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Management and Strategy (Facebook) Group Assignment

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Aishwarya Sridhar

on 23 November 2015

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Transcript of Management and Strategy (Facebook) Group Assignment

Aishwarya I Feng I Xuefei I Chang

Will look into the management issues of



Introduction, Organisational structure, Communication, how the problem was solved, Path-Goal theory, Maslow's theory
Motivation, how the problem was solved, Organisational Culture
Leadership, how the problem was solved, References and any questions
Teamworking, how the problem was solved, Summary
Introduction of Facebook
Facebook is an online social networking service launched on February 4, 2004, by Mark Zuckerberg.

Headquartered in Menlo Park, California.

It all started with his fellow Harvard college roommates and fellow students Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes.

Zuckerberg & Co. launched 'TheFacebook' just for Harvard students.

As of August 2015, Facebook had over 1.8 billion monthly active users.
Advanced Federal Forum Consultancy
Zuckerberg & Co. launched 'TheFacebook' in February just for Harvard students.
(Image courtesy Facebook)
Zuckerberg in his dorm room in Harvard Kirkland House gazing at Thefacebook on the computer where not long before he created it. (Photo Lowell K. Chow/The Harvard Crimson)
Founders of Facebook
Mark Zuckerberg, Eduardo Saverin, Dustin Moskovitz & Chris Hughes. (Image courtesy Facebook)
Introduction of AFFC
Advanced Federal Forum Consultancy (AFFC) is a management consultancy company based in Leicester.

Founded on 6 December, 2006.

Our team of specialists will not only advice you on what to do, but will become a part of delivering results. We hope to help you make better decisions and build a more effective organisation.

In this presentation, we will learn about Facebook's operation, dynamics, management issues, culture and challenges.
What is Communication?
''Communication is the process by which information is exchanged and understood by two or more people, usually with the intent to motivate or influence behavior'' (Richard L. Daft 2010).

Facebook is free and is known as one of the best mediums for communication.

Facebook allows people to connect, learn from each other, to discuss viewpoints, issues and share advice. It is also used as a source for information and news.
We Will Look Into...
What is Leadership?
''Leadership is the ability to influence people toward the attainment of organizational goals'' (Richard L.Daft 2010).

Mark Zuckerberg who was named Person Of The Year in 2010 by TIME has said to have managed to touch millions of lives and impacted their culture. Rather than cracking under the pressure of success, he has flourished.
Zuckerberg's Leadership Qualities
Tim Bajarin, President of Creative Strategies, Inc. said “the number one thing we’ve learned from Zuckerberg is to take the vision you have, put all your energy into it, and get a lot of smart people around you to execute on it.” Effective leadership methods take time to develop, but as Mark Zuckerberg has proven, it can be done through hard work.
Path-Goal Theory
According to the Path-Goal theory, the leaders responsibility is to increase subordinates motivation by highlighting the behaviours needed for task success and attaining rewards.
To do this you can use four different leadership styles:

1. Supportive:
2. Directive:
3. Achievement-Oriented:
4. Participative:

Increase confidence to achieve work outcome.
Initiating path to earn a reward.
Setting high goals.
Encourages group discussion and written suggestions.
Leadership Issues Within Facebook
Work place Network
Zuckerberg follows a transactional leadership style. He believes he is the most powerful individual in the company. It is seen that he thinks Facebook as his own company even after making it public. He does not consider the stakeholder's ownership. He is also said to have massive ego issues and immaturity to handle an organization expanding at an exponential rate.

Professor Andre Spicer, of Cass Business School says that by working at Facebook employees accidentally leak sensitive information. This can be seen as a threat to hierarchy and can lead to a clash with the implicit or explicit chains of command. Facebook at Work could also end up being a time-consuming distraction.

What did Facebook's employees complain about?
Poor attitude of executives referring to Facebook founder and CEO Mark Zuckerberg and COO Sheryl Sandberg, a source complains that the two spend way too much time on "extracurricular activities" and allegedly copying off the competition (i.e., Poke, which bears a resemblance to Snapchat).

What Can They Do To Change
Don Faul, a former Facebook executive, recently told The Wall Street Journal that Facebook will be more structured and will place more importance on "manager" titles.

Facebook employees will place roles that cater to their strengths and where they are encouraged to question and criticize their managers. This kind of freedom is perhaps one of the best drivers for employee engagement with their leaders.

Relating it to Path-Goal theory, Facebook needs to incorporate
directive leadership
by making schedules, maintaining behaviour standards and stressing adherence to rules and regulations.
What is Motivation?
''Motivation refers to the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action'' (Richard L.Daft 2010).

Facebook employees love Mark Zuckerberg
due to three main reasons:

1. He has a clear vision
2. He empowers employees
3. He is deeply involved

Motivation Issues Within Facebook
It is said that at Facebook, employees are less likely to be productive and more likely to be connected and aware. Facebook at work is said to be a time consuming distraction.

If every employee in a 50-strong workforce spent 30 minutes on a social networking site every day, that would work out to a loss of 6,500 hours of productivity in one year. This does not go over well with the management.

What did Facebook's employees complain about?

Keith Adams, an engineer at Facebook, said that he was expected to work 24 hours a day, seven days a week for six weeks of the year: "During on-call duty, engineers are responsible for keeping the service up and running, come what may. For those weeks I don't leave town on the weekend.

Work place Network
What Can They Do To Change

Relating motivation to Path-Goal Theory, Facebook needs to implement an
achievement oriented leadership
style by setting challenging goals for employees and bringing out high quality performance which will boost their confidence.

According to a recent study by the University of California’s Haas School of Business, happiness has more to do with respect and admiration from your colleagues and peers than pure cash.

One of the most important techniques for a manager would be to make the work more enjoyable. Small rewards and shout outs for well done. (My opinion free cakes on Wednesdays).

The more managers interact with employees, they will respond and work hard for you and the team.

Maslow's Hierarchy Of Needs Theory
What is Team working?
''A team is a unit of two or more people who interact and coordinate their work to accomplish a specific goal'' (Richard L.Daft 2010).

''The right people are not those who have the right competency; they are those who have the right attitude. Hire for attitude. Skills can be taught. Passion can't.'' -Mark Zuckerberg
Facebook founder Mark Zuckerberg applauds with his young team at the company's Initial Public Offering at their Silicon Valley HQ in May.

Team working Issues Within Facebook
''Facebook is building a network for professionals to connect and collaborate on work-related documents'' the Financial Times reports. Social media sites like Facebook help employees to build 'weak ties.

These are people they would talk to infrequently and would not know them intimately.

What did Facebook's employees complain about?

An employee said that 'Facebook did not yet have a functional infrastructure and that trying to figure out how to do "cool" things with a team of 4,000 people is far harder than doing them with a team of 500.'
What Can They Do To Change
Relating team working to Path-Goal Theory, Facebook needs to follow a
supportive leadership
where a leader creates a team climate with an open, friendly and approachable behaviour amongst each other by treating each member as equals.

Facebook in the future will encourage workers to form teams for projects that they are passionate about because Facebook leaders clearly understand that great work comes out of doing what you love.

Not only do they think this approach will ensure employees giving their best to the project, but also providing opportunities for career growth based on smartness and competence.
Communication Issues Within Facebook
The main issue with Facebook is that communication which could easily be dealt with face to face is pushed online adding potential source of information overload.

Employees spend more time polishing their Facebook profile than actually working.
What did Facebook's employees complain about?

A former employee said that this lack of communication had a big impact on workers: "Instructions were not clear, everything was a guessing game, and I was immediately set up to fail. And when I didn't perform, I was told I lacked intuition as a professional.
Work place Network
Work place Network
What Can They Do To Change
Relating to Path-Goal Theory, Facebook needs to incorporate
participative leadership
which means the leader can encourage group discussions, written suggestions, providing opinions and constructive feedback.

Facebook is said to initiate the ''Zuck reviews'' a way to describe Zuckerberg's commitment to effective and regular communication. He will ensure he is not one of those bosses who are hard to get time with and will leave you hanging while working on a major project. He will stay engaged without micro-managing, the trademark of a great leader.
This famous content theory was introduced by Abraham Maslow which proposes that people are motivated by various needs and this exists in a hierarchical order.
Organisational Structure Of Facebook
Leadership/Motivation Issues Within Facebook
Women Employees
Facebook have added the opportunity to freeze eggs to staff packages, allowing certain (lucky) women who work for their managers to undergo highly invasive medical treatment in return for putting their family life so they can continue working really hard in a sector where they have less than a 10% chance to even make to the top.

On the other hand, companies demand from their employees to put work before their families and their health.

Being a working mother is hard but being a single working mother is even harder.
What Can They Do To Change
Sheryl Sandberg addressed ways she and her team could improve the situation. Putting all critics away, egg freezing has been widely used to help women with cancer to preserve their fertility after chemotherapy.

It is also used by women who by their own choice want to delay motherhood for non medical reasons but more fore personal reasons. With regards to their decision, Facebook has taken full responsibility to support them.

What Can They Do To Change
Relating this to Maslow's theory, Facebook need to motivate women employees by accepting them and making them feel that they belong to the team and involving them in group discussions and building a firm relationship with supervisors.

Lastly, female employees need to be rewarded based on their performance. This will empower them to work hard and will derive the results needed to achieve the results.
COO of Facebook, Sheryl Sandberg on the cover of TIME 2013.
Organisational Culture of Facebook
To conclude, Facebook is the most used social networking site in the world. My team and I researched and analysed the management issues within Facebook. Facebook has been through it's shortages and risks, such as it's privacy problem and unstable social information for some high requirement level business issue. However, if Facebook follows the way to change by using the proper tools it is likely to be the most powerful networking website.

This is Money, (2012). What workers really want: Why motivating employees is about a lot more than just money. [online] Available at: http://www.thisismoney.co.uk/money/article-2181020/What-workers-really-want-Why-motivating-employees-lot-just-money.html [Accessed 30 Jul. 2012].

Lifehack.org, (2015). 10 Reasons Why 99% of Facebook Employees Love Mark Zuckerberg. [online] Available at: http://www.lifehack.org/articles/work/10-reasons-why-99-facebook-employees-love-mark-zuckerberg.html [Accessed 21 Nov. 2015].

Quora.com, (2015). What's the worst thing about working at Facebook? - Quora. [online] Available at: https://www.quora.com/Whats-the-worst-thing-about-working-at-Facebook [Accessed 21 Nov. 2015].

McLeod, S. (2007). Maslow's Hierarchy of Needs. [online] Simply Psychology. Available at: http://www.simplypsychology.org/maslow.html [Accessed 21 Nov. 2015].

Kinder, L. (2013). Facebook employees reveal the worst things about working for the social network. [online] Telegraph.co.uk. Available at: http://www.telegraph.co.uk/technology/facebook/10282682/Facebook-employees-reveal-the-worst-things-about-working-for-the-social-network.html [Accessed 21 Nov. 2015].

Brockes, E. (2013). Facebook's Sheryl Sandberg: 'I want women to be paid more'. [online] the Guardian. Available at: http://www.theguardian.com/theguardian/2013/mar/15/facebook-sheryl-sandberg-lean-in [Accessed 21 Nov. 2015].

BBC News, (2015). Facebook building 'workplace network' - BBC News. [online] Available at: http://www.bbc.co.uk/news/technology-30080970 [Accessed 21 Nov. 2015].

Minter, H. (2014). By offering to freeze their employees’ eggs, Apple and Facebook make it clear they don’t know what women want. [online] the Guardian. Available at: http://www.theguardian.com/women-in-leadership/2014/oct/15/apple-facebook-egg-freezing-employee-perk [Accessed 21 Nov. 2015].

Daft, R., Kendrick, M. and Vershinina, N. (2010). Management. Andover: South-Western/Cengage Learning.

Kirkpatrick, D. (2010). The Facebook effect. New York: Simon & Schuster.
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