W O R K P L A C E

CHANGES
 Introduction
Experts remain divided on whether
information technology has caused a net
decrease in job availability, but its
profound impact on how people work is
unquestionable. In this section, we look at
various ways in which information
technology is fundamentally changing the
work experience.
 Organizational Changes
Information technology has significantly altered how manufacturing and service
companies are organized.
Before, computers were used for simple tasks like automating payroll, which didn’t
require any changes in the company’s structure.
Then, companies began using computers in manufacturing, which helped them
customize products and improve customer service.
This shift allowed frontline workers to take on more responsibilities and led to a
reduction in company red tape by decentralizing sales and support functions.

Eventually, companies advanced to using computer networks to link different parts of

the business. For example, connecting cash registers with inventory systems allowed for
automatic reordering of products.
 Organizational Changes
The advent of information technology has generally However, the rise of information technology has simplified
streamlined organizational structures. Traditionally, these structures, enabling more open and efficient
when hand-typed, carbon-copied memos were the communication. Now, technology allows any member of
primary means of sharing information, an organization to easily connect with others, leading to
communication adhered strictly to the hierarchical innovations like temporary teams of specialists formed to
lines set out in organizational charts. address specific issues.
When interactions are costly and time-consuming, organizations tend to be rigid and hierarchical, with information flowing
primarily between employees and managers. However, when interactions become faster and cheaper, information flow
becomes more flexible, leading to flatter and more dynamic organizations. The increased use of information technology in the
workplace will likely raise demand for some job categories while reducing it for others.
Higher Demand Lower Demand
Software engineers—applications Butchers
Computer support workers Secretaries and stenographers
Software engineers—systems Payroll clerks
Network administrators Bank tellers
Network systems analysts File clerks
Desktop publishers Cashiers
Database administrators Typist
Personal and home care aides Pharmacists
Computer systems analysts Bookkeepers
Medical assistants Postal clerks
Information technology streamlines organizations by automating processes
and eliminating the need for transactional middlemen, such as in supply-chain
management. Computers now handle tasks like ordering supplies, reducing the
need for employees to manage orders and paperwork. This automation is
expected to increase demand in some job categories while decreasing it in
others.

Dell Computer is a leader in supply-chain automation, allowing customers to

order directly via phone or website. Seventy percent of Dell's sales are to large
corporations with custom, preconfigured websites. Dell manufactures
computers only after they are ordered, enabling it to maintain a minimal
inventory.
 Telework
Telework (also called telecommuting) refers to an arrangement where employees
spend a significant portion of their workday at a distance from the employer or a
traditional place of work. This is another workplace change brought about through
information technology is the rise of telework.

Examples of Telework
Working from home
satellite office or tele center
sales person who usually transacting all of their business from their cars using
cell phones and laptop computers.
 Advantages of Telework
The swift increase in teleworkers indicates that telework offers considerable benefits.
Among the most frequently noted advantages are:

TELEWORK INCREASES TELEWORK REDUCES TELEWORK IMPROVES

PRODUCTIVITY ABSENTEEISM MORALE

A variety of studies have shown Teleworkers are less likely to miss Teleworkers enjoy more freedom,
teleworkers have 10 to 43 percent work than someone coming into can better align work with personal
greater productivity than on-site the office. schedules, and can dress casually if
workers. working from home.
 Advantages of Telework
The swift increase in teleworkers indicates that telework offers considerable benefits.
Among the most frequently noted advantages are:

RECRUIT AND RETAIN MORE TELEWORK SAVES TELEWORK IMPROVES THE

TOP EMPLOYEES OVERHEAD RESILIENCE OF A COMPANY

Companies that offer telework can With some of its workers away from Having employees in different
attract employees who can’t or won’t the office, a company doesn’t locations makes the company less
commute and retain workers who have to invest as much of its vulnerable to natural disasters or
might otherwise leave, like parents resources in office space. terrorist attacks.
with young children.
 Advantages of Telework
The swift increase in teleworkers indicates that telework offers considerable benefits.
Among the most frequently noted advantages are:

TELEWORK IS GOOD FOR THE TELEWORK REDUCES

ENVIRONMENT ABSENTEEISM

They may not have to purchase as

Teleworkers do not take part in the
much business attire, and they
daily commute, which saves
may be able to avoid paying child
energy and reduces pollution.
care expenses
 Disadvantages of Telework
Telework has its detractors, too. Here are some of the reasons most
frequently given why companies discourage or prohibit telework

FACE-TO-FACE INTERACTION
TELEWORK IS GOOD FOR THE SENSITIVE INFORMATION IS LESS
WITH CUSTOMERS AT THE
ENVIRONMENT SECURE
COMPANY SITE

When employees work at a distance For some jobs these interactions are If a person has valuable physical or
from their managers, they crucial, meaning the job electronic files at home or in
naturally have more autonomy. How simply cannot be done from a an automobile, they may be far less
can a manager manage an distance. secure than if they were kept
employee who is not around? at the office. There is a greater
chance that the information will be
lost or compromised through fire or
thef
 Disadvantages of Telework
Telework has its detractors, too. Here are some of the reasons most
frequently given why companies discourage or prohibit telework

EMPLOYEES ARE LESS LIKELY TO

SCHEDULING MEETING TELEWORKERS ARE LESS VISIBLE
CONTACT TELEWORKERS FOR HELP

Even if employees are only There is a danger that teleworkers Meanwhile, many teleworkers are
teleworking one or two days a week, will be forgotten when it’s time afraid to leave their telephones
many others in the organization can for raises or promotions. When even for a short time, afraid that if
suffer significant somebody is “never around,” someone from work calls them
inconvenience. others can get the idea that the and they are not around, they will
teleworker is not making a get the reputation for not being
contribution to the organization. “at work.”
 Disadvantages of Telework
Telework has its detractors, too. Here are some of the reasons most
frequently given why companies discourage or prohibit telework

TELEWORKERS END UP WORKING

TELEWORKERS ARE ISOLATED
LONGER HOURS FOR THE SAME
PAY

Some jobs require people to bounce When everything a person needs to

ideas off coworkers. What do her job is right there at
are people working at home supposed home, she is more likely to keep
to do? coming back to it. How does
someone leave her work at the
office when her home is her office?
Critics of telework say that ov
 The Gig Economy 40
The competitive nature of today's business environment has led companies
to scale back their commitment to employees. Unlike in the past, businesses
30
now often lay off workers during economic downturns and increasingly
depend on subcontractors and temporary staff to reduce expenses. For
instance, colleges employ more contingent faculty on short-term contracts 20
to save costs and align resources with student needs.

Some startups have pushed this trend further by embracing the gig 10

economy, where workers take on short-term tasks without a traditional

employer. Companies like Uber, Lyft, Instacart, and Airbnb link workers
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with clients, offering flexibility but typically lower pay. Critics argue that

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this approach favors corporations while leaving workers with minimal pay

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and few protections. As a result, some gig workers, such as Uber and Lyft
drivers, have filed lawsuits seeking to be recognized as employees to
secure better wages and benefits.
 Monitoring
Information technology has equipped companies with new methods to monitor their
40
employees. A 2007 survey revealed that 66% of employers monitor internet usage, with
others employing video surveillance, tracking keyboard strokes, monitoring phone usage,
and reviewing emails. The primary purpose is to prevent the misuse of company 30resources,
and some companies have even dismissed employees for inappropriate internet activity, such
as viewing pornography.
20

Monitoring can also uncover illegal actions, like hacking, and help ensure customer
satisfaction by assessing service calls. It’s also used to track productivity, such as
10 counting
the calls made by telemarketers or assessing how well baseball umpires make calls.
Additionally, companies are exploring wireless technology to track employee locations,
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which could improve service response times and patient care in hospitals.

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Schools are increasingly using video cameras to enhance security, even resolving student
disputes by reviewing footage. Although monitoring can improve focus, it may also lower job
satisfaction, leaving the overall impact of monitoring on organizations still in question.
 Multinational Teams
In the 1980s, General Electric and Citibank started establishing software teams in India, paving the way
40
for other companies like Intel, Microsoft, and Sun Microsystems to follow. Bangalore has notably aimed
to become India’s version of Silicon Valley, attracting many Western companies to outsource tasks like
software development, credit card processing, and billing to India. For instance, 30 Texas Instruments'

chip design team in Bangalore holds 200 patents.

20
Multinational teams allow companies to extend their working hours, enabling services like 24-hour call
centers and ensuring continuous progress on projects by shifting tasks across time zones, such as from
California to Bangalore. The primary reason companies turn to India is for cost10reduction, as Indian
programmers earn significantly less than their U.S. or European counterparts, about $6,000–$9,000
annually. Companies justify these savings as essential for staying competitive and maintaining U.S. jobs.
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Nevertheless, there are difficulties, especially with infrastructure in developing countries. Despite these

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challenges, more companies are adopting multinational teams, with around 90,000 U.S. IT jobs being
moved overseas each year. Many large American companies have already relocated a quarter of their
IT jobs offshore.
 Conclusion
Technological advancements have drastically altered the way businesses
function and manage their employees. The growth of telework, the gig
economy, and the adoption of multinational teams are transforming traditional
employment structures by providing more flexibility, reducing costs, and
enabling global collaboration. However, these shifts also bring challenges,
including decreased job security, lower wages for some workers, and the
difficulties of managing a distributed workforce. As companies continue to
evolve with these changes, it will be essential to balance the advantages of
technology with employee well-being to ensure long-term success and
growth.
Julienne Martelli D. Laban

THANK
YOU