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31st of May 2011

Tietgen Business College Marketing Management Class of mm295

Leaders & Employees


How social media can reunite them.
Sophie Marie Villsen mm295344

Key strokes: 103.310 Supervisor: Jacob Mentz jame@tietgen.dk

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

Agenda
Executive Summary .................................................................................................................................................... 1 1. Introduction .............................................................................................................................................................. 2 1.1 Interpretation of the dissertation................................................................................................................... 2 1.1.2 Problem Statement ..................................................................................................................................... 4 1.2 Definitions ............................................................................................................................................................... 4 1.3 Delimitations .......................................................................................................................................................... 5 1.4 Methodology ........................................................................................................................................................... 6 2. DI: The Confederation of Danish Industry .................................................................................................. 10 2.1 Leadership Development and Productivity ........................................................................................... 10 2.3 Why a dissertation on social media? ...................................................................................................... 11 3. Social media in numbers ................................................................................................................................... 12 3.1 Sharing knowledge ........................................................................................................................................ 12 3.1.1 Web 2.0 the new technology age ................................................................................................ 13 4. Social media in the organization..................................................................................................................... 13 4.1 Facebook ............................................................................................................................................................... 14 4.2 Twitter .................................................................................................................................................................... 14 4.3 LinkedIn ................................................................................................................................................................. 16 4.4 YouTube ................................................................................................................................................................. 17 5. Pros and cons of the social networks ............................................................................................................ 18 5.1 Facebook ........................................................................................................................................................... 18 5.2 Twitter ................................................................................................................................................................ 18 5.3 LinkedIn ............................................................................................................................................................. 19 5.4 YouTube ............................................................................................................................................................. 19 6. Looking at generation differences .................................................................................................................. 19 6.1 Introducing generation X and Y ............................................................................................................... 20 6.2 Social media and the generations ........................................................................................................... 21 7. Yammer.com the combination of all 4 ...................................................................................................... 21 7.1 The specific features ..................................................................................................................................... 22 7.2 Part conclusion................................................................................................................................................ 22 8. Low job satisfaction and loss of credibility ................................................................................................. 23 9. Which business is more adaptable to social media? ............................................................................... 24 10. Leadership style .................................................................................................................................................. 25 10.1 Open Leadership .......................................................................................................................................... 26

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

11. Motivation ............................................................................................................................................................. 28 12. Loyalty and social media ................................................................................................................................. 31 12.1 The Levels of Loyalty ............................................................................................................................. 31 12.1.1 Mark Zuckerberg on opening up ................................................................................................... 34 12.2 The use of social media for creating loyalty ..................................................................................... 34 12.3 Part conclusion ......................................................................................................................................... 35 13. Implementation of change.............................................................................................................................. 35 13.1 Three barriers to successful change .................................................................................................... 36 13.2 Implementation of social media ............................................................................................................ 37 13.2.1 The first step: Leaders need to buy in and break down their own barriers ................. 37 13.2.2 Step two: Employee awareness .................................................................................................... 38 13.2.3 The Third step: Getting started ..................................................................................................... 39 13.2.4 The Fourth step: Finish what you have started ...................................................................... 41 13.2.5 Step 5: Maintaining the change .................................................................................................... 41 13.3 Part conclusion ......................................................................................................................................... 42 14. Conclusion ............................................................................................................................................................. 43 Bibliography ................................................................................................................................................................. 45 Appendix A: Social Media Factbook Appendix B: European Employee Index

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

Executive Summary
Objective: The purpose of this dissertation is to create foundation for future use of social media internally in an organization. It is a dissertation focusing on a slow beginning and then after having implemented what this dissertation suggests you can move on and develop your skills and what you use social media for in the organization even further. Problem statement: I will show how social media can support and be used for the leadership challenge: A leaders loss of credibility among employees. How? I have divided my dissertation into three sections; descriptive, analysis and recommendations. The descriptive part focuses on facts about social media in general as well as introducing us to the four most popular social media in Denmark. In the analysis section we analyze differences between generation X and Y in values and use of social media. We also do an analysis of motivation aspects together with how to create loyalty. All perspectives walked through in the assignment are supported by arguments of how social media can support this objective whether it is being opening up as a leader, motivating your employees or creating loyalty. Finally in the recommendation section there is made a roll out plan for how to implement social media in your organization and how you justify it to your fellow leaders and your employees. How you should break down the resistant barriers for change and maintain the change after implementation has finished. Conclusion: Social media is everywhere, most people uses it and all of us know it in some way. Because of these social media relations have changed and people gets more motivated by different factors than previously. Social media and this change also have an effect on how to do business but also on the internal aspects like employees demanding more openness from leaders etc. Everyone has to take a stand on the subject of social media and if you do not embrace it you will be outpaced by your competitors. Output: From this assignment you will learn how social media and leadership compliment each other and thereby can help solve leadership challenges. You will know after reading it, how you can use social media to open up and thereby restore your credibility as a leader. So if you want to start using social media this dissertation will help you start in the small end and give you a foundation for future development.

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

1. Introduction
Social media has announced its arrival and today over half of the Danish population uses it. It has already created relations for private persons in form of reconnecting them with old, lost friends but also let them create relations to new people both in business and private. When looking to business it has since its arrival been used more and more for marketing and external consumer communication. Looking to the biggest producer of social media namely USA we see a new trend approaching; Open Leadership. A leadership style that embraces the possibilities of social media and unifies it with the corporate values and visions like helping communication become faster and easier, share information etc. Social media will change the ways of doing business and this means that it will also change the ways of the organization internally. This dissertation is looking at this trend and how to start using it slowly and thereby later on be able to embrace this trend in all its aspects. In this dissertation we will look at how social media can help solve the situation of the leaders loss of credibility among employees by firstly introducing social media in general numbers and thereby also introducing the 4 most used social networks in Denmark. There is a need for a change in leadership style and here we look at where they are today and in what direction they will have to move in order to be able to embrace the trend of social media. We will look at the generation differences to see the change in motivational factors and how these can be supported by the use of internal social media. We look to create loyalty from employees towards the organization and its leaders and also here how social media can support the tasks needed to be done in order to create loyalty. By seeing all of this should motivate the leader to implement social media internally in the organization and help him to be motivated to open up. Therefore we in the end will look at how to implement it and have a roll out plan made where examples from Leadership Development and Productivity will be used in our own search for educating ourselves and our members in this trend. Social media will inevitable affect businesses all over the world and have already shown its power by sending several businesses to timeout and others to success (e.g. Nestl, Ford and more). If you do not learn to embrace social media and incorporate it in your organization you will be behind evolution and your competitors. Get started and learn how social media can support the wish of motivation and loyalty of the employees which will lead to the leader restoring his credibility by reading this dissertation.

1.1 Interpretation of the dissertation


Everyone knows social media; almost everyone has a profile on at least one of the many pages floating around in cyberspace. Facebook, LinkedIn, Twitter, YouTube, mySpace etc. all pages everyone has heard of.

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

In 2006 a new trend started; social media marketing, a trend that would end up saving businesses from going bankrupt, for example turning Fords economy around from showing red figures. To being one of the only companies in the United States, which did not take the offered rescue loan from the government or in the same instant question companies like Nestls authenticity and legitimacy. This trend can brand companies and hand them success or take them of their high pillar and give them a bad reputation. As a result of the social media marketing trend the companies and organizations also have to change in order to be able to adapt to the fast changing market of this trend. Employees, competitors and suppliers are now on Facebook, Twitter etc. connecting without a leader in the middle, where an employee previously complained about his or her boss behind closed curtains, they now post it on their wall so that all their 467 friends can see it and comment on it. This means that there is probably one or two in between these 467 friends that collaborates with the employees organization or prospect costumers that gets a wrong and negative impression of the company. Most companies only use social media for external things such as marketing and are therefore still shouting at their costumers instead of engaging in a dialog. The groundswell as it is called is a powerful movement consisting of people who are online; consumers, employees, grandmother etc. and when offended they will expose all the organizations dark secrets. From the research European Employee Index by Ennova we see that the credibility of leaders is under pressure. The employees do not identify themselves with the values, visions and strategic objectives of the organization, nor the direction the company chooses to follow. I believe that social media can help restore this credibility and thereby become one again, securing the organizations competitiveness if they have loyal employees that trust the management. In our department of DI; Leadership Development and Productivity (LUPRO) we believe that the social media is here to stay and that organizations and leaders will have to embrace it together with embracing generation Y as it is such a big part of their lives compared to the previous generations. I became motivated to write my dissertation on this subject as I find it interesting; social media is a part of my everyday and most people in my generation communicate online. The world has changed. So has social interaction where relationships have become more open and I believe it will affect the organizations both externally and internally. Furthermore, I believe one of the most important tasks for DI in general, and LUPRO in particular, is to inform their members about new trends. This involves staying updated so that we can always help members with the questions they may have. My contribution to DI is to provide them with insight into this issue of leaders losing credibility and if social media can help regenerate it and get DI started with ideas on how to implement it. Social media forces you to be open whether you want to be or not. If organizations are not online their consumers, fans or others have probably already started a forum for talking about them and because the company is not participating they will fail in the world of social media.

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

1.1.2 Problem Statement


How can social media help regenerate a leaders credibility internally among his employees? 1) What leadership style do service organizations currently have and in which direction do they have to move, in order to benefit from the opportunities that social media and open leadership offers? 2) How can social media create loyalty among employees? a. What motivates the leaders to use social media? b. What motivates employees to engage? 3) How can social media be implemented in the organization?

1.2 Definitions
Social media when mentioned is Facebook, Twitter, YouTube and LinkedIn; Social networks that connect and engage people to each other. Social media is, even though implied, not about the technology or the media but about people. It is about the online users and how they are listening to each other, involving themselves, meeting each other and are sharing knowledge like never before. For the definition of Open Leadership I will use Charlene Lis definition. Open Leadership; Having the confidence and humility to give up the need to be in control while inspiring commitment from people to accomplish goals. The common leadership style today I will mention as authority-compliance; autocratic leaders that have strong control of followers and make all major decisions. The leadership style is defined as a 9.1 in the leadership grip source1: efficiency in work obtained by arranging work so that human elements do not interfere with its completion. External use refers to marketing, branding, sales optimization, PR etc. Groundswell is a social trend in which people use technologies to get the things they need from each other instead of from companies. It is based on people acting and their internal desire to connect.2 A wiki is a Web site that allows users to add and update content on the site using their own Web browser. This is made possible by Wiki software that runs on the Web server. Wikis end up being created mainly by a collaborative effort of the site visitors. A great example of a large wiki is the site Wikipedia.org, a free encyclopedia with articles in multiple languages that anyone can edit. Generation Y is the people born between 1980 and 19953 but I also include the people born in 1975 and upwards as the people born between 1975 and 1995 have similar values and ways of working.

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Blake and McCanse, 1991 Li et al, 2008, p. xi

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

Generation X covers everyone born before 1975. The segmentation of only having 2 groups is that it for this dissertation would not be relevant to divide it into various segments as the relevance concerns the values. These segmentations are divided after values similar to each other and by using different sources such as the television show 60 minutes and HRM taught in Holland. Motivation is defined by the theories of Maslow and Herzberg. Leadership aims to influence and guide others into pursuing particular objectives or visions of the future, and to stimulate them to follow. Leadership is not necessarily related to hierarchical position and is a dynamic activity concerned with changing attitudes. Leadership is inspirational and involves emotional input.4 Blue chip is a company type. They are strong and financial stabile companies with only little hierarchy. They are adaptable to change and often international corporations.

1.3 Delimitations
This dissertation is focusing on how you can use social media to your benefit internally in the organization not the limitations of social media. I will not look at personnel policies or the external use of social media. This dissertation has only an internal perspective. As there is not much research done within the area of social media internally there will be made assumptions and used data from general population researches. The examples used are either the thoughts of the social media work group I am a part of in LUPRO or examples made by Charlene Li; Open Leadership. During my internship I have had to try and find a company that uses social media internally in their organization but without luck. All have had thoughts about it but they have not yet implemented it as their focus is now on learning to use it externally. This dissertation has no focus on economics as the ideology of social media is that it should be free to use. External marketing is not in focus in this dissertation, but internal marketing is a small part of the implementation strategy in chapter 13.

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Businessdictionary.com, generation Y Brooks, 2006, p. 152

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

1.4 Methodology
I have chosen to structure my dissertation in four parts; opening, descriptive, analysis and recommendations.
Opening Descriptive Analysis Recommendations

Problemstatement Can social media help regenerate a leaders credibility internally among his employees?

DI (overall view) Who they are? What do they do? LUPRO department What do they work with? Why I am working with this. Social media in numbers. Facts about social media. How many uses it? How many share knowledge? What is web 2.0? Social media in the organization. A referral to Social Semantic and their research of social media in the business world and how it is being used now. An introduction of the 4 most popular social media (Facebook, Twitter, LinkedIn and YouTube)

Delimitation: Not involving personelpolitics and not with a focus on external activities and possibilities of social media

Pros and cons of the 4 social medias Facebook, Twitter, LinkedIn and YouTube. Comparing generations Comparing values, High labor quality, use of social media etc. Yammer.com Is suggested as the optimal social network for internal use in the company.

Introduction to Implementation of change

The implementation strategy for social media used internally in the organization Based on the three barriers and own framework.

Definitions: Open Leadership Social Media Leadership Blue chip External use Groundswell Generations Wiki Motivation

Methodology: Structure Walk through the assignment, What it is about. Why the theories? Etc.

Low credibility Looking at the Ennova research to show that leaders credibility is decreasing and why? Which business is most adaptable to social media? Short analysis of which business it will be easiest to implement the social media in. Analysis of Leadership Both current and the one they should adapt to in the future. Together with Open Leadership.

Conclusion: How can all of the above mentioned analysed aspects lead to restoring a leaders credibility.

Motivation Herzberg and Maslow. What motivates employees and what parts can social media cover? Loyalty How to create loyalty among employees and how to use social media for this.

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

The section called the opening consists of all the compulsory elements like introduction, problem statement, definitions etc. Each of these should help to unite expectations to the assignment. The descriptive part is the first section of the dissertation body. I begin it with giving an insight into DI where I have done my internship for the past 4 months. I do this by shortly introducing what DI is and the history of the organization. All information used is official and on the webpage di.dk. Thereafter I write about the department I am in; LUPRO. This is where all my time is spent and I therefore find it relevant to write about as it is in this department I first started working with social media and leadership. I walk you through what kind of a department it is and what it offers. All the information used in this section is also official material and most of it I have taken from their Facebook page (which I have created) where their mission and vision statement for 2011 is available. The third part is why this dissertation is about social media and leadership. Here I explain the reasons for this and mention the person who put the idea into our heads. I mention the real life situations where social media has played a huge role and support it with articles from Information.dk. I then move on to giving facts about social media. Here I look to Danmarks Statistik who has done a research paper on the use of internet in Denmark. In that they have a whole section about social media and information sharing. This I find relevant as it gives insight for the leaders reading this assignment into how many that is actually using social media and sharing information as this is the objective of this dissertation. I also introduce the term web 2.0 and its ideology which all social media is build on. I again support all of it with articles found online both blogs and news media. Social media in the organization is walked through first by looking at the research paper done by Social Semantic which looks at it in a business point of view. Here we look to what are leaders already doing and what do they expect of the future when looking to social media. I then introduce the 4 most popular social networks in Denmark and walk you through the use of it. All of this is supported by Wikipedia as source as I find it relevant. My argument for this is: what better to describe a social media than another social media. If there were no users of social networks we would only have the knowledge from the company about it and not people who has gotten their hands dirty. In this dissertation we want to know what the users think of the social network, we want them to explain as this gives the best insight to judge whether the social network is suitable for using internally in an organization. After this walk through of social media we reach the analysis part of my assignment. The first thing I am looking at here is to find the pros and cons of each of the before mentioned social networks and from this then see if any of the mentioned networks are suitable for internal use. This paragraph is written from the information gotten from the descriptive part and the criticism spoken of internally in our department LUPRO when we had to choose our media. Then we move on to look at the differences between the generations as it is relevant to know what values they have and if they can be combined with the wish of implementing social media later on in the assignment. I analyze the generation by using an interview from the TV-show

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

60 minutes about The millennials also known in this assignment as generation Y. This interview takes in the leaders perspective on the generation and thereby gives a more whole image of the generation. I also use a research that looks at differences between generation Y and X. I look to how each generation is using social media and finally I suggest the best social media at this time for internal use namely yammer.com. Yammer.com is chosen because of the diversity of possibilities and still easy to use. It is intuitive to use and is a combination of all 4 most used networks in Denmark. We then look to the Ennova research Europeand Employee Index which my problem statement actually is formed by. The leaders credibility is under pressure section is explained and reasons are given to why this is. This paragraph in my assignment I have chosen to write as it provides the foundation for the further analysis and is a situation that social media could be helpful in. Which business the social media is most likely to be easy adaptable to is analyzed in the following chapter where based on internal research from DI I have made a framework to show what business most likely to be adaptable to the use of social media. After this I analyze the current leadership style especially what the characteristics are for this and then I suggest in which direction they should move in order to be more adaptable to changes, social media and openness. This is done by using the Leadership Grid Source from our Organization classes in school. I also mention Open Leadership written by Charlene Li the pioneer within social media, which is the newest trend and an extra mindset to the team management style. This I do because open leadership gives the last push to a leader so he understands why he should change leadership. Now we have reached the section about motivation. Here I have used Maslow and Herzberg to help me group the motivational factors generation Y is driven by today and how social media can help a leader to meet these needs of his employee. I look to what motivates them because it has huge relevance later in this assignment when wanting to implement change but also because it can help motivate the leader to wanting to implement the use of social media when he is confronted with how many of the motivational factors social media supports. The next thing is to analyze what then creates loyalty towards leaders and organizations. I have come up with a framework I call the levels of loyalty where you have 4 levels and each of them cannot be fulfilled without the previous one being fulfilled. Here I look to employees expectations to a leader and an organization and if they are fulfilled you can create loyalty. I also involve the decision making house as it is relevant to level number 2 in how to achieve this level. I also look to how you can use social media for this purpose. The last part of the assignment is the recommendations. Here I will walk you through the theory for implementing a change by using newly learned material from my internship It starts with one. I briefly explains the three barriers of this theory and there from move to my implementation strategy for implementing social media in the organization. Here I use examples from LUPROs own future attempt to implement it to our department. This will help to give the leader a more tangible vision of how it for example could be done.

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

I have now reached to the conclusion which summarizes the findings of the assignment and gives a perspective on the future of social media and leadership. All theory, articles etc. is contained in the bibliography in the end of the assignment and footnotes are used when a source is introduced for the first time.

Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

2. DI: The Confederation of Danish Industry5


DI as we know it today is a young organization but the history of DI goes way back to when people first started collaborating on initiatives that should help people to benefit from progress in the best possible way. Therefore in 1838 Industriforeningen was founded. In 1910 Industrirdet was founded and is the foundation for the trade organization model we are familiar with today. In 1992 Industrirdet and Industriens Arbejdsgivere merged and became DI. The latest change happened in 2008 where DI merged with HTS Handel and became what we today know as DI: The Confederation of Danish Industry. DI is an employers association and a trade organization. Our mission is to assure that the member organizations get the best conditions in order to be able to compete on their respective markets. We are represented with 19 regional offices to ensure that our members have us close by and can help the members get the best opportunities possible locally, as well as on national level. DI is also represented on international levels namely in USA, China, Brussels, India, Russia and Brazil thereby assuring knowledge and the competencies to consult our members if they wish to enter one or more of these markets. The core outputs from DI are political representation of interests, networks meaning the relations our members create across our organization by participating in conferences, courses, sharing knowledge and experience and much more. We also negotiate collective agreements and we work as consultants helping our members with development of their competencies or guidance to how to handle whatever situation they might be in.

2.1 Leadership Development and Productivity


When looking into DI, you will see, it consists of several departments where one of them is Leadership Development and Productivity (LUPRO) where I have been spending the past 5 months as an intern. This department is relatively young. It was founded in 1994 and concerns itself with development of competencies among our members by offering courses, educations, networks and helps the organizations implement diversity in their organization. Our departments vision6 is: We are setting the agenda within leadership development, productivity, innovation and diversity. We are at the forefront of knowledge, methods, concepts and taking positions within leadership development, productivity, innovation and diversity, which can support the competitiveness of DIs member organizations. We are innovative and dare to be at the forefront of new ideas and concepts that can add value to the Danish Industries. Therefore it was obvious we had to look into this trend of social media.
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www.di.dk www.facebook.com/lupro.di strategy and vision made by LUPRO

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Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

2.3 Why a dissertation on social media?


Our former CEO Bolette Christensen wanted to be in front and suggested that we should work with this after seeing what social media had accomplished in the Arab world 7(The groundswell standing up against dictators) and Obama taking office. In the Unites States social media has already accomplished a lot of success stories of companies going from nearly bankrupt to top of the game again by the use of social media for external use. Here in Denmark we have already seen the effect of the external use of social media and with this external use there will be effects on the organization internally. These internal effects are different and require a leader to be good at leadership through change and therefore it is obvious our department should participate in educating our members in the effects that comes with this use but also how to handle it. First we need to get educated within this area which will happen after the summer holidays. From there we have plans of taking several initiatives to help our members like offering educations in how to use social media to the member organizations benefit etc. This dissertation is independent from the coming initiatives taken by LUPRO and is more of a starter case for our department to be able to see the connection between social media and how you can use it to solve a particular situation as the one mentioned in the problem statement.

Beaumont, 2011

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Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

3. Social media in numbers


Social media is storming into our personal- as well as professional lives. 54% of the population in Denmark between the ages of 16 and 74 are connected to an online social network8 which is 2.2 million people. The social media was and is especially used by young people known as generation Y but also now known as generation F (as in facebook)9, 92% of the people between the age of 16 and 19 are connected to a social network, a 6% increase from 2009 10. This is a generation where it is almost a sin if you are not connected to a social network. It has taken time to get the older generations to understand the possibilities and benefits of social networks but now you see a fast growing rate of people between the age of 65 and 89. Every 10th person in this age group has a profile on a social network 11 and the rate is still growing. The reason for this fast growing number in the older generations is because they just now have started to join the social networks and most people from generation Y is already on a social network. The most popular social network is Facebook. Of the 54% connected to a social network 94% has a profile on Facebook. In comparison the social network Twitter is only used by 3% of the Danish population and LinkedIn is used by 8%12. 47% trust in their social networks to treat the users personal information with care but it also comes in alliance with the statement that 78% of the users know how to set the private settings for their profile, so that it only is people approved of the user that can see your full profile or whatever it may be you want to present to your fellow users. Most people only log on their social network when at home 13 but without having any data from the years before (as it is the first time this question has been asked in a survey) I believe that the number of people checking their profile at work is increasing as more people have become addicted to being online all the time because of the increasingly easy access to the internet with smart phones, iPads, laptops etc.

3.1 Sharing knowledge


Almost a third of the Danish population shares information online like photos, text, links, recommendations etc. This actually makes us one of the nations which are most active in the groundswell with 37% of Danish users creating their own content and posting it online14. We have been living in a world where information only has been floating in a vertical line from the ones called geniuses and to the common people. To put a picture on it you can say that the geniuses are equal to the leader, manager etc. in your organization and the common
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Danmarks Statistik, Befolkningens brug af internet 2011, p. 25 Gary Hamel, The Facebook generation vs. The Fortune 500, 2009 10 Danmarks Statistik, Befolkningens brug af internet 2011, p. 26 11 Sktt, Facebook hitter ogs blandt de ldre, 29th april 2011 12 Danmarks Statistik, Befolkningens brug af internet 2011, p. 26 13 Danmarks Statistik, Befolkningens brug af internet 2011, p. 30 14 Danmarks Statistik, Befolkningens brug af internet 2011, p. 24

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Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

people are his/hers employees. What you see online is that the groundswell has taken over and the information flow is now more horizontal. People share more; everyone has the possibility of sharing their personal knowledge and experiences with social media like Wikileaks, Wikipedia, Facebook, Twitter, YouTube etc. We as persons believe more in people like us than the big corporate monster, the government etc. We believe in people that take their time to post a review online or facts about a subject on Wikipedia that they are brilliant within. We trust information more when there is a face on the one writing, rather than a company logo.

3.1.1 Web 2.0 the new technology age


Web 2.0 is associated with the newest web applications that facilitate things such as information sharing. The internet has become more democratized and the most interesting web pages are the dynamic ones where all can participate in discussions and relations. Web 2.0 is about creating relations and collaborating. The ideology of web 2.0 is to create transparency in todays society and to share knowledge about organizations and the worlds men of power and what they are doing. The internet should be the citizens forum for free speech, a place where all information would be free and easily accessible for all citizens15. With this web 2.0 we see the social media booming because they now create an effective, direct and easy opportunity for information sharing between online web 2.0 users.

4. Social media in the organization


SocialSemantic did a research called Social Media Factbook which purpose is to provide a foundation from which we can become smarter at using the potential of the internet and social media.16 The research has been done with a focus on how the corporate world uses it now, and how they imagine using it in the future. 1.279 answered the research paper and gives a nuanced picture of how the corporate world in Denmark is beginning to use social media. One part of the research is focused on the leaders and what they have been using social media for and what they expect from it in the future. 32% already uses the social media for monitoring the competition; this number is of the companies already using social media. 56% is expecting to use social media in the future to create relations with future business partners. The people I have spoken with throughout my internship definitely see an opportunity in using it internally but right now all of DIs members are more externally focused. They have thoughts about social media and the internal use but for them; branding, marketing etc. is of first priority. Most companies do have intranets and some places they try to have wikis. But in most cases the intranet is a deserted village with dust all over. You have to go through an administrator to upload anything to the intranet and you can only see what the administration wants you to. Intranets are still top down in most organizations.

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Tholl et al, Wikileaks er web-ideologernes vdeste drm, 3rd August 2010 Social Semantic, 2011

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Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

Let us look at 4 different kinds of social media to learn how they work.

4.1 Facebook17
This is without doubt the most famous social network. It has 2.6 million users in Denmark and over 600 million around the world and each user spend approximately 8 hours a month online on Facebook (FB) which makes it an even larger site than Google18. Users can create a personal profile with pictures and information about themselves. They can exchange messages and add friends that also have a profile on FB. You can instant message with your online friends, write statuses, like things such as the statuses of others, celebrity pages, companies etc. It is the fastest growing social network site and it keeps growing. The network started as a forum for private users but as FB grew larger companies realized that this was the perfect platform for branding themselves and getting noticed. The companies can set up an account for their company or a product and get fans. Each FB page has a wall where fans can write comments or comment on the companies statuses. The company can create events, write notes which is like a blog and much more. There is also the possibility of creating advertisements on the sidebars of FB that will be shown to all users of FB. You can also create closed and open groups. The open groups are usually a common interest like political messages like Stop the violence or Support the fight against cancer. The closed groups are things that not everybody should be able to participate in, a group you have to be invited into. An example could be this musical I just did, named after a famous Eurovision Song Contest song, Were chasing butterflies. This musical was staged by Nyborg Voldspil and because it was a musical where almost only members of generation Y participated they decided to make a closed FB group where all participants both on and off stage could get acquainted with each other, download rehearsal videos with the dances and get information about changes in the rehearsing hours, PR meetings etc. By facilitating this group Nyborg Voldspil made the participants mingle and network with each other even when not having met each other. It started a collectivism feeling in all of us and made us take responsibility for the show even though it was voluntary and non-paid. You could always go to the group page and get inspiration and you saw people writing their thoughts and thanks to each other.

4.2 Twitter19
Twitter is sometimes described as the SMS of the internet. It is a social network where you can microblog and follow persons you find interesting whether it is friends or celebrities. On Twitter it is not called friends as on FB but followers because you here can choose to follow people without them having to follow you.
17 18

Wikipedia, Facebook SocialSemantic, Social Media Factbook, 2011, p. 7 19 Wikipedia, Twitter0

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When you write a status it is called a tweet and you can maximum write 140 characters, so using this media you have to be skilled at using the 140 characters in the right way to get the optimize the outcome. On Twitter you tag words or people. When you tag a word you use the hash tag, #, to enhance that this is the word or theme you are talking about. By using the hash tag your tweet will appear in a search for that particular word. When tagging people you use @ and write the user name after, this you use when you reply to someone or write a tweet of their concern. Twitter is build on open source technology which means everybody can make applications for the program which has resulted in user being able to upload pictures to one service and through that share the picture on Twitter. There is also an application where you can write more than the 140 characters. In Denmark Twitter is mostly used by professionals within PR, artist, creativity and those who look for networks abroad. There are about 150.000 users of Twitter in Denmark (e.g. 3% of the population) and the average user of Twitter is a woman, highly educated and from Copenhagen20. Your Twitter account does not have to be public; you can set up a filter where you, the tweeter, have to approve the ones who want to follow you. Twitter has become a massive success in the States. Among many things they have branded upcoming stars like Justin Bieber who now takes up almost 3% of Twitters capacity because of the massive response from followers.21 You can also find President Obama, Oprah Winfrey and many more on Twitter. Twitter was also part of starting and organizing the revolutions in the Arab countries 22 it was an easy way for the revolutionists to organize and also communicate to the rest of the world what was going on.

20 21

www.tv2.dk/finans, Jon Lund, 2009 Christensen, Justin Bieber fylder 3 procent af Twitter, 8th september 2010 22 Beaumont, P jagt efter sandheden om Twitter og Facebook, 28th February 2011 samt www.twitterland.dk

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4.3 LinkedIn23
LinkedIn is known as the professional social network. It focuses on business relations, professional relations, because they believe that: Relationship matters 24. It has about 500.000 users in Denmark and 100 million users around the world, half of them living outside the US. On LinkedIn user can upload their resumes, get their connection to make them a letter of recommendation which will then be shown on their profile. They can add statuses as on Facebook, participate in networks, groups and events and they can connect to people they have worked with, gone to school with or just friends. LinkedIn is commonly used for recruitment of new employees by HR-departments around the world as it is possible to post available jobs but also use their connections to find the perfect candidate. You can only be linked to persons through your own network or if one of your connections introduces you to a person. This creates a great deal of trust among the users as you always have a referral that you can ask for recommendation and information. Irish journalist, James O'Sullivan, commented in the Evening Echo, a newspaper in the Republic of Ireland, where the company has its European headquarters, that "LinkedIn.com, a business-orientated networking site, can be an ideal way for professionals to present an online profile of themselves [...] Unlike social networking sites, with [...] LinkedIn you're outlining all your credentials; presenting the professional rather than the personal you."25 LinkedIn has grown quickly and in Denmark only surpassed by Facebook as social media. Professionals are using it and many of the professionals only have a LinkedIn profile as their social network, because they think Facebook is to cozy and unprofessional. An example of using LinkedIn effectively was seen when LUPRO held the Productivity Conference. The head consultant for this project started a discussion about the topics of the conference and what is was about, through her own LinkedIn account. She got good response and an inspiring dialog out of it for use for other projects but she also got noticed together with the conference. LinkedIn is interesting to use for discussions as it is professionals who are online and therefore you can expect a certain level of expertise about the subject presented and you can expect that they would never participate in a discussion outside their area of knowledge.

23 24

Wikipedia, LinkedIn LinkedIns slogan 25 Evening Echo, 2011, p. 32.

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4.4 YouTube26
YouTube is a site, a social network where you can upload and watch videos. You can make an account with a user name wherefrom you can upload videos, tag them and publish them publicly or privately. What you post on YouTube is only limited to your imagination; video diary, tutorials, information, basically knowledge sharing both relevant and irrelevant information. YouTube has 2 billion views a day 27 and is the second largest search engine only surpassed by Google. Most people search for information there as it is easier to understand when you see information visually than on paper. We like to be able to put a face on a company, it seems more human and you get a relation and it is an easier - or a better connection than to a brand or logo. When creating a YouTube account you get your own YouTube channel and people (other users) can subscribe to your channel and get notifications whenever you post something new. There are different accounts depending on what kind of user you are. If you use YouTube mostly for watching videos and only upload a video once in a while there is a standard account for musicians, comedians, directors there are different accounts that meet their needs. YouTube is quick to accommodate the needs of its users. When having a YouTube channel you as the user can make playlists to organize your favorite clips easier, you can decorate your page as you want to, you can join groups, subscribe to tags or other users channels and comment on videos. Most videos uploaded have a length of maximum 10 minutes and the most viewed video clips are home videos for example Charlie bit my finger which is a video uploaded by the father of the two boys appearing in the video. But besides giving us a laugh you can find clips of sketches, resumes of your favorite TV show, music videos and much more on YouTube. There are also a lot of informational clips posted on YouTube. You can use YouTube as a search engine as mentioned earlier and find information about diversity, social media, business strategy etc. all short lectures held by consultants, CEOs, professors etc. Teachers use clips from YouTube to teach in school, young people can use it for job hunting by YouTubeing the company, their CEOs and the list goes on. There are many theories of how to use YouTube and what to upload and post and it definitely depends on the individuals needs.

26 27

www.rev2.org YouTube The complete profile www.siliconrepublic.com YouTube hits 2 billion views per day

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5. Pros and cons of the social networks


It is not all social networks of those mentioned here or the others on the internet that are suitable for using internally in a company. In the following section we will look at the pros and cons of the mentioned 4 social networks.

5.1 Facebook
The most obvious reason to use FB is that almost 64% of the Danish population has a profile on FB. This means that there are only few individuals in a company who is not using FB already. Therefore it is easier to get people to use it, as they already know how it functions and check it regularly. Another reason for managers to use FB is the potential to use their profiles to interact with the employees on FB so they see a more human manager, one who is more on their level and sets a good example for how to act on a social media like FB which is considered by many as the private network. On FB you can also make closed and private groups which mean that you have to approve the people who want to join the group or invite them. Thereby you can have a group for only the manager and employees where different issues can be discussed, the manager can make notes which are like a blog and inform his employees about decisions and other relevant subjects to the job whereto they can react. As a manager you do not have to befriend all of your employees from your private profile but it is a possibility as you can divide your friends into lists and these lists you can put on restrictions, like they cannot see your photos comment on your statuses etc. but in the group they can see everything. The cons against using FB is that many private persons feel that FB is a social network for private use, for hanging out with their social contacts and be updated. Employees business and private lives are already melting in to one unit and many see FB as a part of their private sphere. They do not want their work to be a part of their leisurely activity. When making a closed or private group and in general participation on FB you have to have a profile and if there are some persons who does not have an account because they feel stronger for LinkedIn or other you will have a problem of convincing them to join. Especially joining FB as it is seen largely as a network for the private person.

5.2 Twitter
Twitter is the perfect place for short messages or micro blogging as it is called. You can quickly get a message out and the answers back you need almost as quick. You can make it as a closed profile where your followers have to be approved by you to see what you are tweeting. At the same time your profile can follow interesting hash tags or people who have relevance for the company/manager and thereby expand your employees knowledge about subjects mentioned in the tweets. The same problem, as with FB, is that everybody has to have a profile and trying to convince people to create a Twitter profile is even harder than making them join FB, as Twitter is

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relatively unknown. Most people have heard of the name but it is only 3% of the Danish population that has an account and a minimum who are active and use it efficiently. On Twitter it is more about how you phrase your words most effectively, rather than knowing the applications therefore the employees has to be educated more in how to use Twitter compared to other social media. Most people are not used to being limited to 140 characters; it is actually harder than you think.

5.3 LinkedIn
The common perception of LinkedIn is that this is the professional network where all your professional contacts are linked and possibly also the employees. You can make groups and events just as on FB. Here you can also make things private. For an example you can use LinkedIn for recruiting and advertizing for a job opening, among other things. Again your employees need to have a profile on LinkedIn and be connected to you to be able to interact with you online. If you are a small business or department you should consider another media than LinkedIn as they have started charging a fee for some of the applications they provide and that could be relevant when using it for business purposes and not just private. The interaction between the users is low probably because it has gotten the reputation of being purely business people and you therefore do not comment as often on things as you see on FB or Twitter.

5.4 YouTube
By using a YouTube channel you put a picture or a face on the management and the company. Most times it is easier for people to understand and remember by watching a video where more of your senses are stimulated compared to reading text on a page. There is the possibility for the users to react via comments to the video, but it rarely creates much activity. Then there is the possibility of recording a video with comments and then uploading it but it gives too much administration and time waste for the employees and management. Having an account, you as a manager, can create a playlist that is relevant for your business on YouTube, which your employees can watch.

6. Looking at generation differences


There is a new generation coming into the labor market. What are the differences between the generations and how they use social media?

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6.1 Introducing generation X and Y28


No matter which generation you look at the important motivating factor for choosing a job and staying in it, is the same for men and women respectively; terms of employment for men and relations as the important factor for women. The managers today have a hard time motivating generation Y with the tactics used on generation X which were effective then. Generation Y is not interested in sucking up to their managers and if they get a better offer that fulfill any of their needs better, they leave their current workplace. Generation Y is more affected by individualism as opposed to generation X, they are not team players and have a clear opinion on things and are not afraid to tell off the manager. The young generation has a craving for becoming a star, being important, that what they do matters. In generation X you do not see the same craving or trend and they are very orthodox and respect their place in the work environment. The positive thing with generation Y is that the workplace gets a fast thinking, multi tasking employee who also accepts diversity and is super creative, thinking out of the box. These are all skills that are necessary for most employers as todays markets are fast changing and they have to adapt to the current situational change fast. Therefore generation Y knows what they are worth and wants a job that recognizes it by giving them responsibility, freedom in their daily tasks that match THEIR needs. Generation Y only accepts yes as an answer and they expect to win and be rewarded for even just showing up as they come from the trophy generation were all were winners and was rewarded in sports etc. They do not know of the real world, they perceive themselves as the best, the winner. Lifestyle and friends comes first, work comes last for the generation Y. They want to be praised and noticed. Generation Y is a more flexible and efficient workforce and easy adaptable to changes. Generation X is not so flexible, they have learned one task, one kind of job and that is where they sit for their entire working life. They have a higher loyalty towards the company, and they are not as costive as the new generation as they are used to not having the same amount of appraisal, rewarding and training as the generation Y expects. Even though we are moving from production to service as the core industry in most parts of the world especially in Denmark, there is still focus on the working conditions but instead of talking about wearing helmets, gloves, security glasses etc. we are talking about ergonomic chairs and tables, good canteens etc. more material and not so much about risks and protection. But a growing trend is all the different lifestyle diseases such as stress, ulcers etc. The absenteeism rate has increased a lot through the past years and it is more acceptable. Generation X had less absent days as the job has first priority, they know the team will be down one man and has to pull the load for him but also they are loyal to the company. On the relation area we see a trend that the hierarchy of a company should be flattened according to generation Y; we are all in this together managers and employees are nearing
28

See bibliography for sources to this section

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the same level where generation X is more as already mentioned orthodox and respects the hierarchy.

6.2 Social media and the generations


Relations is the most important thing for generation Y29 and you also see a large number of generation Y being on online communities and social networks as their craving for relations and networking is high compared to generation X but as mentioned earlier generation X is also embracing social media more and more. Social media provides generation Y with the possibility of getting the acknowledgement they crave for as well as keeping up their relations to their networks etc. Social media is the quick way to update generation Ys colleagues and their managers about what they are doing. Generation Y has different values and expectations than seen before on the labor market. They live online 24/7 and need to check their networks several times a day to make sure they do not miss out on anything. Because of the social media generation Y is used to a hierarchy which is not prescribed, but is done by earning it and maybe not at all as everyones ideas are equal online.30 Generation X is still trying to embrace social media and is mostly using it for personal matters. Maybe following what their kids are doing or checking up on family, grandchildren etc. Generation X has as mentioned no problems with hierarchy and knows their place in the world; they do not reach for the stars when it is good enough for them where they are. So which social network will be best for internal in use in the organization?

7. Yammer.com31 the combination of all 4


Yammer.com is the enterprise social network. This is the mixture of all 4 mentioned above; Facebook, Twitter, YouTube and LinkedIn. Yammer.com is the perfect social network for internal use in a company. You can do all the things mentioned before like having your own profile, microblog, create groups, share files etc. Anyone inside your company can start using yammer.com as long as they have a company email address. Yammer has written a short presentation on their web page of yammer.com: Yammer is revolutionizing internal corporate communications by bringing together all of a companys employees inside a private and secure enterprise social network. Although Yammer is as easy to use as consumer products like Facebook or Twitter, it is enterprise-class software built from the ground up to drive business objectives. Yammer is free for your whole company, enabling users to communicate, collaborate, and share more easily and efficiently than ever before. It reduces the need for meetings, increases communication across silos, surfaces pockets of expertise and connects remote workers. 32
29 30

Ipsos Loyalty, Generation Y research, 2007 Gary Hamel, The Facebook generation vs. The Fortune 500, 2009 31 www.yammer.com

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There are already a lot of companies using yammer.com, to mention some large international companies all the following are actively using yammer; Deloitte, 7eleven, ebay, Danisco, Unicef and about 100.000 more. Also many of the government agencies like, for instance, The State Employers Authority have begun using it.33

7.1 The specific features


In addition to standard microblogging features like posting messages, addressing messages and following people, Yammer offers the following features: Replies and threaded conversations Tags, now known as Topics Public and private groups within the network Communities that are separate networks, allowing users to connect with people outside of their organization File and photo attachments Events, polls, and questions applications Robust direct messaging to multiple recipients Presence so you can see who is online now Sending and receiving messages via SMS and Email Twitter integration Microsoft SharePoint integration iPhone, iPod touch, Android, BlackBerry and Windows Mobile clients Security features like removing users who no longer work at the company, restrictions, etc. Network color and logo customization

Yammer.com is free but to get extra features you can choose to pay for an upgrade. By using yammer.com you give your employees the freedom to interact and post any thoughts. Nothing has to go through an administrator and you thereby prevent your company from having a dead intranet as most companies unfortunately has.

7.2 Part conclusion


As yammer.com fulfills all social and technological needs of people today it would be the perfect social network for using in the company instead of the private networks as the 4 mentioned above. The company can still use these for external use and open communication to the surrounding world and to involve stakeholders.

32 33

www.yammer.com Information gained through DI internally

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8. Low job satisfaction and loss of credibility


Through Ennovas European Employee Index research we see that peoples job satisfaction is the lowest seen in 10 years.34 This is of course a symptom of the financial crisis because less feel secure in their job and as we know from motivational theory to feel secure is a big factor in hygiene factors and thereby high job satisfaction35 but also the fact that the employees do not get the education and development they need to keep their employability and this is exactly one of the important motivational factors in Herzbergs theory. The employees do not get a chance to grow and develop together with the company and therefore we see a loss of loyalty and the companies will experience a higher labor turnover in the following years as employees will look for jobs that can fulfill their motivational needs. Together with the decrease in job satisfaction you also see top-managers take a dive in their credibility. As the managers no longer fulfill the employees need of security, development and growth, it is normal to see a dive in the credibility. The top-managers have a problem with communicating the strategy of the company, the goals and visions, almost every third Danish employee has trouble of understanding this and when it comes to values he cannot identify himself with these.36

Illustration 1. 1 Topledelsens Trovrdighed falder. Source: Ennova (2011)

To figure out how to regenerate this credibility firstly we will have to look towards the current leadership style that is used by the managers and what the optimal leadership style is to adapt the trend of social media.

34 35

Ennova, European Employee Index 2011, 2011, p. 4 Herzberg, wheel of motivation 36 Ennova, 2011, p. 6

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9. Which business is more adaptable to social media?


Some businesses it will be easier to implement social media, first of all it is easier to see why you should use it and secondly because some businesses have a higher rate of generation Y employed, who can take the lead on implementing social media in the organization.

Rate of employed from generation Y

BLUE-CHIP

WHITE-COLLAR

BLUE-COLLAR

Company type
Illustration 1. 2 Indication of how many generation Y work in which type of company. Source: Of own make based on company research done internally in DI. (2011)

From this matrix you can see that the blue chip business has a higher employment of young and adaptable people. As there is little progress in using social media internally in an organization it will be easiest to start with implementing in blue chip companies as they are most adaptable to changes and have people employed who use at least one social network service. Blue chip businesses are usually businesses such as consultancy businesses, service industry etc. They are strong and financial stabile companies with only little hierarchy. They are adaptable to change and often international corporations. From this segmentation I will now look at the leadership style; in which direction they have to take their leadership in order to be able to embrace social media and the benefits there of. This, together with the motivational theory, I will find arguments for why social media and the generation Y motivators complement each other so well that managers can see the pros in implementing it.

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10. Leadership style


As written in definitions I have made the assumption that the leadership style we see today in organizations is authority-compliance; autocratic leaders that have strong control of followers and make all major decisions. The leadership style is defined as a 9.1 in the leadership grip source37: efficiency in work obtained by arranging work so that human elements do not interfere with its completion.

Illustration 1. 3 The Leadership grid Source. Source: Rollinson, 2008

When a company has the leadership style of authority-compliance you can assume, when applying style theory, you find that because an organizations is a 9.1 in the leadership grip source they will have the style of autocratic leaders as they make all major decisions and exerts high control of their subordinates. This affects the subordinates in such a way that the subordinates experience low morale and hostility against the formal leader. Usually the subordinates know exactly what to do, but have problems in seeing why it has to

be done and therefore never take responsibility for things gone wrong.38 We can also assume that the managers follow theory X39 where managers see their employees as irresponsible and lazy. Managers therefore follow a style of strict control; they must coerce the employees and threaten them to achieve goals.

The Genius

The Information flow

With this kind of leadership style the employees tend to focus on security above all other work related factors and have little ambition. They are just trying to survive and they react on getting The world punished and rewarded also called Motivation 2.0 in some circles.40This way of thinking means that the Illustration 1. 4 Information flow in the autocratic-compliance employees should be understood as organization. Source: Of own make based on communication part of a complicated machine and if theory. (2011)
37 38

Rollinson, 2008, p. 363 Rollinson, 2008, p. 361 39 Powr, Notes for chapter 12,notes handed out in class. And webpage: businessballs.com/mcgregor, visited on the th 25 of October 40 Pink, Motivation, 2009

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they perform the right work in the right way in the right time the machine would run accordingly. To make sure this happens you have to reward the desired behavior and punish the undesirable. The autocratic-compliance also makes it a very hierarchical organization and very closed. Information flow is only from management and down not the other way around. The management is not in touch with what is happening at employee level. In a world filled with social media where everyone can participate in discussion, information sharing etc. it will not work with the abovementioned leadership style. Because not only has the relations between people changed but motivational factors among the employees have changed as well. Management therefore has to move from a 9.1 in the leadership grid source to a 9.9 team management to benefit most of the social media. This results in a democratic leader when referring to the style theory that involves followers in the decision making. The definition of team management according to the Leadership grid Source is: Work accomplished by committed people and interdependence achieved through them having a common stake in organizational purpose, which leads to trust and respect.41 Leaders should see their employees as responsible and conscientious, and assume that they will exercise self-direction, motivation and self-control. It is especially important that employees, besides the manager, seek responsibility and that they have decision making skills.

The Information flow

The hierarchy is flatter and information flow is bidirectional. The chain of command is not the The same as when having an authority-compliance Groundswell leadership where all decisions are made at the top and implemented from there as well. With Illustration 1. 5 Information flow in a team management team management, employees can make organization and in one with Open Leadership. Source: Of own make based on communication theory. (2011) decisions on an everyday basis as they are informed of what is going on and what is needed right here and right now. Employees implement the decisions by themselves and you thereby see a horizontal information flow compared to the first model shown above.

10.1 Open Leadership


The change in the world is also the change in power. Previously we had the Einstein regime where we were orthodox and believed in the authorities and the information flow was only topdown. But now generations has more belief in their equals, they believe in people like themselves and because of social media it is suddenly possible to share information horizontally and thereby force the Einstein regime to listen to the groundswell as power has shifted.
41

Rollinson, 2008, p. 363

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As the boarders between internal and external communication becomes more and more obliterate it will force the organizations to further open up, as external stakeholders demand insight in the organization and the employees are standing in line to share their insights about the companys story with the surroundings. To control this you have let go of your control and this is what open leadership is mainly about. When you as an organization have moved your leadership style to team management there is an additional mindset you have to integrate in yourself as a leader which in the end will lead to open leadership. With this leadership style you as a manager and your organization will be in perfect shape to handle the social medias impact on your business but also it will help you to keep the loyalty of your employees and your credibility as a leader and manager. Charlene Li defines open leadership as: having the confidence and humility to give up the need to be in control while inspiring commitment from people to accomplish goals. 42 Open leadership is all about relationships and therefore you as a leader have to encourage these relationships, you have to be the front man in this or you will never see your employees involve themselves. To do this you need an additional mindset to the team management style which will take you to the leadership style of open leadership. The mindset is simple. There are 4 rules to play by and these can help to achieve common ground and fellowship in the organization. Respect that the power now is in the hands of your employees and customers qua the possibilities of sharing knowledge. Make sure to constantly share and accept knowledge and information Make sure that there are clear expectations of how the openness should be administered and what the consequences are if these expectations are not met. Forgive failure a clear signal should be sent that failure is acknowledged and understood as when you work with human relations things can and will go wrong sometimes.

These 4 rules are the fundamental mindset you as a leader have to act on if you want success in the world of social media and all its possibilities. You probably already know some of them as they should be fundamental when using the leadership style of team management. So you might say that there is nothing new in these and you are right. The new is not the rules, but the consequences if you do not follow them and accept that social media has a huge impact on doing business today. The consequences can be both external and internal, but as this assignment focuses on the internal aspects we can mention following consequences if the abovementioned mindset is not followed; unmotivated employees, loss of loyalty from employees and loss of your credibility as a leader and organization.

42

Li, 2010, p. 14

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11. Motivation
As already mentioned people and relations have changed because of the social media and the perception of us as individuals. In motivation 2.043 we were motivated mostly by the hygiene factors which are external factors. We were motivated by the reward/punishment method and we focused mostly on needs as social needs, physical, economic and orientation.44 Looking at Maslows Hierarchy of needs45 with this motivation 2.0 we are only looking at the first three levels as they cover what mentioned as hygiene factors.
Self-Actualization Esteem

Social Safety Physiological

Illustration 1. 6 Maslows Hierarchy of needs. Source: Rollinson, 2008

But as organization structures, business and the world has changed we are now looking at a working generation that focuses more on the internal factors factors within the employee; the fulfillment of self actualization and their happiness from being good at something, the challenge of mastering a task. With generation Y we have already seen the need for appreciation, flexibility, development and making decisions Sense of Achivement Recognition which are according Responsibility to Herzberg, all Generati Nature of Work motivational factors, Personal groeth and on Y's advancedment the inner circle of needs Social needs Herzbergs theory.

The relevant motivators when looking at the generation most involved with social media, namely generation Y, are the inner needs, the top two levels in the
43 44

Flexibility Offers Growth Responsebility Social relations Recognition in every work situation

Social Media

Motivated employee

Illustration 1. 7 Generation Ys needs and which of them can be covered in support of social media. Source: Of own make. (2011)

Pink, 2011, chapter 1 Rollison, 2008, p. 206 45 Rollison, 2008, p. 203

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Maslow pyramid and the motivators of Herzberg. With these factors fulfilled you will see a staff fully motivated and more likely to embrace social media as not just a part of their private lives but also as a part of work. One factor from the hygiene factors that still influence the working generations is the social needs. Social media is based on social relations and this is why it is so popular. You fulfill your need for relations 24/7 as you do not have to take time after work to see your relations. You can catch them online and give them a short update about your life and you can get updated about theirs. Everybody has the need for relations and with social media you are not restricted to only manage a handful of relations, you can have several thousand if you want. Social needs are still something wished for, as relations are some of the most important for both the sexes and as a manager you have to be able to provide these relations in a certain degree in the organization for example by arranging social events among your employees but also let the employees reach out of the organization by using LinkedIn, Facebook etc. Thereby it is not necessarily only about the relations in the organization but also with business partners, stakeholders and others. Social media can also help cover other areas than social needs. One of these areas is the wish for flexibility in the nature of work and the freedom to act when necessary. This social media can cover this flexibility, as it offers a horizontal way of communicating, you get quick answers back on what you ask the virtual world and at the same time you have the possibility of sharing knowledge both from managers and co-workers. And by sharing knowledge you also cover the area of personal growth in educating yourself. Social media also covers responsibility as you need to have involvement; delegation of tasks, influence and responsibility for your mistakes. The responsibility for involvement includes that you cannot be on social media as an employee if you do not prioritize participating, whether it be answering a consumer or your colleagues. You need to understand how the chosen social technology functions and be at least a critic or higher on the ladder. The craving for recognition is also something social media can help cover as you can post a status telling what you have achieved and you will most likely get a like or a congrats recognition from other users. Also people you have worked with or your boss can post something like: Good job, you really nailed it! on your wall and thereby all your followers, friends etc. can see you did something good. The need for self actualization and fulfillment of motivators will create motivated employees which create a larger possibility of implementing changes. Because the employees needs are
Illustration 1. 8 The Social Technographics ladders. Source: Forrester Research, Inc. (2010)

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covered they are less reluctant to change. As a leader it should be easy to see why implementing social media in the organization is a good idea, as it helps cover many of the factors affecting the employees motivation.

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12. Loyalty and social media


So how can you create loyalty among your employees? Loyalty is created through relations and as it is your employees that have the consumer contact, not only do you have to look at the consumer and how to win their loyalty but also look at your employees as they represent the company and if they do not feel loyalty towards the company they probably cannot win the consumers either.

Responsibility Recognition Development Trust

Employee Loyalty

Increased revenue and growth

Increased value (ex. Service)

Consumer Loyalty

Illustration 1. 9 The chain of Loyalty. Source: loyaltygroup.dk (seen in 2011)

When looking at the loyalty chain you see that a lot of the factors affecting loyalty are motivational factors like responsibility, recognition and development. The last factor mentioned is trust. Trust is what the employee expects from his manager, that the manager trust the employee to do the right thing. You as a manager have to create value for your employees. The more value you create the more loyalty you will receive. If you as a manager achieve this, you will see that the loyalty will affect the employees effort and the quality of the task done. It can show in higher service for example which affects the consumers in such a way that you will experience higher customer loyalty and thereby earn higher profit. Not only does it affect your surroundings when having a high level of loyalty in the organization, when employees are loyal it also means your credibility as a manager is high, as you fulfill needs from your employees. Thereby you will achieve a better reputation, not only for yourself but for the organization as well.

12.1 The Levels of Loyalty


Below I have made the levels of loyalty where each step represents a higher and higher level of loyalty. Each step is a term that affects loyalty seen from the employees point of view.

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LEVELS OF LOYALTY
3. Delegation of decision making 2. Involvement in decision making processes 1. Trust from management 4. Freedom to selfmanaging and comanagement

Illustration 1. 10 Levels of Loyalty. Source: Of own make (2011)

To reach each step the manager has to take action, only by doing so he can enhance his employees feeling of loyalty. Before we are on the stairs toward the optimal loyalty we are standing on the ground where the hygiene factors are covered such as security, social needs etc. In order to get on to the first step Trust from the management you are looking at very basic thing for most employees. If they are not trusted then why are they hired? Employees want to be trusted in doing their job in the best possible way and do not want to be controlled at all time. There are two sides of this; if a manager does not trust an employee it is either that it is the wrong person hired, or that the leadership style is following the X theory mentioned in earlier sections. When following the X theory you do not trust your employees and control is a big part of the way you lead. Employees wish for trust and you as a manager have to provide this in order to increase the loyalty. To achieve this first step you as a manager have to let go of control at least a bit. The organization should offer managers training in procedural justice and fairness and help managers to develop trust in others. Managers have to improve their employability as well as employees and by helping managers trusting in others you not only improve loyalty, but you also fulfill a motivational factor for the managers namely development. You as a manager have to show support instead of control, trust instead of autocracy. When doing this you have a good foundation for taking the next step up the stairs: Involvement in decision making processes. To illustrate this point I will use a thing called the Decision Making House which we use in LUPRO in the DI Management Program when educating leaders and managers to better managers.

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There are four stages in making a decision; know, can, want and do. Know, is what do we know? This will be an exchange of information. Can, is what can we? We set up the solution possibilities for the problem. Want, is want do we want? This is the proposals for the decision making, pros and cons and risk analysis. The last; do, is what will we do? Here we work out an action plan, what, who, when and how.

DO

WANT CAN KNOW

These are divided into a 2 storey house where on the bottom floor you have know and can and on the upper floor you have want and do. As a manager you are on the roof shouting down to your employees who are standing outside the house. When shouting down from the roof the decisions are made and the employees just have to follow them if you then invite them inside to the first floor and let them participate in the first 2 tasks you give them a sense of being a part of the decision making process; they have a say in the decision making. Just by doing this you have gotten the employees a step further up the stairs in the loyalty stairs. You can also choose to take it even further and invite them to the 2 nd floor if done so you will give the employees a sense of being concurrent and thereby you have not only enhanced the loyalty even more than you needed on this step but also made the decisions easier to implement because the employees co-managed. This takes us to the next step on the stairs which is delegation of decision making this comes natural after the other two steps and matches the social media lifestyle and the vision of open leadership well. As mentioned several times you, as a manager, need to let go of control to gain control and by delegating the decision making to the employees that know what is moving in the world around the company. You as a company can become more pro-active and forestall the unlucky situations some companies are currently experiencing because they are not aware of what is happening around them, or what perception the consumers have of them. By delegating decision making you gain loyalty from your employees as you fulfill a motivational factor - namely a sense of achievement. Most leaders fear giving control but when you are this high on the stairs of loyalty your employees are so loyal that they will not misuse the trust and responsibility they have been given. The last step on the loyalty stairs is freedom to co-management and self-management. On this step we are on the top of the stairs and have reached the perfect loyalty among employees. This step compliments the leadership style team management as mentioned earlier and also open leadership.

Illustration 1. 11 The Decision Making House. Source: LUPRO, DIs Management Program. (seen in 2011)

2 st 1

st

CO-MANAGEMENT

CO-INFLUENCE

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This step also speaks to the motivational factor of responsibility, the nature of work, sense of achievement and the possibility of personal growth and advancement. Employees want to show their managers that they can handle the responsibility given. As manager you have to allow teams to set their own goals, give informal feedback and better, easier appraisal. Make the employees aware that communication is the key and of course goes both ways. Common for all of the loyalty steps is that motivational factors are the foundation for each criterion.

12.1.1 Mark Zuckerberg on opening up


Many managers and leaders will have problems in giving up control as they believe that with openness comes leakage but experiences from companies in USA shows it does not have to be the truth. Facebooks founder Mark Zuckerberg has an hour every week where he answers questions from employees at all levels. He answers everything with openness and honesty and believes that the employees can figure out by themselves what they can go public with or share and what they have to keep within the company. You would think that with this information flow there would be several leakages but the employees at Facebook treat all information with respect and confidentiality as they know it is the only way the management will keep sharing information and knowledge with them.46 In Facebook they have reached the highest level of loyalty and they fulfill all steps on the stair and this is why they are so fast adaptable and successful. They have a complete loyalty chain. They use open leadership as their leadership style and they fulfill the employees needs when looking to Herzberg and Maslow. They let their employees make decisions, trust in them and involve them in the organization and this makes Facebook a good example of an organization that has adapted to the new world where the power has been moved from top-down regime to a world where the groundswell rules.

12.2 The use of social media for creating loyalty


If we look at the loyalty stairs once more, we can use these steps for introducing how to use social media for creating loyalty. Trust from management is an easy one as the management can show trust through lessened control and appreciation of what the employee has achieved. This can be done by writing a post to the employee on yammer.com but also by recommending other employees to use the knowledge of the employee who is being appreciated. The manager can also give extra tasks to the employee to show that the manager trusts in his work. Involvement in decision making processes can be done by opening up an open discussion on yammer.com about these decisions that need to be taken e.g. the decision making house. You as a manager get an insight into the employees thoughts and the employees feel as if they have been heard, had a say in the decision making. Using yammer.com makes it less
46

Li, 2010, p. 25

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expensive to involve employees in decision making as you do not need to get them in the same room and thereby take away a whole day of work from them. When using yammer.com employees can answer and participate when they have the time. But as manager you have to take your time to participate as well. You cannot settle with just starting the process, you have to answer and reflect upon the responses otherwise you do not get others to participate. Managers have to be pioneers, be a prime example for the employees. Delegation of decision making is relevant for social media because the world is changing rapidly and you as a company needs to adapt quickly to not be forgotten. When delegating decision making you achieve a quicker reaction time and thereby preventing failure to reply before it has been through the bureaucracy of the organization. Social media forces companies to open up whether they want to or not, and the company therefore has to be able to react promptly if they are accused of something or if they need to handle something quickly. Delegation can happen by posting projects or tasks on the wall on yammer.com and let employees volunteer for them and thereby having the employees seeking responsibility and taking the tasks. You as a manager must show them trust by letting them make decisions for that certain project. But it can also just be to decentralize power in the everyday work life to the departments and employees. Not because major decision should be made in the departments, but the small everyday ones you as a manager can live without having to influence. Freedom to co-management and self-management can be given through social media as employees can update their profile on how far they are with a task or where they are in the world. They can also make groups for tasks or projects and thereby update and discuss the task/project. This also means that management can follow the progress without controlling them directly and also give them input without having to gather them. Social media can be useful in several situations for the management in order to win back his credibility. These abovementioned are just some in the way towards total credibility again. All of the abovementioned things social media can be utilized for - yammer.com covers.

12.3 Part conclusion


Besides creating loyalty and motivation for the employees you as a leader should by now see the benefits of using social media in the organization. The motivation for a leader to implement social media internally should be all the pros of higher motivation and loyalty and by realizing that it will save working hours. You do not have to summon people for short meetings to discuss little things and the decisions delegated will be of your table and you will thereby have more time to spend on building relations and taking care of other things you previously might have to neglect.

13. Implementation of change


Leadership in this dissertation is about continuous change and the ability to adapt to the surroundings and to people when they change. Transformational leadership, leadership and change are words that need to become more than words in order to maintain the achieved openness and new leadership style. The new leadership style should be used to increase motivation and loyalty and to be open to the new world of social media.

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By increasing motivation and loyalty by the use of social media you will be able to increase the credibility of leaders but you have to change the whole culture and way of interacting and creating relations between employees. In order to implement a change in an organization we need to look at the theories for transformational leadership, leadership through change. To support our choice for best management style Bate (1994) argues that in leadership through change it is best with a pluralistic/collective leadership. He continues with saying that leadership comprises 5 main dimensions and by having team management there is a chance that they might embrace the abundance of characteristics and dimensions required to have success in managing transformational leadership.47 There should be an appropriate balance in the grouping of the characteristics to achieve best possible result, namely change. Our team management should now undertake the role of transformational leaders to be able to implement this wished change in communication; the use of social media in internal communication. They should create a vision of a desired future state and mobilize commitment to achieve that goal. But how should the leaders influence the employees to embrace this change of communication and leadership style?

13.1 Three barriers to successful change


It is said that our brain has three barriers that blocks for changes and if we can break through these we will be able to achieve a successful change. 48 You need to reach the individual in order to achieve a fully successful change. You need to engage the employees and make them believe in the idea at hand, only then will it be easier to change their way of thinking and working. The first barrier you need to break is the failure to see. This barrier blocks the ability to realize the need for change. People tends to ignore new trends and external threats to their business and instead of adapting to the market they focus on what they are good at and how they can become better at that because it has been working fine for them until now. To break open this barrier you need to show the employees the contrasts between past, present and the future and after this you need to confront them. They need to experience it on their own body why the change has to happen. It could be taking a field trip to a company who successfully has begun using social media internally or workshops with consultants who work with this specific subject and who can get the employees to work with the subject in practice. There are a couple of pitfalls when talking about how to break the first barrier. Firstly, that the message given about the change and why it has to happen cannot be too complex and it should be repeated several times and preferably in different ways. This is because if the message gets too complex the employees will step on the brakes and choose from the message what they think are relevant.
47 48

Brooks, 2006, p. 165 Sandager, 2009, p. 1

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Failure to move is barrier number two. Now the employees might realize that something has to change but this barrier prevents them from acting on it. People instinctively know that when you start something new you are probably not that good at it and people do not like to fail. Therefore you as a leader must convince them that the employees have the competencies to follow through the change and the employees should trust that they can do it. To move employees state of mind you also need to look at the motivational factors mentioned earlier in the dissertation. We must assume that people are like horses; nobody moves unless they have a carrot hanging in front of them to chase. From the earlier analysis you can enhance the motivational factors that social media compliments so they can see what you can achieve by moving. By using the findings from the earlier motivation section you can as a leader learn what drives them, and thereby secure a better motivation among employees and reach the desired change more quickly. The last barrier Failure to finish usually inhibits people in finishing the change. They lose direction and fall back on their old patterns. To prevent this from happening you have to be the pioneer, make a visual example. You need to be visible to your employees, create a relation and support them. You need to give feedback on the wished behavior not just on the results and you have to be open about the progress and the consequences. This way your employees will maintain their enthusiasm, their motivation and loyalty towards the company and of course your credibility as a leader.

13.2 Implementation of social media


As previously mentioned, changing the individual mindset can change the organization. Now that we have prepared the employees and they are ready for embracing change we will make a roll out plan for how to implement it to the organization. By using the barriers, from the before mentioned, I have made a four step implementation stairs frame work.
Maintenance

Step 4 Chapter 13.2.4 Step 3 Chapter 13.2.3 Step 2 Chapter 13.2.2 Step 1 Chapter 13.2.1

13.2.1 The first step: Leaders need to buy in and break down their own barriers This step is where you use the previous analysis to motivate the leaders to implement social media. Show them the benefits of higher motivation among employees and the loyalty increase if they as leaders let go of control and involve their employees in the everyday decision

Illustration 1. 12 The four step implementation stairs. Source: Of own make. (2011)

making and idea exchange.

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There is also the benefit of saving working hours as you do not have to call meetings for a discussion about small things or spam them with emails so you, as a leader, can inform them by using the enterprise social network in this case yammer.com. Leaders can actually build closer relationships by using social media as they can be more present by being active on the social network. Many employees feel that they never see their leader and that he does not seem to care but by participating in employee discussions and open up the possibility for employees to be a part of the decision making this image will change. The first step on these stairs of implementation is therefore to get the leaders to buy in on the idea of social media by showing them all the benefits, inform them of the use and possibilities of social media and educate them in the change of relationships and motivational factors that we are seeing today. Leaders also need to accept the impact of social media on their employees lives so why not use it for the benefit of the company. Leaders need to feel why they need to change on their own body to break down the first barrier and this can be done by for example making a 360 degree evaluation of each individual leader.49 Hereby they will get insight into what the employees among others think about them as a leader and thereby confirm the Ennova research in its statements. By confronting the leaders with the contrasts of all of the mentioned, they can now move to their departments and do the same with the employees, namely breaking down their first barrier failure to see

13.2.2 Step two: Employee awareness


The next is when the leaders take it to their department. Now the main task is to create employee awareness about this new initiative. This second step of the stairs involves breaking one of the three barriers explained in the previous section. The failure to see that there is a need for change can be broken by confronting them with contrasts and benefits by letting them try it on their own body (e.g. development and information). This should be done by informing the employees about the decision made to implement social media as a part of their work. Employees should be informed that the methods of communicating and interacting with each other are going to change. Leaders should therefore focus on enhancing employees knowledge of social media especially the social media of choice in this case yammer.com so the employees know what social media is and what impact it has on relations. Leaders should develop their employees, train them in how to use it, what to use it for and why. An example of this information/confrontation is from the department where I am working: LUPRO. We are trying to make a department event with the objective of developing our skills in social media and to become better at understanding it.

49

DIs Management Program, internal course material, 2011

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This event will be running through approximately 2-3 months depending on how fast we will get it. The whole event is still in the planning phase, but in the following our thoughts about it are presented. Firstly we will be having an inspiration day, where Charlene Li, who is one of the leading consultants within social media in the organization, will educate us on social media, what it is, the effects it can have on business, how it works etc.. Afterwards we will engage in a workshop with her as the facilitator. This workshop will involve getting the feel for social media and understand, what we have been taught in theory, in practice. In our plan for this event we have written the following: Output

We will have insight into how we can work with the social media internally in the department we will be able to make a strategy for what we want to achieve in this area. We will achieve knowledge and information that enables us to engage in a dialog with our member organizations about the subject. .

What is the news and innovation in this?

The social media gains more and more influence on the agenda sat by society. We are missing concrete knowledge and competencies in the department about this to engage in a professional dialog with our member organizations about this subject and to even take a stand on the subject. Besides this we also do not know enough about how to use the social media most effectively. 50

This is just an example of how the confrontation could look and as the event is not until September 2011 we have no results to present to see if it has worked. But the objective is to make the employees see the possibilities in making this change and then accept it. This confrontation will help employees to understand why, how, what etc. within social media and as they have been a part actively involved by doing this workshop they will feel as they have had a say in it and will more easily accept the implementation of the change.

13.2.3 The Third step: Getting started


Now as we have broken down the first barrier in both leaders and employees minds we move on to barrier number 2: Failure to move. As people are resistant to change51 in this implementation phase you as a leader need to set up clear objectives, maybe it could be a time schedule of what you want to achieve etc. This makes it clear and visual to people and thereby easier to understand. Following this you need to assure your employees that they have the skills and competencies to complete this change. Convince them and make them believe by using a reward system; here you should look to what motivates each employee as money is just a short term

50

Abstract from motivational letter from the social media work group to the development pool in the department of LUPRO, 2011 51 Sandager, 2009

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motivator52 you should look at the motivators as gone through in chapter Motivator such as recognition, personal growth and advancement, responsibility etc. To continue using the example of LUPRO we want to make sure that the knowledge and information from the previous step is not lost. We want to ensure the output and maintain the skills achieved and thereby making the employees believe that they can implement this change. To ensure the output

This event cannot stand alone (referral to Charlene Li event) but will be the kickoff and a strong basis for us as a department to form a stand on what we want to achieve in this area; planning a strategy. After this we will have to build up more specific knowledge and competencies in the area which will enable us to develop products (educations, courses etc.) and engage in a dialog that will create value to our member organizations. 53

In LUPRO we will secure our output from Charlene Li with having Wemind, the pioneer in social media consultancy companies, to educate us in applying the social media, to use it in practice for specific things. They will also show us case stories from other companies that are similar to what we do. They will be educating us through activities like generating ideas with in the theory we have been through in the first part and then by evaluating these ideas. Then later, selecting the 10 most appraised ideas and putting them in a time schedule and assigning leaders for each idea in order to get started. These ideas will then be the foundation for the pilot projects that Wemind will help us facilitate through the following months. From this training and development we will have to make some commitments namely how you want to contribute to this project and then record it on video for later evaluation. In our department we have not worked out a reward system, because most of the people hired in this department, are consultants that make a living on developing people. Therefore it is just as important for these consultants to develop themselves and be updated about the new things happening and influencing what they teach. After maintaining the skills and competencies achieved the next part of this step is to start using the enterprise social network. On the introductory courses the employees have already made a profile and gotten to know what yammer.com is about and how it works. You have to ensure the employees that it is okay that they spent a lot of time on getting to know yammer.com in the beginning. They should not feel pressured because then they will lose their enthusiasm and motivation for being a part of this. The suitable thing of getting it started in the everyday is for the leaders to be good examples; role models and post something on the wall for discussion preferably something that can stir

52 53

Taught in HRM, Fontys University, The Netherlands, fall of 2010 Abstract from motivational letter from the social media work group to the development pool in the department of LUPRO, 2011

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up the pot, by doing so leaders show that they are present and on eye level with the employees. (Social media makes hierarchy more flat and leaders more like employees 54) The leaders could also begin by writing personal welcomes on the employees walls or invite them to participate in a group or discussion. Create groups on yammer.com for projects going on in the company and use the social network for sharing ideas on these projects, get feedback and follow up on things. Make the employees see that you appreciate the diversity of knowledge hidden in the organization. By being the role model employees will easier follow and soon you will have an active social network inside your organization. There will be relations created between departments and suddenly the organization will seem more personal to the employees.

13.2.4 The Fourth step: Finish what you have started


This step is looking to break the third and final barrier: Failure to finish. This is where you as a leader need to be on your toes. This phase need special care and extra attention as this is where most fail in implementing change. You need to maintain focus and energy on what you are doing together in the organization, because with new competencies the work effectiveness decreases from high to low. The leader needs to step up and be the role model of a hard working, resilient kind of a guy. He needs to be present on the social network, participate in discussions and share things himself, because when you are engaged in a social network and you want the most out of it, it is not enough to be a spectator. You have to climb up the ladder and become a critic on the ladder55 (as introduced earlier) and give back to the social media. You need to share information about how the implementation of the use of social media is going and what consequences you have seen happening so far because of the implementation of social media, both the good but also the bad. The more personal you can get as a leader online, the more the employees will notice what you are writing and listen. Always keep in mind that social media is all about creating relations. Leaders, when being present online and participating in discussions, can see who really has taken in the use of social media and who has not, it is not just about results: everybody is online, everybody has a profile etc. If this is your goal; just to get people to have a profile, then good, but in this case we want a lively social network with employees creating relations, sharing knowledge etc. As a leader it is important to give recognition to those who achieves the wished behavior and the ones who really tries. This will also motivate employees more to participate as they suddenly have a carrot dangling in front of their nose in form of recognition, which is one of the biggest motivators in generation Y.

13.2.5 Step 5: Maintaining the change


After the full implementation of social media, you need to keep up the good work and your skills up to date. The technology changes fast but social media is not really about the technology but about the relations created through it.

54 55

Li, 2010 Bernoff, groundswell, webpage

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If the technology is working for you then keep it (Unless everyone is running from it as you have seen with MySpace to FB56) but if the relations are not being created you need to evaluate and figure out what to change to keep it running. You should also make sure employees are being educated in new applications, new tools in sharing knowledge, policies on how to behave, business cases etc. everything that has something to do with social media and what it is used for in your organization. Sometimes you might need to remind the organization of why you choose to implement this to keep up the zest. Do not fall back in old patterns by thinking: now we have implemented social media and we will just let it run its course. You as a leader need to be proactive and be persevering on the social media to keep it alive and well running.

13.3 Part conclusion


The output of all these steps is among others that the employees improve their employability as they position themselves as fast moving, easy adaptable to changes and develop themselves along with the trends affecting the ways of doing business. The leaders if they can implement the change successfully will create loyalty and motivation among the employees and position themselves as fast thinking, good leaders and make the company look better to its stakeholders, employees and customers. All the way through we are talking motivational factors that also have a say in leadership through change and it is important to show to the employees what social media can do for them, that it is not that far from their everyday participation on social networks, it is actually just an extension of what they already spend hours on every day now they just have to do the same during working hours.

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OHern, 2009

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14. Conclusion
So how can all of the above analyzed aspects lead to restore the credibility of a leader? All of the output of the analysis shows how leaders can improve the motivation and loyalty of the employees towards the organization employing them. By knowing these factors affecting the employees you as a leader have the upper hand. The research paper from Ennova, from where we learned the credibility of leaders was decreasing, also told us some of the reasons for why. One was that the employees felt insecure because of the many cutbacks because of the financial crisis and that they got no information from the organization about what was going to happen and the second reason for the loss of credibility was that the employees could not identify themselves with the visions and strategies of the organization. If you as a leader can solve these two reasons for loss of credibility you would be able to restore your own credibility. From the analysis made in the assignment we see that the use of social media actually can compliment many of the motivational and loyalty factors by meeting the needs of generation Y like recognition, relations, responsibility etc. If a leader can meet these needs he will be able to increase the effort the employees do trying to fit with the values and visions of the company. But this is not just about the employees. If you as a leader wish your employees to show you loyalty you have to give back. You need to change your leadership into open leadership and share your knowledge with your employees. You have to inform them about the company decisions so that they feel more secure as they know what will happen in the future because uncertainty creates unmotivated employees. You need to know what motivates your employees and what loyalty means to them. If you do not take your time to know these you will be back in the old pattern and the change of leadership style will help no one. By knowing these you can also see how social media actually can support the objective of getting more loyal and motivated employees and when you have achieved this you will also have restored your credibility as a leader. Employees expect todays leaders to be open and involve them in the decision making. This does not mean you have to open up externally so that all stakeholders and consumers can affect the decisions made or see the troubles the leader is having with something. No it is just about opening up to your employees because if you do this and show that you are human to, if you are present and show that you are on their eyelevel you will see the employees accepting you and thereby carry your information with care and thereby you do not have to be afraid of leakage. Social media is not a solution for your problems but it is a mean to help you to solve them. Social media will help to communicate your messages quick and visible to the whole organization, it helps you to organize, share knowledge and work across the organization. Employees get the chance to create more relations and bigger networks and as this is one of

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Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

the fundamental thoughts behind social media it again supports your choice of implementing it. By implementing social media as a part of the employees everyday work you create a fast moving organization which will be better at communicating and interacting across the organization. And you will also achieve a development of your employees. Their employability will increase and they will be updated on the biggest trend next after the introduction of the internet. When you as a leader open up and let employees be a part of the decision making and you use social media to support this, you will show more of the possibilities of the social media to your employees than they already know. Your company will get a stronger profile as you will be some of the first to really implement social media as a part of their internal organization. Having a social network as your intranet is not the ultimate way of using the possibilities of social media but it is a start and probably having this will lead to trying more things in social media if the implementation of this dissertation will be successful. Maybe your company will even be the first company to fully wash away the boarders between internal and external communication and thereby letting the consumers and stakeholders be more than people who comment on things in the media let out through the press or by the company itself on one of their pages online. Social media can help leaders and organizations opening up to the employees, it can help the credibility by putting a face on the organization and make the leaders more human when sharing and accepting knowledge and information and being on eyelevel with the employees. You want your employees to trust you again, to increase their loyalty and motivation and are your company ready for generation Ys demands and expectation then use social media to achieve these things, use something your employees already know and feel comfortable with; Social Media. I wish I had 100 or more pages to keep writing as it for me is a very interesting subject but also because it is such a complex subject that could be fun really to go into depth with and analyze the effects of implementing the recommendations and maybe also make a survey among members how many who would consider implementing them. My objective with this assignment is to create a foundation for the future use of social media internally in organizations with insight into different aspects that should be considered before digging into it. And as we are at the end of this assignment I hope I have been able to do so.

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Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

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Tietgen Business College Supervisor Jacob Mentz

Sophie Marie Villsen CPR-NR: 1708861622

Dissertation 2011 mm295 - 344

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