research

ASSESSMENT 1:

Social Media and its effect on Employee’s  Productivity ‐Case Study of Banking Sector in 

Australia  

Student Name: Student ID:

BUSN20016‐ RESEARCH IN BUSINESS

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Table of Contents  SECTION I .................................................................................................................................. 3 

INTROUDUCTION ................................................................................................................. 3 

PROBLEM STATEMENT ....................................................................................................... 4 

RESEARCH OBJECTIVES/QUESTIONS ................................................................................ 4 

JUSTIFICATION OF THE PROJECT....................................................................................... 5 

EXPECTED RESEARCH OUTCOME ...................................................................................... 5 

SECTION II ................................................................................................................................ 7 

CONCEPTUAL FRAMEWORK AND RESEARCH HYPOTHESIS .......................................... 7 

Addiction ............................................................................................................................... 7 

Distraction ............................................................................................................................ 7 

Decline in interpersonal skills ............................................................................................. 7 

Sharpening Concentration ................................................................................................... 8 

Knowledge and Learning ..................................................................................................... 8 

Improved Communication ................................................................................................... 8 

Sharing of Information ......................................................................................................... 8 

Morale Booster ..................................................................................................................... 9 

Conceptual Framework ....................................................................................................... 9 

Hypothesis .......................................................................................................................... 10 

METHODOLOGY ................................................................................................................. 12 

SECTION III ............................................................................................................................. 14 

ORGANISATION OF THE STUDY ....................................................................................... 14 

GANTT CHART .................................................................................................................... 14 

PROJECT BUDGET AND BUDGET JUSTIFICATION .......................................................... 15 

REFERENCE LIST: .................................................................................................................. 17 

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Key criteria Total  marks

Marks  obtained

A statement of the problem, research aim,  objectives and research questions

All  criteria  are  equally  weighted

Justification and potential output of the research

Conceptual framework

Methodology, organisation of the study, project  budget and schedule

Accurate referencing, use of correct English and  logical sequences between sentences and  paragraphs and a good introduction

Total Marks 50

Mark reduction for Turnitin similarity (It's up to  the lecturer/markers/course coordinator's  judgement)

Mark reduction for late submission (5% mark  reduction for each day of late submission)

Grand total = 50

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SECTION I

INTROUDUCTION

Social media or social network such as Facebook, Twitter, Viber, Skype, LinkedIn,

WhatsApp, Google+, YouTube, Instagram etc. is the web based service that enable users

to create a profile and connect, interact and share information with other users. It offers

a global platform for users on facilitating the building of social networks or social

relations.

With the rapid growth of mobile technology and devices such as smartphones and tablets,

the popularity of social media has also grown substantially. Not only the younger

generation, all the age groups and generations are attracted on using and connecting to

social media. Thus, it has now become the part and parcel of our life. Nowadays, Instead

of asking for e‐mail address or phone/mobile number, people request each other for their

social network IDs for establishing a long‐term connections (Avalos, S. 2011)

Because of the ability to create value, success of any company largely depends on the

productivity of their employees. The popularity of Social media is now energizing and

perhaps even changing organization’s culture and the manner they conduct their

business. Thus, employees have even greater responsibility for the success of their

organization in this ever changing business atmosphere. Moreover, with the rapid

development of Information technology and social media, there is a greater reliance on

the productivity of knowledge workers. According to Ramirez YW, Nembhard DA (2004),

two third of the workforce comprises of knowledge workers. Therefore, it is now

mandatory to have digital skills and web connectivity for employees as well as for

organizations. Consequently, employees have started to spend more time on social media

engaging in non‐work related activities such as creating personal networks, checking on

family and friends, streaming and downloading music and video, checking sports scores,

following social bookmarks. (Munene and Nyaribo, 2016). Thus, there is requirement for

studies on how to generate a balance between social media usage and its impact on

productivity of employee in terms of use of resources and time of organization.

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PROBLEM STATEMENT

The use of social media during work hours has become a debatable issue. Some studies

claim that the use of social media in the workplace leads to better employee productivity

as it effects intermediate variables, such as higher morale (AT&T, 2008). Others argue

that the use of social media sites in the workplace causes distractions and loss of

employee productivity (Shepherd, 2011)

Moqbel, M (2012), found that the interaction of employees with friends, family members

and co‐workers through social media offers them with social support which boosted their

job satisfaction, organizational commitment, innovative behaviour, and job performance.

Whereas, the study by Nucleus Research showed that the use of Facebook at work results

in a 1.5 percent decrease in productivity (Nucleus, 2009).

Despite several studies, it is still somewhat difficult to make direct correlation between

use of social media on workplace and its effect on employee’s productivity. Therefore,

this research attempts to fill this gap by examining whether the use of social media by

employees during work hours affects their productivity. This study is conducted in

Australian banks to investigate the reasons why bank employees are using of social media

during work hours and, more importantly, how it impacts their productivity.

RESEARCH OBJECTIVES/QUESTIONS

The main purpose of this research is to investigate the impact of social media on

productivity of employees of banking sector in Australia. Specifically, this study aims to

answer following research questions:

 RQ1: What are the motives for which bank employee uses social media during work

hours?

 RQ2: What is the average time bank employees spend on using social networking

sites during work hours?

 RQ3: What are the effects (positive or negative) of use of social media by bank employees during work hours on their Productivity?

 RQ4: How can the social media sites serve the interests of companies by increasing employee’s productivity and unleashing their potential in the workplace?

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These questions will ultimately help to answer the main objective of the project: reveal

the underlying rationale for banks and other companies to either allow or disallow the

use of social media sites in the workplace.

JUSTIFICATION OF THE PROJECT

Studying the use of social media in banking sector and its impact on the productivity of

employees is vital for several reasons.

First, it will be beneficial for banks as well as other companies to understand the

relationships elicited by this research. Recognizing the associations between use of social

media in the workplace and its effect on productivity of employee can help disclose the

underlying rationale for companies to either allow or disallow the use of social media

sites in the workplace. Moreover, Companies are always looking for the various ways to

enhance the job performance and productivity of the employees. If the use of social media

during work hours turns out to be one of these means, companies will be able to add the

use of social media sites in the workplace to increase productivity. Second, this study

contributes to social media, work performance and employee productivity literature.

This proposal will also help broaden the understanding of the effects (either positive or

negative) of social media on productivity of the employees.

EXPECTED RESEARCH OUTCOME

This research proposal is expects to have below mentioned outcomes by the end of the

project study:

 It provides an understanding of the motivational factors that insists bank

employees to use the social media sites during work hours.

 It will also identifies average time bank employees spend on using social media

and lets banks and other companies to utilize this information to include it in their

formal policies so as to motivate their employees.

 It will also provide an analytical framework for Identification and analysis of the

possible impacts of use of social media sites on productivity of employees which

will ultimately help banks to develop and analyse the strategies in order to

positively enhance the employee’s productivity.

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The result of the research proposal will be useful to Individual employees, Banks,

Financial Institutions, other companies and researchers.

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SECTION II

CONCEPTUAL FRAMEWORK AND RESEARCH HYPOTHESIS

Productivity is measured as how much and how well employee produces from given

resources (Bernolak, 1997). If extra or improved good/service is produced from the

same resource, it is referred to as increase in productivity. The factors that affects

productivity in relation to use of social media in workplace includes addiction,

distractions in work, decline in interpersonal skills, sharpening concentration,

knowledge and learning, improved Communication, sharing of information and morale

booster.

Addiction

Addiction refers to excessive usage of social media by employees which may results in

wastage of time. According to Chen et al (2008), employee that excessively uses social

media sites and are addicted to them exhibits disorders like depression, sexual disorders

and loneliness that negatively affects their productivity besides impeding the reputation

of the company.

Study conducted by Accountemps in 2010 reported that 59% of 1,400 interviewed CFOs

recognized the waste of time as the main concern of use of social media in workplace.

Statistics also indicate that per month an average internet user normally spends 6 hours

on Facebook, which increases manager’s worries that those 6 hours may be spent in the

workplace (Shepherd, 2011). Some employees spends around 2 hours per day on

Facebook in the workplace (Robert, 2009).

Distraction

Distraction refers to diversion of attention away from work that disrupts employee’s

concentration. For example, employee receive personal Facebook alerts, new feeds,

sports news alerts and a range of other personal information that may divert them.

Decline in interpersonal skills

Decline in interpersonal skills refers to the likelihood of employees preferring email,

Facebook chats, Viber etc. as communication means instead of direct conversations. As

per, Diercksen et al, 2007, a major concern of use of social media is a decline in

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interpersonal skills. The impact is already noticeable in the younger group of employees,

who prefer emailing or texting co‐workers instead of direct conversations.

Sharpening Concentration

Sharpening concentration refers to the assumption that brain will be relaxed and

refreshed by taking short pauses/ breaks for social media uses and that results in

sharpening employee’s concentration. Fahmy (2009) found that seventy percent of the

employees who used social media sites for personal reasons resulted in sharpening their

concentration.

Knowledge and Learning

Ashraf and Javed (2010) states that banks must develop right attitude in its staffs for

using social media. It must be viewed as progressive and proper medium of social

communication and must be used as a constructive means for learning new things, ideas

and creating social contacts.

Another study found that companies gains competitive advantage if their top

management uses social media sites. (Collins and Clark, 2003).

Improved Communication

Fahmy (2009), found that employees who uses social media sites are nine percent more

productive because employees connected to others via social media are more social by

nature and are skilled at working together with others along with solving the problems.

Bennett et al (2010) defines the use of social media sites in workplace as an essential

means for knowledge transfer and communication among internal and external

stakeholders of an organization. Email, blogs, messaging, chatting, file sharing, discussion

groups etc. are the means of communication social media sites can offer to the users. As

majority of businesses relies on team works, those means help workforces to access new

resources, data, information, contacts and develop professional networking. Various

industries including tourism, entertainment, advertising etc. have adopted the social

media sites in workplace and took its advantage (Isheriff, 2010).

Sharing of Information

Social media sites can also assist in forming a strong association among employees by

providing them with the ability to better understand those with whom they are working.

This social connection could then help develop the working relationship. The

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improvement could include gaining a better understanding of what motivates the people

around them, as well as allowing them to share what motivates them. (Diercksen et al,

2007).

Morale Booster

Study conducted by Moqbel, Nevo, & Kock (2013) identifies the use of social media in

workplace as a main source of social support for employees and states that they should

involve themselves in social media use to enhance work performance. It is because,

forming a social network with people from various backgrounds would ultimately help

employees to become happier at work, become more innovative and dedicated to the

company, and perform better.

Conceptual Framework

The primary objective of this study is to test a research model to explain the expected

association between use of social media site and impact on productivity. The diagram

(figure 1) below provides a conceptual framework to understand this relationship.

Independent Variable Dependent Variable

Figure 1: Conceptual Framework (Adapted from: (Munene and Nyaribo, 2016)

This conceptual framework summarizes the possible impact of use of social media

(independent variable) on productivity of employees (dependent variable) through

variable such as addition, distraction, decline in interpersonal skills, sharpening

Use of Social Media

in Workplace

Productivity of

Employee

(Positive)  Sharpening Concentration  Knowledge and Learning  Improved Communication  Sharing of Information  Morale booster

(Negative)  Addiction  Distractions in work  Decline in Interpersonal Skills

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concentration, knowledge & learning, improved communication, information sharing and

morale booster.

Hypothesis

Based on the problem statement and the objective of the research, following research

hypothesis can be proposed that would be tested in this study:

Hypothesis 1:

H0: Null Hypothesis: Use of social media sites in workplace doesn’t positively and significantly affects Concentration of employees. H1: Alternative Hypothesis: Use of social media sites in workplace positively and significantly affects concentration of employees.

Hypothesis 2:

H0: Null Hypothesis: Use of social media sites in workplace doesn’t positively and significantly affects Knowledge and Learning of employees. H1: Alternative Hypothesis: Use of social media sites in workplace positively and significantly affects Knowledge and Learning of employees.

Hypothesis 3:

H0: Null Hypothesis: Use of social media sites in workplace doesn’t positively and significantly affects Communication of employees. H1: Alternative Hypothesis: Use of social media sites in workplace positively and significantly affects Communication of employees.

Hypothesis 4:

H0: Null Hypothesis: Use of social media sites in workplace doesn’t positively and significantly affects Information Sharing of employees. H1: Alternative Hypothesis: Use of social media sites in workplace positively and significantly affects Information Sharing of employees.

Hypothesis 5:

H0: Null Hypothesis: Use of social media sites in workplace doesn’t positively and significantly affects Morale of employees. H1: Alternative Hypothesis: Use of social media sites in workplace positively and significantly affects Morale of employees.

Hypothesis 6:

H0: Null Hypothesis: Use of social media sites in workplace doesn’t significantly result in addiction and wastage of time of employees. H1: Alternative Hypothesis: Use of social media sites in workplace does result in addiction and wastage of time of employees.

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Hypothesis 7:

H0: Null Hypothesis: Use of social media sites in workplace doesn’t significantly distract employees from work. H1: Alternative Hypothesis: Use of social media sites in workplace does significantly distract employees from work. Hypothesis 8:

H0: Null Hypothesis: Use of social media sites in workplace doesn’t significantly affect the interpersonal skills of employees. H1: Alternative Hypothesis: Use of social media sites in workplace does significantly affect the interpersonal skills of employees. .

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METHODOLOGY

In order to effectively analyse the aim and objectives of the research proposal, below

mentioned methodologies will be undertaken in detail:

 Literature Review:

For the secondary data, various literatures will be reviewed in regard of this study.

Therefore, Information and data available from various sources including Google scholar,

CQU library online search, published journal articles, peer reviewed articles and various

books will be studied and analysed in detail.

 Population:

The target population of the study consists all the employees of top four banks in

Australia that uses social media sites for the period under studies. The top four Banks are,

Commonwealth Bank of Australia (CBA), Westpac Banking Corporation (Westpac),

National Australia Bank (NAB), Australia and New Zealand Banking Group (ANZ). All the

target population have access to the social media sites in their banks/offices including

access from mobile devices.

As there is various level of employees in the bank, stratified probability sampling method

will be applied to include all levels. The prospective employees who will take part in this

study will be classified as “Executive Level”, “Managerial Level”, “Offer Level”, “Supervisor

Level” and “Assistant Level/ ordinary employees”. This classification is made to ensure

adequate representation of all the levels of employees in Banks.

 Participants/ Sample:

All the employees of above mentioned banks who has access to the social media sites in

their workplace including access from mobile devices are the participants for this study.

25 employees from each level (segment) as classified above from each banks will be

selected based on random sampling technique. As participants has been classified in to

five different segments, 125 employees from each four banks will be selected. Hence,

respondents of the study will consists of 500 participants.

 Data collection method:

For data collection, observations, questionnaires and interviews techniques will be used.

Majority of the questions will be close‐ended to enhance validity of the response. The

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selected respondents from “Executive” and “Managerial” levels will be interviewed

whereas questionnaires will be given to “Offer Level”, “Supervisor Level” and “Assistant

Level/ ordinary employees”. Casual observations of the behaviour of the participants will

also be carried out when they use social media sites on a computer or a smartphone. To identify

the position of the employees within bank, list of employees from each bank’s HR

department along with their position/level will be obtained.

 Data Analysis:

The data and information collected from Literature reviews, observations, questionnaire

and interviews will be scrutinized thoroughly using mixed methods i.e. qualitative and

quantitative data analysis techniques.

- Quantitative Data:

Quantitative or Numerical data will be obtained from questionnaire to quantify

attitudes, opinions, behaviours of the employees etc. Descriptive data analysis

technique will be used to analyse quantitative data. A series of examinations and

interpretations on the collected data will be carried out thoroughly to determine

the average time an employee spends in accessing social sites per day, the

motivations for the use and to explore impacts of these social sites on

productivities factors.

- Qualitative Data:

Qualitative or non‐numerical data will be obtained by observations, interviews

and literature reviews to gain the understanding of underlying reasons, opinions,

and motivations. Predictive data analysis techniques such as Analysis of variance

(ANOVA), frequency, chi‐square and Pearson’s correlation will be undertaken to

ascertain the degree of relationship between the variables.

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SECTION III

ORGANISATION OF THE STUDY

This report is organized in the following manner: Chapter One will be the Research Proposal as outlined in this assignment. Chapter Two will define the case studies of use of social media in workplace and its effect on employee productivity in detail. Chapter Three will contain conceptual framework and hypothesis. Chapter Four consist of the details of methodology used in the research such as literature review, Data collection and analysis methods, target population, Sample, Sample size etc. Chapter Five consists findings of the research along with the analysis. Chapter Six will be the summary of the main findings and discuss their implications in the banking sector.

GANTT CHART

Activity Start Date End Date Duration

in Days

Identification of research area 01/07/2016 15/07/2016 14

Formulate research questions 16/07/2016 25/07/2016 9

Formulate research strategy, design and

select method 20/07/2016 15/08/2016 26

Write research proposal 16/08/2016 30/08/2016 14

Literature review 1/9/2016 25/09/2016 24

Data Collection 26/09/2016 25/11/2016 60

Data Analysis 26/11/2016 26/12/2016 30

Final report submission 27/12/2016 10/01/2017 14

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PROJECT BUDGET AND BUDGET JUSTIFICATION

To complete the budget within given timeline i.e. 15‐Feb‐2017, the budget of the research

is estimated about $9,000. The justification for the budget is as follows:

 The Literature review to be undertaken requires the use of published journal

articles, peer reviewed articles and various books. It incurs costs to access and use

those articles and books. $500 has been estimated for this purpose.

 To distribute the questionnaires to respondents, it is possible to contact the HR

department of banks and ask them to distribute it to the employees. However, it

may take very long time. Therefore. It is better to approach the employees in

person and provide the questionnaire sheets. For that, it is required to employ

some individuals (at least one person for each banks) and need to pay them. Thus,

the cost for the payment to those individuals as well as travel and stationery

expenses is estimated at around $3,000.

 Similarly, to conduct the Interviews of the respondents and observations, the

expenses is estimated around $4,000.

1/07/2016 10/08/2016 19/09/2016 29/10/2016 8/12/2016 17/01/2017

Identification of research area

Formulate research questions

Formulate research strategy, design and…

Write research proposal

Literature review

Data Collection

Data Analysis

Final report and submission

Identificati on of

research area

Formulate research questions

Formulate research strategy, design and select method

Write research proposal

Literature review

Data Collection

Data Analysis

Final report and

submission

Start Date 1/07/201616/07/201620/07/201616/08/20161/09/201626/09/201626/11/201627/12/2016

Duration in Days 149261424603014

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 For the purpose of collecting data, accessing figures/ charts etc. for data analysis

and using various software for data analysis (for eg. SPSS), we need to allocate

some budget. The estimated budget for this process is $1,500.

The summary of the expenses is:

S.N Purpose Estimated Budget

1 Literature Review $500

2 Data Collection: Questionnaire $3,000

3 Data Collection: Interview and

Observations

$4,000

4 Data Analysis $1,500

Total Estimated Budget $9,000

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REFERENCE LIST:

Ashraf, N., & Javed, T. (2014). Impact of Social Networking on Employee Performance. Business Management and Strategy, 5(2), 139. doi:10.5296/bms.v5i2.5978 AT&T. (2008). Social networking in the workplace increases efficiency. London, UK:

Dynamic Markets Limited.

Bennett, J., Owers, M., Pitt, M., & Tucker, M. (2010). Workplace impact of social networking. Property Management, 28(3), 138 ‐ 148. Chen J, Chen C, and Yang HH (2008). An empirical evaluation of key factors contributing to internet abuse in the workplace. Industrial Management & Data Systems, 108(1):87‐ 106. Collins, C. J., & Clark, K. D. (2003). Strategic Human Resource Practices, Top Management Team Social Networks, and Firm Performance: The Role of Human Resource Practices in Creating Organizational Competitive Advantage. Academy of Management Journal, 46(6), 740‐751. http://dx.doi.org/10.2307/30040665

Diercksen, M., DiPlacido, M., Harvey, D., & Bosco, S. (2007). THE EFFECTS OF SOCIAL

MEDIA IN TODAY’S WORKPLACE. Retrieved October 1, 2016, from

http://www.nedsi.org/proc/2013/proc/p121102007.pdf

Ehrlich, S. Z. et al. (2011). How Social Media Affects HR: Uses. Abuses and Self‐Protection. [Online] Available: http://fiveoclockclub.com/how‐social‐media‐affectshr‐uses‐abuses‐ and‐self‐protection/

Fahmy, Miral (2009). Facebook, YouTube at work make better employees, Reuters, Yahoo Tech, http://tech.yahoo.com/news/nm/20090402/wr_nm /us_work_internet _tech_life, April 2.

How Social Media Affects HR: Uses, Abuses and Self‐Protection’ Available: “http://

fiveoclockclub.com/2011/03/how‐social‐media‐affects‐hr‐uses‐abuses‐and‐self‐

protection/”

Isheriff. (2010). Strategies for managing social networking and personal web use in the workplace. Costa Mesa, CA: Isheriff

Moqbel, M. (2012). The Effect of the use of social networking sites in the workplace on job performance (Doctoral dissertation, Texas A&M International University).

Moqbel, M., Nevo, S., & Kock, N. (2013). Organizational members’ use of social networking

sites and job performance. Information Technology & People, 26(3), 240–264. doi:10.1108/itp‐10‐2012‐0110

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Munene, A. G., & Nyaribo, Y. M. (2016). Effect of social media Pertication in the

workplace on employee productivity. . Retrieved from

http://www.academia.edu/6196750/Effect_of_Social_Media_Pertication_in_the_Workpl

ace_on_Employee_ProductivityIn‐line Citation :(Munene & Nyaribo, 2016)

Nucleus. (2009). Facebook: Measuring the cost to business of social networking. Boston, MA: Nucleus Research, Inc.

Ramírez YW, Nembhard DA (2004) Measuring knowledge worker productivity: A

taxonomy. Journal of Intellectual Capital, 5(4):602‐628.

Roberts, J. A., & Coulson, K. R. (1999). Salesperson perceptions of equity and justice and their impact on organizational commitment. Journal of Marketing Theory & Practice, 7(1), 1‐16.

Shepherd, C. (2011). Does social media have a place in workplace learning? Strategic Direction, 27(2), 3‐4