Tuesday 25 March 2008

To what extent have managers been successful in resolving organisation and cultural problems arising from the use of Internet technology?

This essay focuses on the use of Internet technology as a framework for analysing the problems and solutions adopted in an organisation. The role of managers especially the part they play in resolving organisational and cultural problems arising from the use of Internet technology is discussed. The discussion also would include; modernism, organisational culture with regards to moral and ethical values, Internet problems and its implications on organisations both internally and externally. This research also encompasses issues such as, the Internet access, Security and Legal aspects. From the aforementioned issues, solutions that managers have successfully implemented such as, Internet policies, monitoring programs and strong cultural values are also discussed. Finally, the summary pinpoints issues discussed in the essay and review the problems of Internet usage and the solutions that have been successful.

It is arguable that there are no organisations which would not have problems caused by the influence of human modernism and diversity. As a result, this has added value to managerial work. Managers “are the specialised experts within work organisations who rationally analyse the tasks for which the organisation was set up and the resources required in completing them and in the light of these analyses, design work systems which achieve sufficient control over work activities and ensure successful tasks completion” (Watson, T., 2006. Pp14). As modernity, which is defined as “the capacity to respond to changing environment and to complex systems” (Clegg, S. R., 1990. Pp28) continues to influence organisations; the Internet technology brings businesses and the public together, which is why it is now at a fast rate becoming business model.

The Internet has transformed the way in which organisations conduct their business both internally and externally. The Internet allows the organisation to distribute information faster and have large electronic data storage, hereby reducing paper work. Invariably, the Internet has changed dynamics of the traditional organisation, as it is these days an undisputed business necessity. However, it poses a threat to Watson, T., (2006) argument that bureaucracy “a type of organisational structure that has been used to shape work and administrative activities since the industrial revolution” is indispensable. His definition of bureaucracy is similar to his definition of a manager except for the fact that bureaucracy based on hierarchical means of achieving a specified end, and is carried out formally without missing a step. However, this process may be flattened owing to Internet technology reducing the hierarchical structure as messages can be sent directly to intend receivers and certain levels of hierarchical structure can be bypassed (Lawrence, E. et al. 2003. Pp 186-188).

These arguments represent the culture drive of an organisation through which employees are encouraged and supported in making ethically responsible decisions. Hartman (2008) argued that culture can be explored or determined in any of these areas; tempo of work, organisation’s approach to humour, problem solving methods, competitive environment, incentives, individual autonomy and hierarchical structure. They also form the “value-based-culture” of the organisation. He defines value-based-culture as “one that reinforces a particular set of values rather than a particular set of rules”. In effect, the usage of the Internet is determined by the strength of the organisation’s cultural values. Culture values contribute significantly to the level of freedom Internet users enjoy in an organisation. It is therefore arguable that cultural values are not compliance structure for an organisation but an ethical base for employees to behave in a responsible way.

Invariably, problems that arise from the behavioural and technical aspects of organisations can be as a result of the organisational structure, diversity and work culture. Change is a common underlying factor which runs through all the aforementioned aspects of the organisation. Rollinson (2005) defines change as "a move from being in one organisational state to be another organisation state” and also explains that change can arise as a result of a shift in the economy, technology and competitors. The change in this context means the adaptability of an organisation to the Internet age. That is, how employees and managers perform differently in the Internet technological environment. Consequently, this change has brought about different concerns especially with the use of Internet technology.

The main problem and at the same time a challenge to managers in organisations is the misuse of Internet facility. Managers have concluded based on visible financial and economical evidence that employees take for granted their paid responsibility and have taken on board unpaid online activities at the expense of the organisation. Green’s research (2007) revealed that Londoners spend over 40 minutes of their average working day on “social not-working: visiting social networking sites such as Facebook or MySpace”. Consequently, productivity reduced and UK employers have incurred up to £130 million loses yearly as a sole result of Internet misuse. Another example of employee misconduct is the study carried out by Salary.com and America Online that revealed employees waste on average two hours surfing the Internet for their personal use. The has other sensitive implications; for example, “UK retailer Argos fired an employee who was reported as telling the world on Facebook what he thought of his employer”; this is a misconduct of the employee that could creates bad publicity for Argos (Financial Times).

These as a result, have nudged managers to rethink the management methodologies necessary to control the use of the Internet facility. There is no doubt that many businesses that have adopted the use of Internet technology face a major problem of ‘misuse’ and therefore, are in need of a lasting solution. Lawrence (2003) stated that “no matter what business model the fledgling electronic business adopts, it is possible to adopt essential disciplines of successful management techniques”, this implies that employers would have to apply practical measures and procedures including ‘common-sense’, to minimise misuse of the Internet, thus reducing cost incurred. In addition, access to the Internet must balance with legal, ethical, and organisation culture. Hogg (2000) suggested that everyone in an organisation should be informed of the act and consequences of misusing Internet technology. For this reasons managers have incorporated the use information system policy and monitoring system into the process of operation. It is also the opportunity to increased legal implications for those refusing to abide by the organisational principles and reduced legal implications for the organisation. Managers have geared on with the monitoring system.

Monitoring is a cost “containment tool” used to reduce downloads of lard files and heavy surfing which takes up bandwidth. Organisations employ the usage of certain software such as, SmartFilter designed to disrupt and slow the download of large MP3 files. Consequently, users get be frustrated and may not indulge in such act at the next opportunity. Another monitoring strategy is to install ‘Email Analyzer’ on computers. It creates a comprehensive report based on emails sent and received. This is an essential monitoring system that managers have used to control internet users.

With regards to the compulsive overuse and misuse of the Internet by employees, Martin and Freeman’s (2003) research revealed that ‘employee monitoring’ in particularly has raised further arguments which limits the role of managers in an organisation. The arguments are raised in seven areas which place the intentions of managers and their employee’s reaction in parallel. Firstly, managers’ strategy to increase productivity and control cost includes monitoring. That is, managers monitor and control time and use of Internet facility. Employees sending personal emails and surfing the Internet are under supervision because these activities are time engaging which results in low productivity and high cost. His argument illuminated the increase of psychological and physical health problems experienced by employees, such as, boredom, depression, and musculoskeletal problems; leading to higher level of stress and physical disorder. Even though his argument buttresses the fact that monitoring is seen as an invasion of employees’ privacy which may affect their motivation to work.

Secondly, the security problem which could be examined both internally and externally proposes a question; “does employee monitoring result in better organisational security?” Managers secure their system to control the risk of unwanted dissemination, retrieval and modification of private company data. Infiltration could be brought through viruses or hackers which may lead to devastating consequences position for the organisation. Even more seriously devastating position is the attack from disloyal employees or disgruntled ex-employees. One of the most effective ways of security breach is for a hacker to be an employee in an organisation (Stewart, J. M. 2007). This is an internal problem for the organisation. The external problems usually occur when employees visit forbidden sites, thereby lead to the company suffering substantial data loss as a direct result of attack from infiltration of online hackers. Martin and Freeman (2003) argued that by monitoring Internet usage and content, managers are able to detect and control security breaches.

Thirdly, “liability” argument brings into perspective that “employers find electronic monitoring particularly helpful in combating sexual harassment” and downloading of copyrighted materials onto an organisation’s equipment during working hours (Martin et al. 2003). An exemplar is the case; Humphries v VH Barnett & Co (London (South) employment tribunal) where an employee had downloaded obscene pornography which led to his dismissal. It was held that because the company did not have any policy to warrant the alleged misuse, the court would not uphold the dismissal (Clark, E). In other words, the term ‘breach’ will not be recognised if a policy for Internet usage is not set, hence, liability may be incurred. Employers are responsible for the activities of their employees in the organisation, including the ones that engage themselves with online activities. For example, if software for use in an organisation was obtained illegally, the employer is liable regardless of awareness (Hogg, C., 2000. Pp4). Successful implementation has been the tighter enforcement of the principle of least privilege, preventing users from installing software, not allowing any external removable media source, disabling all USB ports, extensive auditing, host-based IDS/IPS and Internet filtering in order to reduce foreseen and unforeseen liabilities.

‘Creativity’ was the fifth argument Martin (2003) identified, that is, creativity has always been an important business skill, but in this turbulent economy it is essential for innovation. He argued that employee’s response to an unseen observer would stifle their creativity, that is, the manager would “severely curtail” creative thinking. This could be seen as a detriment to the organisation because creativity is needed to move forward and improve. People have complex culture in regards to diversity and their performance may not be governed by rules. They can decide to ignore the rules or to make up new ones which would lead the organisation to realise that monitoring programs may hinder their creative thinking and performance. However, this argument has not considered damages or the unnecessary expenses that organisation have incurred and may further incur if managers do not monitor the operation of employee during working hours.

‘Privacy’ argument brings into perspective employee’s view that monitoring is seen as an invasion. That is, employees are concerned that managers have access to their personal information therefore limiting the level of control they have over their own information. For example; York (2000) reveals that the email administrator of Navistar International Corporation enforces the company's email policies, to limit personal use of the internet by using Cameo software. Cameo software is an email monitoring software designed to scan sent and received mail and is used against company polices. The administrator uses the software to retrieves messages that violates set policies by scanning the entire message, including addresses, subject lines, and content. However, employers legally have the right to monitor employee email, as long as they notify employees their intentions. The “State and federal courts have ruled in numerous lawsuits that employees can't always demand privacy in the workplace” (York, T., 2000). In addition, Martin (2003) argued that from the advent of information technology, that employee have been forced to rethink, thus determining who gains access to their information, that is, avoiding the use of company internet facility.

The sixth argument was paternalism; which seeks to answer “Does employee monitoring lead to paternalistic expectation?” This argument focuses on unequal distribution of monitoring system where those on higher up in the hierarchy, such as the managers are left indulgent. Martin (2003) argues from the organisation’s view that the paternalistic relationship combines both the intrusion on privacy plus lack of trust, that is, “the inherent unequal relationship between employee and employer is exacerbated when trust is doled out like candy”. He argues the top executives are immune to monitoring strategies thereby creating rules especially for those down the ladder of the organisation. In effect employees’ behaviour may degenerate to the level of a child and have effect on performance in the organisation.

The seventh argument is on social control. The question to ask is “has monitoring increased social control?” Employees believe that a monitoring system would create friction and reduce the level of socialisation within the organisation. This argument reveals the fact that monitoring could change “the culture of the broader organisation by changing both those employees monitored and those not monitored through the very threat of surveillance”. Apparently, this argument garners both issues of stifled creativity and privacy as important. Socialisation develops a cheerful environment in a work place and it should be encouraged by managers, rather they stifled through monitoring system.

However, these opposing perceptions of the employees cannot be compared with the savings of monitoring system (Alder, et al 2007). For instance, Korean company’s online search reduced by 41% when monitoring system was introduced (Alder, et al 2007). In addition, managerial strategy for resolving problems arising from the use of Internet technology can only be perceived as an unfair system towards employees if the reasons for which monitoring systems was adopted were not effectively communicated.

In summary, managers have come a long way in resolving problem arising from Internet usage. Organisations have transformed from the age were there was no Internet to the age were business need the Internet technology to function properly. The adaptability of an organisation to the Internet age which affected diversity, culture and organisational structure has affected the way mangers and employees relate especially on the use of Internet technology and problems arising as a result.

This change is referred to as called modernism which has benefits and costs. How ever, the benefits of Internet technology have been perceived in organisation as a disadvantage where hierarchical structure and process can be bypassed. This is because the Internet allows the organisation to distribute information faster and have large, thereby reducing paper work. Hence, less not attention has been diverted away from bureaucracy and as a direct result of the reliance on the Internet technology; employees have taken the liberty to indulge in many costly activities. The activities include; wasting precious time on online social network such as Facebook and MySpace, hacking into company’s computer systems, different misconducts such as misrepresentation of organisation’s image, staff harassment, visiting forbidden sites and illegal download over the Internet. These serious concerns led to serious consequences on the organisation. It affected the finances and productivity of an organisation as research showed that employees spend on average 40 minutes on non-work related activities.

However, value-based-culture is the terminology used to describe the ethical strength of the organisation. That is, it contributes significantly to the level of freedom the Internet users enjoy in an organisation focusing more on the organisational behaviour. Moreover, for a direct solution to Internet usage problems, managers have incorporated especially monitoring systems to avoid further legal implications and enforcement of organisational principles and polices. However, there are other ethical complications raised against the use of monitoring systems. These include; such as decrease in productivity, insecurity, liability, stifled creativity, privacy invasion, paternalism and social control.

Conclusively, research revealed monitoring systems however outweighs the concerns against its use. Therefore, it is arguable that over the years of Internet integration managers have successfully carried out monitoring programs in their organisation as the current solution to problems arising from the use of Internet technology.
Furthermore, the seven arguments provided juxtapose both the views of managers and employees in an organisation. While there are practical reasons for internet monitory systems the practice has affected employee morals. Also, the arguments do not provide the ultimate solution to internet usage problems in an organisation but the best solution adopted by managers so far. Further research may be carried out and take into consideration the reaction of employees and also equate standards in an organisation.









Bibliography

Books
Clegg, S. R., (1990) Modern Organisations, London. SAGE Publications.

Hartman, P. L., DesJardins, J., (2008) Business Ethics: The Corporate Culture—Impact and Implications? McGraw-Hill.

Hogg, C. (2000) Internet and E-mail use and Abuse. London, CIPD.

Lawrence, E., Newton, S., Corbett, B., Lawrence, J., Dann, S. and Thanasankit, T., (2003) Internet Commerce: digital model for business, 3rd Ed.

Rollinson, D., (2005) Organisational change and Development: Organisational Behaviour and Analysis: An Integrated Approach. 3rd Ed.

Watson, T., (2006) Organising and Managing Work; Managers and organisations: the modernist conception. Pearson Education Limited. 2nd Ed.

Zinkin, J., (2007) Managing Business Organisations: Custom Book Edition. Pearson Education Limited.


Online

Clark, E., Humphries v VH Barnett & Co (London (South) [online] Available from: [Accessed 20 October 2007]

Financial Times (2007) it’s amazing what people will say- “Facebook” [online] Available from: [Accessed 22 October 2007]

Green, M., (2007) Fourteen hours a month wasted 'social not-working’ [online] Available from: [Accessed 14th November 2007]

Komando, K., Microsoft: Why you need a company policy on Internet use [online] Available from: http://www.microsoft.com/smallbusiness/resources/management/employee_relations/why_you_need_a_company_policy_on_Internet_use.mspx [Accessed 20 October 2007]

Olsen, J.W., (2005) Information Week: How to Control Employees’ Internet Use. [Online] Available from: [Accessed 22 October 2007]

Stewart, J. M., (2007) Global Knowledge: Ten Ways Hackers Breach Security, [online] Available from: [Accessed 19 October 2007]

TechWeb Technology News (2005) Workers Waste More Time on Internet Surfing [online] Available from: [Accessed 22 October 2007]

York, T., (2000) InformationWeek: Invasion of Privacy? E-Mail Monitoring Is On the Rise. [Online] Available on: [Accessed 18th November 2007]

E-journal
Alder, G. S., Schminke, M., Noel, T. W. and Kuenzi, M., (2007) Employee Reactions to Monitoring: The Moderation Role of Ethics Orientation. Journals of Business Ethics. [online] Available from: Springer. [Accessed on 14th November 2007]

Martin, K. and Freeman, E. R., (2003) Some Problems with Employee Monitoring, Journal of Business Ethics 43, 353-361. [online] Available from: Springer. [Accessed on 14th November 2007]

1 comment:

Lekan Lijofi Ministries said...

Long read.... are you saying managers have a pool of culturally diverse employees to choose from. To add to this, internet technology gives everybody a voice making it more difficult for managerial control & manager their employees?