1. 1 Chapter 3. Information Technology and The Design of Work Managing and Using Information Systems: A Strategic Approach by Keri Pearlson PowerPoint Slides prepared by Gene Mesher Copyright © 2001 John Wiley & Sons, Inc.

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3. 3 Introduction zChapter 3 looks at the impact of IS on the way work is done by individual workers. zIt explores ythe changing nature or work, yIT’s impact on different types of workers and ythe rise of new work environments. zIt also looks at how IT has enabled and facilitated a shift toward work that creates, disseminates and applies knowledge.

4. 4 JOB DESIGN FRAMEWORK zWhat tasks will be performed? zHow will the work be performed? zWho will do the work? zWhere will the work be performed? zHow can IS increase performance, satisfaction and effectiveness of the workers doing the work?

5. 5 What tasks need to be performed? What is the best way to have these tasks done? Done by a person Who is going to do these tasks? Where is that person when doing the work? How can IT enhance the worker efficiency and satisfaction? Done by a computer Automate the tasks Figure 3.1 Framework for job design impacts

6. 6 HOW INFORMATION TECHNOLOGY IS CHANGING THE NATURE OF WORK

7. 7 New Ways to do Traditional Work zThe introduction of IT can greatly change workers’ day-to-day tasks. zIT changes workers’ communication patterns zWorkers using mobile devices can send and receive message and tap into databases, affecting sales and service tasks. zThe cost and time needed to access information is dramatically lower, giving workers new tools. zWork has become much more team oriented an effect amplified by the Internet.

8. 8 Creating New Types of Work zSince the early 1980s, increased IS/IT use has created many new types of jobs. zConsulting firms have become widespread that specialize in IS-related work. zExamples of newly created jobs now common in traditional organizations include: yknowledge managers, ysystems analysts, ydatabase and network administrators, ywebmasters and web site designers.

9. 9 New Challenges in the Work of Managers (Figure 3.2) zOrganizations face the challenge of managing a work force that is no longer in a single location. zWork is also more team oriented, making it more difficult to assess individual contributions. zOne solution is to use electronic employee monitoring systems, automates the supervisory process, but may also hurt morale and undermine attempts to encourage overall contributions to the organization.

10. 10 Figure 3.2 Changes in employee supervision and evaluation Traditional Approach Personal. Manager usually present or relies on others to ensure employees are present and productive Focus is on process through direct observation. Manager sees how employee performed at work. Subjective (personal) factors are very important. Newer Approach Electronic, or assessed by deliverable. As long as the employee is producing value, he does not need formal supervision. Focus on output or target. As long as these are achieved, performance considered adequate. Subjective factors less important, harder to gage. SupervisionEvaluation

11. 11 Work It creates millions of new jobs, some in entirely new industries. Working More work is team-oriented, enabled by Arrangements communications and collaboration technologies. Geographic constraints of some professions are eliminated, enabling telecommuting. Human New strategies are need to supervise, Resources evaluate, and compensate remotely performed, team-oriented work. IT requires new skills workers often lack. Figure 3.3 Summary of IT’s effects on employee life

12. 12 HOW INFORMATION TECHNOLOGY IS CHANGING WHERE WORK IS DONE

13. 13 The Growth of Telecommuting zTelecommuting has gained popularity since the late 1990s because: yLowers corporate overhead since workers who are at home don’t take up office space lowering facilities costs yWorkers who are giving increased flexibility are more productive and express higher levels of job satisfaction z2/3’s of Cisco employees occasionally work from home. The policy has saved the company $1M in expenses, while workers prefer to set their own schedules and work in more comfortable surroundings.

14. 14 Enabling Factors for Telecommuting zThree factors support the growth of telecommuting growth (Fig. 3.4): yWork is increasingly knowledge-based so workers don’t need to be “at work” to do their jobs. yMore powerful computers plus cheap telecommunications such as DSL make it possible for telecommuters to be connected to corporate networks at high data rates. yTelecommuting enables workers to shift their work to accommodate their lifestyles, esp. parenting or live in distant locations far from the office.

15. 15 Figure 3.4 Telecommuting’s driving factors Shift to knowledge- based work Eliminates requirement that certain work be performed in a specific place. New technologies Make remotely performed work practical and cost- effective. Changing demographics and lifestyle preferences Provides workers with geographic and time-shifting flexibility. DriverEffect

16. 16 Figure 3.6 Advantages and disadvantages of telecommuting Reduced stress, heightened morale and lower absenteeism Harder to evaluate performance Geographic flexibility Employee may become disconnected from company culture Higher personal productivity Telecommuters are more easily replaced by electronic immigrants Housebound individuals can join the workforce High level of self-discipline required Employee AdvantagesPotential Problems

17. 17 Mobile Workers zMainly sales and service personnel, sometimes it means traveling personnel being more connected zTheir roles are changing by the heavy use of four technologies: laptops, PDAs, handheld terminals and mobile phones (See Figure 3-5). zHigh quality laptops are the most important and widely used of all mobile work technologies.

18. 18 Figure 3.5 Key technologies in redesigning work LaptopsConsultants and sales Eliminates constraints of travel. Enable workers to be productive anywhere. PDAsMostly professionals Provides a low-cost, simple way of organizing information and communicating data. Handheld terminals Service professionals (delivery, tech. support, service & repair) Enhances productivity and adds capabilities and real-time communication. Portable phones AnyoneAllows immediate voice (and sometimes data) communication. TechnologyUsed byImpacts

19. 19 INFORMATION SYSTEMS ENABLES MORE GROUP WORK

20. 20 Groupware and Electronic Collaboration zGroupware tools such as Lotus Notes, Microsoft Outlook and technologies, such as video conferencing have made it cost- effective for workers in distant locations to create, edit and share electronic documents and processes. zCollaboration adds value to many types of tasks, particularly those that benefit from exchange of ideas.

21. 21 Whirlpool’s Product Design Management (PDM) system zPDM unites design teams electronically using a central data repository. zEngineers around the world collaborate online to create several basic designs using PDM. zEach region then customizes generic design for local use. zPDM cuts design time in half, thereby saving money and brings products to market more quickly.

22. 22 Ford Motor Company zFord now develops cars for world markets by electronically linking design and engineering centers via videoconferencing and corporate intranets. zFaster more efficient communication allows Ford to design and produce cars in less time.

23. 23 FOOD FOR THOUGHT: THE PRODUCTIVITY PARADOX

24. 24 Does IS/IT Investment Improve Worker Productivity? zSome researchers argue ongoing costs outweigh productivity gains zOther research suggests employee productivity is rising zSome argue the measurement of productivity is flawed; e.g., fails to capture gains in service. zControversy remains unresolved after many years of research.

25. 25 End of Chapter 3