- Email: [email protected]
A model for investigating telework in accounting
International Journal of Accounting Information Systems 5 (2004) 417 – 427
A model for investigating telework in accounting James E. Huntona,b,*, W. Ken Harmonc,1 a
Department of Accountancy, Bentley College, 175 Forest Street, Waltham, MA 02452-4705, United States b Accounting and Information Management, Universiteit Maastricht, The Netherlands c Millsaps College, 1701 N. State Street, Jackson, MS 39210, United States Received 15 February 2004; received in revised form 28 June 2004; accepted 30 June 2004
Abstract The number of teleworkers and extent of telework opportunities throughout the accounting profession have grown exponentially in recent years. The trend will likely accelerate in the foreseeable future due to the increasing assimilation of information and communication technologies throughout the profession, coupled with the expanding globalization of business. Prior research in the area of telework is found primarily in the information systems and management literatures and typically focuses on assumed antecedents and consequences of telework behavior; however, the integration of psychological and organizational theories, as well as the ability to link human motivation to telework, is lacking in such research. This study develops a theoretically based Telework Behavior Model (TBM), which addresses the interaction of various psychological effects, individual consequences, and organizational outcomes. We also suggest ways in which this model can be used in future telework studies in accounting. D 2004 Published by Elsevier Inc. MSC: AAO1; AA07; AA08; AI02; AP; DA01; DA08; DD04; GB02; GB03 Keywords: Telework; Procedural justice; Self-determination
*
Corresponding author. Tel.: +1 781 891 2422; fax: +1 781 891 2896. E-mail addresses: [email protected] (J.E. Hunton)8 [email protected] (W. Ken Harmon). 1 Tel.: +1 601 974 1250. 1467-0895/$ - see front matter D 2004 Published by Elsevier Inc. doi:10.1016/j.accinf.2004.06.003
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1. Introduction According to the International Telework Association and Council (ITAC), telework takes place when employees are allowed to work at home, clients’ offices, satellite offices, and on the road. While telework has been a viable option in numerous professions for years, it is quickly becoming a significant factor in accounting and auditing. In a 2003 Robert Half Survey, one third of CFOs said that allowing employees to telework and maintain flexible work schedules was the most important factor in attracting top accounting candidates—even more important than salary. Furthermore, 50% of CFOs said that they would allow their accounting staff to telecommute by 2006. While telework in the accounting profession is rapidly rising across the globe, surprisingly little is known about the antecedents and consequences of such work. Recent comprehensive reviews of telework research suggest that future studies should focus on the interaction of individuals and organizations as a way to better understand the social dynamics of telework (Orlikowski and Barley, 2001). Bailey and Kurland (2002) suggest that telework research needs to be expanded beyond its current scope. Furthermore, they identify the need to reconsider individuals’ motivations to telework and integrate theory into future studies. The purpose of the current article is to (1) explore theories underlying telework behavior, (2) propose a theoretically based Telework Behavior Model (TBM), and (3) suggest future research avenues. The next section examines current literature in telework research to identify common themes and assumptions. The subsequent section describes the relevance of the expectancy theory to telework research and explores the role of the procedural justice and the selfdetermination theories in telework scenarios. Using these theories as a foundation, we then propose a Telework Behavior Model. Section 5 offers suggestions for future accounting research in the area of telework.
2. Telework literature Since the beginning of telework research in the early 1980s, a wide array of studies has examined a variety of issues dealing with the impact of virtual work on people, organizations, and societies. In general, these studies have examined telework from two perspectives: the employer’s outlook (supply) and the employee’s viewpoint (demand). Telework researchers have assumed that employers primarily provide telework opportunities to decrease the cost of real estate (Frolick et al., 1993; Olson, 1981) and reduce labor cost through improved productivity, decreased turnover, and outsourced labor (Apgar, 1998; Bailey and Kurland, 2002). Employers can also be viewed by their employees and the public at large as being good corporate citizens, as telework opportunities enhance compliance with the Americans with Disabilities Act (Matthes, 1992) and reduce air pollution and traffic congestion (Handy and Mokhtarian, 1995; Mannering and Mokhtarian, 1995). However, some employers have been reluctant to allow telework due to managers’ feelings that coordinating telework schedules is too complex and beliefs that they will lose a desired degree of control over their employees (Huws et al., 1990).
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Research in employee motivation to engage in telework has focused primarily on scheduling flexibility and commuting reduction. Employees may desire to telework to achieve scheduling flexibility, thereby attaining a balance between their work and home lives (Haddon, 1998; Olson and Primps, 1984). Employees who live lengthy distances from their office may want to reduce or eliminate their commute times (Mokhtarian and Salomon, 1997; Stanek and Mokhtarian, 1998). Freedom from unwanted work interruptions also motivates some employees to desire telework (Bailey and Kurland, 2002). Certain negative factors have been associated with telework as well (Baumeister and Leary, 1995; Olson and Primps, 1984). For example, some workers have a strong need for direct interaction or affiliation with others. For those employees where such affiliation need is high, telework can result in significant negative consequences. Another potentially negative outcome is the perceived loss of status. Some workers have reported that they felt relegated to lower status as a teleworker and were perhaps overlooked for desired benefits such as raises and promotions. While we have learned a great deal about telework over the past two decades, researchers still know surprisingly little about its antecedents and consequences (Bailey and Kurland, 2002). With the increasing power and widening proliferation of sophisticated information and communication technologies across the globe, telework is a reality that is becoming ever more tightly woven into the fabric of worldwide societies; thus, it is important for accounting academics and organizations to continue their investigations of this rapidly growing phenomenon throughout the profession.
3. Theories underlying telework behavior The motivation to telework is rooted primarily in the expectancy theory (Vroom, 1964), which is depicted as: Motivation ¼ Expectancy Instrumentality Valence In this model, motivation is the product of three variables: expectancy, instrumentality, and valence. Expectancy is the employees’ self-reflected belief that they hold the requisite skills to complete the actions necessary to attain desired outcomes. Instrumentality relates to the employees’ beliefs that their performance will indeed result in wanted outcomes; that is, actions will lead to results. Valence refers to the individuals’ subjective expected value of the desired outcome. The relevance of the expectancy theory to telework is depicted in Fig. 1 and described in the following sections. 3.1. Expectancy Employees must believe they have the ability to perform prescribed functions outside of the usual office environment. Accordingly, in a telework setting, the nature and extent of the telework policy itself would have significant influence on this perception. For instance,
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Fig. 1. Expectancy theory in a telework framework.
a sound telework policy should describe the level of training and support that each employee will receive. Furthermore, the policy should dictate certain behaviors and specify expected performance. Accordingly, employees should align their prior beliefs about their abilities to execute the prescribed behaviors and achieve the expected performance. Once employees begin teleworking, their expectancy assessments would inevitably adjust based on their own performance and subsequent adjustments to the telework policy. 3.2. Instrumentality Employees’ motivations will be affected by their perception of the linkage between performance and rewards. Of course, the telework policy should provide external motivation by explicating extrinsic rewards associated with certain levels of performance. However, previous literature shows that employees are also motivated to telework for nonfinancial or intrinsic reasons. For example, employees would hope to yield such rewards as scheduling flexibility, commute reduction, and freedom from interruptions. Negative outcomes could also result, however, such as a decrease in affiliation and perceived loss of status. Upon first learning the telework policy, employees would infer a relationship between performing under the telework policy and receiving the associated outcomes, both positive and negative. Then, after performing telework for a period of time, the employees would likely revise their instrumentality assessments based on observance of actual outcomes. Associated with instrumentality is the notion of procedural justice, which relates to the individual employee’s perceived degree of participatory involvement. Specifically, the procedural justice theory (Lind and Tyler, 1988; Thibaut and Walker, 1975) articulates two key forms of participatory involvement—voice and choice. Voice reflects a form of decision process control where affected parties are allowed to express their preferences and
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concerns before a decision is made (Folger, 1977; Folger et al., 1979). Choice denotes a higher level of decision control than voice does, as choice provides a means by which affected parties can choose from among a set of allowable alternatives (Earley and Kanfer, 1985; Earley and Lind, 1987). When a company is forging a telework policy, affected employees can become engaged in the development process through voice-based input. Employees can be asked to express their views regarding the details of the policy while it is being formed. If their expressed voice is integrated into the policy, this reflects instrumental voice, which offers a high level of process control. If their input is solicited mainly so that managers can explain how and why they crafted certain provisions into the telework policy, but the employees’ voice does not change the terms and conditions of the policy, this indicates noninstrumental voice. While noninstrumental voice offers no process control, prior research finds that soliciting such voice often results in higher levels of affects, motivations, cognitions, and desired behavior than no voice does; thus, noninstrumental voice tends to mimic low levels of instrumental voice (Hunton and Price, 1994). Actually participating in telework reflects the choice construct because a telework policy typically involves behavioral alternatives from which employees can choose, such as work at home or a central office. According to procedural justice theory, more choice is generally preferred to no choice (Lind and Tyler, 1988). Consistent with the axiomatic premise that more is better than less choice, employees who are offered multiple choices should respond more favorably, both psychologically and behaviorally, than will those with no choice and would therefore likely assess a stronger connection between performance and outcomes. 3.3. Valence To be motivated to telework, employees must perceive net positive subjective expected value in the outcomes of the telework behavior. As noted previously, literature has found that employees are positively motivated by such benefits as higher pay due to more focused work, scheduling flexibility, commute reduction, and freedom from interruptions. Negative value can be found in such outcomes as loss of affiliation and perceived loss of status. Once employees perform in a telework environment and experience certain desired and undesired outcomes, they would likely adjust the valence associated with the net result of such outcomes. An intervening factor that could affect the valence of various outcomes is the notion of self-determination. According to the self-determination theory (Ryan and Deci, 2000; Deci et al., 1989), workers have more interest, excitement, and confidence when motivation is viewed as authentic (i.e., self-authored or endorsed) versus those occasions when motivation is controlled by external factors (e.g., pay and policies). Furthermore, extrinsic motivation is most effective when workers are allowed greater relative autonomy (Ryan and Deci, 2000). The very nature of telework, which gives the worker a greater sense of control and autonomy, should result in a higher level of motivation to participate in telework. Workers would be additionally motivated through a telework policy allowing choices, such as a time and location.
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4. Telework behavior model The Telework Behavior Model (TBM) developed herein is shown in Fig. 2. This model is adapted from one offered by Hunton and Price (1994), which was supported empirically by Hunton and Beeler (1997). While the original model dealt with user involvement and acceptance, many of the same constructs and relationships apply to the TBM. The TBM begins by indicating that the telework policy set forth by an organization dictates an allowable set of telework options. Depending on various individual motivational factors, employees will make personal choices according to the telework policy (telework behavior). For example, employees would make such choices as whether to telework, where to telework, and how frequently to telework.
Fig. 2. Telework behavior model (TBM).
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Telework can yield positive cognitive benefits. Three key cognitive effects of telework are activation, efficiency, and flow. Cognitive activation refers to an individual’s state of mental alertness and excitement (Csikszentmihalyi, 1997); cognitive efficiency reflects the ease with which one can concentrate on the task (Kubey et al., 1996); and cognitive flow indicates how easily one can refocus on the task after being interrupted (Csikszentmihalyi, 1997). Following from the discussion of motivational factors related to telework, effective self-management of telework options will likely optimize these cognitions, thereby improving individual and organizational outcomes. Telework can influence affects as well. Three affective factors associated with telework are telework satisfaction (Hartman et al., 1992; Ramsower, 1985), home satisfaction (Haddon, 1998; Perlow, 1997), and job satisfaction (Belanger, 1999; Norman et al., 1995). While research evidence regarding the impact of telework on these affects is mixed (Bailey and Kurland, 2002), they nevertheless dominate the literature and are key to improving our understanding of the link between telework choices and consequential outcomes (Pinsonneault and Boisvert, 2001). The choices made by employees will influence various cognitions and affects, and these psychological effects will then trigger an array of individual outcomes, such as increased flexibility and reduced commute time. The affects and outcomes will, in turn, influence motivation to continue in the telework program. In this model, employees can continually adjust their telework choices until they reach a desired state of equilibrium among competing motivational forces, such as scheduling flexibility and affiliation need. In addition to individual outcomes, the organization will feel the impact of its telework policy via a set of signals, such as reduced real estate costs and reduced labor costs through increased productivity, reduced turnover, and less managerial control. Of course, employers could also have negative outcomes, such as loss of control and scheduling difficulties. Then, based on the outcomes observed, the employer can alter the telework policy accordingly.
5. Suggestions for research As noted previously, the accounting profession is experiencing significant growth in teleworking opportunities. However, as employers develop telework policies in accounting, more needs to be known about the telework experience. Managers must be able to develop telework policies that optimize expected organizational results, such as reduced real estate costs and labor costs, while also keeping employees motivated to work at their highest levels of efficiency and effectiveness. Understanding the interactions among telework policy alternatives, human motivations, employee behaviors, and desired outcomes should assist in the design of such policies to ensure that the adopted telework policy is congruent with contingent organizational factors. Bailey and Kurland (2002) articulate the need to investigate bhowQ people telework, bwhyQ they telework, and the bconsequencesQ of telework on individuals and organizations. They also identify the need for more longitudinal studies and studies built
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on theoretical foundations. The Telework Behavior Model developed herein provides a theoretical foundation for answering these important questions and further exploring various factors comprising the complex telework equation. To provide insight into these interactions, researchers must first understand how people telework. Accordingly, we should observe situations where employees have volitional choice over certain aspects of their telework, such as when and where to work. When choice is available, most employees do not opt to work at home on a full-time basis; instead, they appear to vacillate among alternative work sites (Hamblin, 1995; Teo et al., 1999). Work patterns of this nature are not random, as they are likely driven by a complex web of human desires and needs. Observing telework behavioral patterns, particularly in field settings, would vastly improve our understanding of the choices employees make and, as next discussed, why they make such choices. The answer to why employees telework can be partially explored via the underlying theories described in this paper and captured through the motivational, cognitive, and affective variables in the TBM. While the TBM incorporates general notions of motivations, cognitions, and affects related to telework, more in-depth research is needed in this area. One way to gain deeper insight into the human psychology underpinning why employees choose to telework could be developed through grounded theory, where researchers observe teleworkers in field settings and deduce why they engage in such behaviors. Answers related to the consequences of telework can be explored optimally in settings where academics have access to a combination of archival (e.g., productivity measures, turnover rates, and labor costs) and perceptual data (e.g., beliefs and attitudes; Orlikowski and Barley, 2001). Combining dsoftT and dhardT metrics might help researchers to tease apart vital time-sensitive issues related to telework. For instance, when a company first enacts a telework policy, affected parties might express high levels of satisfaction with their newfound independence and scheduling freedom. Perhaps, even performance will jump markedly—observations of which researchers can glean from archival records. However, as the difficulties of juggling work- and home-life priorities begin to emerge, coupled with a growing sense of isolation, participants’ motivations, cognitions, affects, and behaviors might change demonstrably. One way to observe patterns of this nature would be to engage in longitudinal telework studies that track psychological and behavioral patterns over time in the rich ecological settings of the home and office (Pinsonneault and Boisvert, 2001). Gaining such insight would reflect valuable contributions to the rapidly changing dnature of workT paradigm.
6. Conclusion The nature of work has progressed through three overarching phases since the dawn of time. At first, most work was performed by individuals or small groups at suitable locations, such as agricultural fields, hunting lands, and fishing waters, which were dictated by the availability of vital resources. The resource work paradigm often resulted in nomadic tribes of hunters and gatherers who traveled great distances to survive. Centuries later, a great deal of work was performed collectively at central sites, where
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materials and laborers were gathered and resources were employed in a transformative fashion. The central work paradigm spawned today’s metropolitan areas across the globe, and, for the most part, we remain firmly entrenched in this phase to this day. However, we are standing at the precipice of a third phase—virtual work—which is a hybrid extension of the earlier two phases, where work can be performed at convenient locations by individuals or small groups, and the output of such transformative effort is transferred to a central location via electronic impulses. In this third phase, working at distant sites is not driven by the necessity of resource availability, as it was in the first phase; instead, employees can choose to engage in virtual work for a host of personal reasons. As well, the transformation that takes place in the third phase is intellectual, which is unlike the physical transformation that triggered the emergence of the second phase. Accordingly, virtual work reflects a paradigm shift away from the first two phases. As with any radical change, it is important to understand the plethora of intended and unintended consequences. One cannot take for granted that virtual work will yield only positive benefits for employees, organizations, and societies. As the accounting profession offers increasingly more telework opportunities to employees, researchers and practitioners need to learn a great deal more about the behavioral consequences related to virtual work arrangements. It is neither clear how to best craft, implement, and sustain an effective telework policy, nor is it obvious how a telework policy will affect managers, employees, organizations, and societies. While the profession is engaged in trial-and-error learning regarding various telework arrangements, it is imperative that researchers develop theory-based models and conduct rigorous methodological studies in this area. Responding to this imperative, the current paper develops a generalized Telework Behavior Model (TBM) that can be used as a starting point by accounting researchers. While we acknowledge that more theories, processes, and outcomes can be considered in the telework equation, the TBM provides a first approximation of individual and organizational factors related to telework and, accordingly, suggests a variety of areas to be explored in prospective telework investigations. For instance, future accounting research in the area of telework could test all or portions of the TBM developed herein to better understand how psychological processes (e.g., affective, motivational, and cognitive) help to explain observed effects, such as telecommuting choices (e.g., time and location) and organizational outcomes (e.g., performance, commitment, and turnover). Future studies could also refine and extend the theoretical underpinning of the TBM model such that it is more robust across persons, times, and settings. Researchers could approach the study of telework via field studies, field experiments, or archival analyses. Regarding the former, accounting researchers could observe how managers and employees respond to existing telework policies currently in effect at audit firms, for-profit companies, or not-for-profit organizations. From such observations, grounded theories could emerge. With respect to field experiments, researchers could study organizations that are willing to implement different telework policies at various locations to determine which policies are most and least effective. Such examinations would vastly improve our understanding of how, why, and under what conditions telework is most likely successful. Archival researchers could investigate the short- and long-term firm performance effects of companies with and
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without telework policies. When such findings are triangulated with the results of field and experimental studies, an emerging tapestry of telework in accounting will emerge, from which analytical and theoretical models can continue to adapt and evolve. The virtual work paradigm will likely eventually supplant the central work paradigm, particularly for knowledge workers such as accounting professionals. Rather than passively watching and waiting to see how telework impacts the accounting profession, researchers should proactively join with practitioners to find ways to optimize the effectiveness of alternative telework policies under various working conditions. The study of telework is not merely an indulgence in curiosity; rather, such research is crucial to understanding and improving the human condition in the interconnected, technology-centric, globally distributed business environment in which accountants are immersed.
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A model for investigating telework in accounting James E. Huntona,b,*, W. Ken Harmonc,1 a
Department of Accountancy, Bentley College, 175 Forest Street, Waltham, MA 02452-4705, United States b Accounting and Information Management, Universiteit Maastricht, The Netherlands c Millsaps College, 1701 N. State Street, Jackson, MS 39210, United States Received 15 February 2004; received in revised form 28 June 2004; accepted 30 June 2004
Abstract The number of teleworkers and extent of telework opportunities throughout the accounting profession have grown exponentially in recent years. The trend will likely accelerate in the foreseeable future due to the increasing assimilation of information and communication technologies throughout the profession, coupled with the expanding globalization of business. Prior research in the area of telework is found primarily in the information systems and management literatures and typically focuses on assumed antecedents and consequences of telework behavior; however, the integration of psychological and organizational theories, as well as the ability to link human motivation to telework, is lacking in such research. This study develops a theoretically based Telework Behavior Model (TBM), which addresses the interaction of various psychological effects, individual consequences, and organizational outcomes. We also suggest ways in which this model can be used in future telework studies in accounting. D 2004 Published by Elsevier Inc. MSC: AAO1; AA07; AA08; AI02; AP; DA01; DA08; DD04; GB02; GB03 Keywords: Telework; Procedural justice; Self-determination
*
Corresponding author. Tel.: +1 781 891 2422; fax: +1 781 891 2896. E-mail addresses: [email protected] (J.E. Hunton)8 [email protected] (W. Ken Harmon). 1 Tel.: +1 601 974 1250. 1467-0895/$ - see front matter D 2004 Published by Elsevier Inc. doi:10.1016/j.accinf.2004.06.003
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1. Introduction According to the International Telework Association and Council (ITAC), telework takes place when employees are allowed to work at home, clients’ offices, satellite offices, and on the road. While telework has been a viable option in numerous professions for years, it is quickly becoming a significant factor in accounting and auditing. In a 2003 Robert Half Survey, one third of CFOs said that allowing employees to telework and maintain flexible work schedules was the most important factor in attracting top accounting candidates—even more important than salary. Furthermore, 50% of CFOs said that they would allow their accounting staff to telecommute by 2006. While telework in the accounting profession is rapidly rising across the globe, surprisingly little is known about the antecedents and consequences of such work. Recent comprehensive reviews of telework research suggest that future studies should focus on the interaction of individuals and organizations as a way to better understand the social dynamics of telework (Orlikowski and Barley, 2001). Bailey and Kurland (2002) suggest that telework research needs to be expanded beyond its current scope. Furthermore, they identify the need to reconsider individuals’ motivations to telework and integrate theory into future studies. The purpose of the current article is to (1) explore theories underlying telework behavior, (2) propose a theoretically based Telework Behavior Model (TBM), and (3) suggest future research avenues. The next section examines current literature in telework research to identify common themes and assumptions. The subsequent section describes the relevance of the expectancy theory to telework research and explores the role of the procedural justice and the selfdetermination theories in telework scenarios. Using these theories as a foundation, we then propose a Telework Behavior Model. Section 5 offers suggestions for future accounting research in the area of telework.
2. Telework literature Since the beginning of telework research in the early 1980s, a wide array of studies has examined a variety of issues dealing with the impact of virtual work on people, organizations, and societies. In general, these studies have examined telework from two perspectives: the employer’s outlook (supply) and the employee’s viewpoint (demand). Telework researchers have assumed that employers primarily provide telework opportunities to decrease the cost of real estate (Frolick et al., 1993; Olson, 1981) and reduce labor cost through improved productivity, decreased turnover, and outsourced labor (Apgar, 1998; Bailey and Kurland, 2002). Employers can also be viewed by their employees and the public at large as being good corporate citizens, as telework opportunities enhance compliance with the Americans with Disabilities Act (Matthes, 1992) and reduce air pollution and traffic congestion (Handy and Mokhtarian, 1995; Mannering and Mokhtarian, 1995). However, some employers have been reluctant to allow telework due to managers’ feelings that coordinating telework schedules is too complex and beliefs that they will lose a desired degree of control over their employees (Huws et al., 1990).
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Research in employee motivation to engage in telework has focused primarily on scheduling flexibility and commuting reduction. Employees may desire to telework to achieve scheduling flexibility, thereby attaining a balance between their work and home lives (Haddon, 1998; Olson and Primps, 1984). Employees who live lengthy distances from their office may want to reduce or eliminate their commute times (Mokhtarian and Salomon, 1997; Stanek and Mokhtarian, 1998). Freedom from unwanted work interruptions also motivates some employees to desire telework (Bailey and Kurland, 2002). Certain negative factors have been associated with telework as well (Baumeister and Leary, 1995; Olson and Primps, 1984). For example, some workers have a strong need for direct interaction or affiliation with others. For those employees where such affiliation need is high, telework can result in significant negative consequences. Another potentially negative outcome is the perceived loss of status. Some workers have reported that they felt relegated to lower status as a teleworker and were perhaps overlooked for desired benefits such as raises and promotions. While we have learned a great deal about telework over the past two decades, researchers still know surprisingly little about its antecedents and consequences (Bailey and Kurland, 2002). With the increasing power and widening proliferation of sophisticated information and communication technologies across the globe, telework is a reality that is becoming ever more tightly woven into the fabric of worldwide societies; thus, it is important for accounting academics and organizations to continue their investigations of this rapidly growing phenomenon throughout the profession.
3. Theories underlying telework behavior The motivation to telework is rooted primarily in the expectancy theory (Vroom, 1964), which is depicted as: Motivation ¼ Expectancy Instrumentality Valence In this model, motivation is the product of three variables: expectancy, instrumentality, and valence. Expectancy is the employees’ self-reflected belief that they hold the requisite skills to complete the actions necessary to attain desired outcomes. Instrumentality relates to the employees’ beliefs that their performance will indeed result in wanted outcomes; that is, actions will lead to results. Valence refers to the individuals’ subjective expected value of the desired outcome. The relevance of the expectancy theory to telework is depicted in Fig. 1 and described in the following sections. 3.1. Expectancy Employees must believe they have the ability to perform prescribed functions outside of the usual office environment. Accordingly, in a telework setting, the nature and extent of the telework policy itself would have significant influence on this perception. For instance,
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Fig. 1. Expectancy theory in a telework framework.
a sound telework policy should describe the level of training and support that each employee will receive. Furthermore, the policy should dictate certain behaviors and specify expected performance. Accordingly, employees should align their prior beliefs about their abilities to execute the prescribed behaviors and achieve the expected performance. Once employees begin teleworking, their expectancy assessments would inevitably adjust based on their own performance and subsequent adjustments to the telework policy. 3.2. Instrumentality Employees’ motivations will be affected by their perception of the linkage between performance and rewards. Of course, the telework policy should provide external motivation by explicating extrinsic rewards associated with certain levels of performance. However, previous literature shows that employees are also motivated to telework for nonfinancial or intrinsic reasons. For example, employees would hope to yield such rewards as scheduling flexibility, commute reduction, and freedom from interruptions. Negative outcomes could also result, however, such as a decrease in affiliation and perceived loss of status. Upon first learning the telework policy, employees would infer a relationship between performing under the telework policy and receiving the associated outcomes, both positive and negative. Then, after performing telework for a period of time, the employees would likely revise their instrumentality assessments based on observance of actual outcomes. Associated with instrumentality is the notion of procedural justice, which relates to the individual employee’s perceived degree of participatory involvement. Specifically, the procedural justice theory (Lind and Tyler, 1988; Thibaut and Walker, 1975) articulates two key forms of participatory involvement—voice and choice. Voice reflects a form of decision process control where affected parties are allowed to express their preferences and
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concerns before a decision is made (Folger, 1977; Folger et al., 1979). Choice denotes a higher level of decision control than voice does, as choice provides a means by which affected parties can choose from among a set of allowable alternatives (Earley and Kanfer, 1985; Earley and Lind, 1987). When a company is forging a telework policy, affected employees can become engaged in the development process through voice-based input. Employees can be asked to express their views regarding the details of the policy while it is being formed. If their expressed voice is integrated into the policy, this reflects instrumental voice, which offers a high level of process control. If their input is solicited mainly so that managers can explain how and why they crafted certain provisions into the telework policy, but the employees’ voice does not change the terms and conditions of the policy, this indicates noninstrumental voice. While noninstrumental voice offers no process control, prior research finds that soliciting such voice often results in higher levels of affects, motivations, cognitions, and desired behavior than no voice does; thus, noninstrumental voice tends to mimic low levels of instrumental voice (Hunton and Price, 1994). Actually participating in telework reflects the choice construct because a telework policy typically involves behavioral alternatives from which employees can choose, such as work at home or a central office. According to procedural justice theory, more choice is generally preferred to no choice (Lind and Tyler, 1988). Consistent with the axiomatic premise that more is better than less choice, employees who are offered multiple choices should respond more favorably, both psychologically and behaviorally, than will those with no choice and would therefore likely assess a stronger connection between performance and outcomes. 3.3. Valence To be motivated to telework, employees must perceive net positive subjective expected value in the outcomes of the telework behavior. As noted previously, literature has found that employees are positively motivated by such benefits as higher pay due to more focused work, scheduling flexibility, commute reduction, and freedom from interruptions. Negative value can be found in such outcomes as loss of affiliation and perceived loss of status. Once employees perform in a telework environment and experience certain desired and undesired outcomes, they would likely adjust the valence associated with the net result of such outcomes. An intervening factor that could affect the valence of various outcomes is the notion of self-determination. According to the self-determination theory (Ryan and Deci, 2000; Deci et al., 1989), workers have more interest, excitement, and confidence when motivation is viewed as authentic (i.e., self-authored or endorsed) versus those occasions when motivation is controlled by external factors (e.g., pay and policies). Furthermore, extrinsic motivation is most effective when workers are allowed greater relative autonomy (Ryan and Deci, 2000). The very nature of telework, which gives the worker a greater sense of control and autonomy, should result in a higher level of motivation to participate in telework. Workers would be additionally motivated through a telework policy allowing choices, such as a time and location.
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4. Telework behavior model The Telework Behavior Model (TBM) developed herein is shown in Fig. 2. This model is adapted from one offered by Hunton and Price (1994), which was supported empirically by Hunton and Beeler (1997). While the original model dealt with user involvement and acceptance, many of the same constructs and relationships apply to the TBM. The TBM begins by indicating that the telework policy set forth by an organization dictates an allowable set of telework options. Depending on various individual motivational factors, employees will make personal choices according to the telework policy (telework behavior). For example, employees would make such choices as whether to telework, where to telework, and how frequently to telework.
Fig. 2. Telework behavior model (TBM).
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Telework can yield positive cognitive benefits. Three key cognitive effects of telework are activation, efficiency, and flow. Cognitive activation refers to an individual’s state of mental alertness and excitement (Csikszentmihalyi, 1997); cognitive efficiency reflects the ease with which one can concentrate on the task (Kubey et al., 1996); and cognitive flow indicates how easily one can refocus on the task after being interrupted (Csikszentmihalyi, 1997). Following from the discussion of motivational factors related to telework, effective self-management of telework options will likely optimize these cognitions, thereby improving individual and organizational outcomes. Telework can influence affects as well. Three affective factors associated with telework are telework satisfaction (Hartman et al., 1992; Ramsower, 1985), home satisfaction (Haddon, 1998; Perlow, 1997), and job satisfaction (Belanger, 1999; Norman et al., 1995). While research evidence regarding the impact of telework on these affects is mixed (Bailey and Kurland, 2002), they nevertheless dominate the literature and are key to improving our understanding of the link between telework choices and consequential outcomes (Pinsonneault and Boisvert, 2001). The choices made by employees will influence various cognitions and affects, and these psychological effects will then trigger an array of individual outcomes, such as increased flexibility and reduced commute time. The affects and outcomes will, in turn, influence motivation to continue in the telework program. In this model, employees can continually adjust their telework choices until they reach a desired state of equilibrium among competing motivational forces, such as scheduling flexibility and affiliation need. In addition to individual outcomes, the organization will feel the impact of its telework policy via a set of signals, such as reduced real estate costs and reduced labor costs through increased productivity, reduced turnover, and less managerial control. Of course, employers could also have negative outcomes, such as loss of control and scheduling difficulties. Then, based on the outcomes observed, the employer can alter the telework policy accordingly.
5. Suggestions for research As noted previously, the accounting profession is experiencing significant growth in teleworking opportunities. However, as employers develop telework policies in accounting, more needs to be known about the telework experience. Managers must be able to develop telework policies that optimize expected organizational results, such as reduced real estate costs and labor costs, while also keeping employees motivated to work at their highest levels of efficiency and effectiveness. Understanding the interactions among telework policy alternatives, human motivations, employee behaviors, and desired outcomes should assist in the design of such policies to ensure that the adopted telework policy is congruent with contingent organizational factors. Bailey and Kurland (2002) articulate the need to investigate bhowQ people telework, bwhyQ they telework, and the bconsequencesQ of telework on individuals and organizations. They also identify the need for more longitudinal studies and studies built
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on theoretical foundations. The Telework Behavior Model developed herein provides a theoretical foundation for answering these important questions and further exploring various factors comprising the complex telework equation. To provide insight into these interactions, researchers must first understand how people telework. Accordingly, we should observe situations where employees have volitional choice over certain aspects of their telework, such as when and where to work. When choice is available, most employees do not opt to work at home on a full-time basis; instead, they appear to vacillate among alternative work sites (Hamblin, 1995; Teo et al., 1999). Work patterns of this nature are not random, as they are likely driven by a complex web of human desires and needs. Observing telework behavioral patterns, particularly in field settings, would vastly improve our understanding of the choices employees make and, as next discussed, why they make such choices. The answer to why employees telework can be partially explored via the underlying theories described in this paper and captured through the motivational, cognitive, and affective variables in the TBM. While the TBM incorporates general notions of motivations, cognitions, and affects related to telework, more in-depth research is needed in this area. One way to gain deeper insight into the human psychology underpinning why employees choose to telework could be developed through grounded theory, where researchers observe teleworkers in field settings and deduce why they engage in such behaviors. Answers related to the consequences of telework can be explored optimally in settings where academics have access to a combination of archival (e.g., productivity measures, turnover rates, and labor costs) and perceptual data (e.g., beliefs and attitudes; Orlikowski and Barley, 2001). Combining dsoftT and dhardT metrics might help researchers to tease apart vital time-sensitive issues related to telework. For instance, when a company first enacts a telework policy, affected parties might express high levels of satisfaction with their newfound independence and scheduling freedom. Perhaps, even performance will jump markedly—observations of which researchers can glean from archival records. However, as the difficulties of juggling work- and home-life priorities begin to emerge, coupled with a growing sense of isolation, participants’ motivations, cognitions, affects, and behaviors might change demonstrably. One way to observe patterns of this nature would be to engage in longitudinal telework studies that track psychological and behavioral patterns over time in the rich ecological settings of the home and office (Pinsonneault and Boisvert, 2001). Gaining such insight would reflect valuable contributions to the rapidly changing dnature of workT paradigm.
6. Conclusion The nature of work has progressed through three overarching phases since the dawn of time. At first, most work was performed by individuals or small groups at suitable locations, such as agricultural fields, hunting lands, and fishing waters, which were dictated by the availability of vital resources. The resource work paradigm often resulted in nomadic tribes of hunters and gatherers who traveled great distances to survive. Centuries later, a great deal of work was performed collectively at central sites, where
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materials and laborers were gathered and resources were employed in a transformative fashion. The central work paradigm spawned today’s metropolitan areas across the globe, and, for the most part, we remain firmly entrenched in this phase to this day. However, we are standing at the precipice of a third phase—virtual work—which is a hybrid extension of the earlier two phases, where work can be performed at convenient locations by individuals or small groups, and the output of such transformative effort is transferred to a central location via electronic impulses. In this third phase, working at distant sites is not driven by the necessity of resource availability, as it was in the first phase; instead, employees can choose to engage in virtual work for a host of personal reasons. As well, the transformation that takes place in the third phase is intellectual, which is unlike the physical transformation that triggered the emergence of the second phase. Accordingly, virtual work reflects a paradigm shift away from the first two phases. As with any radical change, it is important to understand the plethora of intended and unintended consequences. One cannot take for granted that virtual work will yield only positive benefits for employees, organizations, and societies. As the accounting profession offers increasingly more telework opportunities to employees, researchers and practitioners need to learn a great deal more about the behavioral consequences related to virtual work arrangements. It is neither clear how to best craft, implement, and sustain an effective telework policy, nor is it obvious how a telework policy will affect managers, employees, organizations, and societies. While the profession is engaged in trial-and-error learning regarding various telework arrangements, it is imperative that researchers develop theory-based models and conduct rigorous methodological studies in this area. Responding to this imperative, the current paper develops a generalized Telework Behavior Model (TBM) that can be used as a starting point by accounting researchers. While we acknowledge that more theories, processes, and outcomes can be considered in the telework equation, the TBM provides a first approximation of individual and organizational factors related to telework and, accordingly, suggests a variety of areas to be explored in prospective telework investigations. For instance, future accounting research in the area of telework could test all or portions of the TBM developed herein to better understand how psychological processes (e.g., affective, motivational, and cognitive) help to explain observed effects, such as telecommuting choices (e.g., time and location) and organizational outcomes (e.g., performance, commitment, and turnover). Future studies could also refine and extend the theoretical underpinning of the TBM model such that it is more robust across persons, times, and settings. Researchers could approach the study of telework via field studies, field experiments, or archival analyses. Regarding the former, accounting researchers could observe how managers and employees respond to existing telework policies currently in effect at audit firms, for-profit companies, or not-for-profit organizations. From such observations, grounded theories could emerge. With respect to field experiments, researchers could study organizations that are willing to implement different telework policies at various locations to determine which policies are most and least effective. Such examinations would vastly improve our understanding of how, why, and under what conditions telework is most likely successful. Archival researchers could investigate the short- and long-term firm performance effects of companies with and
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without telework policies. When such findings are triangulated with the results of field and experimental studies, an emerging tapestry of telework in accounting will emerge, from which analytical and theoretical models can continue to adapt and evolve. The virtual work paradigm will likely eventually supplant the central work paradigm, particularly for knowledge workers such as accounting professionals. Rather than passively watching and waiting to see how telework impacts the accounting profession, researchers should proactively join with practitioners to find ways to optimize the effectiveness of alternative telework policies under various working conditions. The study of telework is not merely an indulgence in curiosity; rather, such research is crucial to understanding and improving the human condition in the interconnected, technology-centric, globally distributed business environment in which accountants are immersed.
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