MIS4596-Tony Messina-Sec 002-Spring 2017

A Change to Facebook’s Organizational Structure?

Facebook’s response to growing public discontent with its “fake news” posts reveals a strategic organizational structure potentially crafted to create proprietary and original news content; not just distribute it. Instead of having trending new stories that are substantiated by views, Facebook is now verifying sources to ascertain real news. Organizational structure is defined as “how activities such as task allocation, coordination and supervision are directed toward the achievement of organizational aims.”1 Given this definition, the organization of tasks for future achievements also “determines which individuals get to participate in which decision-making processes.” The creation of a platform that creates news content is a cross-functional opportunity for Facebook, in that it will affect financial, operational, HR, and marketing functions. Because Facebook is a large organization that does not have a flat structure, it will experience a change in its matrix structure. Specifically, Facebook is a hierarchy-community phenotype model, since the firm “confers a sense of belonging and identity.” Facebook’s innovative identity that seeks to make Facebook the primary platform for web activity, fosters such an environment within the company, and as such the creation of a new division will impact the cultural environment.

  1. How do you think adding a news division that creates original content will affect Facebook’s organization structure

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1″Organizational Structure.” Wikipedia. Wikimedia Foundation, n.d. Web. 28 Jan. 2017. <https://en.wikipedia.org/wiki/Organizational_structure>.

One Response to A Change to Facebook’s Organizational Structure?

  • I just read an article about this and found it to be very interesting. I think that Facebook will keep the matrix structure because this offers flexibility and they can adapt to market changes accordingly. The component with the news department is going to require them to follow a matrix due to geographical news being different depending on the location. This would be interesting to see how they structure this department. I think it will be one larger department then broken down to regions that will target an agreed upon audience. I have been wondering if news stories would one day be a live feed provided to the target audience. There may be a legal liability that comes along with doing the live feeds. We have so many regulations in placed with televisions this may not be possible. The news department may need a specialized legal team to product them from law suits. As a company gets larger the pieces become more complicated and tougher to organize.

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