Telecommuting's Impact on Corporate

Culture and Individual Workers: Examining

the Effect of Employee Isolation.
By Hill, Joseph A.
Publication: SAM Advanced Management Journal
Date: Wednesday, September 22 1999
Subject: Telecommuting (Evaluation), Productivity accounting (Statistics), Work environment (Evaluation),
Corporate culture (Evaluation), Management (Methods)
Location: United States

The Increasing Significance of Telecommuting

The profile of the U.S. workforce is changing dramatically (Fierman, 1994). Employees who
ordinarily commute to the office each morning and spend eight hours behind a desk are being
transformed

into more technologically savvy, flexible workers who are no longer bound by the confines of
office walls (Mason, 1993). In fact, estimates project that the number of remote workers, or
telecommuters, will increase at a rate of 20% each year and that by 2000 more than 25 million
employees will have joined the telecommuting ranks (Bames, 1994).

Telecommuting is the practice of working from one's home, or at a satellite location near one's
home, where employees use communication and computer technology to interface with internal
and external stakeholders (Cooper, 1996). Most reports on telecommuting suggest that this
alternative has been positively received by both employees and managers (McNemey, 1995).
Employees view telecommuting as a way to better balance the demands of work and family
(Boyett & Boyett, 1995), and managers regard it as an opportunity to gain a number of benefits
for their organization (Cooper, 1996). For example, telecommuting has been found to
dramatically increase productivity (McNemey, 1995). Studies have shown that employees can
be expected to produce 20% to 30% more when they telecommute (Weiss, 1994).

Telecommuting also provides an avenue for companies to respond to the 1990 Clean Air Act
(Baig, 1995). This act requires organizations employing more than 100 individuals, in one
location, to reduce their employees' commute time by 25% (Walker, 1995). Presently, this Act
requires compliance from only 11 states. However, many organizations not covered under the
Clean Air Act are promoting telecommuting as a way to improve environmental conditions by
reducing smog and pollution (Cooper, 1996).

Additionally, telecommuting can significantly reduce facility costs (Bames, 1994). Pacific Bell
realized $400,000 savings in office space by allowing 400 of its sales force to telecommute
(Weiss, 1994). Also, Northern Telecom estimates a minimum savings of $2,000 annually for
each individual involved in its telecommuting program (Cooper, 1996).
Finally, telecommuting can greatly enhance employee recruitment and retention (Evans, 1993).
Not only does telecommuting allow a company to offer its present workforce attractive, flexible
work arrangements, it also opens up a much larger recruitment pool (Roberts, 1994). For
instance, parents of young children, who may not have been considered in the past, are now
viable candidates for job openings because many times they can remain at home and perform
assigned duties around their children's schedules.

Because of the attractive mutual benefits, it is hardly surprising that telecommuting is often
considered an integral part of many companies' strategic plans (Farrah & Dagen, 1993). Indeed,
with increasingly affordable technology and numerous potential benefits, managers are quickly
moving to institute telecommuting programs (LaPlante, 1995; McNemey, 1995). However, there
is concern that advantages attributed to telecommuting may lure company leaders to rapidly
adapt this alternative without adequately considering the long-term implications of isolating
workers from the traditional office setting (Hamilton, 1987; Connelly, 1995).

Karl Weick (1979), in his classic book The Social Psychology of Organizing, argues that
decision-makers in organizations often encounter problems implementing new programs
because they simply neglect to consider potential consequences of their actions. For example,
they may consider the obvious, short-term implications, but fail to examine direct or indirect
effects on other organizational factors. Such short-sightedness may be occurring with respect to
telecommuting.

Is it possible that organizational decisionmakers are pursuing this option without sufficiently
considering all the implications? To answer this question, we present a model [ILLUSTRATION
FOR FIGURE 1 OMITTED] that outlines potential direct and indirect effects of telecommuting.
As Link 1 in the model proposes, telecommuting will increase employees' isolation from the
traditional office setting (Connelly, 1995). Naturally, employees telecommuting on a full-time
basis, as opposed to a couple of days per week (i.e., part-time), will experience higher levels of
isolation. However, in virtually all cases, telecommuting will lead to some separation of
employees from their co-workers, managers, and external stakeholders. This "isolation effect" is
addressed in this paper. Specifically, we examine the impact of employee isolation on corporate
culture (Link 2), the effect of isolation on individual employees' attitudes and behaviors (Link 3),
the differential influence of various types of cultures (Link 4), the influence of cultural strength on
employee attitudes and behaviors (Link 5), and the impact of individual outcomes on
telecommuting itself (Link 6).

Telecommuting Impact on Corporate Culture

Corporate culture can be conceptualized as a set of understandings that members of a work

unit share in common that affects how they function in and react to their environment (Schein,
1996). However, the basic norms, beliefs, and values that compose a particular culture are
often not formally defined or written (Sathe, 1983). Indeed, much of what researchers refer to as
culture simply rests in the minds of employees (Morgan, 1986).
While the concept of culture is somewhat illusive, organizational researchers continue to
emphasize its importance in terms of its effect on individual employees and overall
organizational survival (Isaac, 1993; Kotter & Heskett, 1992). These researchers often
distinguish organizations as having either "strong" or "weak" corporate cultures (Arogyaswamy
& Byles, 1987; Sathe, 1985). Strong cultures are described as those in which the members hold
widely shared norms, values, and beliefs about what is acceptable (Sathe, 1983), whereas
weak cultures exhibit inconsistency in terms of employee values and provide little guidance to
workers about how they are expected to behave. Thus, strong cultures are often valued by
managers because they are seen as instrumental in obtaining high levels of motivation,
satisfaction, and security in employees (Kotter & Heskette, 1992). In fact many researchers
consider strong corporate cultures to be critical in terms of organizational survival (Barney,
1986; Tichy, 1983). Morgan (1986) believes that the nature of organizations can be explained
more by culture than by formal organizational charts and procedures. Moreover, he suggests
that culture may be ". . . the single most important factor standing between success and failure."

Because organizational researchers recognize the overall impact of corporate culture, some
speculated about the effect of telecommuting on culture (Currid, 1992; Clancy, 1994; DeVito,
1996). Unfortunately, there is a disagreement about the exact nature of the relationship;
therefore, no clear understanding has emerged. One position holds that removing employees
from the traditional office setting into a more isolated environment can only weaken corporate
culture (Sathe, 1983; Clancy, 1994). Proponents of this view argue that frequent face-to-face
communication and reinforcement among employees provide the strength and continuity in
corporate cultures (Sathe, 1983). These individuals question how the basic norms, beliefs, and
values that composed a particular culture will be reinforced and maintained with ". . . no water
coolers to gather around or lunchrooms to meet in" (Clancy, 1994). In other words, this position
argues that corporate cultures traditionally strengthened and reinforced through informal
discussions of stories (Mitroff & Kilmann, 1976), ritual (Deal & Kennedy, 1982), and specialized
language (Andrews & Hirsch, 1983) can no longer be maintained. Therefore, Sathe (1983)
contends that geographic dispersion is the primary factor contributing to a weakened culture.

A different perspective is that telecommuting indirectly strengthens the corporation (Dutton,

1994; Keiser, 1994). This argument holds that telecommuting makes employees more creative,
relaxed, and independent (Dutton, 1994). That, is employees who no longer have to contend
with the stress of long commutes or the conflicting demands of family responsibilities will
approach their work with an improved perspective. They will be more focused, results-oriented,
and accountable. Advocates of this position believe that the isolation attributable to
telecommuting will increase levels of autonomy and flexibility, permitting employees to become
more self-reliant, committed, and productive. Hence, the corporate culture will change affecting
the bottom line in a positive manner.

Thus, we have differing opinions as to how corporate culture will be affected. Charles Handy's
(1995) framework of corporate cultures is useful for understanding why this apparent
discrepancy exists.
Handy (1995) portrays corporate cultures as various gods of Greek mythology, suggesting that
four types exist in organizations: The Zeus culture, the Athena culture, the Apollo culture, and
the Dionysus culture. Handy notes that multiple cultures may exist in an organization at any
time and that each may be appropriate depending on relevant environmental factors in a
particular work unit. Therefore, he argues, it is inappropriate to judge a particular type of culture
as being better than another. Simply, one should evaluate the culture in terms of the particular
context in which it influences employee behavior. To better understand the adaptiveness of
these different cultures to telecommuting, however, we must first examine the basic differences.

The Zeus culture is one that depends heavily on the similarity of members, extensive personal
contact, and very few procedural guidelines. Just as Zeus was the all-powerful king of gods, this
culture is dominated by the direction and careful coordination of central leaders. In the Zeus
culture, overall cultural strength depends upon the ability of key members to surround
themselves with employees they know well and trust (Ettorre, 1996). Small entrepreneurial
organizations, family businesses, and small organizational work units are settings where this
culture typically prospers.

The Athena culture is characterized as a loose network of teams that work together to solve a
wide variety of organizational problems. Athena, daughter of Zeus, was the goddess of wisdom
and expertise. Therefore, the Athena culture's strength is measured by the ability of
organizational members to understand each others' areas of expertise and to work together with
a common purpose in solving problems. This culture values creativity, enthusiasm, and unique
solutions. Frequent interaction is necessary to develop this collective mentality among
employees. Many consulting agencies and research and development firms would seemingly fit
the Athena profile.

The Apollo Culture can be conceptualized as a bureaucratic culture. Just as Apollo was the god
of everyday law and order in ancient Greece, in this culture there are extensive rules and
procedures to guide behavior. Stability and predictability are highly valued. The strength of this
culture is measured by the ability of its members to understand and follow carefully documented
policies. Government agencies and many large organizations are representative of this culture.

Finally, in the Dionysus culture, the talents of individuals are of utmost importance and the
organization simply exists to facilitate individual accomplishments. Dionysus was the Greek god
of wine and "good times" and was the god most associated with independence and freedom
(Graves, 1955; Ettorre, 1996). In this culture, only minimal contact is required or desired among
participants. Dionysus cultures can be found in many professional partnerships such as groups
of physicians, lawyers, or accountants.

Link 4 in our model proposes that cultural strength will be differentially impacted by employee
isolation based on the type of culture in a particular work unit. Certain cultures may simply be
more amenable to the increased employee isolation associated with telecommuting, while
others will likely find telecommuting a less comfortable fit. Cultures that maintain their strength
through frequent interaction among employees and the direct supervision by key members may
be reluctant to relinquish the control afforded by the traditional office setting (Weiss, 1994).
Alternatively, cultures less dependent upon constant communication will likely be more
accepting of telecommuting arrangements. By using Hardy's framework, then, we can examine
how cultural strength will likely be affected by the "isolation effect" (Link 2) and how the type of
culture will moderate this relationship (Link 4).

The Zeus culture will be most influenced by telecommuting and least amenable to this work
arrangement. Because the Zeus culture's strength is heavily dependent on the personal contact
of key individuals with others in the organization, isolating and detaching workers from the
central leaders is likely to weaken it resulting in an overall negative impact on individual
outcomes.

The Athena culture presents an almost paradoxical scenario. On one hand, a culture that can
be envisioned as a loose network of employees that thrives on creativity would seem to be a
suitable match for telecommuting. But on the other hand, it is the ability of the members to
understand each other's expertise and to work with a common purpose and understanding that
is at the very heart of this culture. Without frequent interactions among organization members,
one questions how the strength of the Athena culture can be maintained as telecommuting
increases. Thus, we might expect the Athena culture to weaken as telecommuting becomes
more prevalent.

Work units characterized by Apollo cultures would likely handle telecommuting relatively well.
This culture relies on very formal procedures and rules and, therefore, is less dependent on the
informal norms and values instilled by strong cultures to ensure positive outcomes among its
members. Therefore, Apollo cultures would likely be less influenced by and more suited to
telecommuting than either the Zeus or Athena cultures.

Finally, the Dionysus culture seems best suited to telecommuting. The increased isolation
resulting from telecommuting should only strengthen the self-reliant and individualistic
environment in which this culture prospers. We would expect Dionysus cultures to prosper
under this work arrangement.

In summary, the crucial determinant in understanding the effect of telecommuting on cultural

strength hinges on identifying the type of culture in a particular work unit. based on the amount
of social interaction required to maintain the culture's strength, some cultures may simply be
more amenable to telecommuting than others.

Telecommuting's Influence on Individual Workers

Figure 1 proposes that employee isolation resulting from telecommuting can impact individual
outcomes both directly and indirectly. Specifically, the model suggests that individuals' levels of
comfort, turnover, satisfaction, and commitment will be related to employee isolation (Link 3)
and cultural strength (Link 5).

Buss (1991) explains that the need to associate with and identify with others is a fundamental
motivation in all humans. Further, Baumeister and Leary (1995) argue that individuals have a
strong need to establish and maintain long-term, positive relationships with others. Satisfying
this need involves two distinct criteria. First, individuals must interact frequently with the same
people. Second, the interaction must occur in a relatively stable environment. Failure to
maintain these frequent, enduring relationships will lead to a number of negative consequences
such as anxiety, depression, and even physical ailments. There is also some concern that
employees may be uncomfortable relinquishing their presence in the workplace (Hellman,
1994). Potentially, the lack of visibility may limit their opportunities to advance. Therefore, as
telecommuting leads to higher levels of employee separation from the workplace, we can
expect this isolation to have an overall negative effect on individual attitudes and behaviors
(Link 3).

Miller and Jablin (1991) also note that employees generally dislike and are uncomfortable with
uncertain situations. When weakened cultures provide contradictory information or inadequate
direction regarding appropriate behaviors, workers tend to experience anxiety, confusion, and
dissatisfaction. Additionally, the absence of strong cultures to reinforce accepted norms, values,
and beliefs can lead workers to become less committed to the organization and, in some cases,
to actually seek other employment. Therefore, as Link 5 in the model proposes, a weakened
culture will lead to a number of negative individual outcomes.

Interestingly, our model also proposes that changes in individual outcomes may actually
influence telecommuting arrangements (Link 6). Managers observing changes in their
employees will likely move quickly to investigate the nature of the changes and to make
adjustments in work arrangements and schedules to offset the undesirable influence of
employee isolation. Therefore, to guide managerial actions in this process, we next discuss
implications of telecommuting for managers as well as offer specific recommendations for
organizational leaders considering this work alternative.

Managerial Implications

Telecommuting's popularity is growing at a phenomenal rate. However, this article suggests that
organizational leaders should carefully consider the relationship between telecommuting and
corporate culture as well as the eventual impact on individual workers.

Managers have a responsibility to consider the long-term implications of decisions made

regarding telecommuting in their organizations. They must ensure that a holistic
conceptualization is undertaken so that corporate strength is adequately maintained.
Specifically, the following recommendations are offered to managers considering telecommuting
as a work option. First, identify the prevailing corporate culture in the work unit. Does the culture
resemble a Zeus culture that is heavily dependent on social interaction among members or is it
more of the Dionysus culture where frequent face-to-face communication is not essential?
Understanding the amount of social interaction required to maintain a strong culture will reduce
unanticipated problems in the future.

Next, attempt to monitor the strength of the corporate culture and identify its specific norms.
While organizational culture is somewhat difficult to measure objectively (Schein, 1996), there
will likely be clues if it is being weakened. For example, there may be levels of behavioral
changes, unethical conduct, or employee apathy (Sathe, 1983). Newcomers, especially reliant
on strong cultures to guide behavior, will likely be most affected by telecommuting. As new
employees enter an organization and begin the socialization process, they depend heavily on
informal discussions with mentors and co-workers in learning the history of the organization and
the generally accepted norms, values, and behaviors (Van Mannen & Schein, 1979). However,
as these employees begin to work out of the home, without the daily exposure to the office
environment, they are less likely to be exposed to elements that would create and reinforce
corporate culture. Perhaps employees should serve a minimum period of time in a central
location before being selected to telecommute. This would give the organization a greater
assurance that the employee is properly indoctrinated with the desired values.

Additionally, carefully guard against "cultural transformations." It has been suggested that
changes in the workforce attributable to work alternatives such as temporary employment, self-
employment, and telecommuting are actually transforming all work units in Dionysus-type
cultures (Handy, 1995; Ettorre, 1996). While evidence of this dramatic transformation has yet to
be documented, it is conceivable that telecommuting could have this effect. It is equally likely
that many work units could not survive under this autonomous, self-serving culture.

Finally, take proactive steps to maintain a strong culture. If the culture depends on interaction
among members, this does not mean that telecommuting is not a valid work option. It does
mean, however, that alternative forms of communication should be considered, such as e-mail.
However, it is suggested that the overall "richness" of the communication media will be the
critical factor. Daft & Lengel (1984) propose that the richer the channel of communication, the
more likely that the intended message will be effectively communicated. In other words, in face-
to-face communication employees will not only see the message but will also experience the
nonverbal communication cues that appear critical to capturing the overall essence of the
message. Therefore, periodically scheduled meetings, award ceremonies, and company outings
may prove instrumental in maintaining the norms and beliefs in cultures that require social
interaction.

While decision-makers in all organizations should be aware of these effects, managers in small
businesses should be especially sensitive to cultural changes attributable to telecommuting.
Small business has led the way in telecommuting activities (Fryxell, 1984), but these smaller,
cohesive organizations will likely experience the effects of isolation much faster than large work
units. Therefore, small business managers must monitor telecommuting programs carefully and
react in an expedient manner to correct any undesirable consequences.

As communication technology becomes more affordable and employees demand more flexibility
in their schedules, telecommuting will increasingly represent an attractive alternative. However,
managers must not be so hasty to implement these programs that they neglect to consider
telecommuting's impact on their employees as well as other organizational elements such as
corporate culture.
The arguments in this paper are not intended to discourage management from pursuing
telecommuting but to urge serious consideration of the potential negative effects of employee
isolation and the need to take proper steps to offset or cushion any negative consequences. If
properly understood, planned, and implemented, telecommuting promises to be a work option
that can positively influence employee morale and commitment as well as the organization's
bottom line.
http://www.allbusiness.com/human-resources/employee-development/342486-1.html