SWP 1907 20309545
SWP 1907 20309545
SWP 1907 20309545
Lotte Bailyn
90s: 87-037
June 1987
Acknowledgements
This paper is based on information collected in the United Kingdom in 1986-7. It
is part of a collaborative project with Dr. Constance Perin, Principal Research
Associate, Management in the 1990s, on information technology and the
home/office pattern of work. The work is supported by funds from the
Management in the 1990s Program of MIT's Sloan School of Management.
Freeing Work from the Constraints of Location and Time
way industrial work has been organized for over two centuries. This
mode of working has many obvious advantages:
for individuals: 'it structures their time
'it gives them social contact
'it gives them a sense of achievement,
of worth, of identity
for the organization: 'it permits control and coordination
of work
'it makes employees visible - hence they
can be guided, evaluated, and developed
'it mandates the interaction necessary
to secure consensus on organizational
goals
It represents a traditional, stable structure, to which we have
become accustomed. So why talk about its negative aspects, the
constraints imposed? Most generally, because there is a feeling that
the way we traditionally have managed work is no longer doing the job
as well as current conditions seem to require. More specifically,
because in a world of multinational corporations and global markets,
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The task was to come up with a system that would make the
London market competitive in a world where technology had
eliminated geographic distance as a factor, and where
markets in different time zones and different countries
competed directly.l
The new importance of time is also attested to by analysts in the
And, with the advent of new techn ology, loc atio n too is becom ing more
and more irrelevant, at the same time as it is becoming more of a
problem because of the expense of central c ity offices and the toll
of commuting - both for people an d for the envi ronment.
been a great deal of publ icity and much glib talk about pros and
cons, but very little cri tical empirical investigation. Finally, by
not the only motiva tion. They also believed that they could motivate
some of their high level people better if they made them more
independent, and, s ince the technology of linking micros to central
mainframes was avai lable relatively inexpensively, they felt the time
was ripe for their experiment.
They closed one of their buildings, and over the next four years
sent about 5% (50 men and 6 wome n) of their central office staff out
into the w orld as independent businesses. These people are not only
in compute r systems development, but in many other fields, including
marketing, market research, busi ness planning, finance, legal, tax,
personnel (recruitment, safety, security, pensions), PR. What is
common to them is that they are all information workers from
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Having made their seelection, they then hel ped these people set up
their own companies: they provided them wi th the computer equi pment
they need ed, trained them in sales techniq ues, taxation, and o ther
issues of small busi nesses, counseled them and their families on the
problems associated with an office at home (they even had outs ide
consultants des ign various alternati ve hom e set-ups), and cont racted
for their servi ces up to 50% of thei r tota 1 output.
their own and for themselves. Second, and more important, management
techniques were improved. It was now necessary for managers of the
networkers to make closer specifications of need and to think more
precisely about the quality and time standards that the work
required. Finally, there was an increase in productivity of core
support staff who took over some of the continuity tasks of the
networkers,.and thus had to get equipment and training - all of which
led to higher motivation and self-management.
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hourly work force with no employme nt benefits and did mainly body-
shop work, tak ing bits of programm ing home to finish in isolation.
This part of t he compa ny has now b een turned into a business unit in
its own right and is m aking a prof it. It is managed by a fulltime
home-based man ager, ha s its own career structure with both a
management and a techn ical t rack, and is involved in a variety of
applications. The wor kforce is st ill paid by the hour (though this
is not true of its man agers) , but they are now eligible for most
employee benef its. Th e unit has a pproximately 120 people in it,
work. The response rate was good (89% of the home-based group; 78%
of those office-based), and the results can be summarized in the
following points:
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stuck with a problem, they will stop counting time and turn to
non-work activities, during which they might well come up with the
ways, the fact that they are paid by the hour is a fallback to
traditional employment relations. Their work would seem to fit
better the category of fees for output rather than wages for time put
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in. But this is an observer's point of view. They themselves do
not complain, and comment on the fact that being on an hourly rate
allows their transportation time, when they go on site, to be part of
their paid working time.
Despite these apparent advantages, they seem, as of now, to be a
somewhat underutilized resource. On-site managers still see working
from home during the normal work week as against company policy -
even though their open office plan would make this an advantageous
alternative for the kind of work that requires uninterrupted
concentration. (It should be noted, parenthetically, that the
office-based staff complain a great deal about their working
conditions.) But pressure from limited office space and staffing
restrictions may well change this situation and make the home-based
programming staff more appealing to more company managers.
5
Many interesting results emerged from this study. To appre-
ciate them it is important to understand that the key aspect of the
told me that in his last appraisal he was told he was spending too
much time on his work, and his manager was worried about the effect
this was having on his family.
was viewed very positively. It freed the reps from having to inter-
act with the central office only during office times, and made it
mentioned, since it gave them more time in the field, which is, after
all, a representative's only really productive time. On the other
hand, because time on the machine can be monitored, it imposed a
been out at all during the day. A number mentioned their awareness
of the signal that the timing of their computer usage might give
about their work patterns, and feared that it might lead to a partial
return to monitoring input, from which their jobs had previously
left them immune. I should say, thou gh, that I also got the impres-
sion that some welcomed this way of i nforming central office of the
number of hours they actually worked, and, I suspect, logged in late
in the evening or during the weekend partly in order to make this
point.
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once." But the systems are being developed to allow them to do this,
which will complete the transformation of the traditional mode of
sending all approvals up the managerial hierarchy.
And the professionals, what was the result of their being sent
outs ide the company - with local authoritie s, contract ors, etc. They
felt they were now expected- to do many more c lerical jobs themselves,
whic h previously had been handled by office S upport staff. And
thou gh their promised computers might ease th is burden, they were
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3. Working from home has advantages and disadvantages for both the
bridge the "career gap" for women with children; it can accom-
modate locational preferences; it permits people to combine work
with other interests; and it allows the organization to call on
4. Using computers to work from home for part of the normal work
already mentioned, is the shift from managing input (time put in,
this is the way they actually are managed - at least until their
companies grow bigger or they import people from large corpora-
the actions taken, and hence reduces the risks associated with a
bad decision at the working level.
III
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