RELATIONSHIP ANDPEOPLE MANAGEMENT IN FACEBOOK INC. SUBMITTED TO: SUBMITTED BY: PROF. NEELU ROHMETRA ARSHIT MAHAJAN ROLL NO. 15/MBA/SEM 1 BASICS ABOUT ORGANIZATIONAL BEHAVIOUR Overview Organizational behavior describes the behaviors and attitudes of employees and the organization as a whole. Your company's behavior does not just lie in the specific norms for individual and group behavior and the degree to which those norms are followed. It also matters what actual behavior patterns achieve for your small business in terms of employee performance and commitment to the organization. For example, you might wonder whether employee implementation of customer service policies is producing customer satisfaction. Group Structures Your company contains various group structures, such as a leadership group and employee work teams, that represent the organizational culture. Each group has different rules for membership, internal procedures and expectations for behavior. A typical group also exhibits patterns of decisionmaking and values that leaders model for group members. A company can have competing groups internally, such as a tight management culture and a fragmented employee culture battling for control of policy-making. External Influences Managers and workers do not come to work and interact in a vacuum. They are constantly encountering people from the outside world, including customers and other stakeholders, who also influence their behavior. It could be helpful to view your company as an open system. Your staff receive input from the outside world, yet they must achieve some form of equilibrium in the workplace environment. They must reconcile external influences with what they know of your expectations for behavior. 2 Do this by using the workings of the organizational culture to communicate new expectations to your staff. 3 . Examples of workings are control systems. For example. You want the kinds of behavior that employees exhibit to maximize their contribution to the organization. Some small-business owners do what big companies do: they shake things up. such as improving an internal system of quality control by bringing in outside analysts or changing the company structure to put employees in more effective groups. organizational structures and routines. so they become repeat buyers.Owner Influence You have an ability as a small-business owner to change the patterns of behavior of individuals and groups. you want front-line staff behaviors to wed customers to your brand. decisions are made by human beings. Achievement of these goals should be rewarded.IMPACTS OF ORGANIZATIONAL BEHAVIOR IN BUSINESS The way your employees behave at work will differ from their behavior as individuals in a social setting. new employees will gain confidence in expressing their ideas. People are social beings and strive to fit in to the environment around them. If your company culture encourages employees to speak up without fear of reprisal. including the company's structure. effective 4 . Rewards must be seen as fair and equitable in order to inspire employees to work hard. new employees will soon learn to keep their opinions to themselves. By understanding how to get the best out of your employees. whereas if the culture is to shoot the messenger. Managers can motivate employees by setting realistic. the way they behave is influenced by the organizational culture. All of these elements can inspire employees to work harder or contribute to disengagement. You can influence company culture by being clear about your vision and values and putting them into practice on a daily basis. Decision Making Whether at the organizational or individual level. management effectiveness and interactions between colleagues. your company can become more productive and competitive. Motivation While the need to earn a salary ensures people will show up for work. A variety of factors influence organizational behavior. Employees are most likely to be motivated when they see a clear link between the effort they put in and the reward that they receive. policies and procedures. either through recognition from the manager or financially. Companies with robust. Culture When new employees join your company. achievable goals and measuring attainment. organizational behavior suggests that employees need to be motivated to perform to the best of their ability. Organizational behavior influences the decisions that people make. Managers must be seen to buy in to the change. Innovation and creativity are more likely to be stimulated in organizations that encourage informed risk-taking. Change Management All companies must respond to changing markets.communication mechanisms enable managers and employees to make informed decisions. making it difficult for them to change and adapt. Companies can manage change effectively by understanding organizational behavior. 5 . employees often prefer the familiar ways of doing business. technical advances and customer demands if they are to survive. However. because they understand the business context. with the opportunity for employees to ask questions. The organization's approach to risk will determine the extent to which managers and employees feel comfortable taking risks in their decision making. Key employees who may be resistant to change should be sought out and persuaded of the benefits of change. The need for change should be openly discussed. FACEBOOK 6 . by Mark Zuckerberg with his Harvard College roommates and fellow students Eduardo Saverin. Its website was launched on February 4.[11] 7 . users can create a user profile. Facebook has come under scrutiny for their privacy policies. Facebook.[8] The founders had initially limited the website's membership to Harvard students. Facebook became the fastest company in the Standard & Poor’s 500 Index to reach a market cap of $250 billion.[10] After registering to use the site. and categorize their friends into lists such as "People From Work" or "Close Friends". 2004. and Stanford University. but later expanded it to colleges in the Boston area. the Ivy League. Andrew McCollum. It gradually added support for students at various other universities and later to high-school students.18 billion monthly active users as of August 2015. add other users as "friends". or other characteristics. Facebook had over 1. anyone who is at least 13 years old was allowed to become a registered user of the website.[7] Because of the large volume of data users submit to the service. Dustin Moskovitz and Chris Hughes. Since 2006. held its initial public offering in February 2012 and began selling stock to the public three months later. reaching an original peak market capitalization of $104 billion.[9] Its name comes from a colloquialism for the directory given to it by American universities' students. post status updates and photos. On July 13. California. share videos and receive notifications when others update their profiles. users may join common-interest user groups. 2015. exchange messages. though the age requirement may be higher depending on applicable local laws. organized by workplace. school or college.INTRODUCTION Facebook is an online social networking service headquartered in Menlo Park. Inc. Additionally. some analysts felt that balancing growth and preserving its corporate culture was a big issue for Facebook as the company was expanding rapidly and was preparing to shift is global headquarters to a more corporate location. (Facebook). laundry services and photo processing services. The culture at Facebook was open and transparent with no hierarchies. The case describes how Facebook evolved from a small company to a global corporate icon with thousands of employees. which is considered to be one of the fastest growing companies in the world. The company was well known for its ‘hip geek culture’ fostered by its founder Mark Zuckerberg. free food and transportation. These included paid vacation days. In order to meet growing business needs.CASE STUDY ON ORGANIZATIONAL CULTURE OF FACEBOOK This case study is about the corporate culture at Facebook Inc. 8 . He tried to attract the best talent in the industry by creating a fun environment wherein employees had the opportunity to work on the best projects with a sense of openness. However. Issues: » Study the corporate culture at Facebook and examine its key elements » Understand the relationship between culture and innovation » Understand the importance of transparency and openness in an organization » Analyze the various work life benefits offered by Facebook to its employees and how these contributed to its becoming an employer of choice » Analyze the challenges before Facebook in preserving its culture and helping it evolve as it continues to grow at a fast pace » Explore ways in which Facebook could balance growth and preserve its corporate culture. employee benefit premiums. cash for new parents. etc. The case discusses the various aspects of its culture including the benefits and perks offered to employees. Facebook opened new offices globally. 9 . When a single engineer is worth up to $1 million. Facebook’s Director Of Corporate Development Vaughan Smith has estimated that when recruiting. and you certainly don’t focus on the relatively miniscule cost per hire that it takes to recruit them.EMPLOYEES ARE A HIGH VALUE CORPORATE ASSET A powerful business case Of all of the things to remember about Facebook. it is that someone in HR or lower management convinced executives to fund and implement each one of the “crazy” and unique things that you will read about in this case study. Quantifying the value of employees Nothing spurs executives to focus on talent management like quantifying in dollars the added economic value of having top-performing versus average ones. crazy ideas go nowhere unless a compelling ROI business case is first made to executives. Remember that Facebook is no different than any other firm. 10 . “Engineers are worth half a million to one million” (each). you strongly invest in recruiting and in increasing their productivity. For example. Facebook (along with Google and Apple) has taken the time to put a dollar value on its employee assets. I know of no other organization on the planet that gives new hires a team choice. Each employee is assigned a mentor. those listed here were current at its headquarters as of August 2013. however. rather than watching videos and hearing lectures. during this time boot campers have full access to the complete computer code behind Facebook. “Which team and project within Facebook would you like to join?” This is powerful because when you apply for a job. getting approval to move to a new job is a complex often political process where the employee has little control. each employee is asked. if they like it. unless noted otherwise. It allows employees who have worked on a project for a year to select their own next project team and after working with them for a month. But the most powerful part of the onboarding is that at the end of the process. you really have no way of knowing which team or project would be a best fit for you. 11 . Its approach is unique because it is extended over an industry-leading six weeks. benefits and features are continually changing. employees actually work on teams that spend their time working on multiple real projects. However Facebook’s Hackamonth process is the opposite because it is a self-directed internal movement process. And to demonstrate its trust in new hires. And during that time. Hackamonth self-directed internal movement At most organizations. they can stay.WOW FEATURES THAT PROVIDE EMPLOYEES’ AMAZING CHOICES Extended six-week boot camp onboarding with a choice Most corporate onboarding is a relatively simple and often boring one day “form filling out” exercise (Facebook instead provides the needed paperwork to the employee before they start). * Note: just like at any firm. With a relatively young and healthy employee population that doesn’t have to overly worry about its weight. and as a result.IT DOESN’T JUST HAVE FREE FOOD.400 employees at headquarters eat an average of 7. A global array of food keeps employees on campus Because its 3. where employees can collaborate while in line and then sit in the California sun and eat on picnic tables and chairs. I classify this as the No. the smoke from the barbecue waffles throughout the campus making employees think of barbecue. Of course the barbecue is free but the best feature is that the BBQ shack is in the middle of an open courtyard. 1 most compelling “fun” company features on the planet. milkshakes. But it also offers hamburgers. but Facebook wins the award hands down for the most compelling food. 12 .000+ employee population includes a large number of younger people from all over the world. using of course a Facebook page. what could be more compelling than a free ice cream store and bakery? A dozen varieties of ice cream. as well as cakes. a juice bar. Being in California. it makes sense that it offers food day and night that fits every “global fast food group. Employees clearly take advantage of the free food because its roughly 2. sundaes. You simply can’t miss it. who doesn’t love barbecue? Facebook’s open-pit barbecue is particularly compelling because it is centrally located.” The last time I was there I had sophisticated French food that was as good as I eat in Paris. After one visit and without hesitation. and tacos as well as an espresso bar and unlimited snacks throughout the day. pizza. all unlimited and for free. it of course also offers health food including a salad bar. and the absolutely essential cookies. low-fat yogurt. The Facebook Culinary Team accepts food requests from employees and it lets employees know what’s on the menu. IT OFFERS AMAZING FOOD Free ice cream and cookies is a life-changing experience Google is justifiably famous for publicizing free gourmet food. Free barbecue Even though the Silicon Valley isn’t in Texas. pies. and like the French it also bakes all of its own bread on site.200 meals a day. and sushi. as well as vegetarian and vegan options. 13 . At Facebook it is available on Friday happy hours and during employee-generated special events. A reason for allowing it at firms is that management simply can’t be credible when it says that it “trusts its employees” if it doesn’t trust its employees to be reasonable in the use of alcohol.Happy Hour every Friday One of the features that seem to startle most corporate people outside of the Silicon Valley is the availability of alcohol at Silicon Valley firms. even though it will obviously result in some failures. The Facebook product has always been a website-housed product that was accessed through a PC. However you have to credit the CEO and the company culture for 14 .” At Facebook.” and “We encourage everyone to make bold decisions. even if that means being wrong some of the time. its culture encourages bold decision-making and risk-taking. At Facebook. Facebook is the complete opposite. The strong culture enabled a 180-degree shift in direction The real strength of any company culture is its ability to change and shift the focus of its employees when the market requires it.” “Be Bold” and take risks Most corporate cultures are risk adverse. “We’re less afraid of making mistakes than we are of losing opportunities. and that slogan is … “Done is better than perfect.” In a world where going first and being innovative is of course full of huge risks. you have no choice but to find a way to convince your employees to avoid the more common and natural conservative approach.” Facebook isn’t unique in that speed is critical to being first to market.” and “In a world that’s changing so quickly.” Another slogan emphasizes the importance of getting things finished and implemented rather than waiting until they are perfect.” The concept follows the CEO’s idea that “If you never break anything. and one of Facebook’s most prominent slogans is “Move fast and break things. management proactively encourages employees to move incredibly fast. to the point where everyone is afraid to fail even once. and in many cases. so “move fast and break things. Its approach is illustrated by these less-than-subtle slogans: “The riskiest thing is to take no risks.ITS MANAGEMENT APPROACH FOCUSES ON SPEED AND RISK-TAKING Speed is essential. but Facebook goes to the extreme of painting corporate culture slogans larger-than-life on walls throughout the facility. you’re guaranteed to fail if you don’t take any risks. you’re probably not moving fast enough. Many firms have slogans. And in a period of less than two years. To make the 180-degree shift even more impressive. 15 .quickly realizing that the smart phone would eventually become the dominant platform. the company made a successful shift so that its product is now primarily accessed through the mobile platform and the smart phone. the advertising revenue from the mobile platform is now becoming a larger part of Facebook’s profit. The culture has also survived the loss of significant revenue from the decreased popularity of Facebook-based games from Zynga. Acqui-hiring is a unique corporate practice I haven’t found a single firm that can match Facebook’s signature recruiting practice of acqui-hiring. Acqui-hiring is where you acquire (usually smaller firms) primarily for their talent.5 and talent competitor Google received a 4. it would be glaringly inconsistent and perhaps a little embarrassing to require a new hire to have a college degree.3. that’s all we’re really looking for. can be productive almost immediately. As one of the recruiters put it. “Acquiring the firm” may be the only way to capture “startup/hacker mentality” talent that wouldn’t on their own ever consider applying for a job at a large corporation. The added advantage of this practice is that you get a whole “intact team” that if integrated correctly.7 rating out of 5. Obviously it can’t require a college degree Because its obviously successful CEO is a college dropout. They received an amazing 4. 1 employer brand by Glassdoor for having the most satisfied employees. In 2013 Facebook was listed as the No. where the next closest employer is rated a 4. “It would be weird for us to require a college degree. its recruiting focus is “If you can build awesome stuff and have big impact. 1 because its employees are “Challenged every day to do your best work” and “The company’s leadership truly believes in Facebook’s mission to make the world more open and connected. almost all of Facebook’s acquisitions had as a primary goal to acquire technical talent. even one as exciting as Facebook.” So instead.” Not requiring a 16 . rather than for their products or customers.A FOCUS ON EXCELLENCE IN RECRUITING It is ranked the No. 1 employer brand Facebook excels at spreading its “best place to work” employer brand image.” My research reveals that “doing the best work of your life” and “changing the world” are the top two factors that attract and retain innovators and top performers at any organization. Until its recent Instagram purchase. It was No. challenges selfselected teams to come up with solutions to real technical problems.” where 17 . or where they reside. experience. He assumes the role of chief recruiter by periodically speaking publicly about the firm and by visiting college campuses in order to directly attract potential recruits from among faculty and students. relies heavily on Internet-based technical contests to find hidden or “non-obvious” talent from around the world. and what you can build is a major corporate focus. relies heavily on employee referrals to identify top recruits. Facebook also recruits at algorithm coding contests sponsored by others including TopCoder and Kaggle. like many other Silicon Valley firms. These relatively inexpensive contests have simple names like “The Facebook Hacker Cup” but they allow the firm to find people based on the problems they can solve. One of its creative approaches for generating names are called “Ninja Hunts. Contest-based recruiting reveals what a prospect can build Facebook. The finalists are brought to the Facebook headquarters for “Camp Hackathon. which must wait until after they graduate.completed degree gives it a chance to land top talent long before other firms. Its CEO as its chief recruiter Most organizations dream of having its CEO occasionally involved in recruiting but Mark Zuckerberg takes it to the next level. Because contestants are initially anonymous. Hackathon college recruiting Each year Facebook visits more than a dozen college campuses and while there. the winners who are targeted for recruiting are selected because of their work and not as a result of their degrees. gender. Employee referral “Ninja Hunts” Facebook. The students get to keep their ideas in case they want to develop their own startup around it.” where their solutions are judged and the winners get a small prize and an offer of a summer internship. like most other Silicon Valley firms. Facebook seems to excel at recruiting as a result of a combination of its powerful product and employer brands. Mark Zuckerberg recently stated that “We’re doing really well against the hiring goals that we have. resulting in a single-digit turnover rate. 18 . In fact.” My sources also tell me that Facebook has been able to largely protect its staff from raiding.recruiters typically ask a gathered group of employees to think about all their friends to see if some of them would be great engineers for Facebook (where Ninja is their name for an exceptional engineer). Overall recruiting and retention success Overall. and $4. but if your work is truly exciting. So it offers close-in reserved parking spaces for those who are pregnant. struggles to hire and keep women engineers. your teammates count on you. Amazing benefits for new parents Facebook. Nothing sends a clearer message to employees that performance matters (over status and tenure) than a large percentage differential between top and average performer rewards. Rewards are based on performance The goal is for employee rewards to be differentiated based on performance results and from data from its comprehensive coworker feedback process.ECONOMIC REWARDS AND EMPLOYEE BENEFITS Facebook offers unlimited sick days Most firms would never even consider offering unlimited sick days. the prime economic incentive are Restricted Stock Units. Obviously many employees got rich as a result of the IPO. It also offers “four months paid parental leave for both spouses. reimbursement for some daycare and adoption fees. 19 . An opportunity for wealth Although the firm appears to offer competitive salaries. Everyone seems to agree that employees get generous RSUs as part of their regular pay package and as bonuses. There are also few better ways to demonstrate your trust in your employees than to offer them unlimited sick days. And that business results focus also encourages cooperation and sharing with among employees. like most tech firms. which keep employees focused on producing business results. there are few who want to miss much work for frivolous reasons. Facebook also offers 21 days of paid time off each year (essentially a month off) for even new employees. One internal source estimates that the reward differential between a bottom and top performer at the same level can be up to 300 percent. and you are rewarded for performance. the opportunity for wealth still exists because the stock now exceeds the IPO level and its value has been growing at a rapid rate. however.000 “baby cash” for a new arrival. It encouraged workers to drop by at any time One of the most compelling work-increasing “benefits” that I have ever come across occurred at Facebook in its early years (2008 – 2009). The goal was to subtly encourage employees to live close by so that it was easy for them to casually drop in for free food but also for extra work and collaboration. Facebook paid its employees $600 each month extra for living within a mile of Facebook headquarters. The unintended impact on dramatically raising rents around its Palo Alto headquarters was one reason for eliminating this practice in 2009. 20 . wikipedia.eremedia.BIBLIOGRAPHY www.com/ 21 .facebook.com/facebook/info?tab=page_info http://www.com https://en.facebook.org/wiki/Facebook https://www.
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