chapter 4 learning objectives information systems and the...
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1
Chapter 4
Information Systems and The
Design of Work
Jason C. H. Chen, Ph.D.
Professor of MIS
School of Business Administration
Gonzaga University
Spokane, WA 99258
[email protected] 1 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
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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.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Real World Example
• Best Buy, the leading U.S. retailer in electronics, completely
transformed its view of the ordinary workday.
• Known for killer hours and herd-riding bosses, it ushered in a
new approach to work: Results-Only Work Environment
(ROWE).
• Brainchild of two passionate employees who thought that Best
Buy managers were mired in analog-age inertia and did not
recognize that employees could use technology to perform work
from a variety of places.
• ROWE is a program that allows limitless flexibility when it
comes to work hours. – Employees can choose where and when they will do their work ---
as long as project goals are satisfied.
– Employee decisions about working hours and location are framed
by 13 guideposts --- the most surprising of which is “Every
meeting is optional.” 3 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Real World Example
• Best Buy claims that productivity soared 41%
between 2005 and 2007 on ROWE teams, and
voluntary turnover plummeted 90%.
• This helped Best Buy save $16 million each year.
• Other companies (IBM, AT&T) have adopted similar
strategies.
• The nature of work is changing before our eyes ---
and information technology is supporting, if not
propelling, the changes.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
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.
• 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 --- a virtually
unlimited space full of opportunities.
5 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
INTRODUCTION
• Chapter 3 explored how IT influences the design
of both physical and virtual organizations.
• Chapter 4 looks at the impact of IS on the way
work is done by individual workers.
• It explores:
– the changing nature or work,
– IT’s impact on different types of workers, and
– the rise of new work environments.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Impact of IT on Work Processes
• New IT systems, if not implemented properly, can
create confusion and alienate workers from the
work process
• Automation may increase productivity and reduce
costs, but can also lower morale and job
satisfaction, with employees feeling they are just
“pushing buttons”.
• This chapter should help managers understand the
challenges in designing work systems that
overcome resistance to IT
N 7 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
MEASURES OF IS SUCCESS
1. HIGH LEVELS OF USE
2. USER ______________
3. FAVORABLE ____________
4. ACHIEVED ______________
5. __________ PAYOFF
SATISFACTION
ATTITUDES
OBJECTIVES
FINANCIAL
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Two Important Models
• Framework for work design impact (Figure
4.1)
• TAM
– Technology Acceptance Model
– CUSTOMER PERCEIVED VALUE
– Gaining acceptance for IT-induced Change
9 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
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 ____________.
• 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?)
collaboration
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
IS Effect on How the Work is Done
• What work will be performed?
– An assessment of specific desired outcomes, inputs, and the
transformation needed to turn inputs into outcomes.
• Who is going to do the work? – Work can be automated.
– If a person is going to do the work, what skills are needed?
• Where will the work be performed?
– Does the work need to be performed locally at a company office?
• When will the work be performed?
• How can IT increase the effectiveness of the workers
doing the work?
– How can IT support collaboration?
11 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Figure 4.1 Framework for work design.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Figure 4.1 (Revised) Framework for work design impact
What work need to be performed?
Operations (service, manufacturing) KM
What is the best way to have these tasks done?
Automate the tasks Who is going to do the work?
Where is that person,
Where is the work performed
(Office, Home, On the Road),
When doing the work?
How can IT enhance the
efficiency and satisfaction of the
worker doing these tasks?
Done by person Done by computer
Individuals Groups
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?
When will the
work be perform?
9-5, 24/7 or
Flexible scheduling 13 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
HOW INFORMATION
TECHNOLOGY CHANGES
THE NATURE OF WORK
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
IT to Facilitate Communication
• Intranet
• Instant Messaging
(IM)
• Voice over IP (VoIP)
• Video Teleconferencing
• File Transfer
• Unified communications – an
"evolving communications technology
architecture which automates and
unifies all forms of human and device
communications in context, and with a
common experience
• RSS - refers to a structured file format
for porting data from one platform or
information system to another.
• VPN (Virtual Private Network) -
private data network that leverages the
public telecommunication
infrastructure. It maintains privacy
through the use of a tunneling protocol
and security procedures. Very useful
for telecommuters.
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IT to Facilitate Collaboration
• Thomas Friedman (the author of “The World is Flat”) argues that collaboration is the way that small companies can “act big” and flourish in today’s flat world.
• Social networking - a web-based service that allows its members to create a public profile with their interests and expertise, post text and pictures and all manner of data, list other users with whom they share a connection, and view and communicate openly or privately with their list of connections and those made by others within the system (MySpace, Face Book, etc.).
• Virtual worlds - computer-based simulated environments intended for its users to inhabit and interact via avatars (like Second Life).
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
IT to Facilitate Collaboration
• Web logs (Blogs) - 0nline journals that link together into a very large network of information sharing. – Companies use for a variety of communication purposes.
• Wikis - software that allows users to work collaboratively to create, edit and link webpages easily.
• Groupware - software that enables group members to work together on a project, from anywhere, by allowing them to simultaneously access the same files.
17 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
IT Alters Employee Life
• The three ways in which new IT alters employee life:
– Creating _________________.
– Enabling new ways __________________.
– Supporting new ways _______________.
• IT often leads to the creation of new jobs or redefines
existing ones.
• Positions in IT include:
– Programmers, analysts, IT managers, hardware
assemblers, website designers, software sales personnel,
social media specialists, and IT consultants.
• The Bureau of Labor Statistics places the number of
IT workers at 4.1 million.
new types of work
to do traditional work,
to manage talent
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Creating New Types of Work
• IT has created many new jobs and redefined existing ones.
• New types of jobs:
– ___________ managers - manage the firm’s knowledge systems
(Chapter 11).
– __________ managers - manage the firm’s online communities.
– _____________ managers - manage the use of communication
technologies for the business.
• IS departments also employ:
– Systems analysts, database administrators, network
administrators, and network security advisors.
• Every department in every business has someone who “knows
the computer” as part of his or her job.
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Knowledge
Community
Communications
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
New Ways to Do Traditional Work
• Many traditional jobs are now done by computers (i.e.,
using spell check instead of an editor).
• The introduction of IT into an organization can greatly
change the day-to-day tasks performed by the employees.
• Data entry workflow is faster.
– Data is captured directly when it is entered by the user
via:
• web-based entry; GPS signal; RFID code.
• The Internet enables changes in many types of work.
• The cost and time required to access information has
plummeted, increasing personal productivity and giving
workers new tools. 20
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Changing Communication Patterns
• Cell phones and other portable communication devices
have changed our communication environment.
– Talking on the cell phone, texting, and using apps to
search for information.
• Applications (apps) such as Skype, Twitter, and Sina
Weibo (Chinese Twitter) have changed how people
communicate.
• IT is changing the communication patterns of workers.
• Some workers do not need to communicate with their co-
workers for the bulk of the workday.
• Some workers need access to up-to-date information and
communications between co-workers, customers, and
suppliers. 21 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Changing Collaboration
• Teams work more fluidly despite an increasing
workload.
• Teams have learned to collaborate by continually
structuring and re-structuring their work.
• IT helps make work more team-oriented and
collaborative via:
– Blogs, virtual worlds, wikis, social networking, and
video teleconferencing.
• Workers can more easily share information with their
teammates.
• The Internet greatly enhances collaboration—especially
through e-mail, instant messaging, and Web 2.0
technologies.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Real World Example
• VeriFone, a leading manufacturer of credit verification
systems, is well-known for its virtual organization.
• Founded in 1981 by an entrepreneur who hated
bureaucracy.
• By 1990, it was the leading company for transaction
automation with products and services used in more than
80 countries.
• Limited presence at corporate headquarters, and
employees are placed close to their customers, limiting
travel.
• At the heart of the company culture is constant and
reliable sharing of information.
23 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Changing the Ways to Connect
• New technologies enable people to be always connected.
• The boundaries between work and play are being ______,
and people often struggle with work-life balance.
• Technology at home differs from that at work:
– Home: People use social media tools on tablets, laptops,
and smart-phones.
– Work: Computers have limited Internet connectivity.
• CIOs have the ability to drastically improve productivity
by making directories of knowledge-holders available
through newer social media tools.
• IS can greatly change day-to-day tasks, which in turn
change the skills needed by workers.
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blurred
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
New Challenges in Managing People
• New challenges in how workers are supervised,
evaluated, compensated, and ______.
• Managing a global workforce (Figure 4.3):
– Working in isolation from direct supervision.
– Increasingly working in _______.
• One solution is to use electronic employee
monitoring systems, automating supervision.
– Tracks activities such as the number of calls processed,
e-mail messages sent, or time spent surfing the web.
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teams
hired
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Traditional Approach: Subjective Observation
Newer Approach: Objective Assessment
Supervision
Personal and informal. Manager is
usually present or relies on others to
ensure that employee is present and
productive.
Electronic or assessed by deliverable.
As long as the employee is producing
value, he does not need formal
supervisions.
Evaluation Focus is on process through direct
observation. Manager sees how
employee performed at work.
Subjective (personal) factors are
very important.
Focus is on output by deliverable (e.g.,
produce a report by a certain date) or by
target (e.g., meet a sales quota). As long
as deliverables are produced and/or
targets are achieved, the employee is
meeting performance expectations
adequately. Subjective factors may be
less important and harder to gauge.
Compensation
and Rewards
Often individually-based. Often team-based or contractually
spelled out.
Hiring Personal with little reliance on
computers. Often more reliance on
clerical skills.
Often electronic with recruiting
websites and electronic testing. More
information-based work that requires
a higher level of IT skills.
Figure 4.3 Changes to supervision, evaluation, compensation, and hiring.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
IT Has Changed Hiring
1. Workers must know how to use the technology for their job or
be trainable.
– Hiring procedures incorporate activities that determine the
skills of applicants.
2. IT utilization affects the array of non-technical skills needed in
an organization.
– IT-savvy companies can eliminate clerical capabilities from
their hiring practices and focus resources on more targeted
skills.
3. IT has become an ________ part of the hiring process (online
job postings, online applications, etc.).
– Social networking also involves informal introductions and
casual conversations in cyberspace.
– Virtual interviews can be arranged to reduce recruiting costs.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
IT Has Changed Hiring (Cont.)
4. Companies increasingly realize that hiring is changing.
– Recruiting efforts reflect the new approaches people are using
to look for jobs.
– Tech-savvy job applicants are now using business-oriented
social networks, jobs, online job search engines, and a new
Facebook app.
• The design of the work needed by an organization is a
function of:
– the skill mix required for the firm’s work processes.
– the flow of those processes themselves.
• Employees who cannot keep pace are increasingly
_____________.
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unemployable
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Groupware and Electronic
Collaboration
• Groupware tools such as Lotus Notes, and
technologies, such as video conferencing have
made it cost-effective for distant workers to create,
edit and share electronic documents and processes.
• Collaboration adds value to many types of tasks,
particularly those that benefit from an exchange of
ideas and criticism.
N 29 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
HOW INFORMATON
TECHNOLOGY CHANGES
WHERE AND WHEN WORK IS
DONE AND WHO DOES IT?
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Telecommuting and Mobile Work
• The terms telecommuting and mobile worker are often used
to describe flexible work arrangements.
• Telecommuting (or teleworking) - work arrangements with
employers that allow employees to work from home, at a
customer site, or from other convenient locations instead of
the corporate office.
• Telecommuting is derived from combining
“telecommunications” with “commuting.”
– Workers use telecommunications instead of commuting to the
office.
• Mobile workers:
– work from wherever they are.
– utilize technology necessary to access coworkers, company
computers, intranets, and other information sources. 31 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Factors Driving Telecommuting and
Mobile Work
• Telecommuting has been around since the 1970s
but has gained popularity since the late 1990s.
• In 2008, according to World at Work, more than
17.2 million Americans and 33.7 million people
worldwide telecommute.
• American telecommuters are expected to increase
by 29 million telecommuters, or 43% of the
workforce, by 2016 as more work is performed
from remote locations.
• Figure 4.4 describes the factors driving
telecommuting and virtual teams.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Factors Driving Telecommuting and
Mobile Work 1. Work is increasingly knowledge-based. Employees
can create, assimilate, and distribute knowledge at
home as effectively as they can at an office.
2. Telecommuting enables workers to shift their work to
accommodate their lifestyles (e.g., parents, disability). – Telecommuting enables geographic flexibility.
3. New technologies used by telecommuters are
becoming better and cheaper (e.g., price of PC and
“back office” applications).
4. The increasing reliance on __________ technologies
by all generations (particularly Generation Y and
Millennials).
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web-based
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Factors Driving Telecommuting and
Mobile Work (Cont.)
5. A mounting emphasis on conserving energy.
– As the cost of gasoline continues to skyrocket, employees are looking for ways to save money.
– Companies can also experience lower energy costs from telecommuting.
• Energy is no longer needed to heat or cool these office spaces.
– Companies seek to comply with the Clean Air Act and to be praised for their “green computing” practices. At the same time, they are reaping considerable cost savings.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Driver Effect
Shift to knowledge-based work Eliminates requirement that certain
work be performed in a specific
place.
Changing demographics and
lifestyle preferences
Provides workers with geographic- and
time-shifting flexibility.
New technologies with enhanced
bandwidth
Makes remotely performed work
practical and cost-effective.
Reliance on web Provides workers with the ability to
stay connected to co-workers and
customers, even on a 24/7 basis.
Energy concerns Reduces the cost of commuting for
telecommuters and reduces energy costs
associated with real estate for
companies.
Figure 4.4 Driving factors of telecommuting and virtual teams.
35 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Disadvantages of Telecommuting –
Managers Position
• More difficult for managers to evaluate and compensate
performance. – Many telecommuting tasks do not produce well-defined
deliverables or results, or managerial controls typically
prove inadequate.
– Managers must rely heavily on the telecommuter’s self-
discipline.
• Managers may feel they are losing control over their
employees.
• Some telecommuting employees abuse their privileges.
• Managers accustomed to traditional work models may
strongly resist telecommuting.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Disadvantages of Telecommuting –
Telecommuters Position • Telecommuters must:
– Exert a high level of self-discipline to ensure they get the work
done.
– Avoid distractions (e.g., personal phone calls, visitors, and
inconvenient family disruptions).
• A flexible work situation makes it difficult to separate work
from personal life.
• May end up working more hours than the standard nine-to-
five worker.
• Working remotely can disconnect telecommuters from their
company’s culture and make them feel isolated.
• Another risk is offshoring and outsourcing of software
development and computer services enabled by the same
technologies.
37 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Employee Advantages of
Telecommuting
Potential Problems
Reduced stress due to increased
ability to meet schedules, heightened
morale, and lower absenteeism
Geographic flexibility
Higher personal productivity
Housebound individuals can join the
workforce
Harder to evaluate performance,
increased stress from inability to
separate work from home life
Employee may become disconnected
from company culture
Telecommuters are more easily
replaced by electronic immigrants
Not suitable for all jobs or employees
Figure 4.5 Advantages and disadvantages of telecommuting.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Managerial Issues in Remote Work
• Planning, business, and support tasks must be redesigned
to support remote workers.
• Training should be offered so all workers can understand
the new work environment.
• Managers must find new ways to evaluate and supervise
those employees without seeing them every day in the
office. – Work to coordinate schedules and ensure adequate
communication among all workers.
– Establish policies about using different technologies to
support communications.
– Help the organization adapt by building business processes
to support remote workers.
39 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Security Issues in Remote Work
• “BYOD” (Bring Your Own Device) - remote workers have
their own computers in the location where they work.
• Remote workers pose a threat to office workers:
– Once an infected computer is connected to the network,
perimeter security technology is unable protect all the other
workers on the network.
• It is impossible for organizations to make remote workers
totally secure.
• Managers need to get more involved:
– Assessing the areas and severity of risk.
– Taking appropriate steps via policies, education, and
technology.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
VIRTUAL TEAMS
41 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Virtual Teams
• Virtual Teams are
– geographically and/or organizationally dispersed coworkers
assembled using telecommunications and IT to accomplish an
organizational task.
– Two or more people who:
• Work together interdependently with mutual accountability for
achieving common goals.
• Do not work in the same place and/or at the same time.
• Use electronic communication technology to communicate,
coordinate their activities, and complete their team’s tasks.
• Virtual team members may be in different locations,
organizations, time zones, or time shifts.
• Virtual teams are thought to have a life cycle (Figure 4.6).
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Figure 4.6 Key activities in the life cycle of virtual teams.
43 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Factors Driving Use of Virtual Teams
• The same drivers for telecommuting can be applied
to virtual teams.
• Virtual teams offer advantages in terms of expanding
the knowledge base through team membership.
• Managers can draw team members with needed skills
or expertise from around the globe without large
travel expenses.
• Virtual teams can benefit from following the sun.
– Teams in different parts of the world can cooperate to get
work done faster due to time zone differences.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Disadvantages and Challenges of
Virtual Teams
• Different _____________.
• Security is harder to ensure.
• Considerable number of challenges that could turn
into disadvantages (Figure 4.7).
• Electronic communications may not allow the
person to convey nuances that are possible with
face-to-face conversation.
• Trust may be slower to form.
• Diversity of team members (languages, nations,
cultures, etc.).
time zones
45 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Challenges Virtual Teams Traditional Teams
Communications Multiple zones can lead to greater
efficiency and communication
difficulties.
Teams are located in same time zone.
Scheduling is less difficult.
Communication dynamics (e.g., non-
verbal) are altered.
Teams may use richer
communication media.
Technology Team members must have
proficiency across a wide range of
technologies.
Technology is not critical, and tools
are not essential for communications.
Technology offers an electronic
repository.
Electronic repositories are not
typically used.
Work group effectiveness may be
more dependent on alignment of the
group and technologies used.
Task technology fit may not be as
critical.
Team Diversity Members typically come from
different organizations and/or
cultures which makes it:
Because members are more
homogeneous, group identity is
easier to form.
-Harder to establish a group identity.
-Necessary to have better communication
skills.
-More difficult to build trust, norms, etc.
Because of commonalities,
communications are easier to
complete successfully.
Figure 4.7 Comparison of challenges facing virtual and traditional teams.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Managerial Issues in Virtual Teams
• Require different styles and types of management,
particularly with management control activities.
• Observation is less likely to occur.
• Performance is more likely to be based on output/outcome.
• Providing feedback is important.
• Compensation should be based heavily on the team’s
performance.
• Align reward systems with the accomplishment of desired
team goals.
• Policies about the selection, evaluation, and compensation
of virtual team members may need to be enacted.
47 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Communication Challenges
• Managers must learn to keep the lines of
communication open to allow team members to get
their work done.
• Frequent communication is essential to success.
• Need appropriate technological support (i.e., video
teleconferencing, interactive groupware, etc.).
• Face-to-face meetings are the heartbeat of successful
global virtual teams.
• Well-managed synchronous meetings using video
teleconferencing - or possibly in a virtual world -
can activate the heartbeat. 48
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Technology Challenges
• All team members must have the same or compatible
technologies at their locations.
• Managers must ensure that remote workers have
seamless telephone transfers to the home office,
desktop support, network connectivity, and security
support.
• Policies and norms (unwritten rules) must be
established.
• Diversity challenges – different cultures have
different perceptions of time and task importance.
• Providing the appropriate technologies for each
culture is key. 49 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
• Communication challenges - managers must learn to
keep the lines of communication open.
Frequent communication is essential to success.
Need appropriate technological support (video
teleconferencing, interactive groupware, etc.)
• Technology challenges - all team members must have
the same or similar technologies at their locations.
– Policies and norms for use must be provided.
• Diversity Challenges - different cultures have different
perceptions on time and task importance.
Providing the appropriate technologies for each culture is key.
Summary on Challenges of Virtual Teams
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
VIRTUAL ORGANIZATIONS
51 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
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 52
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Virtual Companies (Portable Computing)
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.
53 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
SALES & MARKETING
COMPANY
FINANCE COMPANY
LOGISTICS
COMPANY
DESIGN
COMPANY
MANUFACTURING
COMPANY
VIRTUAL ORGANIZATION
CORE
COMPANY
Dr. Chen, The Challenge of the Information Systems Technology
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Characteristics of Virtual Companies
Borderless
Opportunism
Adaptability
Trust-Based
Excellence
Technology
Six Characteristics
of Virtual Companies
N 55 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
GAINING ACCEPTANCE
FOR IT-INDUCED CHANGE
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Gaining Acceptance for IT-Induced Change
• Employees may ______ the changes if they view them
as negatively affecting them.
– If they do not fully understand or are not prepared, they may
resist in several ways:
• denying that the system is up and running.
• sabotaging the system by distorting or altering inputs.
• convincing themselves and others that the new system will not
change the status quo.
• refusing to use the new system when its usage is voluntary.
• To avoid resistance to change, system implementers and
managers must actively manage the change process.
• Employee participation in the system’s design and
implementation also helps.
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resist
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Managing Change
• To avoid resistance behavior, John Kotter builds upon
Lewin’s change model of unfreezing, changing, and
refreezing.
• Kotter recommends eight specific steps in bringing
about change (Figure 4.8).
• Managers should:
– keep the eight steps in mind as they introduce change into
their workplaces.
– inform workers why the change is being made prior to the
change happening.
– follow the change with reinforcement behaviors.
– reward employees who have successfully adopted new
desired behaviors. 58
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Figure 4.8 Stages and steps in change management.
59 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Technology Acceptance Model
(TAM)
60
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
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 • The Technology Acceptance Model (TAM) was developed
by Fred Davis and his colleagues (Figure 4.9).
• TAM suggests that managers cannot get employees to use a
system until they _____ to use it.
• Managers may need to employ unfreezing tactics to change
employee attitudes about the system.
• Employee attitudes may change if: – they believe the system will allow them to do ____ or _____
work for the same amount of effort (perceived usefulness).
– they believe the system is _____ to use (perceived ease of
use). 61
want
easy
more better
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Customer
Perceived Value
of Products or
Services
Customer
perceived
__________
(tangible &
intangible)
Customer
perceived
________
(tangible &
intangible)
CUSTOMER
experiences
in consuming
the product/
service
CUSTOMER PERCEIVED VALUE
benefits
costs
Customer value could be defined by the benefits and costs that
customer experiences in consuming the product. 62
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Figure 4.9 Simplified technology acceptance model 3 (TAM3).
Source: Viswanath Venkatest and Hilol Bala, “Technology Acceptance Model 3 and a Research Agenda on Interventions,” Decision Sciences (2008),
39(2), 276. 63 John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Figure 4.9 (Revised) Technology Acceptance
Model (TAM)
Perceived
Usefulness
Perceived
Ease of Use
External
Variables
Attitude
Toward
Using
Actual
System
Use (Use
Behavior)
Behavioral
(Belief)
Intention to
Use
N
training,
documentation, and
user support
consultants
Individual Difference,
System Characteristics,
Social Influence,
Facilitating Conditions
Technology Acceptance Model (TAM)
64
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
The new technology adoption curve
Level of
Activity
Time
Readiness Intensification Impact/Mature
65
Which stage is the
current e-Business?
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
IT
Vision/
IT
Strategy
Strategic
Vectors
Business
Strategy
Business
Vision
Technology
Concepts
• Standards
• Protocols
• Performance
• Compatibility
• Guidelines
Key Issues
• Operating System
• Data Bases
• Applications
• Communications
• Processors
General
Management
IT
Management
IT
Technologists
Technology Selection
• Hardware
• Software
Fig. 3 (Extra): IT Architecture and Strategic Business Vision 66
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
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. 67
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices 68
Break
• Read Chapter Discussion Questions #7 (pp. 132)
• Does this mean the end of doing business the ‘old
fashioned way?” Will this put a burden on the
elderly or the poor when corporations begin
charging for face-to-face services?
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices 69
• #7 Ans: This is an opinion question.
• One perspective would say “yes, this is the end of doing business the old-fashioned way” but that is a good thing. Evolution always means survival of the fittest, and self-service must be the preferred way to do business or else more businesses would abandon it for other alternatives, maybe even the old-fashioned way.
• Another perspective would say “no, there is room in the business community for both. Companies will pick the best alternative for their customers. It’s not the end of the ‘old fashioned way.”
• There may be a burden placed on elderly and poor if corporations begin charging for face-to-face service.
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices 70
• #7 Ans: This is an opinion question (cont.)
• Elderly who have not grown up in a self-service environment may not be comfortable with the lack of personal assurances that the business transaction has occurred. They might not be able to do the service their self (my father can’t read a computer screen so he can’t do the internet-based self service options offered by many).
• Poor also might be burdened, if they do not have access to the self-service outlets (for example, if they require a computer and the individuals can’t afford one). It’s up to the businesses to insure that their customers have access to their business.
• The alternative is that they will lose that business to some other company who does pay attention to these issues.
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
Mini case 4-1: Trash and Waste
Pickup Services, Inc. (pp. 132-133)
• This is an interesting case about using IT to monitor
employees. In this case, it’s a GPS system used to monitor
the location of trucks and company cars. Ultimately,
however, it plays out as a system to monitor drivers and
salesmen.
• Management must walk a fine line as they build a process
to implement such a system in an organization. As an
extension to this discussion, the instructor might ask,
“Would it be easier for management to implement a GPS
system in an existing company (which previously didn’t
have one) or in a new company (where all employees are
just learning the processes and systems)?
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices 72
Discussion Questions
• 1. What are the positive and negative aspects of Andersen’s use of the GPS-based system to monitor his drivers and salespeople?
• Positive aspects might include the ability of Andersen to know where his trucks are at any given time. If someone has to go into an ‘unsafe’ area and/or is not where they are supposed to be at a given time, Andersen can help them by knowing where they are. The case also mentions the money savings that accrued due to the reduction in overtime, presumably because the drivers knew they were not only ‘on the clock’ but being watched.
• The negative aspects might include the cultural impacts: his drivers feel big brother is watching, which may make them resent the system or in the worst case, sabotage it. It might drive unintended consequences such as drivers speeding or taking unsafe risks because they know their management is watching and they have certain time restrictions and milestones to make.
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John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices 73
Discussion Questions
• 2. What advice do you have for Andersen about the use of the system for supervising, evaluating and compensating his drivers and salesmen?
• It’s one thing to use the system to monitor behavior and correct it. It’s another thing entirely to use it as part of the evaluation and compensation system. Andersen must be very careful how he introduces that to the workers. If they are unionized, he must make sure to have buy-in from the union. But in any case, he should start by letting the drivers get used to the system without fear of it impacting their compensation.
• After they are used to it and have changed their behavior, he can slowly introduce a plan to use the information for evaluation and compensation. Should he not do it slowly, he can expect some employees to not only complain, but possibly sabotage the systems, breaking them (and claim it was an accident or something they know nothing about). Astute students will use the TAM model to structure their response to this question.
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
• 3. As more and more companies turn to IS to help
them monitor their employees, what do you anticipate
the impact will be on employee privacy? Can
anything be done to ensure employee privacy?
• Ans: The impact on employee privacy is clearly an
issue when IT is introduced to monitor behavior and
activities. We’ve seen lots of legal action regarding
monitoring of e-mail, but usually the courts come
down on the side that company e-mail systems are the
property of the company, and therefore monitoring the
emails is not an invasion of individual privacy.
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Discussion Questions
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
• 3. (cont.)
• On the other hand, monitoring individuals such as the drivers
in this case study can uncover some information that may be
deemed private (like visiting their girlfriends, their local bar,
or other private activity). What the company does with that
information is the key here.
• To ensure employee privacy, companies need very clear
guidelines on what information they plan to collect, what
they will do with that information, and what consequences
result if the guidelines are not followed. These guidelines
must be clearly communicated to both management and
monitored employees, so that all is out in the open and the
monitoring is not seen as a spying operation or subversive
management activity.
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Discussion Questions
John Wiley & Sons, Inc. & Dr. Chen, Information Systems – Theory and Practices
End of Chapter 4
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