Many companies are introducing social networking within their environments to improve collaboration amongst employees. The employees can use social networks to connect with others in their company, to share knowledge and experiences and to more easily find information.
Different departments and teams within a company can take advantage of social networking in different ways. Take for example, managers who are responsible for performance management. A traditional performance assessment typically takes into account results of a competency assessment, feedback from peers, etc. If a company utilizes social networking, the way in which an employee interacts with the company’s social network can also become input into his/her performance assessment, allowing their manager to get a more comprehensive view of the employee’s performance.
Here is a good article that provides more detail on why and how to use social networking to assess employee performance: Leveraging Social Networking with Performance Management.