Publication: SAM Advanced Management Journal Publication Date: 22-JUN-05 Format: Online - approximately 5005 words Delivery: Immediate Online Access Author: Crandall, William ; Gao, Longge
Article Excerpt Advances in technology have enabled millions of people to work for one or more employers without being physically present. Most telecommuters work from home, but some may have other "remote" office space. This tend has advantages and disadvantages--personal, organizational, and societal--for both the employer and employees that should be considered carefully before either party approves or undertakes telecommuting.
Introduction
For many employees, work can be conducted almost anywhere: at home, in the hotel, at the local coffee bar, and even from an automobile. The space-time dimension, which requires that work be performed at the office at a certain time, no longer applies to many jobs (Tietze, 2002). As a result, for many employees, work is not a place to go but an "activity" that can be done anywhere, anytime (Tietze and Musson, 2002).
Among the new flexible work arrangements, telecommuting (sometimes referred to as teleworking) has become an increasingly popular alternative to supplement or replace working in the office. This article focuses on the benefits, potential limitations, and emerging issues associated with this growing phenomenon.
Review
There are various definitions of telecommuting with some features in common. Baruch (2001) points out two: 1) the office is not the only place where work can be conducted, and 2) information technology (IT) is necessary for telecommuting. Gainey and associates describe telecommuting as working at home, or another location using computers and communication technology to communicate with the main office, supervisors, co-workers, and customers (Gainey, Kelly, and Hill 1999). Mariani (2000) points out that telecommuting occurs whenever an employee is paid for work conducted at an alternative worksite, so total commuting time is reduced. The alternative site can be the employee's home or satellite office. It should be noted that the time span for telecommuting could vary from a few hours a week to full-time away from the office.
Benefits
Telecommuting offers a number of benefits that fall into three categories: individual or worker, organizational, and society.
Individual benefits. One of the most consistent benefits cited in the literature is that of increased employee job satisfaction among those who telecommute (Manochehri and Pinkerton, 2003; Tremblay, 2002). Many telecommuters feel they have less pressure and are more productive when they work at home. They also see substantial benefits, such as the ability to balance work and family life, increased quality of social life, more flexible working hours, and improved time management. The satisfaction of the work benefits telecommuters as well as the organization. Telecommuting may allow individuals to work in their desired profession, and the possibility of working for a number of employers simultaneously may for some offer additional promotion opportunities (Harpaz, 2002).
One significant benefit is the reduction of travel time and expenses. Using data from the 2000 American Community Survey, Potter (2003), points out that an "average" teleworker can save 57.6 minutes a day by staying home and working. Using the concept of displacement theory, one can further assume that time not spent commuting could be translated into more time spent on work, which might help explain the productivity gains.
The telecommuter also benefits from less office distraction that can hinder the smooth completion of assignments. For conceptual thinking projects, or any assignment that requires long periods of concentration, the office environment can be distracting. Closely coupled with office distractions is office politics, which can also occupy on site employees. Telecommuters are less exposed to office politics (Manochehri and Pinkerton, 2003; Robertson, Maynard, McDevitt, 2003) and are thus more likely to remain distraction free.
One final benefit worth noting is telecommuting's ability to employ homebound individuals (Baruch, 2001). Parents with small children, the elderly, those with a physical disability, and even individuals living in remote locations can still be employed through telecommuting.
Organizational benefits. Many employers believe one of the main benefits for telecommuting is increased productivity. In an earlier study on the subject, salespersons at AT&T who telecommuted increased sales by 20% to 40%. AT&T managers who telecommuted realized increases of 8% to 29% in productivity (McCune, 1998). The Gartner Group, a global information consulting company, found that telecommuting increased productivity from 10% to 40% (Nie, 1999). Some suggest that productivity gains are linked to the elimination or reduction of traditional commuting and a telecommuter's willingness to work longer hours (Mariani, 2000). Several other factors contributing to the increase in productivity of telecommuters include the distraction-free environment, the possibility of choosing more convenient working hours, more time actually spent working, and a stronger focus on achieving the required results rather than simply being physically present at work (Gibson, Blackwell, Dominicis, and Demerath, 2002; Harpaz, 2002; Potter, 2003).
A key benefit of telecommuting...
NOTE: All illustrations and photos have been removed from this article.

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