Term Paper on "Telecommuting There Are Many Different Ways"

Term Paper 27 pages (8212 words) Sources: 1+

[EXCERPT] . . . .

Telecommuting

There are many different ways to look at telecommuting. Depending on the country one comes from, there are conflicting opinions on exactly what the word means, and the same is true of 'telework,' which has also been used to mean roughly the same thing as telecommuting. Some people define telecommuting as an arrangement that allows employees to carry out their work at a location away from the conventional office, either in the employee's home, satellite offices or neighborhood work centers (Qvortrup, 1998).

Still others define teleworking as a way of working using information and communication technologies in which work is carried out independent of location (Harris, 1998). There are four main ways in which people can telework. Firstly the employees can work from home, liaising with the office by using phone, email or fax (Nilles, 1996).

The second way could be when the employees split the time between home and office (Nilles, 1996). Thirdly there are certain types of employees for example the sales people, journalists etc. who carry out their work while they are on the move (Nilles, 1996). Fourthly, there is an arrangement called the tele-cottage, which provides neighborhood centers with shared computers and communications resources for the office workers (Nilles, 1996).

Teleworking can also be defined as performing job related work at a site away from the office, then electronically transferring the results to the office or another location (Nilles, 1996).

During the 1970s and 1980s, telework in Europe was often termed as 'Electronic Homework' and was either based on full time contract or on a freelance relationship with the employer (Nilles, 1996). It has been suggested that an adequate definition of teleworking should include three variables: the location of work, the use of electronic equipment, and the existence of a communications link to the employer or contractor (Nilles, 1996). It is work which relies primarily or to a large extent on the use of electronic equipment, the results of which work are communicated remotely to the employer or contractor. The remote communications link need not be a direct telecommunications link but could include the use of mail or courier services (Nilles, 1996).

The word 'Teleworking' together with various pseudonyms such as telecommuting, networking, flexi place or the electronic cottage, has been used to describe various types of work (Nilles, 1996). The term teleworking has also been divided into three sub-categories in order to specify the many different modes of telework which can be found today (Nilles, 1996). The three sub-categories included Electronic Homework, Telecommuting, and Flexi Place (Nilles, 1996).

This can be defined as working at home and delivering the work directly to an external customer using some of Telecommunication. Telecommuting is working away from the work place. (i.e could be from home, or on travel, and communicating with the employer with the assistance of computers and some mode of telecommunication) (Nilles, 1996). The Internet these days is a common mode of communication used for this purpose (Nilles, 1996). Flexi place involves no defined location of work (Nilles, 1996). A person on flexi place uses his computer and telecommunication device while working on the move (Nilles, 1996). (See table 1)

Table: 1

Subcategories of telework (Nilles, 1996).

Category

Definition

Electronic homework

Work at home delivered through telecommunications to an external customer

Telecommuting

Work for an employer performed at distance using computers and telecommunications.

Flexi place

Work performed 'everywhere' (at the office, at home, in travel) using computers and telecommunications

Teleworking is increasingly attracting the attention of large companies (Mirchandani, 1999). Research suggests that between 10%-15% of the companies have some employees who telework, with indications that this number will double within the next few years (Mirchandani, 1999). According to another recent survey more than 80% of the companies are expected to have employees who would telework by 2005, up from 54% today (Mirchandani, 1999).

Telework is a specific example of flexible work in general, and this flexible work arrangement offers significant benefits to the employers (Mirchandani, 1999). The concept of teleworking is gaining acceptance from the employers point-of-view according to the recent survey released in 2000 by the international Telework Association and Council, (ITAC) (Mirchandani, 1999). The survey suggested that teleworking saved the employers money, and provided their employees more flexibility and improved productivity (Mirchandani, 1999). This further has a corresponding effect on costs and reduction of absenteeism (Mirchandani, 1999). The survey also found that the employers saved up to 63% of the cost of previous absenteeism per teleworking employee (Mirchandani, 1999).

This was based on the average salary reported by teleworkers combined with the average number of days absent on which teleworkers were still able to work from home (Jackson & van der Wielson, 1998a). This also indicated that teleworkers were able to work from home for an average of half a day after completing their personal, child and adult related tasks, which gave them an advantage over those that had to take full days off to accomplish these tasks (Jackson & van der Wielson, 1998a).

The principle potential advantages of teleworking to the employers include productivity gains, reduction of the overhead costs, retention of the rare skills, increased workforce diversity, expanded labor pool productivity, fewer employee sick days and enhancement of the public image of the company (Jackson & van der Wielson, 1998a). Notice that this list includes reductions in absenteeism (fewer sick days) (Jackson & van der Wielson, 1998a).

Enhanced productivity was the most commonly cited benefit of teleworking for the employers (Jackson & van der Wielson, 1998a). There have been startling claims made about the productivity gains of telework particularly the home-based variety (Jackson & van der Wielson, 1998a). These claims range from 30% to as high as 100% (Jackson & van der Wielson, 1998a). In cases where a teleworker is not paid by results, but is on salary, there is still an emphasis on output, to a greater extent, than with onsite-staff (Jackson & van der Wielson, 1998a). This is the essence inevitable with a remote staff form of work supervision compared to the traditional over the shoulder method, and this may lead to an over-emphasis on the quantifiable aspects of the work carried out by the teleworkers (Jackson & van der Wielson, 1998a).

In some telework schemes, improvements in productivity formed a part of the case for introducing home-based working, which turned out to be over optimistic because of unforeseen consequences of the new working pattern (Jackson & van der Wielson, 1998a). Research by the International Telework Association and Council (ITAC) reported average productivity gains of 22% (Jackson & van der Wielson, 1998a). Other surveys show a range of 10 to 20% (Jackson & van der Wielson, 1998a). Of the company specific studies, at&T reported a 10% increase, Cisco a figure of 20%, IBM 10-15%, Travellers Insurance Company 22%, and Los Angeles County 37% (Jackson & van der Wielson, 1998a).

Employer's traditional reasons for using home workers or outworkers include reduction in the overhead costs for the company (Jackson & van der Wielson, 1998b). These usually include costs of heating, lighting and repair which are usually transferred to the individual worker (Jackson & van der Wielson, 1998b). Recent research shows that there is significant net cost reduction to employers, in most teleworking cases (Jackson & van der Wielson, 1998b). Costs and Benefits of telework to employers, can be discussed with primary attention to the two major quantifiable impacts - office space and productivity changes (Jackson & van der Wielson, 1998b).

It should be noted, however, that many companies now view telework in strategic, not just tactical or pragmatic terms (Jackson & van der Wielson, 1998b). That is, companies that have actively pursued telework see the nature of work changing in the 21st Century and believe that telework can be an integral part of enhancing the global competitiveness of the firm (Jackson & van der Wielson, 1998b). As some describe it, the structure of the company in the information economy will change from a facilities-based asset driven organization to a knowledge network (Jackson & van der Wielson, 1998b).

Knowledge assets are becoming a larger part of not only high-tech companies, but also service and manufacturing companies as well (Jackson & van der Wielson, 1998b). Seen in this context; telework becomes much more than a cost-cutting measure to reduce office space, or a way to improve productivity by removing the distractions of the traditional office environment (Jackson & van der Wielson, 1998b). Rather, companies who make telework available to its employees view the work day as neither constrained by time (the 8-hour day) or space (the traditional office) (Jackson & van der Wielson, 1998b).

This helps the company both locally and globally, because workers that are happy and enjoy their jobs work much harder and do more for the company than workers who are dissatisfied (Jackson & van der Wielson, 1998b).

Telework is not just a benefit for private companies (Di Martino & Wirth, 1990). Local, state and federal governments and public agencies employ nearly 30% of the workforce, and since… READ MORE

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