Virtual Office How much do flexible work arrangements improve employee productivity? Or do they?...

Virtual OfficeHow much do flexible work

arrangements improve employee productivity?

Or do they?

GROUP 10:

Cameron Weaver Elizabeth Gratale Katie Bennett Casey Dunlevie

SKITVirtual Office Workers Traditional Office Workers

Katie Bennett

Elizabeth Gratale

Cameron Weaver

Casey Dunlevie

Agenda:

What is a virtual office?AdvantagesDisadvantageConclusion

Virtual Office Advantages Disadvantages Conclusion

What is a Virtual Office?

Definition: “mobile or work environment equipped with telecommunication links and basic office furniture, but without a fixed office space”-Business Dictionary

Virtual Office Advantages Disadvantages Conclusion

Increase in Teleworkers in U.S.

What is a Virtual Office?

Forms Hoteling/shared offices Satellite offices Home office Telecommuting

Virtual Office Advantages Disadvantages Conclusion

Hoteling:

Maximize office space

Reserve space or set up permanent hours

Can be customized

Ernst & Young: employees were out of the office 3 or 4

times a week.

Virtual Office Advantages Disadvantages Conclusion

Satellite Offices:

Network of smaller offices

Suburban locations

Deloitte & Touche: SmartSpace Program

Virtual Office Advantages Disadvantages Conclusion

Home Office:

Designated space New construction of homesEquipped with right technology Organized

Home office:

This…

Not this…

Telecommuting:

Working from anywhereAlways connected with technology

Virtual Office Advantages Disadvantages Conclusion

Technology:

Laptop Docking station Cell phone with e-mail Scanner Video camera High speed Internet Software

Regus Officescape Google Docs

Instant messaging Web conferencing TelePresence

2007 Survey of 200 users of Web Conferencing Technology

For Students

How many use Blackboard?How many have taken an online class?How many have taken a class with a live

feed of a professor in another location?

Advantages:

Business

Employee

Environment

Virtual Office Advantages Disadvantages Conclusion

Business Advantages:

Increased productivity Reduced absenteeism by 50%

Cost-efficiencyEmployee Retention Broadens labor market

Virtual Office Advantages Disadvantages Conclusion

Cost Efficiency of AT&T’s First Shared Offices in Morristown, NJ:

Virtual Office Advantages Disadvantages Conclusion

Before After

Square Feet 45,000 27,000

Annual Rent $1.2 M $0.7M

Persons 196 225

Annual Rent per Person

$6,100 $3,100

Annual Savings N/A $463,500

Employee Advantages:

Improves quality of life Flexible hours Balanced lifestyle Healthier Reduces stress

Virtual Office Advantages Disadvantages Conclusion

Case StudyIBM Teleworkers:

“I enjoy coaching my daughter’s soccer team at 3:30 in the afternoon.”

“I can finally eat breakfast with my family for the first time in 15 years at IBM.”

Virtual Office Advantages Disadvantages Conclusion

Employee Advantages:

Saves moneyOpportunities for mothers and people with

disabilities

Virtual Office Advantages Disadvantages Conclusion

Environmental Advantages:Reduced need for transportation

Pollution Reduced by >4,500 pounds of CO2/year in Arizona

Fuel consumption Reduced by 250 gallons/employee/year in Arizona

Virtual Office Advantages Disadvantages Conclusion

What are some disadvantages of Virtual Office?

Disadvantages

What are some disadvantages to the virtual office?

Lack of face-to-face interactions

Blurry line between work life and home life

Temptation of slacking, becoming unprofessional

Lack of cohesion and unity with the company

Virtual Office Advantages Disadvantages Conclusion

Lack of face-to-face interaction:

Better to take care of business immediately and in person

Avoid e-mail chains and phone tag Stifles creativity and idea creation Prevents interoffice camaraderie

If you didn’t work in an office, you’d be missing out on this…

Its Getting Hot in Here: Scranton Style

Virtual Office Advantages Disadvantages Conclusion

Case StudyAdvertising Agency. Employees were

concerned…

How do people know how hard I’m working?

AdvantagesVirtual Office Disadvantages Conclusion

Case StudyAdvertising Agency. Employees were

concerned…

AdvantagesVirtual Office Disadvantages Conclusion

•“How do people know how hard I’m working?”

•“How do I overhear the important things, since no one bothers to tell me anything?”

Case StudyAdvertising Agency. Employees were

concerned…

AdvantagesVirtual Office Disadvantages Conclusion

•“How do people know how hard I’m working?”

•“How do I overhear the important things, since no one bothers to tell me anything?”

•“I’m afraid of being out of touch.”

Blurry line between work and home:

Not a sense of “I leave my work when I leave at 5pm.”

Feel “on duty” even around family members

Company's exploitation

of workers' free time

Virtual Office Advantages Disadvantages Conclusion

Case StudyIBM Teleworkers:

“Even vacation time blends into work time unless I go somewhere.”

“I am always at work… between 5 a.m. and midnight, seven days a week.”

Unintentionally long hours, fewer external cues to stop

Virtual Office Advantages Disadvantages Conclusion

Temptation of Slacking

SlovenlinessSet your own schedule--

“This can wait until later.”Less monitoring of employees

Virtual Office Advantages Disadvantages Conclusion

Lack of cohesion and unity:Lack of shared office space and

experiencesNo dress codeOther office artifacts: logos, notepads, etcWiesenfield: “Virtual employees are the

least likely to be exposed to organizational factors that have traditionally strengthened member identification.”

Virtual Office Advantages Disadvantages Conclusion

Eat Your Candy and Watch This:

Good Office Worker vs. Bad Office Worker

When calculated, the statistics for the benefits versus drawbacks come out roughly the same….

Conclusion: Our Opinion

Each company and personality differ in what works

Generation discrepancy as generation X and Y enters the workforce

Personal responsibility and work habits determine which method is better

DisadvantagesVirtual Office Advantages Conclusion

Virtual Office(Remember we gave you

candy..)

Katie Bennett Elizabeth Gratale

Cameron Weaver Casey Dunlevie