ORGANIZATIONAL BEHAVIOUR OF

FACEBOOK

Presented by:

GROUP 6

Tirthakamal Nath

Saloni Parakh

Sushreeta Sahoo

Rahul Sarda

Subhanu Bhattacharya

Suyash Maheshwari

Shaily Kabra

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 Contents

SR NO TOPICS Pg NO

1 Introduction 3

2 Mission & Vision 3

3 Organisational Structure & Design 3-4

4 Organisational Effectiveness 4-5

5 Organisational Strategy 6

6 Organizational Culture 6-7

7 Organisational Changes 7-8

Innovation
8 8

9 Inter-organisational Relationships 8-9

10 Information Control Processes 10

11 References 11

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 1. INTRODUCTION

Facebook was created in 2004 by Harvard student Mark Zuckerberg. The website was
intended to be an online version of the University's printed Facebook, a directory of new
students. At that time, membership to the website was limited to Harvard students
only. In a month's time, Facebook grew to include other Ivy League students as well,
and within a year had over 1 million users. By the end of 2005, Facebook expanded
to include, first, a network of 800 colleges and universities, then high schools, and then
international students. In time for the fall semester of 2006, Facebook began accepting
membership of anyone over the age of 13. According to Facebook's Press Room, the
social networking site currently has over 90 million active users. Facebook is a privately
owned company headquartered in Palo Alto, California. Mark Zuckerberg, age 24 and a
Harvard drop-out, is ranked 785 in Forbes Magazine's list of the world's billionaires, with
a net worth of approximately $1.5 billion.

2. MISSION & VISION STATEMENT of FACEBOOK

MISSION: to give people the power to share and make the world more open and
connected. The following are the significant components of Facebooks mission
statement:

Empowering people
Enabling sharing
Connecting the world

VISION: People use Facebook to stay connected with friends and family, to
discover whats going on in the world, and to share and express what matters to
them. Facebooks vision statement has the following main components:

Global market
Facilitation of communication among friends and family
Tool for discovery
Tool for self-expression

3. ORGANIZATIONAL STRUCTURE & DESIGN

Facebook has a matrix organizational structure.
Facebooks organizational structure is a variation of the traditional organizational
structure adapted to suit this technology companys needs.
The key characteristics of this structure address the companys organizational
needs, especially the need for creativity and innovation.
The following main features of Facebooks organizational structure are notable:

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 o Corporate Function-Based Teams - Facebook Inc. maintains corporate
teams based on their business functions in managing the operational
activities throughout the organizational structure. This structural
characteristic is based on the various needs of the online social media
business, such as Research and Development (R&D).A Facebook senior
manager or executive heads each team

o Geographic Divisions - Facebook uses these divisions in light of the

differences in social networking and online advertising market dynamics.
This characteristic of the organizational structure also addresses
differences among the behaviours of people and advertisers in using
Facebooks social networking website. Facebook has the following
geographic divisions:
North America
Latin America
Europe, Middle East & Africa
Asia & South Pacific

o Product-Based Divisions - This structural feature involves corporate or

global teams that manage the operational activities pertaining to specific
products of the organization. Facebook is headed toward adding more
product-based divisions into its organizational structure, as new products
or ventures are added to the business. Facebooks organizational
structure includes the following main product-based divisions:
Facebook Messenger
Mobile Products

4. ORGANIZATIONAL EFFECTIVENESS

Strategic hiring- The hiring process is easily reflective of the values and greatly
adds corporate culture at Facebook. Every new hire has to meet the criteria set
through the company values. Ensuring that each new employee fully
understands the goals and direction of the business. COO Sheryl Sandberg
makes it clear that much of the culture that Facebook has, comes from the
quality of employees that have been hired.

Competitive atmosphere- As more great companies do, Facebook attracts the

best. As some of the worlds brightest minds are working shoulder-to-shoulder
and pushing each other for excellence. Now, the trick to this, is to keep the
atmosphere competitive, while still foster growth, enjoyment and learning. This is
where the corporate culture at Facebook has excelled. Facebook doesnt merely
employ the best and let them fight to the death for promotions or other benefits.
Facebook ensure the competitiveness is positive, by developing their staff.

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 Provide benefits and perks- Known for its employee friendly working
environment, the benefits and perks of working at one of the biggest companies
in the world are unrivaled by most. Adding to the corporate culture at Facebook,
the benefits of being a booker are awesome and varied. From their new parent
benefits, vacation benefits, eating and food benefits, health insurance, $250 of
free Facebook ad spend or even the little things like a barber, bank, drycleaners
and so on. Facebook really gives their staff the best end of the stick.

Corporate culture ensures flexibility and speedy problem solving- Facebook

Inc. values creative problem solving and decision-making, which are embodied in
the companys organizational culture. This feature of the corporate culture
pertains to the ability of employees to generate unusual ideas that enhance
Facebooks social networking website and related offerings. Rewards are
provided through recognition, incentives and other forms that motivate workers to
be more creative in contributing to the business. Through this organizational
cultural characteristic, Facebook Inc. expects competence to maintain its
competitive edge against other firms in the market, especially other social media
companies that offer online advertising services.

Facilitates Openness and continuous improvement- Openness significantly

influences Facebooks corporate culture. This cultural feature highlights the
importance of effective and efficient internal communications. In addition,
Facebooks organizational culture facilitates openness in terms of minimizing
restrictions on employees activities. Through this characteristic of the
organizational culture, Facebook Inc. supports employees problem solving
abilities to enhance the companys social networking website and online
advertising services. Facebook Inc. has an organizational culture that facilitates
continuous improvement. Facebook encourages its small teams to continuously
iterate products.

Indicators of Organizational Effectiveness:

Facebook take their corporate culture very seriously. As its helped to guide their
decision making, through all facets of the organization and also the quality of service
they provide. Through their mission and values, Facebook and their employees believe
theyre best equipped to deal with whatever may come their way, this satisfies their
customers and also engage their employee in their work culture.
From buying other companies and competitors like Instagram, Oracle and WhatsApp,
they know that to stay ahead of the curve, they must continue to invest in their corporate
culture as they have the hold in the market share. Much of this means to invest in their
employees and make hires that work with the company and its direction through
effective employee training and development. As Facebook attracts the best and
brightest, its not hard to believe how the once small company got to where it is now.

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 5. ORGANIZATIONAL STRATEGY

Facebooks strategy involves the following:

Growth via acquisitions

New product development
Extensive focus on user experience
Users do the work
Exploring new ways of monetization
Make facebook work everywhere
All new users make it money
Spreading Internet itself to keep the new flow of users coming
Company always stays agile

6. ORGANIZATIONAL CULTURE

Hacker Culture: Facebook describes its corporate culture as hacker culture. Hacker
culture emerged from a fusion of intellectual curiosity, counter-culture and a hate-on for
any technology that one couldnt easily get access to or tamper with. According to
Hackers, access to technology should be unlimited and total and all information shared
through it should be free. They believe in mistrusting authority and promote
decentralization as closed systems and bureaucracies are anti-patterns Facebooks
hacker culture pushes its employees to strive for improvement, which revolves
around its mission and vision. It helps build resilience and competitiveness.

Creative Problem Solving and decision making: It is one of the core competencies
of the organization and forms an important aspect of their corporate culture. Their
creativity is rewarded through recognition, incentives and motivation. At the same time,
rapidity is desired. They believe that it is better to make mistakes by moving fast than
losing an opportunity by moving slow. The internal environment and culture is guided by
healthy competition among the employees. Instead of competing against each other,
they compete together against the external competitors. This allows continuous
improvement and regular evaluation.

Be bold & take risks: Mark Zuckerberg said People dont care about what you say;
they care about what you build. Facebooks primary focus lies on creating a strong
impact by attending to bigger problems rather than dealing with small problems that
would distract them from achieving their goal of creating social value. Each and every
employee is driven by the force to build real value for the world. Building great things
means being bold and taking risks. Facebook has a saying: The riskiest thing is to
take no risks. In a world thats changing so quickly, organizations are guaranteed to fail
if they dont take any risks.

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Bull-Pen Workspace: Facebook has a Bull-Pen Workspace. Mark Zuckerberg, the
CEO of Facebook, doesnt have an office, as he works alongside the employeeson big,
white communal desks. An intern could also be working alongside the CEO or another
employee. This breeds a culture of equality which empowers and inspires the
employees, helping create a frictionless workplace.

Adhocracy: It is quite evident that Facebooks organizational structure and culture are
characterized by the features of Adhocracy. Facebook has a flexible organizational
system having an informal management system. This enables them to be adaptable,
innovate and experiment. It clearly depicts an adaptability culture. It doesnt just react
quickly to environmental changes, rather actively creates change. Innovation, creativity
and risk taking are valued and rewarded.

7. ORGANISATIONAL CHANGES

Facebook has created conference rooms, has separate buildings, lots of outdoor
roaming space for breaks

No cubicles in the office, even CEO Zuckerburg share the desk space as others
in the engineering dept

Its an attempt at a flat organizational culture using the buildings and space
itself to promote a sense of equality among the competition

Facebook hosted a weekly All Hands Meetings- Where the CEO of the
company connects with all his employees almost 16000 at the same time and
share secrets of the company like future products or innovations etc.

Facebook offered flexibility in work hours and freedom to work from home, it
even offers parental leave for the fathers when their child is born

According to employees, environment is fast paced and great opportunity to

work with smallest brains in the industry

Facebooks model of two worldsproduct development (Mark Zuckerberg) and

operational excellence (Sheryl Sandberg)integrated together and led by two people
who complement each other offers an outstanding example of a company that is
succeeding through strategic partnership.

This partnership model is called The Visionary and The Builder. The Visionary is
the partner who is a dream architecthe has a clear understanding of the companys
purpose and shapes its long-term strategic outlook based on that purpose; he leads the

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company through inspiration and blue-sky vision. The Builder is the partner who is a
value architectshe leads the functions that support the mission of The Visionary and
ensures that this mission is executed operationally. In the case of Facebook,
Zuckerberg focuses on product development and the platforms global expansion,
because that is what he is great at, and Sandberg brings operational skills that ensure
stability and discipline within the company as it executes on Zucks vision.

8. INNOVATIONS

Page Layout:
Notifications
Like button
Newsfeed
Wall & messaging
Timeline
Tagging

9. INTERORGANIZATIONAL RELATIONSHIPS

A. RESOURCE DEPENDENCE

When it comes to Resource Dependence, Facebook has very well relied on four main
acquisition strategies, which are:

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1. Build relationships first
While Facebook ended up conducting its legal due diligence on Oculus, Zuckerberg
explained that he usually approaches big acquisitions by first establishing friendships
with the founders of the companies he's looking to scoop up.
"In reality what is happening with all of these, in Instagram and WhatsApp and Oculus,
they are kind of things that we've been thinking about for a long time," he explained.

2. Have a shared vision

Zuckerberg said that the main reason he was able to acquire Oculus for less than the
$4 billion its team originally wanted was because he pitched a collaborative vision
between the two companies that everyone bought into.

3. Sometimes use scare tactics

While he prefers to sell a company founder on a shared vision, Zuckerberg admitted to
sometimes scaring small startups by making them imagine how difficult it will be to run
their business alone.

4. Move fast and buy things

The line of thinking is consistent with Facebook's old company motto, "move fast and
break things." It's also a key strategy to keep competitors from beating Facebook to
signing the bottom line.

B. COLLABORATIVE NETWORK

Facebook is also trying to innovate using collaborations and hence, its relationship
with a number of organizations is in terms of collaborations. One of the examples for
the same is WORKPLACE, previously known as Facebook Work. Workplace combines
social network, chat messenger, and productivity features to help teams work together
online. There's also something called Multi-Company Groups, which allows employees
from different organizations to work together. Workplace is free for non-profits and
schools, but Facebook will charge commercial users of the platform $3 per month for
organizations of up to 1,000 people, and as low as $1 per month for organizations
comprising over 10,000 employees. Updating its collaboration service by integrating
enterprise services, like Office, Salesforce, OneDrive and Box.

C. INSTITUTIONALISM

Facebook is guided by the Mimetic forces wherein it is copying some features of other
social media giants because of uncertainty and to capture as much market share and
become a social media conglomerate. It copied Snapchats Story feature because
Snapchat has turned down the acquisition offer by Facebook. It also copied the
Trending feature of Twitter.

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 10. INFORMATION CONTROL PROCESSES

Business Intelligence

Facebook uses artificial intelligence to collect data for data mining purposes. This
data is used to understand usage pattern
Facebook prohibits surveillance websites from collecting data
Decision Making Systems

Facebook employees have 4-5 peer reviews and 2 performance evaluations

every year
Data from these appraisals is collected in Facebooks own proprietary software
Managers use this data, alongwith the employees own self appraisals to decide
whether the employees should receive promotions or extra responsibilities
Feedback Control Model

Facebooks feedback control model depends on its small teams which work on
separate projects independently
Once the project is initiated, the team works on it till a certain time
After the allotted time is over, the teams performance is measured in terms of
certain standards
If the teams performance is up to the standards, the project may move forward,
or else the team needs to start working on it again
Balanced Scorecard

Financial Perspective- Facebooks strong financial performance is a sign of its

financial health and growth
Customer service Indicators- Facebook has dedicated customer care and service
centers to keep track of customers feedback and make note of their satisfaction
Business Process Indicators- This is related to how often and how accurately
Facebooks systems bring users the content they are most likely to find
according to their tastes and preferences
Potential for learning and growth- Facebook has focused on the latest trends in
social media to stay a step ahead of their competition in terms innovation. This is
a company that is strongly focused on the potential for future growth through
learning

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11. REFERENCES
Forbes.com. (2017). Forbes Welcome. [online] Available at:
https://www.forbes.com/sites/quora/2017/09/07/where-did-hacker-culture-come-
from/#491830fa3362 [Accessed 3 Dec. 2017].
Lombardo, J. (2016). Facebook Inc.s Organizational Culture Characteristics
(Analysis) - Panmore Institute. [online] Panmore Institute. Available at:
http://panmore.com/facebook-inc-organizational-culture-characteristics-analysis
[Accessed 3 Dec. 2017].
The 6Q Blog. (2017). An Insight into the Corporate Culture at Facebook | 6Q.
[online] Available at: https://inside.6q.io/insight-corporate-culture-facebook/
[Accessed 3 Dec. 2017].
Daft, R.L., 2007. Understanding the theory and design of organizations. Mason:
Thomson South-Western.
Inter-organizational relationships : https://www.businessinsider.in/Mark-
Zuckerberg-explains-Facebooks-secret-for-acquiring-
companies/articleshow/56656388.cms
Workplace reference : https://www.macrumors.com/2016/10/11/facebook-team-
collaboration-tool-slack-workplace/
https://inside.6q.io/insight-corporate-culture-facebook/
http://panmore.com/facebook-inc-organizational-culture-characteristics-analysis

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