Chapter 4 Digital Systems and the Design of Work

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1 Chapter 4 Digital Systems and the Design of Work Jason C. H. Chen, Ph.D. Professor of MIS School of Business Administration Gonzaga University Spokane, WA chen@gonzaga.edu Learning Objectives Understand how IT has changed the nature of work. Define virtual organizations and how they work. List the technologies that are used to support communication and collaboration. Explain telecommuting and the technologies that support telecommuting. Discuss how managers need to manage virtual teams, and the challenges this creates. Understand how attitudes impact technology acceptance in organizations. 2 2 Opening Case - American Express (Q/A) 1. What is the Blue Work program? It represents a flexible workplace: staggered hours, off-site work areas (such as home), shared office space, touch-down space (laptop-focused, temporary), and telecommuting. 2. What was the impact of Blue Work? American Express saves $10 million annually. Productivity improvements, office expense savings, employee satisfaction are all up. Managers are happy too. 3. What was the strategic thrust behind the Blue Work program? American Express viewed workplace flexibility as a strategic lever. Also, AmEx had a corporate focus on results rather than hours clocked. 3 Opening Case - American Express (cont.) 4. What are hub, club, home, and roam employees? Hub: Work in the office; Club: Share time between the office and other locations; Home: work at home at least 3 days a week; Roam: Are on the road or at customer sites 4 INTRODUCTION Chapter 3 explored how IT influences the design on organizational level issues, and manager's issues both physically and virtually. Chapter 4 looks at the impact of IS on the way work is done by individual workers. It explores: the changing nature and design of work, IT s impact on different types of workers, and the rise of new work environments 5N Chapter Overview: Approach to Work Technology has now brought the approach to work full circle: Time and place of work are increasingly blended with other aspects of living Combined with newer collaboration, social and mobile technologies, and cloud computing. People now can do their work in their own homes at times that accommodate home-life and leisure activities. They are able to enter cyberspace working remotely and on virtual teams the impact of IT on collaboration and communication 6 1

2 MEASURES OF IS SUCCESS Question 1. HIGH LEVELS OF USE 2. USER SATISFACTION 3. FAVORABLE ATTITUDES 4. ACHIEVED OBJECTIVES 5. FINANCIAL PAYOFF What is TAM? Technology Acceptance Model What is the acronym of MIT Massachusetts Institute of Technology Made In Taiwan Managing Information Technology 7 8 Two Important Models Framework for work design impact (Figure 4.1) TAM (Figure 4.9) Technology Acceptance Model (Figure 4.9) CUSTOMER PERCEIVED VALUE Gaining acceptance for IT-induced Change 9 WORK DESIGN FRAMEWORK A simple framework can be used to assess how emerging technologies may affect work. Increasingly, places are being constructed in cyberspace using Web 2.0 tools that encourage. collaboration Employees can work at home via cyberspace and at times that accommodate home-life and leisure activities This framework is useful in designing key characteristics of work by asking key questions (see figure 4.1). Such as: What work will be performed? Who is going to do the work? Where will the work be performed? When will the work be performed? How can IS increase the effectiveness of the workers doing the work? (How can IT support collaboration?) 10 WHO: Who is going to do the work? (e.g., individuals, groups) How can IT enhance the efficiency/satisfaction of the worker Doing the work? Figure 4.1 Framework for work design WHAT: What will be performed? (e.g., operations, sales, management) WHERE: Where will the work be performed? (e.g., at the office, at home, on the road) HOW: How can acceptance of IT-Induced change be increased? (e.g., unfreeze-change-refreeze, Kotter s 8 steps to managing change, technology acceptance model) WHEN: When will the work be performed? (e.g., 9-5, 24/7, flexible scheduling) How can IT enhance the effectiveness of the group Doing the work? 11 Figure 4.1 (Revised) Framework for work design What work need to be performed? (e.g., Operations: service, manufacturing; sales, management, KM Done by person Who is going to do the work? Individuals Where is that person, Where is the work performed (Office, Home, On the Road), When doing the work? How How can IT enhance the efficiency and satisfaction of the worker doing these tasks? What is the best way to have these tasks done? Groups Who? Where is the group doing the work? (together or Geographically dispersed) When doing the work? How can IT enhance the Effectiveness of the group Doing the work? Done by computer Automate the tasks Where? When When will the work be perform? 9-5, 24/7 or Flexible scheduling 12 2

3 HOW INFORMATION TECHNOLOGY CHANGES THE NATURE OF WORK 13 IT Has Changed Work IT has: Created new types of work Bureau of Labor Statistics: IT employment in the USA is at an all-time high of 4.9 million New jobs such as: Data scientists/data miners Social media managers Communications managers IS departments also employ: Systems analysts, database administrators, network administrators, and network security advisors. Enabled new ways to do traditional work Supported new ways to manage people/talent 14 How IT Changes Traditional Work Changes the way work is done Broadens skills; faster but more tasks Sometimes IT disconnects us from the tasks Sometimes people can perform more strategic tasks Few staff are engaged in order entry any longer Crowdsourcing is now possible at very low cost (M.Turk) Changes how we communicate More asynchronous and more irregular Social networking has provided new opportunities for customer interaction Collaboration allows a firm to look big with new tools 15 How IT Changes Traditional Work (cont.) Changes decision-making Real-time information; more information available Data mining can identify new insights Ideas can be gleaned from social networks Middle management ranks have shrunk as Leavitt/Whisler predicted Changes collaboration Work is now more team oriented; more collaborative Sharing is easier than ever, using multiple methods Crowdsourcing can now provide quick answers from tens, hundreds, or even thousands of people We now can disconnect PLACE and TIME (Figure 4.2) 16 Figure 4.2 Collaboration Technologies Matrix: Examples of key enabling technologies Team Works in the Same Place Team Works in Different Places Team Works at the Same Time - Face-to-face meetings - Meeting room technologies - Document sharing systems (wikis) Team Works at Different Time - Electronic bulletin boards - Document sharing systems (wikis) - Video conferencing - - Chat rooms - Microblogs (e.g., - Texting (SMS) and instant Twitter) messaging (IM) - Texting (SMS) and - Document sharing instant messaging (IM) systems (wikis) - Document sharing systems (wikis) How IT Changes Traditional Work (cont.) New ways to connect Many employees are always connected Lines between work and play are now blurred For many, home technologies are better than work technologies New ways to manage people Behavior controls direct supervision Outcome controls examining outcomes not actions Personnel controls pick the right person for the task The digital approach provides new opportunities at any of those three levels (Fig. 4.3)

4 Figure 4.3 Changes to Supervision/Evaluations/Compensation/Hiring Supervision Evaluation Compensation and Rewards Hiring Traditional Approach: Subjective Observation It is personal and informal. Manager is usually present or relies on others to ensure that the employee is present and productive. Behavior controls are predominant. Focus is on process through direct observation. Manager sees how employee performs at work. Subjective (personal) factors are very important. It is often individually based. Hiring is done through meetings with HR personnel with little concern for computer skills. Digital Approach: Objective Assessment It is electronic or assessed by deliverables. As long as the employee is producing value, he or she does not need direct formal supervision. Outcome controls are predominant. Focus is on output by deliverable (e.g., meet a sales quota). Fewer subjective measures are used. It is often team based of contractually spelled out. It is often electronic with recruiting Web sites and electronic testing for more information-based work that requires a high level of IT skills. 19 Where Work is Done: Mobile and Virtual Work Much work can be done anywhere, anytime People desire the flexibility Telecommuting = teleworking = working from home or even in a coffee shop Mobile workers work from anywhere (often while traveling) Remote workers = telecommuters + mobile workers Virtual teams include remote workers as well as those in their offices, perhaps scattered geographically Virtual teams have a life cycle (Figure 4.4) 20 Figure 4.4 Key Activities in the Life Cycle of Teams Telecommuting: Global Status Phase Preparation Launch Key Activities Mission statement Personnel selection Task design Rewards system Technology selection and installment Kick off meetings Getting acquainted Goal clarification Norm development Performance Management Leadership Communication Conflict resolution Task accomplishment Motivation Knowledge management Norm enforcement and shaping Team Development Assessment of needs/deficits Individual and/or team training Evaluation of training effects Trust building Disbanding Recognition of achievements Re-integration of team members A poll of 11,300 employees in 22 countries: 1 in 6 telecommute When employees in 13 countries were asked if they need to be in the office to be productive: Overall 39% said yes But specific countries differed in the yes votes: Only 7% in India, but 56% in Japan 57% in Germany Fig. 4-5 Drivers of Remote Work and Virtual Teams Driver 1. Shift to knowledge-based work 2. Changing demographics and lifestyle preferences 3. New technologies with enhanced bandwidth Effect Decouples work from any particular place Workers desire geographic and time-shifting flexibility Remotely-performed work is practical and cost-effective 4. Web ubiquity Can stay connected 24/7 5. Green/Energy concerns Reduced commuting costs; real estate energy consumption; travel costs Fig. 4-6: Some advantages and disadvantages of remote work Advantages of Remote Work Reduced stress: better ability to meet schedules; less distraction at work Potential Problems Higher morale and lower absenteeism Harder to evaluate performance Geographic flexibility Higher personal productivity Housebound individuals can join the workforce Increased stress: Harder to separate work from home life Employee may become disconnected from company culture Telecommuters are more easily replaced by offshore workers Not suitable for all jobs or employees 23 Informal Dress Security might be more difficult 24 4

5 VIRTUAL TEAMS 25 Virtual Teams Virtual Teams: geographically and/or organizationally dispersed coworkers: Assembled using telecommunications and IT Aim is to accomplish an organizational task Often must be evaluated using outcome controls Why are they growing in popularity? Information explosion: some specialists are far away Enhanced bandwidths/fast connections to outsiders Technology is available to assist collaboration Less difficult to get relevant stakeholders together 26 Figure 4.7 Comparison of challenges facing virtual and traditional teams Challenges Virtual Teams (VT) Traditional Teams Communications Multiple zones can lead to increased inefficiency and communication difficulties. Communication dynamics (e.g., non-verbal) are altered. Technology Need for proficiency across wide range of technologies Automatic creation of electronic repository to build organizational memory Need for ability to align group structure and technology with the task environment Team Diversity Members represent different organizations and/or cultures: Harder to establish a group identity. Require better communication skills More difficult to build trust, norms and shared meanings More likely to have different perceptions about time and deadlines. Teams are located in same time zone. Scheduling is less difficult. Teams may use richer communication media including face-to-face discussions Support for face-to-face interaction without replacing it. Electronic communication skills not needed by team members Skills and task-technology fit is less critical More homogeneous members Easier group identity Easier to communicate 27 Managerial Issues In Telecommuting and Mobile Work Planning, business and support tasks must be redesigned to support mobile and remote workers Training should be offered so all workers can understand the new work environment Employees selected for telecommuting jobs must be self-starters 28 Managing the Challenges Communications challenges Policies and practices must support the work arrangements Must prepare differently for meetings Slides and other electronic material must be shared beforehand Soft-spoken people are difficult to hear; managers must repeat key messages Frequent communications are helpful (hard to overcommunicate ) Technology challenges Provide technology and support to remote workers Use high quality web conferencing applications Clarify time zones for scheduling Information should be available for everyone (cloud storage can help) Policies and norms about use of the technology can be important 29 Managing the Challenges (cont.) Diversity challenges Concept of time differs throughout the world Anglo-American cultures view time as a continuum (deadlines are important; many prefer not to multitask) Indian cultures have a cyclical view of time (deadlines are less potent; many prefer to multitask) Team diversity might need nurturing: Communications differences Trust building Group identity formation 30 5

6 VIRTUAL ORGANIZATIONS 31 Virtual Organizations A structure that makes it possible for individuals to work for an organization and live anywhere. The Internet and corporate intranets create the opportunity for individuals to work from anyplace they can access a computer. The structure of a virtual organization is networked. Forms are electronic, tech. support through a web interface Business processes are also usually through the Web Success in a virtual organization is the amount of collaboration that takes place between individuals 32 Virtual Companies (Portable Computing) VIRTUAL ORGANIZATION A Virtual Company is an Organization composed of several Business Partners that Uses Information Technology to Link/Share People, Assets, Ideas, Costs, and Resources for the purpose of producing a product or service. Virtual Companies are Adaptable and Opportunity- Exploiting Organizations Providing World-Class Excellence in Their Competencies and Technologies. MANUFACTURING SALES & MARKETING CORE DESIGN LOGISTICS FINANCE 33 Dr. Chen, The Challenge of the Information Systems Technology N 34 Characteristics of Virtual Companies Excellence Gaining Acceptance For IT-induced Change Borderless Opportunism Six Characteristics of Virtual Companies Technology Adaptability Trust-Based Many changes might be a major concern for employees Changes might be resisted if they are viewed as negative impacts Several types of resistance: Denying that the system is up and running Sabotage by distorting or otherwise altering inputs Believing and/or spreading the word that the new system will not change the status quo Refusing to use the new system (if voluntary) N

7 Fig. 4-8 Stages and steps in change management Kotter s Model Lewin s Stage Definition Unfreezing Changing Creating motivation to change Providing stakeholders with new information, systems, products, or services 1. Establish a sense of urgency: Create a compelling reason why change is needed. 2. Create the guiding coalition: Select a team with enough expertise and power to lead the change. 3. Develop a vision and strategy: Use the vision and strategic plan to guide the change process. 4. Communicate the change vision: Devise and implement a communication strategy to consistently convey the vision. Kotter s Steps CUSTOMER PERCEIVED VALUE Refreezing 5. Empower broad-based action: Encourage risk-taking and creative problem solving to overcome barriers to change. 6. Generate short-term wins: Celebrate short-term improvements and reward contributions to change effort. 7. Consolidate gains and produce more change: Use credibility from short-term wins to promote more change so that change cascades throughout the organization. Reinforcing change by integrating stakeholders changed behaviors and attitudes into new operations resulting from change 8. Anchor new approaches in the culture: Reinforce change by highlighting areas in which new behaviors and processes are linked to success. Customer Perceived Value of Products or Services Customer value could be defined by the benefits and costs that customer experiences in consuming the product. 38 Figure 4.9 (Revised) Technology Acceptance Model (TAM) Technology Acceptance Model (TAM) and Its Variants: Gaining acceptance for IT-induced Change To avoid resistance to change, system implementers and managers must actively manage the change process TAM suggests that managers cannot get employees to use a want to use it. system until they Employee attitudes may change if: more they believe the system will allow them to do better or work for the same amount of effort (perceived usefulness). easy to use (perceived they believe the system is ease of use). Level of Activity 39 Intensification Individual Difference, System Characteristics, Social Influence Facilitating Conditions Perceived Usefulness Attitude Toward Using External Variables The new technology adoption curve Readiness Customer perceived costs (tangible & intangible) Training, documentation User support consultants Perceived Ease of Use Behavioral (Belief) Intention to Use Actual System Use (Use Behavior) Technology Acceptance Model (TAM) 40 N The Risks of Information System Success Impact/Mature 1. Systems that change the basis of competition to a company s disadvantage 2. Systems that lower entry barriers 3. Systems that bring on litigation or regulation 4. Systems that increase customer s or suppliers power to the detriment of the innovator 5. Bad timing 6. Investments that turn out to be indefensible and fail to produce lasting advantage 7. Systems that pose an immediate threat to large, established competitors 8. Inadequate understanding of buying dynamics across market segments 9. Cultural lag and perceived transfer of power Which stage is the current e-business? Time 42 N 41 CUSTOMER experiences in consuming the product/ service 37 Customer perceived benefits (tangible & intangible) John Sons, Inc. &ofdr. Information Systems Theory and Practices Dr.Wiley Chen,&The Trends thechen, Information Systems Technology 7

8 Summary Technology has played a major role in transforming the way work is done. Virtual organizations permit workers to work from anywhere. Communication and collaboration is becoming increasingly important in today s work. IT affects work by creating new work, and more. Hiring and supervising employees is being driven more and more by technology. Companies must support and encourage telecommuting to attract and retain employees. Virtual teams are becoming more common. Copyright 2010 John Wiley & Sons, Inc End of Chapter