Impact of Digitalization on organizational behavior

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Impact of Digitalization on organizational
behavior

• Bangkok University
• Organizational Behavior
• Second Semester, 2002
• Digitalization on OB
• lritzel_at_prasena.com

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Your choice of books, vdo site

• Give your choice of books, movie/ vdo/ dvd and
  site to Isabelle

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Case study your company choice

• Prepare to talk to Isabelle
• Name of company
• Nature of company
• Industry
• No of employees
• Scope of activity
• Structure of unit
• Why did you choose this company?
• Quality of direct contact

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The time bomb in every classroom is that
students learn exactly what they are
taught.Frank Smith, Insult to Intelligence
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Prasena says

• Teach us, then you are the Managers from
  tomorrow!

Or at least TEAMWORK, Interaction, Innovativeness
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What is DIGITAL

• ?

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Thesaurus

• Main Entry digitalPronunciation
  'di-j-tlFunction adjectiveEtymology Latin
  digitalisDate circa 16561 of or relating to
  the fingers or toes DIGITATE2 done with a
  finger3 of, relating to, or using calculation
  by numerical methods or by discrete units4 of
  or relating to data in the form of numerical
  digits5 providing a readout in numerical
  digits lta digital voltmetergt6 relating to an
  audio recording method in which sound waves are
  represented digitally (as on magnetic tape) so
  that in the recording wow and flutter are
  eliminated and background noise is reduced-
  digitally /-tl-E/ adverb

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Prasena thesaurus

• Digitalization this characteristic of the
  Cybernetic Revolution qualifies the tendency of
  any entity / activity / technology to convert all
  information into a digital form so as to speed up
  information flows, enable information sharing and
  therefore transactions with minimal human
  intervention.

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In 25 years, youll probably be able to get the
sum total of all human knowledge on a personal
device.Greg Blonder, VC was Chief Technical
Adviser for Corporate Strategy _at_ ATT Barrons
11.13.2000
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You remember?

• www.prasena.com
• The environment

• www.mhhe.com/kreitner
• The person

Organizational Dimensions
Functional Level/ Classification
External Dimensions
Geographic Location
WorkContent/Field
MaritalStatus
Internal Dimensions
Mgmt.Status
Income
Age
ParentalStatus
PersonalHabits
Race
Division/Dept./Unit/Group
RecreationalHabits
Appearance
SexualOrientation
Ethnicity
UnionAffiliation
PhysicalAbility
WorkExperience
Religion
EducationalBackground
WorkLocation
Seniority
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What do you think?

• Who is more different in his/her thinking?
• A 20 year old Thai and a 20 year old Swiss (read
  the book Organizational Behavior from R Kreitner)
• A 20 year old Thai and a 45 year old Thai
  (remember the Slide on Generation e, x and y
  ect)

OR
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R u Digital?
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(No Transcript)
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Digitalization Heaven or Hell
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Communication USA 2001 ????
201 message of all kind each day
Kreitner, page 483, source Wall Street Journal,
June 21, 19??
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(No Transcript)
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A Contingency Model for Selecting Communication
Media
High
Overload zone (medium provides more
information than necessary)
Face-to-face
Telephone
Personal written
Zone of effective communication
Richness of Communication Medium
Formal written
Oversimplification zone (medium does not provide
necessary information)
Formal numeric
Low
Low
High
Complexity of Problem/Situation
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Communication Competence Affects Upward Mobility
Upwardmobility
Communicationcompetence

• Situational Factors
• Company philosophy on openness
• Company policy and procedures
• Organizational climate
• Geographic location of organization

• Communication Abilities/Traits
• Cross-cultural awareness
• Assertiveness
• Aggressiveness
• Defensiveness
• Active listening

• Individuals Involved
• A friend
• Someone you do not trust
• A superior
• A subordinate

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Digitalization in business
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For 200 years, EB was paper

• The Encyclopedia Britannica

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Then came Microsoft
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Today, EB is Digital, Virtual, Internetworked
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The Internet is not going away but flawed
business models are. fool.com
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OB in the organization and Digitalization

• Definition
• The Organizational Behavior in the organization
  is digitalization-oriented when all employees
  work comfortably in paperless offices, where
  physical and analog operations are converted into
  digital operations wherever it is optimal to do
  so, and where therefore the entire organizations
  memory can easily be accessible to all in
  consistent formats.
• Workforce Trends
• Chryptotechnophobiacs vs. Technomaniacs
• OB Digitalization Competitiveness
• Paperless offices mean that all employees can
  access all resources anytime from anywhere

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Impact on HR Management
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2010 DemographicsBy 2010, full-time workers
will be in the minoritySource MIT study
(28August2000)
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The fundamental unit of the new economy is not
the corporation, but the individual. Tasks arent
assigned and controlled through a stable chain of
command but are carried out autonomously by
independent contractors - e-lancers - who join
together in fluid and temporary networks to sell
goods and services. When the job is done, the
network dissolves and its members become
independent again, circulating through the
economy, seeking the next assignment.
Thomas Malone and Robert Laubacher

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Impact on Organization Design

• Todays organization
• Global integrated network of modular components
• Virtual teams, offices, jobs, virtual aliens
• Todays HR role
• Monitor business changes and organization
  requirements
• Ensure optimum role allocation, forgetting time
  and space limits
• Avoid brutal restructuring, lay-offs and other
  last-minute measures

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Impact on Organization Design
Organization structure
Design
Monitor
Review

• To design, monitor and review the organization
  structure is a more difficult task in the global
  digital economy
• Meaning of reporting system changes dramatically
  from a vertical line on the organizational chart
  to an e-mail address folder
• Organization chart boxes represent sets of
  responsibilities allocated to
• Individual position
• Team
• Group

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Impact on Organization Design
NEW Computerized system that monitors on a
real-time basis the allocation of roles within
the organization, what ever shape it may adopt
Traditional job description
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Human resource management (HRM) systems will
begin to look more like customer relationship
management (CRM) systemswhere we must know as
much about our people (existing and future) as we
do about our customers.Source IHRIM Journal
(12.2000)
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Impact on social role

• HR Manager has a social role
• Within the organization
• Outside the organization
• HR Manager is confronted with problems such as
• Cybernetic Revolution occurred too soon
• Gap between knowledge workers and unskilled
  workers is becoming larger than ever
• HR Manager must ensure that
• Employees can always find a door open at the HR
  Department
• Organization puts immediate and priority focus on
  development, training and retraining

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We are entering an era of no limits, with
nothing to brake the cascade of human
intelligence unleashed by the Information Age.
The Web essentially allows all the brains on
earth to communicate and share insights in real
time, around the globe, all the time.Jeffrey
Young, Cisco Unauthorized
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Impact on HRD

• Todays employees
• Todays HR role
• Personnel administration
• The Person aspect of HR management
• Most vitally needed, the identification,
  evaluation, recognition and development of
  competencies on real-time basis

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Impact on HRD
Traditional employee file
NEW Shareware-based global employees directory
Competency Database Most treasured asset
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Impact on HRD

• Revamped hiring approach hire for
• attitude, train for skills
• Recruitment partners role change too

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A bureaucrat is an expensive microchip.Dan
Sullivan, consultant and executive coach
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Impact on HRD

• Learning must be everywhere

Factory
Production
Office
Products
Entertainment
Knowledge
Home
Services
School
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The Web enables total transparency. People with
access to relevant information are beginning to
challenge any type of authority. The stupid,
loyal and humble customer, employee, patient or
citizen is dead.Kjell Nordstrom and Jonas
Ridderstrale, Funky Business
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Impact on HRD
The change of value of age and seniority may be
one of the Human Resources Managers greatest
political and social challenges, for the
implementation of new values will not be easily
accepted by managers in place - themselves
senior - nor by those who patiently waited their
turn and expected to be automatically promoted
after some time as their predecessors
did. ltChristian Cloché, Corporate Resource
Group,1997gt
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Ongoing Case study

• Check with YOUR company
• How digital are they
• How has the increase in digitalization affected
  YOUR company
• How many eMails does a Key staff get per day
• Do people working at YOUR company think that
  Digitalization tends more to heaven or to hell?