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296 Part Two Information Technology Infrastructure
INTERACTIVE SESSION: MANAGEMENT
MONITORING EMPLOYEES ON NETWORKS: UNETHICAL OR GOOD
BUSINESS?
When you were at work, how many minutes (or YouTube videos. These activities involved streaming
hours) did you spend on Facebook today? Did you huge quantities of data, which slowed down P&G's
send personal e-mail or visit some sports Web sites? Internet connection.
If so, you’re not alone. According to a Nucleus When employees use e-mail or the Web (includ-
Research study, 77 percent of workers with Facebook ing social networks) at employer facilities or with
accounts use them during work hours. A Ponemon employer equipment, anything they do, including
Institute study reported that the average employee anything illegal, carries the company’s name.
wastes approximately 30 percent of the workday on Therefore, the employer can be traced and held
non-work-related Web browsing, while other studies liable. Management in many firms fear that rac-
report as many as 90 percent of employees receive ist, sexually explicit, or other potentially offensive
or send personal e-mail at work. material accessed or traded by their employees
This behavior creates serious business problems. could result in adverse publicity and even lawsuits
Checking e-mail, responding to instant messages, or for the firm. Even if the company is found not to
sneaking in a brief YouTube video creates a series of be liable, responding to lawsuits could run up huge
nonstop interruptions that divert employee attention legal bills. Symantec's 2011 Social Media Protection
from the job tasks they are supposed to be perform- Flash Poll found that the average litigation cost for
ing. According to Basex, a New York City business companies with social media incidents ran over
research company, these distractions result in $650 $650,000.
billion in lost productivity each year! Companies also fear leakage of confidential
Many companies have begun monitoring information and trade secrets through e-mail or
employee use of e-mail and the Internet, some- social networks. Another survey conducted by the
times without their knowledge. A 2010 study from American Management Association and the ePolicy
Proofpoint Plus found that more than one in three Institute found that 14 percent of the employees
large U.S corporations assign staff to read or ana- polled admitted they had sent confidential or poten-
lyze employee e-mail. Another recent survey from tially embarrassing company e-mails to outsiders.
the American Management Association (AMA) and U.S. companies have the legal right to monitor
the ePolicy Institute found that two out of three of what employees are doing with company equipment
the small, medium, and large companies surveyed during business hours. The question is whether
monitored Web use. Instant messaging and text electronic surveillance is an appropriate tool for
message monitoring are also increasing. Although maintaining an efficient and positive workplace.
U.S. companies have the legal right to monitor Some companies try to ban all personal activities on
employee Internet and e-mail activity while they are corporate networks—zero tolerance. Others block
at work, is such monitoring unethical, or is it simply employee access to specific Web sites or social sites,
good business? closely monitor e-mail messages, or limit personal
Managers worry about the loss of time and time on the Web.
employee productivity when employees are focus- For example, P&G blocks Netflix and has asked
ing on personal rather than company business. Too employees to limit their use of Pandora. It still allows
much time on personal business translates into lost some YouTube viewing, and is not blocking access
revenue. Some employees may even be billing time to social networking sites because staff use them for
they spend pursuing personal interests online to cli- digital marketing campaigns. Ajax Boiler in Santa
ents, thus overcharging them. Ana, California, uses software from SpectorSoft
If personal traffic on company networks is too Corporation that records all the Web sites employees
high, it can also clog the company’s network so visit, time spent at each site, and all e-mails sent.
that legitimate business work cannot be performed. Financial services and investment firm Wedbush
Procter & Gamble (P&G) found that on an average Securities monitors the daily e-mails, instant messag-
day, employees were listening to 4,000 hours of ing, and social networking activity of its 1,000-plus
music on Pandora and viewing 50,000 five-minute employees. The firm’s e-mail monitoring software
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