ACCEPTANCE OF ELECTRONIC MONITORING AND
ITS CONSEQUENCES IN DIFFERENT CULTURAL
CONTEXTS: A CONCEPTUAL MODEL
DARIA PANINA
Texas A&M University
JOHN R. AIELLO
Rutgers University
Presented in the 5th Annual International Business Research Forum
Information Technology and International Business Theory and Strategy
Development
Philadelphia, PA
March, 26-27, 2004
Introduction & Research Question
Recent trend: to outsource marginal organizational functions to
developing countries
How to ensure that company-wide quality standards are met by
foreign subsidiaries and subcontractors?
EPM – a Possible Solution
Electronic Performance Monitoring (EPM) is
“the practice of using computers and/or telecommunication
technology to collect, analyze, and report information about
employee performance” (U.S. Congress, OTA, 1987)
Advantages
• Distance
• Cost
• Timely feedback
• Objective data
Disadvantages
• Employee stress
• Employee dissatisfaction
• Emphasis on quantifiable
performance measures
Objectives of the Paper
• Review the evidence on the acceptance and effects of EPM in
the USA & other countries
• Develop a model of the relationship between national culture,
EPM, its acceptance and consequences
• Develop a set of propositions regarding culturally acceptable
EPM systems to guide further research & practice
• Offer recommendations for EPM implementation & design in
different cultures
EPM and its Features (Aiello &Kolb, 1995)
• Target
• Pervasiveness
• Recipient
• Purpose
• Concomitant practices
Culture & Its Dimensions (Hofstede & Bond, 1988)
• Individualism-Collectivism (IND)
• Power Distance (PD)
• Uncertainty Avoidance (UA)
• Masculinity-Femininity (MAS)
• Confucian Dynamism (CD)
EPM in the USA:
is considered acceptable and leads to positive outcomes when:
• it provides objective performance data
• it is accompanied by other monitoring techniques to capture all
sides of work
• it is provided on an individual basis
• it is implemented in an employee-friendly work context
• tasks are relatively simple
Culture, EPM, and its Consequences: Conceptual Model
EPM
• Target
• Pervasiveness
• Recipient
• Purpose
• Concomitant practices
EPM
Fairness
Perceptions &
Control
EPM
Acceptance
Culture
• Individualism/Collectivism
• Uncertainty Avoidance
• Power Distance
• Masculinity/Femininity
• Confucian Dynamism
Outcomes
• Performance
• Stress
• Job satisfaction
• Commitment
• OCB
IND – Possible Effects on EPM Acceptability
Individualism
Collectivism
Target
Individual/work products
Group/work behaviors
Pervasiveness
Pervasive
Pervasive
Recipient
Employee/Supervisor*
Work Team/Supervisor*
Purpose
Objective performance
measurement/feedback
Group performance
feedback /informal
performance reviews
Conc. Practices
Individual incentives,
employee-centered processes
Teamwork, group
incentives & praise
* Depends on the PD
Individualism/Collectivism & EPM: Propositions
• Individualist cultures are more likely to accept EPM that
collects objective and comprehensive data on individual
performance for evaluation and development purposes.
• Collectivist cultures are more likely to accept EPM that
collects comprehensive data on group behaviors for the
purposes of improving group performance and as a basis for
informal performance reviews.
UA – Possible Effects on EPM Acceptability
High UA
Low UA
Target
Individual
Individual/Group*
Pervasiveness
Pervasive
Pervasive/NonPervasive
Recipient
Employee
Employee/Group/Supervisor*
Purpose
Monitoring/objective
performance measurement
General guidance/ feedback
Conc. Practices
Detailed explanation of
EPM & data use; visibility
of monitoring
* Depends on the M/F
Goal-setting, pay for
performance
Uncertainty Avoidance & EPM: Propositions
• High UA cultures are more likely to accept individual level
EPM by providing immediate electronic feedback & more
objective performance data. To be effective, EPM should be
explained to employees in detail.
• Low UA cultures are less concerned about the ambiguity
associated with EPM use and are more likely to accept EPM
that provides opportunities for professional growth and that
provides general guidance and feedback.
PD – Possible Effects on EPM Acceptability
High PD
Low PD
Target
Individual/Group*
Individual/Group*
Pervasiveness
Pervasive
Non-pervasive
Recipient
Supervisor
Employee/Group*
Purpose
Monitoring, performance
appraisal, feedback
Feedback
Conc. Practices
Bureaucratic controls, topdown decision making
Participatory management,
worker control, goal setting
* Depends on the I/C
Power Distance & EPM: Propositions
• High PD cultures are more likely to accept EPM if imposed
by superiors, especially if accompanied by an autocratic style
of management and top-down decision making.
• Low PD cultures are more likely to accept EPM if it allows
for employee control, participation & ownership.
MAS - Possible Effects on EPM Acceptability
Masculinity
Femininity
Target
Individual
Group
Pervasiveness
Results
Processes
Recipient
Employee/Supervisor
Group
Purpose
Objective individual
Group performance
performance measurement feedback
Conc. Practices
Pay-for-performance
Human-centered production
Masculinity/ Femininity & EPM: Propositions
• Masculine cultures are more likely to accept EPM if it
provides objective performance data and leads to higher
productivity and competitiveness.
• Feminine cultures are more likely to accept EPM if it is used
to improve the quality of work life and workers’ competence
and de-emphasizes individual competition.
CD - Possible Effects on EPM Acceptability
High CD
Low CD
Target
Individual/Group*
Individual/ Group*
Pervasiveness
Pervasive/Behaviors
Pervasive/Results
Recipient
Individual/Group/Supervisor* Individual/Group/Supervisor*
Purpose
Feedback for increased
competence & performance
Informal performance
reviews
Conc. Practices
Long-term goals; extensive
data collection
Short-term goals; focus
on results
* Depends on the PD & IND
High/Low Confucian Dynamism & EPM: Propositions
• High CD cultures are more likely to accept EPM if it provides
comprehensive performance data and assists employees in
improving their competence and performance.
• Low CD cultures are more likely to accept EPM if it provides
performance data that emphasizes short-term results and is
accompanied by procedures allowing for saving face.
Culture & Perceptions of Fairness
• Distributive justice judgments are affected by the choice of the
reward distribution rule in a particular culture. EPM should be
aligned with reward allocation & relevant as a performance
measurement tool.
• Procedural justice includes the concept of “voice”. Relationship
between EPM and perceptions of its fairness might be moderated by
PD.
• Informational justice perceptions and information seeking
behaviors might be influenced by PD and UA.
• Interactional justice judgments might be influenced by IND.
Conclusions
• Cultural value orientations are stable – to ensure
acceptance of new technology, it is advisable to make its
implementation and use contingent upon cultural norms
• EPM is not a monolythic practice, there is a great deal
of variance in its use, thus, cultural adaptations are
relatively easy to accomplish
• EPM & culture may interact in multiple ways, case-bycase consideration is needed to design a culturallyacceptable EPM system