Social media are widely used in regular operations of many companies, including start-ups, small, medium and large organizations. The Social media are fundamentally changing the way we communicate, consume, collaborate and create. It creates one of the most transformative impacts on business. The most significant consequence of social media has been the shift of power from the institution to the individual. These shifts in the consumer-brand relationship have thrown up new challenges and opportunities for business organization. Social media have transformed the ways businesses from marketing and operations to finance and human resource management. Increasingly, social media are also transforming the way businesses relate to workers, allowing them to build flexible relationships with remote talent, to crowdsource new ideas, or to engage in micro outsourcing. Social media are increasingly being used in organizations to improve relationships among employees and nurture collaboration and the sharing culture. The purpose of this research is to explore the major changes which have taken place in organization because of social media.