ACCEPTANCE OF ELECTRONIC MONITORING AND ITS CONSEQUENCES IN DIFFERENT CULTURAL

CONTEXTS: A CONCEPTUAL MODEL

Presented in the 5th Annual International Business Research Forum  Information Technology and International Business Theory and Strategy

Development Philadelphia, PA

March, 26-27, 2004

DARIA PANINATexas A&M University

 JOHN R. AIELLORutgers University

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)

• Distance• Cost• Timely feedback• Objective data

Advantages 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

EPMFairness

Perceptions & Control

• Individualism/Collectivism• Uncertainty Avoidance• Power Distance• Masculinity/Femininity• Confucian Dynamism

EPMAcceptance

Culture

• Performance• Stress• Job satisfaction• Commitment• OCB

Outcomes

• Target • Pervasiveness• Recipient• Purpose• Concomitant practices

EPM

IND – Possible Effects on EPM Acceptability Individualism Collectivism

Target

Pervasiveness

Recipient

Purpose

Conc. Practices

Individual/work products Group/work behaviors

Employee/Supervisor* Work Team/Supervisor*

Group performance feedback /informal performance reviews

Objective performance measurement/feedback

Individual incentives, employee-centered processes

Teamwork, group incentives & praise

Pervasive Pervasive

* 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.

High UA Low UA

Target

Pervasiveness

Recipient

Purpose

Conc. Practices

Detailed explanation of EPM & data use; visibility of monitoring

Monitoring/objective performance measurement

General guidance/ feedback

Employee

Pervasive

Individual Individual/Group*

Employee/Group/Supervisor*

Pervasive/Non-Pervasive

Goal-setting, pay for performance

UA – Possible Effects on EPM Acceptability

* Depends on the M/F

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

Pervasiveness

Recipient

Purpose

Conc. Practices

Supervisor Employee/Group*

FeedbackMonitoring, performance appraisal, feedback

Bureaucratic controls, top-down decision making

Participatory management, worker control, goal setting

Pervasive Non-pervasive

Individual/Group* Individual/Group*

* 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

Pervasiveness

Recipient

Purpose

Conc. Practices

Individual Group

Employee/Supervisor Group

Group performance feedback

Objective individual performance measurement

Pay-for-performance Human-centered production

Results Processes

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

Pervasiveness

Recipient

Purpose

Conc. Practices

Individual/Group* Individual/ Group*

Individual/Group/Supervisor* Individual/Group/Supervisor*

Informal performance reviews

Feedback for increased competence & performance

Long-term goals; extensive data collection

Short-term goals; focus on results

Pervasive/Behaviors Pervasive/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-by-case consideration is needed to design a culturally-acceptable EPM system