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Social media or social network such as Facebook, Twitter, Viber, Skype, LinkedIn, WhatsApp, Google+, YouTube, Instagram etc. is the web based service that enable users to create a profile and connect, interact and share information with other users. It offers a  global  platform  for  users  on  facilitating  the  building  of  social  networks  or  social relations. 

With the rapid growth of mobile technology and devices such as smartphones and tablets, the popularity of social media has also grown substantially. Not only the younger generation, all the age groups and generations are attracted on using and connecting to social media. Thus, it has now become the part and parcel of our life. Nowadays, Instead of asking for e‐mail address or phone/mobile number, people request each other for their social network IDs for establishing a long‐term connections (Avalos, S. 2011)


Because of the ability to create value, success of any company largely depends on the productivity of their employees. The popularity of Social media is now energizing and perhaps even changing organization’s culture and the manner they conduct their business.   Thus, employees have even greater responsibility for the success of their organization in this ever changing business atmosphere. Moreover, with the rapid development of Information technology and social media, there is a greater reliance on the productivity of knowledge workers. According to Ramirez YW, Nembhard DA (2004), two third of the workforce comprises of knowledge workers.   Therefore, it is now mandatory  to  have  digital skills and web connectivity for employees as well as for organizations. Consequently, employees have started to spend more time on social media engaging in non‐work related activities such as creating personal networks, checking on family and friends, streaming and downloading music and video, checking sports scores, following social bookmarks. (Munene and Nyaribo, 2016). Thus, there is requirement for studies on how to generate a balance between social media usage and its impact on productivity of employee in terms of use of resources and time of organization.




The use of social media during work hours has become a debatable issue. Some studies claim that the use of social media in the workplace leads to better employee productivity as it effects intermediate variables, such as higher morale . Others argue that  the  use  of  social  media  sites  in  the  workplace  causes  distractions  and  loss  of employee productivity.


Moqbel, M (2012), found that the interaction of employees with friends, family members and co‐workers through social media offers them with social support which boosted their job satisfaction, organizational commitment, innovative behaviour, and job performance. Whereas, the study by Nucleus Research showed that the use of Facebook at work results in a 1.5 percent decrease in productivity.


Despite several studies, it is still somewhat difficult to make direct correlation between use of social media on workplace and its effect on employee’s productivity. Therefore, this research attempts to fill this gap by examining whether the use of social media by employees during work hours affects their productivity.   This study is conducted in Australian banks to investigate the reasons why bank employees are using of social media during work hours and, more importantly, how it impacts their productivity.





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


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


answer following research questions:


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





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


sites during work hours?



  RQ3:  What  are  the  effects  (positive  or  negative)  of  use  of  social  media  by  bank

employees during work hours on their Productivity?


  RQ4: How can the social media sites serve the interests of companies by increasing

employee’s productivity and unleashing their potential in the workplace?



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


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


use of social media sites in the workplace. 





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


employees is vital for several reasons.


First, it will be beneficial for banks as well as other companies to understand the relationships elicited by this research. Recognizing the associations between use of social media in the workplace and its effect on productivity of employee can help disclose the underlying rationale for companies to either allow or disallow the use of social media sites in the workplace. Moreover, Companies are always looking for the various ways to enhance the job performance and productivity of the employees. If the use of social media during work hours turns out to be one of these means, companies will be able to add the use of social media sites in the workplace to increase productivity. Second, this study contributes to social media, work performance and employee productivity literature. This proposal will also help broaden the understanding of the effects (either positive or negative) of social media on productivity of the employees.  




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


project study:


    It   provides   an   understanding   of   the   motivational   factors   that   insists   bank


employees to use the social media sites during work hours.

      It will also identifies average time bank employees spend on using social media and lets banks and other companies to utilize this information to include it in their formal policies so as to motivate their employees.

      It will also provide an analytical framework for Identification and analysis of the possible impacts of use of social media sites on productivity of employees which will  ultimately  help  banks  to  develop  and  analyse  the  strategies  in  order  to

positively enhance the employee’s productivity.

The  result  of  the  research  proposal  will  be  useful  to  Individual  employees,  Banks, Financial Institutions, other companies and researchers.

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