You Manage It! 1: Emerging Trends Electronic Monitoring to Make Sure That No One Steps Out of Line

More and more organizations rely on sophisticated yet inexpensive technologies to keep track of what employees do. A few examples follow:

Use of “Magic Glasses” by Police Officers

Many police departments now use miniaturized video cameras and microphones to record all interactions between police and civilians. The cameras are generally unnoticeable to the untrained eye and are placed on a pair of glasses or on a police cap. A central server automatically uploads all videos, which become part of a reservoir of digital evidence. This allows the department to keep track of any police misconduct and also to avoid any bogus complaints.

Motorola Arm-Mounted Terminals

Motorola is marketing an arm band that allows a company to keep track of how quickly an employee performs his or her job. It looks like something between a Game Boy and a Garmin GPS device. For example, Tesco, a British grocery store chain, uses the arm bands to see how fast employees unload and set goods in a warehouse, assigning a grade to each. It can even maintain a record of when and how often employees take a bathroom break. Employees who do not meet specific productivity score targets (those with a grade of “C” or below) may be terminated. According to Tesco, this has allowed the company to operate stores with 20 percent fewer employees.

Intel Tracking System of Objectives and Key Results

Intel has developed a device to continuously monitor employee productivity. For instance, Zynga (a rapidly growing Internet-startup provider of video games) uses the system to relentlessly aggregate performance data, ranging from the cafeteria staff to the top management team. CEO Mark Pincus purportedly devours all the reports, using multiple spreadsheets and many performance indicators to carefully keep track of the progress of Zynga’s roughly 3,000 employees.

Computer Programs at Ann Taylor Stores Corp.

Retailers have a new tool to turn up the heat on their salespeople: computer programs that dictate which employees should work, when, and for how long. Ann Taylor Stores Corp. has installed such a system. When saleswoman Nyla Houser types her code number into a cash register at the store, it displays her “performance metrics”: average sales per hour, units sold, and dollars per transaction. The system schedules the most productive sellers to work the busiest hours.

By Building Mathematical Models of Its Own Employees, IBM Aims to Improve Productivity and Automate Management

Samer Takriti, a Syrian-born mathematician, heads up a team that is piecing together mathematical models of 50,000 of IBM’s tech consultants. The idea is to inventory all of their skills and then calculate, mathematically, how best to deploy them. Takriti and his colleagues seek to turn IBM’s workers into numbers that track what they do.

To put together this system, Takriti requires mountains of facts about each employee. While this sounds Orwellian, he has unleashed some 40 PhDs, from data miners and statisticians to anthropologists, to comb through workers’ data. Sifting through resumes and project records, the team can assemble a profile of each worker’s skills and experience. Online calendars show how employees use their time and with whom they meet. By tracking the use of cell phones and handheld computers, Takriti’s researchers may be able to map workers’ movements. Call records and e-mails define the social networks of each consultant. Whom do they copy on their e-mails? Do they send blind copies to certain people?

Creating a Numerical Profile for Recruitment

Amanda Treeline is a manager at an executive recruitment firm that specializes in sales talent, and she gets hundreds of resumes a week. The firm has developed a numerical profile to screen candidates. She claims that their system allows them to screen large databases to identify a small set of candidates on specific criteria that hiring managers are interested in. On average, they are able to decrease the number of candidates from over 1,000 potential hires to just 20 qualified candidates, and then the line managers are sent a detailed profile of each of these candidates including sales stats, resume, LinkedIn profile, picture, and video resume.

Critical Thinking Questions

  1. 1-12. Do you think it is feasible to boil down human behavior to a set of numbers? What are the potential advantages and disadvantages of doing so? Explain.

  2. 1-13. What do you think are the main reasons for the trend toward “managing by the numbers,” as discussed in the case? Do you believe that this is happening in many organizations, or is it an isolated phenomenon? Will this trend grow in the future, or is it another passing fad? Explain.

  3. 1-14. Is it possible to use quantitative assessments of the organization’s human resources to better link human resource management to firm strategy? Explain.

Team Exercise

  1. 1-15. The class is divided into groups of five. Each team is to provide a list of suggestions as to how an organization can implement a numerical human resource system, as discussed in the case. The team should discuss whether such a system could be used to achieve a better fit between HR practices and organizational strategies, the environment, organizational characteristics, and organizational capabilities. Lastly, the team should discuss the extent to which such a numerical system would clash with the “HR best practices” summarized in Figure 1.7. Depending on class size and available class time, each team will be asked to present the results of its deliberation, to be followed by open class discussion moderated by the instructor.

Experiential Exercise: Team

  1. 1-16. The class is divided into groups of five. Each team is to choose an organization (which could be a workplace for one or more team members; a hypothetical firm in an industry that is well-known to most people, such as a restaurant; a firm where relatives are employed; and the like). Each team is to provide a list of suggestions as to how the organization can implement a system to “quantify what employees do.” Then the team should discuss how this information could be used to improve efficiency. The team may also discuss potential problems that could arise in gathering that information and using it in practice. The instructor may ask each team to make a formal presentation in class, to be followed by open class discussion moderated by the instructor.

Experiential Exercise: Individual

  1. 1-17. Each student will interview a manager or an employee (who might be a family member, a friend, or an acquaintance) to determine the extent to which the issues raised in the case are represented in his or her organization and what steps, if any, the firm has taken to make employees more productive. The advantages and disadvantages of such a plan may also be discussed. (Alternatively, if the student has substantial work experience he or she may offer his or her own views based on personal observation.) The instructor will moderate open class discussion based on the findings brought to the class by students.

Sources:Based on Stross, R. (2013). Wearing a badge and a video camera. www.nytimes.com ; Sudath, C. (2013). Tesco monitors employees with Motorola armbands. www.businessweek.com ; Rushi, E. M. (2013). Zynga’s tough culture risks a brain drain. [no longer online] http://dealbook.nytimes.com ; Ryan, L. (2013). Because employees can’t be trusted. www.businessweek.com ; Zakaria, F. (2010, Nov. 1). Restoring the American dream. Time, 30–35; www.inc.com . (2011). Every tool you need for hiring; Shambora, J. (2010, Sept. 27). The algorithm of love. Fortune, 28; O’Connell, V. (2008, September 10). Retailers reprogram workers in efficiency push. Wall Street Journal, A-12; Baker, S. (2008, September 8). Management by the numbers. BusinessWeek, 32–38.
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