees will be “hunted” if they are not treated “right.” YouTube and Twitter can also be very powerful in damaging a company’s reputation for a “tiny” mistake the company made.

If a company bans social media within the organization, the company is going to make a common mistake. Instead, companies should empower their employees as well as customers on social media. Engaging is important but not enough. People also want their voices to be heard and their suggestions to be acknowledged. They want to make meaningful contributions to the company. “If you ignore these forces, you will probably fail.”

After reading this article, I feel that companies today are facing two options: to make changes or to fail. Companies must design an organizational structure that allows leaders to build authentic leadership, business units to effectively and efficiently communicate with other business partners and customers, and the company to show its commitments to communities and good faith. I can see why many organizations created new positions of social media officers.

What do you think? Must a company adjust its organizational structure when facing the growing power of social media? Why or why not?

References:
Kirkpatrick, D. (2011, September 26). Social power and the coming corporate revolution: Why employees and customers will be calling the shots. Forbes, 72-81. Also available online.
The picture was downloaded from the Presentation Advisors dot com.

Comments

Popular posts from this blog

Yammer: A Social Networking Site Exclusively for the Workplace

Effective internal communications among employees are related to some desirable organizational outcomes, such as robust morale, a clear vision, low turnover, and high employee engagement. The question is what platform can serve the purpose. This ABC News video introduces “ Yammer ,” an exclusive internal communication tool for companies. A user must use a valid company e-mail address to sign up for an account. Once an account is validated, the user will be led to the company page that is pretty much like a Facebook page. The difference is that only the users whose e-mail addresses share the same domain can see the wall and communicate with each other. I have no question about whether Yammer could be a useful internal communication tool for companies, but I just wonder: how many social networking sites do people need for communication? Why people have to “create” so many platforms or channels for “effective communications”? To many people, Facebook is only for “friends,” whe

The 7 Ps marketing mix of home-sharing services: Insights from over one million Airbnb reviews

The 7 Ps marketing mix framework is a widely used managerial tool that helps businesses identify the principal components of a service product. The 7 P elements include Product, Promotion, Price, Place, Participant, Physical Evidence, and Process.   The 7 Ps framework can assist marketers in making decisions regarding segmentation, positioning, and differentiation. Even for the same type of products with different brands, marketers can still drive higher sales through the improvement of a product’s marketing mix.     The empirical study about 7 Ps of home-sharing services   Building upon the 7 Ps marketing mix framework, I led a research team in a big-data, supervised machine learning analysis of over 1.14 million English reviews of 37,092 Airbnb listings in San Francisco (SFO) and New York City (NYC). We aimed to discover new meaningful business intelligence through the analysis of an immense quantity of online review information that is created by consumers in the cyber marketplace

Can leisure and work-from-home demand stimulate extended-stay hotel growth beyond COVID-19?

The lodging industry is   struggling   to fill the empty rooms in 2020. For months, U.S. hotels are running at an occupancy of 50% or lower.     Not every segment   suffers the same impact from the pandemic, however. Demand for   home-sharing  facilities had already bounced back over the summer. Airbnb reported a higher booking than last year. Marriott’s home-sharing arm is also doing well, seeing a sevenfold increase in booking over last summer.     Similar to what a residential rental or home-sharing facility   offers , guestrooms in extended-stay hotels also feature a full-size kitchen or a kitchenette. Extended-stay hotels are designed for travelers who want to stay at a “home” when away from home. A guestroom at the Residence Inn Miami Sunny Isles Beach   Extended-stay hotels vs. home-sharing facilities     Because COVID-19 is primarily transmitted through direct or indirect human contacts, people are highly encouraged to avoid unnecessary human interactions, leading to more   con