The Internet Encyclopedia (Volume 3)

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444 TELECOMMUTING ANDTELEWORK

PERSONAL, ENVIRONMENTAL AND

TECHNOLOGICAL ADVANTAGES AND

DISADVANTAGES

(EXPLICIT, WEAKER EFFECTS)

SOCIOLOGICAL AND

ORGANIZATIONAL ADVANTAGES

AND DISADVANTAGES

(IMPLICIT, STRONGER EFFECTS)

DEMAND FOR

TELECOMMUTING

Figure 3: Explicit and implicit advantages and disadvantages

model.

Agency Theory

This theory views relationships between managers and

employees (and other economic relationships) as implicit

contracts. In such relationships, an employee (agent) can

be compensated either on the basis of behavior (what he

or she is doing) or on outcomes (results, e.g., commissions

on sales). In a typical office environment, where employ-

ees are physically present every working day, it is relatively

easy to monitor behavior.

The more days per week an employee telecommutes,

the more difficult it is to monitor behavior, and it becomes

increasingly necessary to evaluate outcomes. For employ-

ees who are doing anything other than very routine pro-

cessing, however, it is often difficult to measure outcomes.

Typically it requires more managerial time (an expense

item) to evaluate outcomes than monitor performance.

Thus agency theory provides a plausible explanation for

the often-noted reluctance of managers to allow telecom-

muting, and also the prevalence of 1-day-per-week classic

telecommuting arrangements.

On the other hand, there have been numerous success-

ful projects, in which organizations have generated large

real estate savings by having salespersons and consultants

work largely away from organizational offices. Although

it may be more appropriate to identify these employees

as mobile workers, the continuing usage of these arrange-

ments (in contrast to the many classic telecommuting im-

plementations that have not persisted) is exactly what

agency theory would predict. Because such employees

typically work on commissions or generate billings, they

are already operating under outcome-based contracts.

Therefore, the shift away from organizational offices re-

quires relatively minor adjustments by their managers.

(For more information on agency theory, see Eisenhardt,

1989.)

Institutional Theory

Sociologists consider the business office to be an institu-

tion: something that is considered by the larger society as

the norm, the “right” way to do knowledge work. These

norms transcend distances and cultural differences; for

example, business offices in the United States, Asia, and

Africa are more similar or homogenous than the underly-

ing cultures and political systems.

Although office work is highly institutionalized, clas-

sic telecommuting has not yet reached that status. (As

an indicator, although business offices often form the set-

ting for scenes in movies or television shows, telecom-

muting workers are rarely seen.) It has a certain air of

illegitimacy: other employees may view a person who is

telecommuting as “not really working” while away from

the office (e.g., Scott Adams’ portrayals of telecommuters

in theDilbertcomic strip often reflect this perspective).

Neighbors may wonder if the telecommuter has lost his

job. Telecommuting consultants frequently recommend

increased managerial planning with and supervision of

telecommuters, but from the perspective of institutional

theory, this raises additional questions about the legiti-

macy of this mode of work in the minds of both employees

and managers.

Institutional theory thus provides an alternative expla-

nation for the low rate of telecommuting. Most people

don’t telecommute at all, or very much, because it is not

as socially acceptable as traditional office work. This the-

ory also accounts for the frequent association of telecom-

muting and health issues, for example, doing some work

at home on days when an employee is ill or has a medical

appointment. Telecommuting becomes more legitimate if

there is an “excuse” for it, a connection with something

that is recognized as an acceptable reason for being away

from the office. (The seminal work on neo-institutional

theory is Meyer and Rowan, 1977.)

RECOMMENDATIONS

FOR STAKEHOLDERS

One of the impediments to increased classic telecommut-

ing is that there are a number of types of stakeholders, and

what is good for one stakeholder is not necessarily a ben-

efit for all the others. Therefore recommendations must

be addressed to the various stakeholders, but also must be

harmonious with the needs and expectations of the oth-

ers. It is appropriate to start with organizations, because

organizational policies and attitudes are usually the most

important factor in determining whether specific employ-

ees can telecommute and how much telework occurs.

Organizations

Employers need to consider telecommuting from a holis-

tic perspective, so that they can deal with it based on

its impacts on the overall performance of the whole

organization, rather than just looking at how it affects the

telecommuters. In many cases, this perspective will lead

to organizational policies that are not directed specifically

toward telework but which, as a side effect, will lead to

modest increases in classic telecommuting.

Organizations need to have contingency plans and or-

ganizational capabilities that make it possible to function

effectively in the event of a disaster. The more employees

who have computer equipment and high-speed connec-

tions at home and who are comfortable using these capa-

bilities, the better prepared they are for disasters. These

capabilities also enable employees to work more effec-

tively at home after and before regular working hours at

the office, contributing to increased organizational pro-

ductivity. And finally, this kind of infrastructure at home

can lead to increases in classic telecommuting.

Therefore, organizational policies that make it easier

or less expensive (or both) to acquire quality hardware,

software, and telecommunications services can be very