Employers use many ways to monitor employees' computer activity

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From USA Today:

Scrutinizing social-media use

"With social media, (employers) can monitor the actual posts and (view) what the pages and accounts look like, and take snapshots". In 2009, 2% of employers terminated workers for content posted on personal social-networking sites, 1% lost their jobs due to videos posted on YouTube.

Monitoring e-mails

25% of companies said they fired employees for e-mail policy violations in 2009, up from 14% in 2001.

Tapping office phones

Employers can listen in on business calls and personal voice mail messages but they can't eavesdrop on personal calls while they're taking place, since that would violate federal wiretapping laws.

Watching personal Web postings

Many people have been fired for the content that they posted on their personal blogs. People put anything that pops in their head on their personal websites and social-networking sites, thinking their boss will never read it, but that's not true.

References:

Employers use myriad ways to monitor employees - USATODAY.com.

10 Easy Ways to Show Your Employees You Love Them - by Using Social Media. Mashable, 2011.
12-Word Social Media Policy by Mayo Clinic: "Don’t Lie, Don’t Pry, Don’t Cheat, Can’t Delete, Don’t Steal, Don’t Reveal" (http://goo.gl/1Jwdo).

Image source: Wikipedia.