Should Social Networking Be Allowed In The Workplace?

In the mix of getting ready for this upcoming trip, doing interviews for The Ryan and Elliott Show and just plain old networking with other social strategist, I ran across a topic that varies in opinion from just about everyone; Should organizations block social networking sites from their employees during work hours?

I’ve read post before on the topic which usually ends up defending the employees, stating everyone should have access to social networking sites at work. I’m not saying that I disagree with this however, the more I talk with different individuals in the industry the more widespread the opinions get. This has varied from social media strategist limiting employee access while their implementing a strategy, companies afraid of productivity failure, risk of disgruntled employees and interestingly enough limiting employee access to train and educate them how to properly use social media outlets so they do not poorly represent the organization.

I’m in flux with the topic and I can truthfully see the pros and cons to both. I would like to hear your thoughts and maybe how your company is handling the situation. There could be multiple solutions for this question or maybe an overall solution.