Assignment for Management

Information System

Question 4:
Sullivan (2003) defines
telework as “Work that is
carried out at a distance from
the core organisation through
the medium of ICTs.”

Discuss telework and the

impact it is having on
contemporary work practices.

University of Manchester
Done By: Chin Yong Ling
Teleworking is associated with data-processing, telecommunications and new organisation
of work.

The factors that fuelled the teleworking trend

With the availability of more affordable technology, companies are able to adopt
telecommuting as an alternative work arrangement. A tight job market and fierce competition
is one of the reasons why organisations see teleworking as a benefit to entice new recruits,
using it as a business strategy, rather than merely an employee perk. Another factor that
fuelled the teleworking trend is the high price of commercial real estate nowadays.

The opportunities generated by teleworking can be found in several fields of activity

including marketing, medicine, services and office work.

Issues arising from teleworking

The increasing role of teleworking corresponds to the economic context and addresses
different demands. Teleworking is seen as a viable alternative within the social realm for
women, disabled and single parent households, promising better quality of life. Furthermore,
it provides advantages to the employers and employees. However, it poses potential
detrimental effects and has a great impact on our contemporary work practices.

Impacts of teleworking on contemporary work practices

People: In the contemporary work practices, employees have life-long, full-time and fixed job
skills while telework allows changing, flexi-time and multi-skilled jobs. Jobs used to be for life
and now, one usually have evolving jobs and work portfolios.

Organizational: In the past, organizations are large, stable, hierarchical and bureaucratic.
With telework, organizations are down-sizing and have ever-changing configurations, such
as the virtual enterprises, for example Google and Amazon.

Inter-organizational: Organizations used to have vertical production links and production

processes. Now, more horizontal economic networks such as outsourcing to small
specialized firms and sub-contractors have emerged.

Technology: Information technology used to be just for automation of existing processes

and activities by making them more efficient and speeding them up. Nowadays, the use of
information technology and advanced communications can create completely new types of
work processes, activities and market opportunities.

Work Patterns: Employees used to have single and fixed task demarcation and now they are
multi and flexi-tasking, which is a reversal of the traditional division of labour. Relationships
with the employers used to be central and hierarchical. Now, the relations are decentralized,
horizontal and integrative. In the past, work patterns are static and geographically
concentrated. However, the availability of affordable technology contributes to the ‘any time,
any place’ telecommuting trend, thus work patterns are now more mobile and distributed.
Advantages

In the organization’s perspective, teleworking leads to increased productivity. Employees are

able to focus solely on work with lesser interruptions, such as meetings. Thus there is
improved concentration, more satisfied and motivated personnel.

There is reduced absenteeism. (1999 Telework America National Survey showed

absenteeism caused by illness, weather or personal reasons cost employers an average of
$3,313 per year for each non teleworker. For teleworker, the figure dropped to $1,227,
saving employers an average of $2,068.)

Besides that, staff retention is improved. With telework, retired, pregnant and disabled staff
can still remain in the work force, thus lowering training fees, increasing company loyalty,
accumulating experience and offers better customer connection in the long run, which in turn
drives revenue.

Overall, it increases company competitiveness as telework enables the extension of

customer service hours, decreased overheads by saving on office space and equipments or
costs on relocation and expansion. It also provides a greater potential employee market as
companies can seek employees in a wide geographic range.

In the employee’s perspective, there is greater lifestyle flexibility and better quality of life as it
allows juggling work and home, enabling childcare or eldercare arrangements through
alternative work hours. Teleworking creates more personal time, reduces personal costs
such as commuting, wardrobe and meals expenses for the employees.

Moreover, employees have the opportunity to be more creative and produce higher quality
work because of the trust shown in them. It creates fair and accurate work performance
evaluations based on productivity and quality of work rather than by clock-punching.

There are also social benefits as telework helps decrease traffic congestion during peak
hours, conserves limited energy resources, reduces air and noise pollution.

Disadvantages

However, teleworking has a number of disadvantages too. Companies need to have high
initial capital investments for new equipments and phone lines for employees home. They
need to adapt to necessary change in managerial and organisational styles, such as loss of
spontaneous communications and meetings. There are also fears for data security and
diminished of corporate identification.

Whereas, employees will fear social and professional isolation where there is a lack of
professional support. There may be little opportunities for career advancement due to
‘invisibility’ and interaction with management. Employees also need to exercise self-
discipline so as to avoid conflict of devoting time between work and home. There is also a
potential for bringing additional work related stress into the home as companies may use
teleworking to exploit their employees to work longer hours. Legal difficulties caused by the
lack of specific legislation poses as a disadvantage too.
Policy Recommendations

Since, there are several problems associated with teleworking, namely time management
and coordination with co-workers and managers. Mandatory practices should be
implemented by the top management, human resources, together with the appropriate use
of information systems and legal departments to ensure the success of teleworking.

Some policy recommendations to minimize the problems are as follows: telework should
always be voluntary. There should be separate specific policies for teleworkers and those in
the traditional office. For example, the teleworkers should enjoy the same rates of pay and
other employment benefits as non-teleworking employees and be included in the career
development programme, so as to enjoy the same career advancement opportunities.
Teleworkers should operate from a separate room in the home, properly examined by
qualified health and safety experts to ensure a safe working environment. There should be
regular opportunities or teleworkers to interact and socialize with non-teleworking colleagues
and managers, so that they do not feel isolated or excluded in the organization and allows
managers to monitor their performance. Lastly, all the equipments used should be supplied
and maintained by the employer.

Besides that, training for both supervisors and employers are essential as they play a crucial
role in motivating and bringing the best out of teleworkers. Managers need to carefully co-
ordinate activities, clearly communicate work expectations, help associates avoid isolation
and select the individuals with the right work habits for telework.

In conclusion, telework has a positive impact on our contemporary work practices.

Organizations and government should develop effective teleworking business policies to
minimise the potentially detrimental effects of telework as it shows promise of being a viable
alternative to the office environment.

References

1. Teleworking towards the elusive office

Ursula Huws, Werner B. Korte, Simon Robinson

2. Teleworking... in brief, 1st Edition

Mike Johnson
3. Article on gender and teleworking identifies: Reconstructing the research agenda

Melanie Wilson and Anita Greenhill