ACCEPTANCE OF ELECTRONIC MONITORING AND ITS CONSEQUENCES IN DIFFERENT CULTURAL CONTEXTS: A CONCEPTUA...
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ACCEPTANCE OF ELECTRONIC MONITORING AND ITS CONSEQUENCES IN DIFFERENT CULTURAL CONTEXTS: A CONCEPTUAL MODEL. DARIA PANINA Texas A&M University JOHN R. AIELLO Rutgers University. Presented in the 5 th Annual International Business Research Forum  

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Presented in the 5 th annual international business research forum

ACCEPTANCE OF ELECTRONIC MONITORING AND ITS CONSEQUENCES IN DIFFERENT CULTURAL CONTEXTS: A CONCEPTUAL MODEL

DARIA PANINA

Texas A&M University

JOHN R. AIELLO

Rutgers University

Presented in the 5th Annual International Business Research Forum  

Information Technology and International Business Theory and Strategy Development

Philadelphia, PA

March, 26-27, 2004


Presented in the 5 th annual international business research forum

Introduction & Research Question

Recent trend: to outsource marginal organizational functions to developing countries

How to ensure that company-wide quality standards are met by foreign subsidiaries and subcontractors?


Presented in the 5 th annual international business research forum

EPM – a Possible Solution

Electronic Performance Monitoring (EPM) is

“the practice of using computers and/or telecommunication technology to collect, analyze, and report information about employee performance” (U.S. Congress, OTA, 1987)

Advantages

Disadvantages

  • Employee stress

  • Employee dissatisfaction

  • Emphasis on quantifiable

  • performance measures

  • Distance

  • Cost

  • Timely feedback

  • Objective data


Presented in the 5 th annual international business research forum

Objectives of the Paper

  • Review the evidence on the acceptance and effects of EPM in the USA & other countries

  • Develop a model of the relationship between national culture, EPM, its acceptance and consequences

  • Develop a set of propositions regarding culturally acceptable EPM systems to guide further research & practice

  • Offer recommendations for EPM implementation & design in different cultures


Presented in the 5 th annual international business research forum

EPM and its Features (Aiello &Kolb, 1995)

  • Target

  • Pervasiveness

  • Recipient

  • Purpose

  • Concomitant practices


Presented in the 5 th annual international business research forum

Culture & Its Dimensions (Hofstede & Bond, 1988)

  • Individualism-Collectivism (IND)

  • Power Distance (PD)

  • Uncertainty Avoidance (UA)

  • Masculinity-Femininity (MAS)

  • Confucian Dynamism (CD)


Presented in the 5 th annual international business research forum

EPM in the USA:

  • is considered acceptable and leads to positive outcomes when:

  • it provides objective performance data

  • it is accompanied by other monitoring techniques to capture all sides of work

  • it is provided on an individual basis

  • it is implemented in an employee-friendly work context

  • tasks are relatively simple


Presented in the 5 th annual international business research forum

Culture, EPM, and its Consequences: Conceptual Model

EPM

Fairness

Perceptions & Control

Outcomes

EPM

  • Performance

  • Stress

  • Job satisfaction

  • Commitment

  • OCB

  • Target

  • Pervasiveness

  • Recipient

  • Purpose

  • Concomitant practices

EPM

Acceptance

Culture

  • Individualism/Collectivism

  • Uncertainty Avoidance

  • Power Distance

  • Masculinity/Femininity

  • Confucian Dynamism


Presented in the 5 th annual international business research forum

IND – Possible Effects on EPM Acceptability

Individualism

Collectivism

Target

Pervasiveness

Recipient

Purpose

Conc. Practices

Individual/work products

Group/work behaviors

Pervasive

Pervasive

Employee/Supervisor*

Work Team/Supervisor*

Objective performance measurement/feedback

Group performance feedback /informal performance reviews

Individual incentives, employee-centered processes

Teamwork, group incentives & praise

* Depends on the PD


Presented in the 5 th annual international business research forum

Individualism/Collectivism & EPM: Propositions

  • Individualist cultures are more likely to accept EPM that collects objective and comprehensive data on individual performance for evaluation and development purposes.

  • Collectivist cultures are more likely to accept EPM that collects comprehensive data on group behaviors for the purposes of improving group performance and as a basis for informal performance reviews.


Presented in the 5 th annual international business research forum

UA – Possible Effects on EPM Acceptability

High UA

Low UA

Individual

Individual/Group*

Target

Pervasiveness

Recipient

Purpose

Conc. Practices

Pervasive

Pervasive/Non-Pervasive

Employee

Employee/Group/Supervisor*

Monitoring/objective performance measurement

General guidance/ feedback

Detailed explanation of EPM & data use; visibility of monitoring

Goal-setting, pay for performance

* Depends on the M/F


Presented in the 5 th annual international business research forum

Uncertainty Avoidance & EPM: Propositions

  • High UA cultures are more likely to accept individual level EPM by providing immediate electronic feedback & more objective performance data. To be effective, EPM should be explained to employees in detail.

  • Low UA cultures are less concerned about the ambiguity associated with EPM use and are more likely to accept EPM that provides opportunities for professional growth and that provides general guidance and feedback.


Presented in the 5 th annual international business research forum

PD – Possible Effects on EPM Acceptability

High PD

Low PD

Individual/Group*

Individual/Group*

Target

Pervasiveness

Recipient

Purpose

Conc. Practices

Pervasive

Non-pervasive

Supervisor

Employee/Group*

Monitoring, performance appraisal, feedback

Feedback

Bureaucratic controls, top-down decision making

Participatory management, worker control, goal setting

* Depends on the I/C


Presented in the 5 th annual international business research forum

Power Distance & EPM: Propositions

  • High PD cultures are more likely to accept EPM if imposed by superiors, especially if accompanied by an autocratic style of management and top-down decision making.

  • Low PD cultures are more likely to accept EPM if it allows for employee control, participation & ownership.


Presented in the 5 th annual international business research forum

MAS - Possible Effects on EPM Acceptability

Masculinity

Femininity

Individual

Target

Pervasiveness

Recipient

Purpose

Conc. Practices

Group

Results

Processes

Employee/Supervisor

Group

Objective individual performance measurement

Group performance feedback

Human-centered production

Pay-for-performance


Presented in the 5 th annual international business research forum

Masculinity/ Femininity & EPM: Propositions

  • Masculine cultures are more likely to accept EPM if it provides objective performance data and leads to higher productivity and competitiveness.

  • Feminine cultures are more likely to accept EPM if it is used to improve the quality of work life and workers’ competence and de-emphasizes individual competition.


Presented in the 5 th annual international business research forum

CD - Possible Effects on EPM Acceptability

High CD

Low CD

Individual/Group*

Target

Pervasiveness

Recipient

Purpose

Conc. Practices

Individual/ Group*

Pervasive/Behaviors

Pervasive/Results

Individual/Group/Supervisor*

Individual/Group/Supervisor*

Feedback for increased competence & performance

Informal performance reviews

Long-term goals; extensive data collection

Short-term goals; focus on results

* Depends on the PD & IND


Presented in the 5 th annual international business research forum

High/Low Confucian Dynamism & EPM: Propositions

  • High CD cultures are more likely to accept EPM if it provides comprehensive performance data and assists employees in improving their competence and performance.

  • Low CD cultures are more likely to accept EPM if it provides performance data that emphasizes short-term results and is accompanied by procedures allowing for saving face.


Presented in the 5 th annual international business research forum

Culture & Perceptions of Fairness

  • Distributive justice judgments are affected by the choice of the reward distribution rule in a particular culture. EPM should be aligned with reward allocation & relevant as a performance measurement tool.

  • Procedural justice includes the concept of “voice”. Relationship between EPM and perceptions of its fairness might be moderated by PD.

  • Informational justice perceptions and information seeking behaviors might be influenced by PD and UA.

  • Interactional justice judgments might be influenced by IND.


Presented in the 5 th annual international business research forum

Conclusions

  • Cultural value orientations are stable – to ensure acceptance of new technology, it is advisable to make its implementation and use contingent upon cultural norms

  • EPM is not a monolythic practice, there is a great deal of variance in its use, thus, cultural adaptations are relatively easy to accomplish

  • EPM & culture may interact in multiple ways, case-by-case consideration is needed to design a culturally-acceptable EPM system


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