OM in the News: How Much Should Employees Be Monitored?

monitoringHarvard Professor Ethan Bernstein asks the question: How well do workers perform when they are being monitored (Chicago Tribune -April 4, 2016). “Unrehearsed, experimental behaviors sometimes cease altogether,” says Bernstein. “Wide-open workspaces and copious real-time data on how individuals spend their time can leave employees feeling exposed and vulnerable.”

To conduct his research, Bernstein embedded 5 Chinese-born Harvard undergrads into the lines of the world’s second largest mobile phone factory, located in China. The 5 worked, ate, and lived alongside their coworkers, who were not privy to the experiment. Here’s what they observed: Even seemingly unremarkable behavior–such as wearing rubber gloves when assembling or handling components–changed immensely, because the employees knew they were being watched. Factory rules stated that line workers were supposed to wear gloves. But students noticed that when the workers were unobserved: “People either wear a glove on only one hand or they cut their gloves so their fingertips stick out, giving them a bare hand or bare fingertips so when they are doing little things it goes a lot faster.” On the macro level, this reveals employees obey glove procedures only when they’re watched. On another level, it suggests that the gloves are poorly designed; that employees will break rules (and endure safety risks) to meet productivity goals; and that management has possibly overstressed productivity at the expense of safety.

Bernstein also noticed that factory teams worked faster–that is, they were more productive–when they were unobserved. Bernstein set up curtains around 4 of the factory’s 32 lines, shielding the workers on those lines from observation. “Over the next 5 months, to my surprise, the lines with curtains were 10-15% more productive than the rest,” he says. By contrast, the employees on regularly observed lines routinely hid process improvements from managers. The reason? One worker said that it was “most efficient to hide it now and discuss it later. Everyone is happy: They see what they expect to see, and we meet our targets.”

Classroom discussion questions:

  1. Describe the 4 measures for measuring work (see Chapter 10).
  2. Do you think Bernstein’s conclusions relate to all fields?

OM in the News: Advances in Technology Are Shaking Up The Workplace

Schneider National drivers are tracked to see if they are breaking too hard
Schneider National drivers are tracked to see if they are breaking too hard

Dennis Gray suspected that workers in his pest-control company were spending too much time on personal issues during the workday. So the general manager of Accurid Pest Solutions in Virginia quietly installed a piece of GPS tracking software on the company-issued smartphones of its 18 drivers. The software allowed Gray to log onto his computer to see a map displaying the location and movement of his staff. One employee, he discovered, was visiting the same address a few times a week for a few hours during the workday. At that point, Gray told the driver he was being tracked.

“Blue-collar workers have always been kept on a tight leash,” writes The Wall Street Journal (Oct.23, 2013), “but there is a new level of surveillance available to bosses these days. Thanks to mobile devices and inexpensive monitoring software, managers can now know where workers are, eavesdrop on their phone calls, tell if a truck driver is wearing his seat belt and intervene if he is tailgating”.

A 2012 report found that 37% of companies that send employees out on service calls track the real time location of workers via their hand held devices or vehicles. High tech monitoring feels like a violation of privacy to some workers, but employers say such measures improve workplace safety and productivity while also helping to reduce theft, protect secrets and investigate harassment or discrimination claims. No federal statutes restrict the use of GPS by employers, nor force them to disclose whether they are using it.

Companies that keep quiet about tracking efforts may miss out on the benefits of deterrence. A recent study of NCR’s theft-monitoring software used in 392 restaurants found a 22% reduction in server theft after the software was installed and staffers were told about it. Drink sales, meanwhile, rose 10%. Being watched, researchers found, made waitstaff work harder. This is a great example of service technology to use when teaching Chapter 7.

Classroom discussion questions:

1. What are the ethical issues involved in monitoring employees?

2. What are the OM advantages of tracking?