^i^CHt^ V .^ fUBRARIESk ^ \^ ^ IDEC 211M9 Determinants of Employees Affective Response to the Use of Information Technology in Monitoring Performance John Chalykoff 90s: 88-043 Management Sloan School of Manage in the 1990s Determinants of Employees' Affective Response to the Use of Information Technology in Monitoring Performance John Chalykoff 90s: 88-043 February 1988 Sloan ® WP# 1992-88 1988 John Chalykoff Management in the 1990s Sloan School of Management Massachusetts Institute of Technology DEC 2 1 1989 . DETERMINANTS OF EMPLOYEES' AFFECTIVE RESPONSE TO THE USE OF INFORMATION TECHNOLOGY IN MONITORING PERFORMANCE Abstract The results of this study show that employees' affective response to computer-aided monitoring is largely predicted by supervisory approaches to the use of the performance information. Specifically, many of the factors previously found to influence responses to performance appraisal sessions in general, most are also predictive in this notaoly the nature of feedback, context I would like to thank Thomas Kochan, N. Robert McKersie, Venkatraman, and John Van Maanen for their comments on an earlier draft of this paper. This research was funded by the "Management In The 1990s" research program, Sloan School of Management, Massachusetts Institute of Technology , Introduction monitoring Computer-aided employees of in office operations has become the subject of intense critics, on the one view hand, debate. with rife as it large-volume The abuse-- denigrating to employees and an invasion of privacy (Nussbaum and duRivage, Shaiken, 1986; use other, view its largely 1987; to 5, essential as beneficial 9 conducting to instruct them in their work (Westin, et. al. 1985). studies, Other than anecdotal business and in terms of its capability to employees to Proponents, on the 1986). evidence 1985; Manoocheheri and a handful of case there are few data to support either claim. as many Currently, as 28 million Americans use computer terminals in their jobs. Although no precise data are available, it is estimated that one third of terminals the monitored (Hickey, 1987). use is expected to increase substantially prediction, the impact of are computer Moreover, the number of terminals in by 1990. computer monitoring Given this on the workplace deserves considerable attention. While the debate over monitoring has served to sensitize people to the potential of information technology to alter office work radically, our current debate places in sharp relief our knowledge pertaining to the office settings. inability to adequately inform this lack of theory and empirical impact of information technology in Approaches Alternative Conceptualizing To The Effects Of Monitoring Although monitoring has been the svibject has been made to construct little effort the concept of control literature generations developed been Information technology technology. dimensions to 1962; However, mechanisms control of Scott, 1986). has control on and (Blau Eisenhardt, 1977; One conceptual by some organizational theorists has focused on approach favored , theoretical framework a the workplace. for assessing its actual role at Ouchi of intense debate, Edwards, embedded on previous physical in settings adds new in office past conceptualizations conceptual the based 1979; of technological control. This technology is not only capable of initiating and pacing work (Blau and Scott, 1962; 1979), but also of monitoring and Edwards, evaluating work. Others have attempted McGuire 1975; Ouchi, technology information behavioral control. a and/or behavioral organization's output and draw to 1977, it distinction between an control strategy (Ouchi Eisenhardt, 1986). With possible to intensify and expand is Not only is it possible to assess employees' behaviors, but also behaviors that in the past were general work assessed informally, if all at -- employee interactions with clients None of the previous strategies have developed actual use efforts testable to organizational to conceptualize propositions or individual control relating their outcomes. Instead, variables explained be to control by as dependent contrast, In control strategy requires a strategies the natvire of technology or the environment. organization's task effects of treated have previous models a examining the model that is capable of predicting how individuals respond to various control strategies. Thus, needed new approach is a literature on control to assess the actual impacts of computer- One promising approach is to cast the study of aided monitoring. computer-aided monitoring within appraisal since this literature and b) a) the framework of performance has long debated performance on assessing employees' behaviors, beyond existing goes that the issue of the basis of outputs and/or is focused on the individvial- level of analysis. Moreover, research on performance appraisal offers analytical model evaluation process because both has characteristics, and it that the suggests potential that a the process takes positive the employee ' s on sharper monitoring and control feedback and response of employees will differ depending on whether control or feedback dominates. more a That is, the feedback characteristics, the more response is expected to be. This paper will develop and test the power of performance appraisal/feedback research to provide a theoretical framework by which one can assess the consequences of computer-aided monitoring. Method To do this, data were collected in twenty computerized tax- collection offices of the Internal Revenue Service (IRS). These tax-collection offices are collectively referred to by the IRS as their Automated Collection System (ACS). First, in two stages. total of 91 interviews were conducted in a five of these offices with employees, Second, developed and administered employees 950 to in Seven ACS. questionnaires were returned. forty completed hundred and supervisors, and managers. based largely on the interviews was survey instrument a The data were collected Both methods inform the analysis in this paper. Hypotheses Prescriptions Appraisal rely sessions feedback performance Reinhardt, effective the for heavily literature This 1985). conduct on the (Walther Performance of findings Taylor, and the of 1983, literature has focused on the factors associated with recipients' perception of feedback, acceptance of feedback, 1979). desire and to respond Summarizing the literature, broad categories characteristics, and Message 1) feedback message are: performance of Ilgen, et. ( al., Ilgen et. al., suggest three 1) feedback. feedback message characteristics, 2) source recipient characteristics. 3) Characteristics: frequency feedback that influence the effectiveness of performance These are: feedback. to are Factors that influence the perceived the In timing, general, correlated the sign, 2) positive with and 3) the reactions to that is feedback presented with little time delay, is positive in nature, and that 6 There is is frequent. the the feedback, moderated by strong suspicion that the a although better, recipient the therefore as unnecessary and However, field studies suggest issue in most settings, (Wexley, In the al., even was: receptive less feedback is seldom given 1984). they as wrong, not what was good." particular behaviors-- wanted. A commonly voiced only tell you what you did Thus: HI: Immediacy of feedback has a positive and significant effect on satisfaction with computer-aided monitoring. H2 Frequency of feedback has a positive and significant effect on satisfaction with computer-aided monitoring. H3 : : to it. that this is not likely to be an [supervisors] "They People with were frequently monitored, they did not receive as much feedback criticism be associate with they though experience. to be some employees in ACS noted that delayed interviews, feedback was difficult to that will as performance 1979; Taylor et. expected is likely to perceive frequent feedback knowledge are relevant job task s this more frequent Sign of the feedback has a positive and satisfaction with significant effect on computer-aided monitoring. Source Characteristics: When the primary source of performance feedback is the immediate supervisor, the salient characteristics are the extent to which the employee perceives him/her as possessing the technical expertise to judge performance behaviors accurately, extent and the supervisors. In settings field measured by asking employees the employee trusts the the trust construct has been direct qviestions supervisor (Ilgen. trust their much they which to pertaining to how et. 1981), al. or in theoretical writings by some measure of the employees' perception of supervisor's the leadership -- style for example, consideration behavior (Kerr and Slocum, 1982). supervisory In the interviews, procedures used laws and expertise (knowledge was mentioned in ACS) carrying out effective monitoring reviews. that monitoring the neither was depended on how supervisors with conclusions the 1987; Westin, employees in et. nor bad in itself, but This it. is consistent case studies on this issue (Attewell, A 1985). al., ACS was only to control you, of as critical to Employees also noted good approached of tax familiar comment supervisors abused that some it, by some "use it rather than develop you." Thus: H4: Supervisory expertise has a positive and satisfaction with significant effect on computer-aided monitoring. H5: Supervisory consideration behavior has a on positive and significant effect with computer-aided monitoring. satisfaction Recipient Characteristics: (Rotter, 1956), Locus of Control and age have been shown to affect the recipients' reception of feedback. respect to Individuals' age is Ilgen suggests that the finding with most probably due to the positive correlation 8 . between age and experience, or job tenure. Thus, he recommends studies should include some measure of experience or that future tenure Based on Ilgen, et. (1979). al. tenure of employees expected to be negatively correlated with the frequency might be of feedback. However, prior literature gives no tenure be will negatively performance feedback. suggested as But, correlated with indication that satisfaction with in the interviews in associated with ACS, tenure was lower general satisfaction levels. In the opinion of many supervisors, the most difficult employees, those that complained the most, were those that had been around a long time. On the other hand, the more some of experienced employees countered that supervisors just didn't know how to manage. regard to the effect operating in of combination. expertise, versus that of routine, tenure, often stressful balance, tenure in ACS For the job several example. supervisor, factors the are likely employee's job the and toll overtime (collecting taxes). is expected to be With of a On negatively related to satisfaction with computer-aided monitoring. Thus: H6: tenure has Employee significant effect on computer-aided monitoring. In addition to the above factors, feedback is suggested as important. incidents should negative satisfaction a and with specific support for the That is, specific critical be included in the feedback session so that the employee understands the basis for the Leskovec , 1957 ) technology Information allows specific employee behaviors or basis evaluation for assessment (Berger, 1983; for critical should be the measurement incidents. Thus, seen as less subjective. of the One employee stated that she came to work in ACS because: The performance evaluation is more objective. depend on anyone's perception of It doesn't You can argue on it, but what you're doing. it's right there for you to see and for them to see. However, other employees disagreed that it was an objective Supervisory favoritism process. was often mentioned as was the "central tendency" of the performance ratings -- "everyone gets a -- three" on a five point behaviors are made explicit, While scale. criteria actual the desired employee used by the supervisor were often left unspecified. Thus: H7 : Clarity of rating criteria has a positive and satisfaction with significant effect on computer-aided monitoring. On the expected to the absolute remote basis of be significant and and 2) two additional factors are predictors: 1) percentage their a variable measuring employees' ac tual percentage of difference between monitoring monitoring', the interviews, employees' of base-line desired remote attitudes toward telephone monitoring. supervisors sit In side-by-side monitoring, next to the employees while monitoring the supervisors call. remote monitoring, In monitor from their office, usually without employees' knowledge that they are being monitored. 10 The variable first larger the Thus, because discrepancy the the method of is decided by management in or remote, monitoring, side-by-side, ACS. included is between managerial practice and employee desires, the less positive will be employee perceptions of attitudes, is a measure err.j. of employees' variable, base-line basic orientation toward items tapping the extent to ^oyee agrees or disagrees that monitoring: good tool if used properly, 2) privacy, and second The process. It is made up of three monitoring. which the the 3) invasion of is an 1) is a an employee's that supervisors should not be allowed to do any monitoring. H8 : H9 : The absolute difference between actual and desired remote monitoring has a negative and significant effect on satisfaction with computer-aided monitoring. base-liue attituies favorable toward monitoring have a positive and significant effect on satisfaction with computer-aided monitoring. Measurement of Variables and Model A list of questionnaire from constructs and observed which indicators, they were and questions 1) variables constructs -- nine exogenous one endogenous construct in the model. represents a and supervisory structural unobserved expertise, 11 from the derived, are shown in the There are 18 indicators comprising the Appendix. (Figure the all equation constructs. The model system, Four with of the supervisory consideration FIGURE 1 STRUCTURAL EQUATION MODEL OF SATISFACTION WITH TELEPHONE MONITORING 5i=o 84 = 8n =0 8,3 8,4 12 base-line employees' behavior, with monitoring, and satisfaction latent derived constructs attitudes telephone maximum-likelihood 1985). capability to VI, procedure estimation principal A using LISREL was tested strength of simultaneously telephone monitoring -- are manifest (observed) variables. from The remaining constructs are each measured by The model toward a single variable. a full-information, (Joreskog program LISREL the estimate and Sorbom, is its measurement the model (loadings of observed variables on structural equation causal relationship among latent model (The latent constructs) and the constructs, and the unexplained variance). Reliability Assessment Of The Multiple Variable Constroicts The associated t-values for and significant all large variables explain latent constructs (Table 1). significant a the measurement the composite constructs Linn, supervisory behavior (Werts, expertise 0.94, computer-aided constructs have was base-line monitoring the variation in the These parameter estimates can they indicate. be used to calculate the indicates that the This amount of parameters are measure reliability and 0.90, Joreskog, (p^ 1974). supervisory P^ ) of for consideration attitudes 0.76, and satisfaction with 0.91. acceptable trait These variance. indicate that In addition, the these results are the same as those derived from the more commonly used index, Cronbach alpha (Table, 2). 13 TABLE Maximum Likelihood Estimates for the Model In Fiqure Causal paths Standardized Standc 1 1 t-Value Squared Multiple Correlations! Yl Y2 Y3 Y4 Y5 Y6 Y7 Y8 YIO Parameters for Measurement As h h As As A,2 A,3 Al4 Al5 Ai6 A,7 Ai8 var{55) var(86) var(57) var(58) var( Sg) var(5i2) Var(5i3) Var(8u) Var(G,) Var( C2) Var(C3) Var(C4) Mode 00 "O o in 'JO. .2 o> > c si rs/ c (0 a; < c »/» o c a 15 •X i^c : n o »- re ^* E o E rsi . . Support For Hypotheses The coefficient of determination for the structural equation R^ was .466 (Table, The hypothesis about the predictors. of feedback was strongly of the the immediacy effect of supported Yi=.292 the coefficients. the largest of all percent 47 to variable was explained by this set of the dependent variance in close Thus, 1). This was (t=7.47). was little support There for the influence of frequency of feedback, Y2=.066 (t=1.79). It was in the expected direction, but not statistically significant. The influence direction and was However, the clear of statistically while ¥4=-. 053 characteristics were between Supervisory consideration (t=5.20). influence as supervisor t=2 42 . ) and desired was not supervisory Both ¥5=. 117 ( direction, (t=-1.50). supported, ¥3=. 089 actual expected the in in the expected was significant, difference absolute remote monitoring, significant, criteria rating and Ye=.265 (t=2.74), had over two times as much Employee expertise. tenure had no influence on satisfaction with telephone monitoring ¥7=-. 009 (t=The sign of 0.23). significant, Y8=.165 line attitudes was the feedback positive and coefficient was (t=4.19). The influence of favorable base- positive, but not significant, Y9=.048 (t=1.20) there Thus, hypotheses. variable these consideration In was order were: behavior, statistical of their immediacy sign of support for five of the nine influence on the dependent of the feedback, the feedback, supervisory supervisory . and clear rating criteria. expertise, Discussion results The consistent with interviews in expertise and predictors. prior Moreover Supervisory correlated with six characteristics, supervisory behavior, were constructs are behavior significantly was significantly the eight remaining constructs^ supervisory expertise was significantly 2 significant the other independent constructs (Table consideration of the whole on source these many of is employees' performance feedback and the consideration correlated with 2). The that on theory ACS. show monitoring computer-aided with satisfaction analysis the of correlated with Table a correlation of .07 In is 3, statistically significant at p^.OS. Given that the standard error of r is variant to sample size (and thus in large samples, small effect sizes will be statistically significant), it is important to take into account the power of the test. The power of the test is the probability of rejecting the hypothesis null and accepting that the With N=532, and r=.07, phenomenon exists. the power of the test is .65 (Cohen, 1969). That is, in 35 times out of 100 we would accept the null hypothesis. In the present research a conservative power value of .99 With a power level of .99 and was adopted. N=532, the threshold for a significant r is With the above .17 (one directional test). values we will reject the null hypothesis 99 times out of 100. Thus, we can have some confidence that the effect is there when discussing correlations of .17 or above. Therefore, correlations of under .17 will not be considered significant by the standard set above 17 , while five of . confirms This these. the interview data of telephone monitoring perceptions employees' approach influenced by the monitoring the to which suggest that are strongly taken by their supervisor important Most indicators of approach is the these among central to explaining employees' satisfaction with telephone monitoring. If immediacy all independent other the immediacy equation, construct This feedback. the of constructs were is out left of the would account for 21 percent of of feedback important to an Also the variation in the dependent construct. effective approach to monitoring are the sign of the feedback and clear rating criteria. monitoring, approach correlation negative suggests constructs desired its that monitoring remote taken by the difference the will be supervisor between small where actual the and overall is perceived as reasonable. not generally However, these correlations are independent other with did not computer-aided with satisfaction influence significantly construct monitoring remote-difference While the large, suggesting that other factors are related to this variable. Tenure had monitoring. no influence However, it on was with telephone satisfaction negatively correlated with supervisory expertise, although not significant with immediacy of the feedback, clear rating consideration behavior (Table 2). criteria, supervisory Though tenure was the variable suggested by theory and supported by the case 18 and interviews, a test for the influence of other demographic variables (age, education, and sex) on satisfaction with computer-aided None and monitoring appears and not . characteristics' Base-line characteristics, were construct this Moreover, nor on office-level any of was significantly not While the other independent constructs. are unaffected by being where monitoring is taking place, it appears to be in situations independent factors with predictive of the dependent not it is unlikely that base-line attitudes quite satisfaction . attitudes correlated with Thus, sex. r=.109 for for age, contingent on approaches to its use, be to individual on variable. for r=- 007 education, r=-.039 significant, were these of monitoring was run. both of indicating approaches correlation with tenure, toward telephone satisfaction r7 , = 02 . its to , monitoring are with a Indeed, use. suggests that not monitoring, and its these attitudes fvinction of time on the job. Managerial Implications There are results of a the few managerial implications that follow from the study. First, managerial efforts improving the effectiveness of computer-aided monitoring The importance of office-level context was tested in this research by using a sheffe There were essentially no pairwise test. among the twenty significant differences offices for all of the constructs in the Moreover, there were no differences model. based on a fixed effects model. 19 aimed at need to characteristics of focus on Tenure, age, influence on the appraisal and education of sex, their satisfaction or feedback process. employees had no significant with computer-aided monitoring; nor were there any significant differences by office. This Organizational unimportant. performance subject monitoring, organizational the employees However, notwithstanding general rules affective computer-aided responses to determined largely by that desirable are etc., level is to the uses of pertaining rules informing information, to that imply not does and they are necessary. and policies, employees' monitoring appear to be characteristics the monitoring and timely manner is very of evaluation process. Receiving performance important to employees. and was It a the strongest computer-aided monitoring. satisfaction with reviews feedback in feedback automated offices, are central the timing to of the the predictor of Since performance work situation in feedback appears to carry more weight in employee assessments of the process than is likely the case in work situations where performance reviews take to be place less often. The importance of feedback a point repeatedly made in the performance appraisal literature. That is, there is of process characteristics suggests performance a need for training reviews. This is reviewers in particularly automated offices where computer-aided monitoring is the work situation. The results 20 the handling salient in integral to of this study suggest that respond employees positively the extent monitoring to the to that a use of computer-aided positive developmental approach is fostered. The finding with regard to base-line attitudes suggests that employees predispositions have toward monitoring that are not influenced by its actual use, nor by their length of This indicates job. that there may be individuals and the job that might a time on the poor fit between these better be assessed early in the selection process. Conclusions The results presented in this paper show that computer-aided monitoring can drawn from be performance Approaches to the similar to strongly reviews is conceptualized use supervisory suggests that and appraisal information of practices the of essence explained and feedback technology the of by hypotheses past. research. have effects Thus, this effective performance the same whether they are carried out in automated or non-automated work settings. 21 . References "Big Brother and the Sweatshop: Computer Attewell, P. (1987) Surveillance in the Automated Office." Sociological Theory 5. 87- 99. . Berger, "The (1983) L. (CRPA)." Performance Appraisal 21-32. Administration 3, Promise of Criterion-Referenced Review of Public Personnel , and W.R. Scott Francisco: Chandler. Blau, P.M. Cohen, (1959) J. Sciences . Formal Organizations (1962) . San Statistical Power Analys i s for the Behavioral Academic Press New York: Edwards, R.C. 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Starbuck (eds.), Organizational Design P.C. Oxford University Press. London: Kerr, , Leskovec, E.W. "A Guide for (1967) Appraisal." Personnel Journal Manoochehri. G.H. Discussing the Performance . 46. 150-152. "Automation. (1985) 22 Job Design and Productivity of High Volume Office Systems Management 36, J^, 14-19. Operations." Journal of . duRivage and V. (1986) Nussbaum, K. Mismanagement by Remote Control." 56, 16-20. Review "Computer Monitoring: Business and Society . "The Relationship between Organizational W.G. (1977) Structure and Organizational Control." Administrative Quarterly 22, 95-113. Science Ouchi , , Maguire "Organizational Control: and M.A. Ouchi, W.G. (1975) Functions." Administrative Scie nce Quarterly Two 20, 559, 569. "The State of Performance Appraisal: Reinhardt, C. A (1985) Literature Review." Human Resourc e Planning 8, 2, 105, 110. Rotter, J.B. Versus Monographs , "Generalized Expectancies for Internal (1965) External Control of Reinforcement." 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In "Performance Appraisal and Feedback." (1979) S. Columbus, OH: Grid Kerr (ed.) Organizational Beha vior. Publishing. 9 to 5 (1986) Cleveland: "Computer Monitoring and Other Dirty Tricks." National Association of Working Women. APPENDIX List of questions used for all variables in the model Timeliness XI With regard to the feedback I receive from telephone monitoring, my supervisor presents it me to personally, the same day (1 = Almost Never; 7 = Almost Always) Frequency to your performance on telephone monitoring X2 How often are you provided with information pertaining (1 = Never, 7 = Daily) Rating Criteria X3 there are clear criteria set out regarding what "In this call site is necessary to get an outstanding rating on telephone monitoring reviews" = Strongly Disagree, 7 = Strongly Agree) (1 Remote Difference X4 There are different approaches to telephone monitoring. In some call sites all of it is done on a remote basis (from supervisor's desk), while in other call sites it is done on a side-by-side basis (supervisor sits next to the employee). Other sites use both methods. Please indicate in percentage terms, the relative use of therse methods by your supervisor. If only one method is used, please allocate all 100 percent to it. METHOD PERCENT % Remote monitoring % Side-by-side monitoring TOTAL % 100 The same question was asked for their percentage of either method that they desired. Supervisory experience X5 My supervisor, x6 Has a knows a great deal about the technical side of good unders'^anding of the oro^edures i use ir my job my work Supervisor's consideration behavior X7 Provides appreciation and encouragement X8 Gives recognition for a job well X9 Is I = Not At (1 done concerned that grow and get ahead professionally All Accurate; 7 = Extremely Accurate) Tenure X10 Length of time m this call site. (1 = to 3 months, 6 = over 24 months) Sign X1 1 Overall, the feedback I receive mainly is 1 Positive, 2 Negative Base-line Attitudes XI 2 Telephone monitoring is a XI 3 Telephone monitoring is an invasion of an employee's privacy good tool if it is used properly XI 4 Supervisors should not be allowed to do any telephone monitoring(l= Strongly Disagree; 7 = Strongly Agree) Satisfaction with telephone monitoring How satisfied or disatisfied are you with the follwing items pertaining to telephone monitoring y The amount of feedback you receive y2 The way in which feedback is shared 1 y3 The constructiveness of the feedback y4 The frequency of the feedback(l = very dissatisfied, GSiiQ u5l 7 = very satisfied) 24 m/iu '"""*RiEs II 3 ^oao oosaa^oi Date Due /ilY DEC 29 MAY 2 3 1992 MIT UBRIBIES D'JJ,L,|, 111 3 1060 00566E01 1