IT and the Design of Work Define telecommuting, electronic immigration,

outsourcingDescribe the demand for IT workers and how

employers are meeting the demandDescribe what is meant by virtual workers and

discuss the reasons for hiring themCompare supervision and evaluation using

traditional and newer approachesDiscuss the benefits, disadvantages, and issues

related to telecommutingDescribe the productivity paradox

Job Design Framework

What tasks will be performed?How will the work be performed?Who will do the work?Where will the work be performed?How can information systems

increase performance, satisfaction and effectiveness of the workers doing the work?

What tasks will be performed?

IT changes the way work is performedIT changes communication patterns of

workersIT changes the type of information

availableThe Internet changes many jobsWork is more team oriented Informating vs. automating?

How will the work be performed?

or

Has IT resulted in more or less jobs overall?

U.S. Dept of Commerce, 1998

A Growing Demand for IT Workers

Emerging technologies

New applications

Global growthWWWY2K

U.S. Department of Labor, Bureau of Labor Statistics, 11/95

Projected Growth of IT Professionals

0

500000

1000000

1500000

2000000

2500000

1994 2005

ComputerEngineers

ComputerProgrammers

SystemsAnalysts

U.S. Department of Labor, Bureau of Labor Statistics, 11/95

Breakdown of IT Workers2005

820,000

227,000

1,137,000

New

Replacements

Retained

The Numbers Don’t Add Up!

Needed: 2.2 million in 2005, an average of 95,000 systems analysts, computer programmers and computer engineers per year per year

Produced by Information Systems and Computer Science Programs in 1994: 24,553

Limits on H-1B non-immigrants: 115,000 professional workers per year starting Oct.1 (may be exhausted by Jan 2001)

Limits on H-1B visa raised to 200,000?Growing global shortage

Issues Related to IS Personnel

StaffingTrainingSupervisingEvaluatingMotivatingRetaining

Staffing: Who will do the work?

College recruiting of IS/CS majorsRaiding other companiesHiring from other disciplinesBeefed up training programs

mainframers, older workersEnd-user computingOutsourcing

Outsourcing

Purchase of a good or service that was previously provided internally

Varying types and extent telecommunications software development operations “the whole ball game”

Outsourcing Options

Foreign outsourcing: electronic immigration India, Russia, Eastern Europe, South Africa,

Ireland, East Asia India - 200,00 programmers Outsourced software accounted for 41

percent of India’s software exportsOutsourcing companiesTemporary/Virtual workers

Temporary Workers: TypesRegularly scheduled part-time

employees kept on payroll or on file hired intermittently or for short periods largest segment of temporary workforce

Virtual workers: Workers who aren’t employees of organization

Virtual Workers

Consultants or self-employed professionals

Temporary help service firms Unskilled labor Highly skilled professionals

Reasons for Hiring Virtual Workers

Provide specific technical skills on temporary basis

Allow workforce expansion during peak periods

Cut costs (no benefits)

Supervising/Evaluating

Supervising Evaluating

Traditional Informal Focus onprocessthrough directObservation

Newer Electronic orassessed bydeliverable

Focus onoutput bydeliverable

Motivating/Retaining

Rewards: Salaries, Benefits and Perks Extrinsic vs. intrinsic Rewarding desired performance

performance metrics must be meaningfulharder to define when based on broader

view of work

Equity inside and out IT organization

DxR

What is DxR’s approach to staffing? to training? to supervising and evaluating? to motivating and retaining?

Telecommuting: Where will work be performed?

DefinitionBenefitsCostsKey TechnologiesManagerial IssuesOther Issues

Telecommuting - What is it?

Working from a home-based or remote office during normal business hours one (?) or more days a week How many days before you are a telecommuter? Do you need a computer to be a telecommuter?

Types: home-based, local telework centerMore than 20 million Americans

telecommuted in 1998

Why Telecommuting? An Employee’s Perspective

Better balance of work and personal life

Increased schedule flexibilityReduced stressSaves commuting timeGreater geographic flexibilitySaves gas and transportation costs

(also societal)

Why Telecommuting? The Company’s PerspectiveIncreases productivity and morale (10-50%)Demonstrates care, trust and

empowermentComplies with Clean Air Act Reduces offices space and associated costs

(25-75%)Reduces recruitment and turnover costs

(20-40%)Can be utilized during disaster recovery

Tab for TelecommutingSupport: $500 one-time fee, $347 annual costsNetwork: $203 one-time fee, $1,282 annual

costsHome equipment: $3,522 one-time fee, $494

annual costsCorporate setup: $237 one-time fee, $35

annual costsTotal: $4,462 one-time fee, $2,158 annual costs

– Source: Computerworld, 4/8/96. 100

Telecommuting Managerial Issues

PlanningOrganizing StaffingDirectingControlling

Telecommuting - Planning

Costs (who pays): owning & maintaining hardware insurance premiums possible zoning issues

Pilot programSupervisor trainingSelecting qualified employees

self-starters, self-disciplined, flexible disabled; working mothers certain jobs

Telecommuting - Directing

Morale of telecommutersMorale of those left behindNeed for coordination

schedules planned meetings

Telecommuting - Staffing

Exempt or nonexempt (overtime)Disabled employee considerationsIndependent contractor vs. full-time

permanent employeeWorker’s compensation payments

Telecommuting - Control

Monitoring employee activities (reported productivity increases) challenges managers (feel they are losing

control)Security of data

password authentication dedicated leased lines physically securing equipment firewalls

Telecommuting - Other IssuesPersonal

dual career families working out of home Perceptions about peace and quiet, value of work

Family 55% of all mothers with children less than 3

years old now work (US DoC, 1989) computer addicts

Psychological - stress of taking work home and keeping up

Why the Benefits of IT are Not Achieved?

Lack of knowledge about IT and IT management

Incompatible hardware and softwareInefficiencies in work processesIncompatible organizational cultures

and climatesContinual need to upgrade

IT Productivity Paradox

IS Productivity ParadoxOver $1 trillion dollars spent on computer

and communication technologies since 1980

Systematic relationship to financial performance?

People make the differenceMeasures may be flawed

service workers longer hours