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Managing and Using Information Systems:

A Strategic Approach – Sixth Edition

Keri Pearlson, Carol Saunders, and Dennis Galletta

Chapter 4 IT and the Design of Work

American Express Opening Case

• What is the “Blue Work” program?

• What was the strategic thrust behind the Blue Work program?

• What are “hub,” “club,” “home,” and “roam” employees?

• What is the role of technology in these arrangements?

• What was the impact of Blue Work?

• Have other firms found roaming employment useful?

Work Design Framework

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 • New jobs such as:

• Data scientists/data miners • Social media managers • Communications managers

•Enabled new ways to do traditional work •Supported new ways to manage people

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

How IT Changes Traditional Work

• 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)

Collaboration Technologies Matrix

How IT Changes Traditional Work

• 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)

Changes to Supervision/Evaluations/ Compensation/Hiring

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)

Key Activities in the Life Cycle of Teams

Telecommuting: Global Status

•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

Driver Effect

Shift to knowledge-based work

Changing demographics and

lifestyle preferences

New technologies with enhanced

bandwidth

Web ubiquity

“Green” concerns

Decouples work from any particular

place

Workers desire geographic and time-

shifting flexibility

Remotely-performed work is practical

and cost-effective

Can stay connected 24/7

Reduced commuting costs; real

estate energy consumption; travel

costs

Drivers of Remote Work and Virtual Teams

Advantages of Remote Work Potential Problems

Reduced stress: better ability to meet

schedules; less distraction at work

Higher morale and lower absenteeism

Geographic flexibility

Higher personal productivity

Housebound individuals can join the

workforce

Informal Dress

Increased stress: Harder to separate

work from home life

Harder to evaluate performance

Employee may become disconnected

from company culture

Telecommuters are more easily replaced by offshore workers

Not suitable for all jobs or employees

Security might be more difficult

Some advantages and disadvantages of remote work

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

Challenges Virtual Teams Traditional Teams

Communications • Multiple time zones can lead to greater efficiency but can lead to

communication difficulties and

coordination costs (passing work).

• Non-verbal communication is

difficult to convey

• Same time zone.

Scheduling is less difficult.

• Teams may use richer

communication media.

Technology • Proficiency is required in several technologies.

• Support for face-to-face

interaction without replacing

• Skills and task-technology

fit is less critical

Team Diversity • Members represent different organizations and/or cultures:

- Harder to establish a group identity.

- Necessary to have better com. skills

- More difficult to build trust, norms

- Impact of deadlines not always

consistent

• More homogeneous

members

- Easier group identity

- Easier to communicate

Challenges facing virtual teams.

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

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)

Managing the Challenges

•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

Gaining Acceptance For It-induced Change

• 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)

Kotter’s Model

Managing and Using Information Systems:

A Strategic Approach – Sixth Edition

Keri Pearlson, Carol Saunders, and Dennis Galletta