42
CHAPTER- II REVIEW OF LITERATURE 2.1 INTRODUCTION This chapter deals with review of literature on variable approach; basic concepts; current status of implementation of technology in office settings; technology, organization, individuals and conceptual framework of this research study. A nwnber of evaluation studies have been conducted by different investigators at different phases to investigate the problems, the impact and the future of office automation in Indian organizations. However, most of these studies were conducted in industries in private sectors and that too prior to 1980, when the Unit Record with Punch card system was popu1ar. There is one report of the works study team on automation (office automation) in Maharashtra state by Industries and Labour Department, Government of Maharashtra in 1968. The Committee constituted by the Govt. of Maharashtra consisted eminent scholars like Prof. P.N. Mathur, Prof. N.S. Ramaswamy, Dr. L.S. Kanodia, and Dr. V.G. Mhetras to assess the extent and impact of automation (electronic computerization) on industries and labour in the state including the 19

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CHAPTER- II

REVIEW OF LITERATURE

2.1 INTRODUCTION

This chapter deals with review of literature on variable approach;

basic concepts; current status of implementation of technology in office

settings; technology, organization, individuals and conceptual framework

of this research study.

A nwnber of evaluation studies have been conducted by different

investigators at different phases to investigate the problems, the impact

and the future of office automation in Indian organizations. However,

most of these studies were conducted in industries in private sectors and

that too prior to 1980, when the Unit Record with Punch card system

was popu1ar. There is one report of the works study team on automation

(office automation) in Maharashtra state by Industries and Labour

Department, Government of Maharashtra in 1968. The Committee

constituted by the Govt. of Maharashtra consisted eminent scholars like

Prof. P.N. Mathur, Prof. N.S. Ramaswamy, Dr. L.S. Kanodia, and Dr.

V.G. Mhetras to assess the extent and impact of automation (electronic

computerization) on industries and labour in the state including the

19

extent of retrenchment due to automation in the industries, the extent

automation would affect potential employment, and the effects of

automation on society and economy in general.

There are some specific studies done by (1) Reports on All India

Insurance Employees' Association - Automation, LIC's case - Calcutta

(1966). (2) Reports on Employees' Federation of India (Bombay) -

Views on Automation (1969). (3) Reports on Kulkarni Raja

International experience in Automation - Computer problems (compiled)

National Federation of Petroleum workers of India, Bombay (1968).

(4) Reports on Indian National Trade Union Congress (lNTUC) -

Automation - Standing Labour Committee to take closer look in Indian

workers (1968). All these studies provide the information on the problems

and impact of automation with the then existing technology which is

prior to 1970.

There are 3 volumes compiled and edited by Alan Simpson (1982)

on the office of the future - planning for the office with automation. Prof.

W.H. Scott (1961) has given his views on administrative and human

problems arising due to office automation in United States. The

Department of Employment, London, Her Majesty's office (1972) has

studied the manpower and situation of computers in offices. Prof. 20

Kathleen P. Wagoner and Prof. Mary Ruprecht (1976) in their book

named "Office Automation, Technology and Concepts", have given the

principles of managing in the office environment as it gets increasingly

automated.

P.S. Goodman and T.L. Griffith (1991) have developed a process­

oriented theoretical approach for understanding the implementation of

new technology. Five processes viz., socialization, commitment, reward

allocation, feedback and redesign, and diffusion, are conceptually related

to the successful implementation of new technology in the organization.

Norio Kambayashi (1995) has given some empirical evidence in

new forms of management organization under new technology. A

business organization consists of both a work organization, in which

workers engage in daily operations, and a management organization in

which managers engage in managing the work organization. Following

the advance of new technology such as microelectronics and information

technology, there has appeared a team production system instead of the

so-called one-man, one job type of work organization. At the management

organization level, it is claimed that the so-called flat-type or network­

type organization instead of the hierarchical organization has appeared,

based on information sharing among every organizational unit. In his 21

paper some new trends III organizational structure at the level of

management organization under new technology is discussed. According

to him, "new technologies should promote information sharing among

organizational units and blur the boundaries between them, but the

hierarchical design principle is not completely avoided and hierarchy

still remains even under the flat type or network type organization".

Karasek (1985) has developed a model, showing interaction

between high psychological demands and low decision latitude. If the

demands are regarded as the x - axis and decision latitude as the y-axis,

in a two dimensional system, and then the different combinations of high­

low demands and high-low decisions are regarded, four combinations are

regarded as the most relevant to stress development. This model predicts

that mental strain results from the interaction of job demand and job

decision latitude. The consistent finding is that it is the combination of

low decision latitude and heavy job demands which is associated with

mental stress. This model can be examined in the process oriented

approach in implementing new forms of office automation in the

organizations and evaluating its success criteria.

22

2.2 VARIABLE APPROACH OF IMPLEMENTATION PROCESS

It was seen that there is an increase in empirical research on the

implementation of new technology in the organizations in the Western

environment. For example, one research stream covers the

implementation of new technology in office settings, and is illustrated by

the work of Bikson (Bikson,1987; Bikson, et a1., 1987a, 1987b). Another

example is Ettlie's (1984) research on the implementation of

manufacturing technology.

In addition to empirical research, there have also been several

reviews of the implementation literature. Lucas' (1981) review of the

literature on information systems and operations research is one of the

most comprehensive to date. Tornatzky et a1. (1983) provide a chapter on

implementation within the context of their broader reVIew of the

technological innovation process. Ives and Olson (1984) reVIew

implementation of management information systems (MIS) as it relates to

the specific topic of user involvement and MIS success.

How does this research work differ from the research cited above?

First, the researcher's goal is to present a different the theoretical

perspective on implementation of new technology in Indian context rather

than a review of the implementation literature. The focus is on critical 23

processes which explain why certain factors affect implementation. Much

of the current literature focuses on whether certain variables, such as

users' participation or top managerial support, make a difference.

Second, is to present a different theoretical approach to conducting

research on implementation. In this research study, the approach begins

by articulating a set of critical theoretical processes. Then apply the

processes to a specific technology and setting in order to generate

propositions for testing and explaining successful implementation of new

technology and the role of social support within the organization. In more

traditional approaches to implementation research, one begins with

classes of technological, organizational, and implementation variables,

and then generates inferences about how these variables affect

implementation. In this study, approaches move away from trying to

develop a general or contingency model of implementation. Rather, the

focus is on using critical theoretical processes to explain different degrees

of implementation success and the role of social support in this process to

achieve the desired success.

2.3 BASIC CONCEPTS IN PROCESS APPROACH

The implementation is considered to be: (1) a process; (2)

undertaken to translate a tool, technique, method, or other objects into 24

some fonn of utilization; and (3) bounded by the adoption decision and

institutionalization (Tomatzky and Johnson, 1982; Ettlie, 1984; Lucas,

1986).

The adoption decision (Dean, 1987) refers to the processes by

which a new piece of technology is selected for the organization. While

the adoption decision clearly affects implementation, it is composed of

different processes and is analytically distinct from implementation.

Institutionalization refers to the process by which a structure

persists over time (Goodman and Dean, 1982). The distinction about

when implementation stops and institutionalization starts may be a bit

arbitrary. However, the learning curve concept may help in delineation.

During the implementation of a new technology, some type of learning

curve should be observed. As one moves down the learning curve, an

equilibrium should be reached. It is the persistence of this dynamic

equilibrium which is addressed by the concept of institutionalization.

Technology is the other key concept. While there are many

definitions of technology (Goodman, 1986; Weick, 1990), here

technology refers to a system of components which act on or change an

object from one state to another. The components include hardware,

25

software, and programs to transfonn materials or infonnation from one

state to another. Implicit in this definition is the view of technology as a

system of cause and effect relationships embedded in machines and

methods (Sproull and Goodman, 1990). In this study, the researcher

focused but not exclusively, on new computer-based technology.

Examples from manufacturing settings include computer-aided design,

computer-aided manufacturing (e.g., robots), flexible manufacturing

systems, and computer-aided techniques for management (e.g. planning

tools). Examples from office settings include management infonnation

systems (e.g. order processing systems) and telecommunication systems

(e.g. electronic mail). Although much of the current implementation

literature concerns infonnation technology, it was believed that process

approach is generalizeable to many fonns of new technology.

2.4 CURRENT STATUS AND IMPLEMENTATION STUDIES: RELEVANT LITERATURE

In this section, it was characterized the current fonn of studies on

implementation. The researcher's interest is to illustrate some ideas, not to

do a comprehensive literature review. It is suggested that the literature is

largely framed around variables, such as the characteristics of the

technology or a particular implementation strategy.

26

It is better to begin by looking at other reviews of the literature

(Bikson et aI., 1981; Lucas, 1986), which basically indicate that

organizational, technological, and implementation strategies are the major

classes of variables affecting implementation success. The literature on

implementation of new technology with a particular focus on empirical

studies in the 1980-1991 time period was then examined. Again, the

general theoretical framework is that organizational, technological, and

implementation variables affect the degree of implementation success.

The modal study is designed around a few specific variables from one or

more of these classes of variables.

Some examples from this literature may be instructive. From the

organizational class, variables such as the availability of resources and the

contingent nature of the reward system affect the successful

implementation of the new technology (Bikson et aI., 1987a, Leonard­

Barton, 1987a). The characteristics of the technology itself make a

difference. For example, there is evidence that the level of functionality

and modifiability of the technology is positively associated with

implementation success (Bikson et al., 1987a). Implementation strategies

which enhance a socio-technical orientation and create a gradual change

are also likely to be more effective (Bikson et aI., 1987a).

27

The variable approach has been the major intellectual orientation in

this literature. There are persistent findings generated from this theoretical

approach which inform both theory and practice. At the same time, it

appears then there are limitations to this variable approach, and recently,

some movement to a process perspective (Cooper and Zmud, 1990). It

was believed that now at a position in the implementation literature where

it might be valuable to consider alternative paradigms to the variable

approach.

2.5 IMPLEMENTATION OF INFORMATION TECHNOLOGY IN OFFICE SETTINGS:

The primary aim of this literature reVlew IS to survey preVlous

studies of the implementation of innovations in organizations in order to

see what light they may shed on the introduction of computerized

procedures into office settings. Specifically, undertaking such an

endeavour should suggest the classes or types of variables that are likely

to affect short and long-run outcomes of the implementation of

information technology in work contexts, and should provide a framework

for examining that process.

28

For this purpose, office infonnation technology is regarded as

comprising multifunction computer systems that perfonn some of the

infonnation handling tasks of the work unit in interaction with their users;

they encompass a number of autonomous parts whose tasks can be

executed in parallel. This definition distinguishes the systems thought to

indicate the "office of the future" from closely related technologies that

are single-function and/or non-interactive (e.g., voice message systems,

typewriters with memories, computerized payroll processing, and other

already widely diffused technologies).

While there exists a body of research related to technological

innovation, there has been little systematic study of implementation of

electronic infonnation technology. Further, the bulk of existing research

infonnation on innovation represents the experience of public sector

organizations, while the national productivity effects of office infonnation

technology are expected to support largely from its use in the private

sector. Consequently, this review gives special attention to questions

about the extent to which findings generated by studies of more limited

types of innovation in public sector organizations can be expected to

apply to the implementation of computerized infonnation technology in

private sector settings.

29

Computer technology, having advanced tremendously slDce the

introduction of magnetic card typewriters in the late 1980's, has already

entered into fourth generation technology and software and a substantial

number and variety in private and public sector organizations. The

"office of the filture" has thus been touted as the major change in work

settings to be expected during the 1980's (cf. Coopers and Lybrand

Newsletter, 1978; Mankin, 1978; Connel, 1979, 1980; Cockroft, 1979).

Most large corporations and government offices are planning or

implementing "office of the future systems". Such changes are expected

to affect well over 50 percent of the total work force (Bair, 1978).

Moreover, the search for more rapid error-free communication as well as

expanding needs to link information to large or remote databases and

other equipment is creating a growing demand for local networks.

2.6 TECHNOLOGY, ORGANIZATION AND THE INDIVIDUAL

2.6.1 Organizational Technology

Organizational technology, at the most general level, has been

defined as the process of transforming inputs into outputs (Fry, 1982).

For example (perrow, 1967), defined technology as a technique or a group

of techniques employed to alter materials in a predictable manner. Both

30

Rousseau (1978, 1979) and Gerwin (1981) defined technology as a

process of transfonning raw materials into outputs. The significant

variables ill the transfonnation process are the raw materials and the

technical and knowledge processes needed to accomplish the

organization's goals. Woodward (1965) defined teclrnology in tenns of

the type of production process. The emphasis in her definition is on the

predictability and controllability of this process. Hulin and Roznowski

(1985), in a more comprehensive manner, defined organizational

technology as the "physical combined with intellectual or knowledge

processes by which materials in some form are transfonned into outputs

used by another organization or subsystem within the same organization".

Physical characteristics of operator/machine systems in combination with

the skill and information requirements necessary to carry out the

processes represent the core of this definition.

In an organization, organizational teclrnology provides social and

managerial systems with the necessary means to accomplish required

transfonnations. Technical systems have implications for individuals and

groups that compose the social system in an organization. They also

impose demands on the managerial system. Some obvious implications

are that teclrnically demanding conversion processes require social

31

systems consisting of both highly trained and unskilled individuals who

are different from those required by less technologically complex systems.

Complex managerial systems are usually required to coordinate the work

and output of complex technical systems. Organizational structures are

often modified to accommodate changes in technical systems. An

understanding of the effects of technology on individual behaviour as well

as knowledge of its spread throughout the organization is, therefore, vital

in understanding individual and groups in complex organizations. While

assessing organizational technology, however, it should be remembered

that the technical system required to convert specified inputs into usable

outputs in an organization defines the core operating system - the core

technology - of the organization. All other components of organizations

exist to support this core activity. -However, technology at the overall

organizational level (i.e., the core technology) does not assist us to arrive

at a precise assessment of individuals' attitudes and behaviors.

Individuals generally respond to their respective departmental structures

and functions, which are influenced by the technology of the subunits,

referred to as local technologies. The local technologies, when assessed

across sub-units, manifest themselves in intra-organizational differences

in technologies. Their characteristics are the proximal technological

characteristics to which employees respond (Hulin and Roznowski, 1985). 32

Research concerning the effects of organizational technology has

generally investigated one of the linkages shown in Figure (2.1). This

figure does not depict causal paths. It is an investigating device for

outlining conceptually important links among constructs and variables in

this general research area (Hulin and Romowski, 1985).

2.6.2 TECHNOLOGY AND ORGANIZATIONAL STRUCTURE

Organizational technology has a direct influence on organizational

structure. Research on technology and organizational structure indicates a

strong support for the existence of technology-structure relationship in

spite of disagreements and controversies regarding the exact nature of this

dynamics (Fry, 1982, Hulin and Romowski, 1985).

Organizational structure is concerned with the arrangements and

configurations of people, departments and other sub-systems in the

organization (Hunt, 1970, Thompson, 1967), which are governed by the

type of technology adopted by the organization. For example, Thompson

(1967) indicated that the degree of interdependence varies across

technology: a mediating technology (e.g., financial institutions) would

require a lesser degree of interdependence than a long-linked technology

(e.g., auto-assembly lines). Carter (1984) has indicated that as

33

technology changes in an organization, the division of labour as reflected

by functional diversification, functional specialization and functional

differentiation also changes. Hulin and Roznowski (1985) pointed out

that with the introduction of a complex technology, organizational

structure changes as a result of simple organizational growth. This in turn

generates internal organizational differentiations of the kind associated

with changes in the core technology.

From the technology-structure literature, complexity (including

vertical and horizontal differentiations), formalization and centralization

(including hierarchy of authority and span of control) have been identified

to be the major dimensions of organizational structure which are

influenced by organizational technology (Fry, 1982). Based on

Woodwind's observations (1958, 1965), Hulin and Roznowski (1985)

have hypothesized interrelating among the factors of technological

complexity, system control, workers' control (autonomy) and supervisory

control as shown in Figure (2.1) systems less technologically complex

(handicrafts, for example) are associated with more employee control and

little need for close and elaborate supervisory control. With increase in

the complexity of technologies, worker control is reduced and the need for

closer observation and inspection by supervision becomes a more

34

A M 0 U N T

0 F

C 0 N T R 0 L

E X E R

Low III

Employees Control

Supervisory Control

Technolgical Complexiry

\ Technical System Control

------.. ~ High

FIG.2.1 . HYPOTHESIZED RELATIONS AMONG TECHNO· LOGICAL COMPLEXITY, SYSTEM CONTROL, WORKER CONTROL (AUTONOMY) AND SUPERVISORY CONTROL EXERTED IN THE SYSTEM (HULIN AND ROZNOWSKI, 1985)

essential requirement. This results in the increased differentiation and

specialization of tasks and functions. In the most complex technical

system (fully computer-based systems, for example) less observations by

supervision is again required as the control functions are provided by the

machine system itself.

2.6.3 TECHNOLOGY AND TASK CHARACTERSTICS

Tasks are the most direct consequences of technology.

Technologies are, after all, implemented to create configurations of tasks

and activities that enable organizations to achieve their goals.

Turner and Lawrence's (1965) research work on task characteristics

investigated objective attributes of an organizational setting for purposes

of defining the important task dimensions relevant for employees.

Although their work did not explicitly attempt to differentiate jobs with

respect to technology, the requisite task attributes such as motor and

object variety, autonomy, knowledge and skill etc, were mapped to a

detailed configuration of job types. These job types were related to

different technological categories.

Oldham and Hackman (1980) have noted that an organization's

technology can "constrain the feasibility of work redesign by limiting the 36

number of ways that jobs within the technology can be designed." Hulin

and Roznowski (1985) pointed out that technological characteristics of a

subsystem play the most important role in the creation of tasks and other

job factors within a work centre. The technical system provides much of

the important variance in many aspects of the job itself. Rousseau (1979)

has investigated different technologies to delineate characteristics of tasks

that vary as a function of technical complexity. She observed that long-

linked technological units (e.g. assembly line), in contrast to intensive

(e.g. research and development units) and mediating ones (e.g. banks and

insurance units) provided little opportunity to deal with others, use a

variety of skills, make decisions, or experience high task significance.

Rousseau (1978) also found that highly structured work procedures have

jobs with little perceived variety autonomy, identity or significance.

2.6.4 TECHNOLOGY AND INDIVIDUALS' RESPONSES

To the extent that technology influences organizational structure,

one can expect to find the effects of that on organizationally relevant

responses made by individuals (Linkage C. in Fig. 2.2). Aggregate

organizational variables such as size, configuration (number of levels in

hierarchical structures relative to organizational size), centralization, span

of control and standardization of operating procedures have frequently 37

Technology Organizational r

Structure

,

Individuals' Individuals' Response Response

FIG.2.2 - LINKAGES BETWEEN TECHNOLOGY, STRUCTURE, TASK CHARACTERISTICS, INDIVIDUALS' RESPONSES THAT HAVE BEEN SUBJECTED TO EMPIRICAL STUDY (HULIN AND ROZNOWSKI, 1985)

been shown to be related to aggregated responses (satisfaction,

absenteeism or motivation). These demonstrated relations (Berger and

Cummings, 1979; Hage and Aiken, 1969; Herman and Hulin, 1972;

Herman et.al.,1975; Porter and Lawler, 1965) are important for

demonstrating the generality of the linkage between organizational

structures and individuals' responses. (Linkage C. in Fig. 22)

On the other hand, the influence of task characteristics on

individuals' affective responses (Linkage D. in Fig. 2.2) has been

researched extensively (see Roberts and Glick, 1981, for a review).

However, for the most part, the source and causes of task characteristics

are neglected in these studies; since technologies of organizational

subsystems have consistent and interrelated effects on many

organizational subunits (for example, tasks, supervisory practices, group

structures, workflow, management control systems, etc), a discussion of

task characteristics and its influence in isolation from technology seems

insufficient (Hulin and Roznowski, 1985).

A series of studies by Rousseau (Rousseau, 1977; 1978; 1979)

examined the impact of technological differences within organizations on

attitudes and perceptions of employees. She observed significant

differences between the job characteristics, employee satisfaction and 39

motivation across technologies. Katerberg (1978) assessed technical

complexity by measuring capital intensity, mechanization and skill

specialization within several diverse units of one organization. He found

that functional groups represented by high technical complexity had

higher satisfaction with their work than other groups. Differences in

perceptions of task characteristics across these units were also found. The

findings were consistent with the differences in affective responses of the

individuals. Hulin and Roznowski (1985) indicated that both technology

and functional speciality differentiated individuals' work-related

responses. Satisfaction with the work itself consistently varied with both

technology level and functional speciality. In general, individuals in more

complex technologies were more satisfied with their work. Different

levels of technical complexity within functional specialities further

differentiated individuals' work satisfaction. In other words, within the

same functional specialities, workers in different technologies responded

differently but in a consistent and predictable manner.

2.7 CHANGES IN ORGANIZATIONAL TECHNOLOGY AND ITS IMPACT

When a new technology is introduced into the workplace, there is

bound to be a disruption created by the technological change (Taylor,

1971). This kind of disruption has been labelled 'unfreezing' by Lewin 40

(1951) or "internal system strain" by Katz and Kahn (1966). In both

cases, the dynamics created is that of a force towards total system

restructuring to find a new equilibrium. The process of total restructuring

brings about changes in the organizational structure and job

characteristics which in tum influence employees' attitudes and behaviors

within the organization. Therefore, a properly planned technological

change and implementation process is needed to help better employees'

adjustments and enhance organizational effectiveness.

Two main approaches are proposed by behavioral scientists

to deal with organizational change effectively (Rousseau, 1977). These

two approaches, also termed "techno-structural approaches" (Friedlander

and Brown, 1974) are socio-technical systems and job design. Both these

approaches to organizational change converge in their emphasis on a

common set of job characteristics that influence employee satisfaction and

motivation (Rousseau, 1977).

The socio-technical system approach recognizes that a production

system requires both a technical and a social structure, Both systems

influence each other. The technical system shapes the organization of

work and creates specific social structures within a given task stmcture.

In tum, the social structure contains social and psychological properties 41

that create changes in the task structure. It is this interaction - where the

social and technical systems simultaneously evolve and influence one that

is referred to as the socio-technical system and another group (Blau and

Shoenherr, 1971; Trist and Bamforth, 1951; Woodward, 1965). Cooper

and Foster (1971) argue that technological characteristics ofa system are

the variables and attributes that affect the social system and impose

constraints upon its development. For example, when a change in the

technical system occurs, a concommitant change in the social systems

should also occur. If a social system change cannot take place or if the

technical changes introduce disruptions the social system cannot respond

to, negative consequences can arise for individuals working in that socio­

technical system.

While the socio-technical system approach considers the entire

system organizational unit in planning organizational change, job design

approach (e.g. Hackman and Oldham, 1975) is oriented towards

modifying specific jobs within an organization without necessarily

considering their interrelations with other jobs or units. Hackman et.al

(1974) have formulated a theory which relates the restructuring of work

content to psychological processes. They hypothesize that three critical

psychological states determine an individual's motivation and satisfaction

42

on the job which in turn affect performance, absenteeism and turnover.

These three states are experienced meaningfulness, experienced

responsibility and knowledge of results. According to them, these states

are present when the work content is high on five core job dimensions,

such as, skill variety, task identity, task significance, autonomy and

feedback. Thus; it can be concluded that a major assumption of the job

design approach to techno-structural changes is that there exists a set of

job dimensions which affect the level of employee performance and

attitude towards work.

Rousseau (1977) is of the opinion that the specific changes in work

content prescribed by the job design research and the socio-technical

system theory appear to be essentially the same. Socio-technical system ,

theory and job design research converge in their use of core task

characteristics as the vehicle for desired organizational change. These

specific job dimensions are not necessarily exhaustive, but they do reflect

the basic types of techno-structural changes employed by these two

approaches. Thus, despite the lack of a coherent theory in past

applications of job design techniques (as pointed out by Hulin and

Roznowski, 1985; Pierce and Dunham 1976 Roberts and Glick. 1981),

research in this area is congruent with socio-technical system theory, both

43

view technology as malleable and both asswne that certain aspects

of work design are particularly relevant to the attitudes and behaviour of

employees (Rousseau, 1977).

2.8 EXPECTATIONS FOR IMPLEMENTATION

The introduction of electronic information systems in varied user

settings, then, constitutes a trend of long-term national significance.

Recent literature yields a nwnber of reasons for the rapid diffusion of

these systems, reflecting primarily an intersection of economic needs and

technological opportunities. Among the electronic factors that constitute

"the driving force behind the technological explosion to automate office

operations' (Connell, 1979), personnel costs play a prominent role.

Whether an organization is associated with a product or a service, "the

office" is associated with information and communication; in particular,

"office work' consists of "information-handling activities" such as reading

and filling docwnents, performing computations, preparing reports,

responding to requests, making decisions, and the like (Ellis and. Nutt,

1980). These activities in traditional offices are highly labor-intensive

(Strassman, 1980; Colton, 1979) and consequently relatively costly. But

while employee costs have continued to increase, office productivity has

not; rather, productivity improvements have lagged for behind industrial 44

and manufacturing growth (Keating, 1980; Gehmlich, 1980; YOlmg, 1980;

Grove, 1979; Bennis, 1980). These problems are generating bitterness by

steady increases in the amount of paper work required and the growing

scarcity of paper, circlUllstances that increase labor time and work cost

(Young, 1980; Whitney, 1980; Law and Pareira, 1976).

Concurrently, a variety of automated office systems have become

readily available with computer costs decreasing. "Office automation has

become increasingly cost-effective while office productivity has declined"

(Magnus, 1980). "Automation, " then, "seems to be the answer" (Forest,

1979; of. Gottheimer, 1979). Thus, the Vice President of International

Marketing Requirements for IBM reports that "increasing productivity of

both boss and secretary will be the focus of the office of the future"

(Marketing News, 1979). Initially, computer technology was regarded as a

means for achieving savings at the secretarial/clerical level. For instance,

a 1974 article titled "We Need No Secretaries" (Shiff, 1974) argued that

such systems could eliminate transcription, typing, and filing from office

work; more modest proposals suggested that office technology could

increase secretarial productivity by 25 to 33 percent (Law and Pereira,

1976) not only on the private sector side but also public sector and

governmental office settings. " The newest wave of automation affects

45

highly skilled personnel as well. A survey made by Booz-Allen and

Hamilton, in which almost 300 managers and professionals in 15 major

U.S. corporations took part, concluded that from 15 to 30 percent of

highly skilled office time is spent in information handling tasks that could

be computerized (Business Week, 1980; Hill, 1980; Patterson, 1980). A

Dun's Review article suggests that such systems will in fact reduce the

need for middle managers (Gottheimer, 1979). Finally, the recent

proliferation of small computer systems is expected to permit small as

well as large organizations to increase their operational efficiency

(Devore, 1979; Kling; 1980; McCormick, 1980).

The technological opportunity to address serious productivity and

cost problems, then, emerges as the most visible issue for organizations in

the instruction of computer systems into office settings. However, the

literature also bears evidence of related but less well-defined social issues

bearing on the office of the future. One such issue is the national

importance of advanced capability for information organization and

processing. While a number of the periodicals cited above called attention

to increased "paper work", those increases are often interpreted

generically as reflective of a transition into the postindustrial ago of

information (Mankin, 1978; Strassman, 1980). From that viewpoint,

46

increasing the productivity of the office "because a major social

challenge" as industrialized societies become servIce and knowledge­

based economies (Driscoll, 1979). From the same perspective,

information becomes a "clerical resource" whose effective management is

an important component of "long term U.S. performance" (Thoryn, 1980).

Application of advanced technology to information-based work is seen in

this light as linked to national progress and social analysis of computing

provides an extended theoretical and empirical account of this line of

reasoning in his discussion of "systems rationalism."

A second major social issue arises in relation to the redesign of the

office and the transformed nature of work necessitated by technological

innovation. As one source put it, technological advance "will change the

office as a place into the office as a system" (Sadler, 1980). While there is

little disagreement over whether computerized procedures will change

office settings and tasks, there is considerable dispute over just what sorts

of changes to expect. Forecasts of the end of secretarial and middle

management roles such as those cited above have generated varying

responses. It is sometimes suggested that introduction of office

technology will increase users' skill repertoires and will release time from

repetitive and monotonous tasks for more autonomous and creative

47

pursuits (e.g. Connell, 1979; Shiff, 1974; Hill, 1980). Equally frequently

it is argued that such procedures only deskill and fractionate jobs,

replacing some workers and increasing the alienation of those who

remain. Lower-level employees believe that new technology invariably

routinizes work, creates more formalized structures, and leads to more

authoritarian . management styles (of. National Association of Office

Workers, 1980; Cockroft, 1979). Higher-level personnel are concerned

that organizational changes may decrease their social power while

technological changes result in the obsolescence of their skills (Frank,

1980; kling,1980). According to the Booz-Allen and Hamilton study

(Modem Office and Data Management, 1980), administrative, managerial

and professional level workers have been most resistant to technology.

Kling's review of the social impacts of computing (1980) provides an

extensive discussion of the relationship of office technology of social

structures, behavioral roles and interaction patterns in the work setting.

Potential impacts on communication and social relations in work setting

are also reviewed by Ellis and Nutt (1980).

In sum, computerized office procedures constitute a technological

innovation whose anticipated widespread introduction into the private

sector has been linked with significant organizational and societal

48

outcomes. As Kling (1980) underscore, these links have in the main been

speculative but they are of considerable utility in pointing out areas of

capacity, potential benefit, and potential harm. It is instructive to review

some experiences of private sector finns that have published reactions to

or outcomes of attempts to automate, in order to automate, in order to see

how they compare with prospective themes in the areas outlined above. It

should be noted, however, that most such reports are not research-based

but rather reflect highly selective views of individual managers,

management consultants, or even systems vendors.

2.9 VARIOUS IMPLEMENTATION REPORTS

A number of papers present successful experiences. For example,

an Administrative Management article (Hansen, 1977) reports surveying a

number of companies that had installed word processing systems; all

indicated "productivity gains and cost effectiveness" with the system (cf.

also Lewis, 1979 and Modem Office Procedures, 1980 for similar

outcomes). Another study (Anderson, 1978) finds that computer-based

message systems improve productivity by saving time, by increasing the

volume of work peIformed, and by more efficient problem-solving.

Specific positive accounts range and by more efficient problem-solving.

Specific positive accountants range from a pharmaceutical firm 49

(Clutterbuck, 1978) whose office system had saved time at both the

managerial and secretarial levels (increasing productivity at the latter

level as well) to a life insurance firm (McConnick, 1980) whose

introduction of minicomputers and distributed processing had cut proposal

preparation time from days to half an hour.

For all such positive accounts, however, there are even more

negative experiences on record. For example, a March 1980 Business

Week article reports that "Many companies are having difficulties making

word processing equipment work as planned; expected productivity gains

are believed to require more as planned"; expected productivity gains are

believed to require more efforts at organizing the introduction of those

systems and especially at overcoming both secretarial and managerial

resistance. Similarly, a Management Focus article (Krasan, 1980) notes

that the "magical machines" work as well as vendors say they do, but that

most organizations nevertheless have not seen productivity improve

"mainly because people in charge have not been laying the groundwork

for office automation" sitting unused in some business" (Winkler, 1979)

while "productivity is virtually static and the proportion of white-collar

workers is following Parkinson's laws" (Lester, 1 978). Finally, at a

meeting focused on office systems and infonnation technology, the

50

Administrative Management society concluded that technological change

in this area should slow down "with more emphasis on equipment

evaluation based on human resources considerations" (Dickey, 1979).

While inferences drawn from such an unsystematic information

base are necessarily tentative, it is fairly clear that although the expected

proliferation of office systems is well under way, anticipations of

economic gains have not been commensurately fulfilled. Initially

promising outcomes appear to have given way to mixed effects or to

outright disappointments. That is, office technology seems to exemplify

Green's (1973) more general thesis that technology assessment,

"especially in the early stage likely will show an over-weighting of

benefits and an under-weighting of risks".

With respect to computerized office producers in particular, a

variety of reasons for the discrepancy are suggested by the literature

reviewed. A great majority of them can be understood in terms of the

classes of factors (cf. Bikson, 1980; in, 1978; in et al., 1976; Berman and

McLaughlin, 1975, 1974; Pressman and Wildavsky, 1973). Perhaps the

most common explanations cite planning failures, ranging from lack of

recognition that introduction of computers would require thoughtful

adaptation to lack of strategies for overcoming employee resistance to

T188 LIBRARY

1111111111111111111111111111 096149

V{ 51

~\{\ ~ \y\"i..,

change in both higher and lower-status positions. It is likely that

recognition of a technological opportunity to improve productivity and

efficiency was the dominant adoption impetus, and that little attention was

given to implementation processes. Since alternative choices in the

management of that process can apparently have substantially different

economic and social impacts, it is appropriate and timely to give careful

consideration to what can be learned from past research about potential

influences on the outcomes of attempts to implement computerized

information technology.

2.10. CONCEPTUAL FRAMEWORK

A framework for conceptualizing potential sources of influence on

implementation of computerized procedures in office settings was drawn

from theoretical structures developed in a range of studies of the ,

innovation process (see, for example, Goodman and Griffith (1991);

Karasek (1985) ; Bikson et a!., (1980); Norio Kambayashi (1995).

2.11 THE IMPLEMENTATION PROCESS OF A NEW TECHNOLOGY

lUX

"There are certain factors affect impfementation process. By

understanding the process or the variables affecting the process, one can

52

establish~ the reasons and relationships with the implementation success

criteria. There are five critical processes that drive four measures of

implementation success" Goodman and Griffith (1991).

TABLE NO. 2.1

TABLE SHOWING THE CRITICAL IMPLEMENTATION PROCESS APPROACH AND ITS SUCCESS FACTORS

CRITICAL PROCESS IMPLEMENTATION SUCCESS l.Socialisation of Technology I.Acquisition of Knowledge and

skill/Job Satisfaction 2. Commitment 2.BehaviourlUtilisation

Performance/Job Involvement 3. Reward Allocation 3. Attitude towards Technology 4. Feedbackfl{edesign 4. Normative Consensus 5. Diffusion

A. Work organization

B. Job demand and control Situation

What follows IS conceptualization of processes driving

implementation and selecting these in exanIining this approach to assess

the implementation success. From the above table No. 2.1 it is seen that:

(1) Socialization refers to the processes by which individuals acquire

knowledge and skills, affective, and/or evaluative orientations

about the new technology.

53

(2) Commitment refers to the binding of the individual to certain

behavioral acts relevant to technology.

(3) Reward allocation refers to the allocation of different types of

rewards relevant to the implementation ofnew technology.

(4) Feedback and redesign refers to the process by which data are

collected about a new technology and redesign activities are

initiated to enhance the operation of the new technology.

(5) Diffusion refers to the process by which technology is extended to

other parts of the organization.

(6) Relevant changes in the work organization as necessary factor in

the implementation process. An organization consists of both work

organization in which workers or employees engage in daily

operations and management organization, in which managers

engage in managing work organization. Under the emergence of

New Technology the work organization has been changing

greatly. This new form of work organization leads to the team

production system. In the presence of new forms of office

technology, employees can utilize their own ability to think and

behave much more than under the older system. The number of

levels in the hierarchy is decreasing and flatter organization

54

and/or network type organization is emerging under the advance of

New Technology.

(7) The situation of occupational stress due to change in the workload

and the controls on employee is one of the aspects in the

implementation process approach. A useful and important analysis

of the issue of control as applied to work has been provided by

Karasek (1981) (Fig.2.3). Using the results of survey research,

Karasek carried out an extensive statistical analysis in which a

large number of jobs - both white and blue collar - were classified

according to two dimensions: job demand and job decision

latitude. Job demand was defined as "the working individual's

potential control over his tasks, pressure of work load and his

conduct during the working day". Job decision latitude can be

interpreted as control, not necessarily just concerning major

decisions affecting the organization, but also over the moment-to­

moment flow of daily life. It is the extent to which a person can

decide what to do next on the job. The types of jobs that might

result from different combinations of job demands and job decision

latitude. Job demand, the other dimension of work, has three

aspects: the pressures of meeting the demand of the workload

55

Low

Job Decision Latitude

High

Low

"PASSIVE JOBS"

"LOW STRAIN" JOB

Job Demands

High

"HIGH STRAIN" JOB

"ACTIVE" JOB

FIG.2.3 - JOB STRAIN MODEL (KARSEK, 1985)

A

B

itself, of dealing with lUlexpected tasks, and of coping with job­

related interpersonal conflicts.

The situation where work load on employee is relatively greater

than the limits of authority and its control termed as decision latitude is

of primary importance in predicting mental strain. Karasek argues that

previous researchers have focused on one or the other of these two

dimensions, but have failed to realize that both must be considered in

combination. Thus, four different categories of work must be considered

in combination: high demand-high control, high demand-low control, low

demand-high control, and low demand-low control.

Karasek fOlUld that the people most at risk for cardiovascular

disease were in the high demand-low control situation. The risk levels

associated with people holding these jobs were, in fact, at least as great

as the traditional risk factors for heart disease (smoking, age, obesity,

etc.). Thus, the image of the high-powered executive being at risk for

heart attacks is to some extent mistaken: the high-powered executive has

a great deal of control, and while he or she may be at risk, the data entry

person is at greater risk statistically.

57

2.12 THE IMPLEMENTATION SUCCESS

A delineation of the meaning of implementation success IS

necessary in order to use process approach. The success indicators as

perceived by the employee as shown in the above table No 2.1 are:

(1) Job satisfaction and knowledge about the technology refers to

information held by different constituencies on how to operate

troubleshoot technology and redesign the system, proper

coordination between the job demand and workload.

(2) Job involvement, behavior, performance and utilization refer to

activities such as monitoring the individuals who operate and their

level of utilization of the new technology.

(3) Attitudes refer to how different constituencies express, positive or

negative feelings about the monitoring system adopted with the

help of the technology.

(4) Normative consensus refers to normal acceptance or agreement

about the value of the new technology.

The dimensional structure referred (Table No.2.l) is selected

because it permits examining the effect of objective characteristics of

technology on an objective indicator of success and the utilization of the

system. It also permits examining the socially constructed meaning of 58

",

technology and how this construction affects the individual, how

individuals and groups redefine and change technology, and how

technology will be implemented.

2.13 THE RESEARCH MODEL

A conceptual framework is essential to proceed with the research.

The (Fig.2.4) is a research model which is a diagrammatic presentation of

the various variables. Part (A) is the respondent's demographic data. Part

(B) to Part (D) represent the independent variables such as critical process

of implementation of office, work organization, job control and demand

situation. Part (E) is introductory moderating variable as SOCIAL

SUPPORT and the Part (F) is the dependent variable for implementation

success criteria - personal outcome.

Applying the conceptual framework presented in the Fig.2.4 and

Table No.2.1, the researcher identified several features of financial

institutions, its office information technology, and its implementation

program, and plans maintained for social support within the institution

that may explain the role of social support in effective implementation of

office technology and its success.

The next chapter deals with the plan of this study.

- 59

FIG.2.4 THE ROLE OF SOCIAL SUPPORT IN EFFECTIVE IMPLEMENTATION OF OFFICE AUTOMATION

Part (B~ INDEPENDENT VARIABLE

~ DEPENDENT VARIABLES

otrcoME VARIABLE Part (C) Part (E) MODERN~G VARIABLE

Part (D) PartlF) CRITICAL PROCESS ,

OF TO COPE UP WITH JOB STRESS IMPLEMENTAION

IMPLEMENTATION OF WORK SOCIAL SUPPORT SUCCESS

O.A ORGANISATI MANAGERSIEMPLOYEE CRITERIA

I. SOCIALISATION ON OF OPERATOR I. INSTITUTIONAL SUPPORT I. KNOWLEDGE! SKILL &

- Process by which JOB SATISFACTION

individual acquire . Changes in JOB CONTRL (a) Training and Career Infonnation held by knowledge & skilts management & development Different constituencies on

affective and/or evaluative structure. 'DEMAND SITUATION how to operate troubleshoot

rienlations about the new SdURCES Of JOB STRESS [ b) Job security. & redesign Ihe system. technology. - Changes in

management I. Low decision latitude and (e] Work condition. 2. BEHAVIOUR.

2. COMMITMENT ~ hierarchy. - f--. low workload makes a f----- UTILISATION!

- The binding of the passive job. 2. INTERPERSONAL SUPPORT PERFORMANCElJOa

individual to certain - Changes in INVOLVEMENT

behavioural acts job content 2. High decision latitude and [a] Co-workers's support Activities i.e. monitorif'l~ 'tle

relevent to technology. of middle high workload makes a individual does with rr.:"t .-, managers. active job (b) Supervisor's support. to the technology or Ie

J. REWARD I OUTCOME OF STRAIN I utilisation oftechnolog).

ALLOCATION (e] Subordinate's support - The allocation of J. ATTITUDES

Different types of J. When there is high authority How different

rewards releven! to the control and low workload constituencies express

implementation of new leads to low strain jobs. positive or negative

technology. 4.

feelings about When there is low authority monitoring system.

4. FEED BACK! control and high workload.

REDESIGN leads to high strain jobs. 4. NORMATIVE

The process by which CONSENSIIS

data are collected about Part (A)

Nonnal acceptance or

a new technology & agreement about the

redesign activities are value of new

initiated to enhance the Respondents Profile technology.

operations of new <II .. technology.

Demographic Data & Organizational Factor

5. DIFFUSION The process by which technology is extendc=d