Industrial Management & Data Systems

The new generation office environment: the home office

Suratin Tunyaplin Stephen Lunce Balasundram Maniam
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Industrial Management & Data Systems, Vol. 98 Iss 4 pp. 178 - 183
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 The new generation office environment: the home
office
Reports the results of a pre-
liminary study of a new work
environment, the home office
Downloaded by University of Newcastle At 01:38 18 December 2016 (PT)
(HO). This study was designed
to develop a test instrument
that would facilitate the
investigation of a set of vari-
ables that might influence the
corporate decision to relocate
employees from the
employer’s office space to the
employees’ homes. Addition-
ally, the paper seeks to iden-
tify the variables that will
affect both the employer and
the employee, for example
employee productivity and
costs of employment. This
report does not attempt to
generalize concerning the
population of home office
employees, nor does it
attempt to generalize the
current employer perspective
of the telecommuting
employee, but rather it
attempts to identify numerous
variables that should be
investigated in more detail.
Industrial Management &
Data Systems
98/4 [1998] 178–183
© MCB University Press
[ISSN 0263-5577]
[ 178 ]
Suratin Tunyaplin
Suwanpaisal Transportation Co. Ltd, Yannawa, Bangkok, Thailand
Stephen Lunce
Texas A&M International
University, Laredo, Texas, USA
Balasundram Maniam
Sam Houston State University, Huntsville, Texas, USA
Introduction
An employee whose primary functions are
accomplished using a personal computer
might be able to perform his/her professional
duties at home, if the employee’s personal
computer were connected to the employer’s
office. If an employee could work at home, the
employer might not have to provide work
space. This reduction in the amount of
required work space might reduce operating
costs through reduced rents and other utility
expenditures that would not be needed. If an
employee could work at home, time spent
commuting could be utilized in another
endeavor; the avoidance of the daily commute
could reduce stress and permit the employee
to be more effective. Increased effectiveness
should produce increased productivity which
should increase profits.
Reduced employee stress, increased produc-
tivity and profitability could all result from
telecommuting. The idea was so reasonable
that the USA’s “Congress appropriated $6
million in 1993 (and an additional $5 million
in 1995) to get 60,000 federal workers telecom-
muting by October, 1998” (Jones, 1996, p. 2B).
Regularly, television advertisements promote
the potential for telecommuting and describe
the realm of the virtual office. In 1995 only
3,000 federal workers telecommuted (Moore,
1995) and by November, 1996, the number had
only increased to 9,000 workers who telecom-
muted on a regular basis (Jones, 1996). With
all of the potential benefits, why have there
been so few documented successes in the
private sector or governmental agencies?
Information systems (IS) management is
faced with a difficult planning decision. Will
telecommuting become a part of the IS strat-
egy or is it merely a topic for conversation?
This paper reports on a preliminary study
that will attempt to identify factors that
should be a part of this planning decision. It
will also describe a statistical instrument
that is to be used to investigate further the
potential for widespread implementation of
telecommuting, and the managerial issues
involved in this modification to the workplace
of today. The results of this initial study sug-
gest that large financial rewards may be
achieved by the firms which chose to adopt
the home office (HO) concept or which
expand the number of their employees who
spend at least some time working from their
homes rather than in the centralized corpo-
rate offices.
Literature review
Recently, it has been suggested by several
futurists that the traditional office environ-
ment of the past, wherein all of the firm’s
employees gather for work in a single loca-
tion, may become obsolete. They have sug-
gested that the workplace of the future will be
the HO enabled through the concept of
telecommuting and the personal computer
(Rowe, 1991). Telecommuting is a direct result
of the pervasiveness of computer networks
and network access providers. It has been
suggested that the home office might be ideal
for the person who works better with flexible
hours or the person who works well without a
high degree of supervision (Rowe, 1991).
These employees would not physically travel
to the employer’s office space daily, but rather
they would commute via their personal com-
puter and its modem’s connection to a tele-
phone line and the employer’s computing
facility. The phone line might be either a
public access or a line dedicated to the pur-
pose of doing business. This virtual connec-
tion to the employer would allow the employ-
ees to complete their assigned tasks while the
employees remained in the comfort of their
home. Working at home might increase moti-
vation, relieve stress, increase employee
comfort, and/or provide more flexibility in
establishing schedules; any or all of these
factors might lead to significant increases in
productivity and employee efficiency.
 Suratin Tunyaplin,
Stephen Lunce and
Balasundram Maniam
The new generation office
environment: the home office
Industrial Management &
Data Systems
98/4 [1998] 178–183
Downloaded by University of Newcastle At 01:38 18 December 2016 (PT)
A New York-based marketing firm reported
that 37,000,000 households in the USA contain
at least one person doing work generating
income at home; this total represents 38 per
cent of all US homes. Many of these work-at-
home employees are self-employed; however,
8.4 million were identified as telecommuters,
corporate employees who work full- or part-
time at home during normal office hours.
These telecommuters represent the most
rapidly growing segment of employees in US
business (Dunkin, 1995). In the USA, the esti-
mated number of households working at
home by the end of 1995 was about 40,000,000.
By the year 2000, one of every two Americans
will be working, at least part-time, at home.
Many other developed countries support
and encourage the idea of using the HO
because their governments have the ability to
provide the necessary infrastructure to sup-
port this type of environment. For example,
the government of Thailand has a plan to
invest huge amounts in telecommunications;
the plan includes strategies such as adding
10,000,000 telephone lines to the existing com-
munications network, the conversion of exist-
ing lines to fiber optics and the launching of
Thailand’s first communications satellite to
support communications among Asian coun-
tries (TSS, 1996).
In the UK, British Telecommunications
found that 28 per cent of the businesses that
were surveyed in 1994 either had employees
working at home or planned to implement
work-at-home strategies in the near future.
The respondents indicated that they expected
the trend toward home offices would continue
to increase (HOR, 1995). A 1993 survey of
Canadians found that almost 14 per cent of all
Canadians (approximately 1.4 million house-
holds) operated a business from home (MFC,
1994).
In reference to economic impacts of the HO
in the USA, it was found that companies
using this concept routinely estimate savings
ranging from $3,000 to $8,000 per telecom-
muter each year. This operating cost reduc-
tion is due, at least in part, to the reduction in
real estate fees and increased employee pro-
ductivity (Romei, 1995). A median savings of
$5,500 for each of the potential 40,000,000
telecommuting US citizens would provide an
additional $220 billion annually for reinvest-
ment or distribution as dividends to stock-
holders.
The US government, seeking to determine
the impact of HO on Corporate America,
funded a survey conducted by the Market
Research Institute in 1994. The results of the
survey of 200 top executives in Fortune 1,000
firms indicated that 64 per cent of the Fortune
1,000 have implemented telecommuting
programs, and that 60 per cent of the firms
without such programs expect to implement
telecommuting within their organizations by
1998. Ninety-two per cent of the executives
with telecommuting programs “agreed that
they provide cost reductions, increased pro-
ductivity, and improved employee morale”
(Moore, 1995, p. 41).
The phenomenon of the home office was
enabled through the use of telephone and
computer technologies. The personal com-
puter linked to a network can provide the
employee access to any or all of the
employer’s computer-based applications and
databases. It is estimated that over 30 per cent
of the work force of the USA will be telecom-
muting by 2020 (Romei, 1995) and this number
should continue to expand as technological
advances occur. It is evident that high-speed
integrated service digital networks (ISDN)
and video conferencing will become wide-
spread to achieve this level of HO operation
(Dunkin, 1995).
The Insurance Review seeking to define the
optimal work environment studied the HO
phenomenon. Many of the employees work-
ing at home felt that their productivity
increased significantly, “telecommuters have
reported productivity gains of between 15%
and 30% when working away from the office,
primarily because they had fewer interrup-
tions and could concentrate more on their
work” (Jordahl, 1991, p. 39).
A recent study of employers and Fortune
1,000 company executives did not indicate
that many firms were adopting the concept of
the HO. Several obstacles were identified as
drawbacks to the implementation of wide-
spread telecommuting opportunities. Among
these drawbacks were: reduced control and
supervision by managers (reported by 63 per
cent or 568 of 902 respondents to the study),
damaged team concepts (63 per cent of
respondents) and jealousy of non-telecom-
muters (54 per cent of respondents). However,
a far more striking statistic is that 70 per cent
of the respondents did not believe that
telecommuting would reduce operating costs
without reducing effectiveness (Jones, 1996).
It seems that many managers feel that the HO
will have one major negative effect on
employees, i.e., the lack of interaction among
workers and the resultant inability to social-
ize within or outside the workplace.
These futuristic predictions suggest several
questions: will an HO replace a traditional
office? How long will it take for the home to
replace the office? What are the key advances
in telecommunications that will allow the
home office to become a reality? This study
explored some of these important issues, and
this report identifies some of the key
[ 179 ]
 Suratin Tunyaplin,
Stephen Lunce and
Balasundram Maniam
The new generation office
environment: the home office
Industrial Management &
Data Systems
98/4 [1998] 178–183
Downloaded by University of Newcastle At 01:38 18 December 2016 (PT)
[ 180 ]
variables that may allow for general support
of or opposition to the future development of
the HO concept. If the futurists are correct
and the concept of the HO is gaining impor-
tance, then this research may provide some
insights into the identification of the key
variables that will dictate the direction that
this phenomenon will be taking and will
continue to motivate this trend in the work-
place. Conversely, if the executives respond-
ing to the study in Jones (1996) are correct,
and the potential of the telecommuter is lim-
ited, then this exploratory study may indicate
some areas that need to be studied further.
The company of today which will take
advantage of telecommunications to allow its
employees the opportunity to work from
home is far more complex than organizations
of only a few years ago. This company must
have managers who realize the impact on
employees of the use of this new technology,
and managers who are willing to learn how to
plan for decentralized communications and
supervision (Frenzel, 1996).
The potential for the successful implemen-
tation of the HO concept is greater in large
cities and metropolitan areas; this is simply
due to commuting time required for the
employee to travel to the workplace, lost time
caused by traffic congestion, environmental
pollution and political impact. Any or all of
these factors might impact the employee’s
productivity and attitude toward their profes-
sional assignments. If the HO concept were
implemented, the employer might be able to
achieve cost reductions through better space
utilization, utility savings and reduced super-
visory requirements. The employer might
also improve employee performance through
reductions in stress caused by the daily com-
mute to and from the workplace. Innovative
employers might expect both increased pro-
ductivity and reduced costs yielding higher
profits through the implementation of this
new concept. There are several factors that
might influence the decision to implement
the HO. The factors can be classified in two
categories:
1 technological issues; and
2 human issues.
Advances in telecommunications and per-
sonal computers have enabled widespread
use of electronic messaging (e-mail), video
conferencing, conference calling and distance
learning. The human issues involve stress
reduction, better utilization of employees’
time (e.g. reduced travel time commitments
could result in an improvement in employee
morale and performance), and more freedom
for the employee to be an active participant in
the structuring of the job.
Methodology
This study will investigate some of the issues
that have been raised. The preliminary
research propositions that this study
addresses include:
• Is the HO attractive to employees?
• Could the HO have a positive financial
impact on the employer?
• What are the perceptions of the commu-
nity that would result from the wide-
spread implementation of the HO?
More importantly, it will help to identify the
variables and their potential relationships
that should be considered prior to a manager-
ial commitment to the adoption of the HO
concept.
For the purpose of this study, a closed ques-
tionnaire consisting of 21 multiple choice
questions was designed to facilitate ease of
response and also to reduce the time required
from distribution to return of the question-
naire. (A copy of the complete questionnaire
can be requested from the authors.) The
major purpose of this study is to attempt to
determine if adequate data could be collected
with this questionnaire to allow analysis of
the factors which seem to influence the
research questions previously identified, and
if not, what modifications should be made to
the instrument to facilitate this investigation
in future studies. The questionnaire was
physically distributed to a convenience
sample of graduate business students at a
southern state university and electronically
distributed to a single Internet news group.
To determine the adequacy of the question-
naire as a data collector, the data that were
collected are presented in this paper utilizing
frequency distributions and chi-square analy-
sis of the relationships between variables.
The sample used indicates strongly that there
is significant interaction between the vari-
ables, as described below; however, the
results should be used with caution consider-
ing the sampling technique that was
employed in this experiment.
This study will compare, using the previ-
ously described convenience sample, the
relationships that might exist between the
productivity, comfort levels, and commuting
time of employees who have access to the HO
environment. The dependent variable in this
preliminary study is the HO. It can be investi-
gated through its relationship with five inde-
pendent variables, if a relationship does in
fact exist. The independent variables of inter-
est are: productivity, level of comfort, time
commuting, increased hours worked, and job
completion. Since each of the independent
variables may be paired, many alternative
 Suratin Tunyaplin,
Stephen Lunce and
Balasundram Maniam
The new generation office
environment: the home office
Industrial Management &
Data Systems
98/4 [1998] 178–183
Downloaded by University of Newcastle At 01:38 18 December 2016 (PT)
research hypotheses exist. Due to the
exploratory nature of this preliminary study,
only the following research propositions were
investigated to suggest other potential areas
for investigation in the further studies:
P1: There is no significant relationship
between productivity and the perceived
level of comfort of the HO employee.
P2: There is no significant relationship
between productivity and time spent
commuting.
P3: There is no significant relationship
between productivity and increasing the
number of hours available for work.
P4: There is no significant relationship
between job completion and the
perceived level of comfort of the
employee.
P5: There is no significant relationship
between job completion and increasing
the number of hours available for work.
P6: There is no significant relationship
between the perceived level of comfort
and time spent commuting.
The questionnaire was designed with
closed questions for ease of response. It was
distributed via the Internet news group
soc.culture.thai and hand distributed to grad-
uate International Business and Information
Systems Management students enrolled in a
regional state university in Texas.
The results of this preliminary study will
be presented in two forms. Frequency distrib-
utions of the responses will be presented, and
the non-parametric chi-squared test will be
used to describe the existence and signifi-
cance of the relationship of the independent
variables. The results of this analysis provide
information and insights concerning
whether or not the independent variables
have an impact on the perception of and the
design of the HO environment.
Results and analysis
This study seeks to determine if there is a
relationship between a variety of indepen-
dent variables, previously described, and the
adoption of a home office environment. The
basic premise of all of the relational analysis
is: if the worker is more comfortable and/or
has more time to perform both their profes-
sional and personal duties, their productivity
will increase, which will result in higher
profits at equivalent or lower costs for the
employer. Productivity is the variable which
describes how by working at home, the work
should be accomplished by spending less time
and completing a larger amount of work
within the normal amount of time. Productiv-
ity is also assumed to be related to the level of
comfort that employees experience from
working in familiar surroundings without
having to commute to a remote work site
daily. The elimination of the need to commute
should reduce the stress levels experienced
with the commute itself, and this stress
reduction should produce an increase in
productivity. A final relationship that must be
investigated is the reduction in operational
costs that will be experienced by the
employer, who will not have to provide office
space for the HO-based employee.
For the purpose of this study, 54 question-
naires were analyzed; 33 of these (61.6 per
cent) were completed by graduate students at
the university, the remaining 21 (38.4 per
cent) were submitted via the Internet news
group. The majority of respondents were
male (62.7 per cent) as shown in Figure 1, and
the majority of respondents were in the 21-35
years of age category (Figure 2). The male
majority and the number of 21-35 year-old
respondents are both probably reflective of
the student population in the graduate school
from whence the majority of responses were
obtained. Because a convenience sample
made up largely of university students was
utilized, it is impossible to generalize statisti-
cally about the entire population of employ-
ees in the HO environment. However, in spite
of the bias problem, there may be indications
Figure 1
Gender
Male Female
62.7% 37.3%
Figure 2
Age
21 – 35 Less Than 20
72.6% 5.9%
51 – 65
7.8%
36 – 50
13.7%
[ 181 ]
 Suratin Tunyaplin,
Stephen Lunce and
Balasundram Maniam
The new generation office
environment: the home office
Industrial Management &
Data Systems
98/4 [1998] 178–183
Downloaded by University of Newcastle At 01:38 18 December 2016 (PT)
Table I
χ2 test of the null hypotheses
Commuting factors
Productivity and comfort level
Productivity and continuing time
Productivity and more hours worked
Faster completion and comfort level
Faster completion and more hours worked
Comfort level and commuting time
[ 182 ]
that relationships exist between the variables
previously identified. Also this bias problem
is mitigated by the fact that most of the
respondents, even though they are students,
are employed full-time in various managerial
capacities.
In order to investigate the six previously
defined relationships, the chi-squared test
will be utilized. For each test α = 0.05 is used,
and the degrees of freedom (df) = 16, and the
critical value for each test is 26.2962. In each
case the hypothesis (Ho) will suggest that
there is no relationship between the vari-
ables, and if the Ho is rejected, it will be
indicative that a relationship does exist. The
decision rule in every case will be to reject
the Ho if the test statistic is greater than the
critical value. The results of all the tests are
presented later in Table I; the hypotheses that
will be summarized in Table I are:
H1O: there is no relationship between pro-
ductivity and employee’s level of com-
fort, and
H1A: there is a relationship between produc-
tivity and employee’s level of comfort.
H2O: there is no relationship between pro-
ductivity and time commuting, and
H2A: there is a relationship between produc-
tivity and time spent commuting.
H3O: there is no relationship between pro-
ductivity and increased number of
hours worked, and
H3A: there is a relationship between produc-
tivity and increased number of hours
worked.
H4O: there is no relationship between finish-
ing assigned jobs faster and the
employee’s level of comfort, and
H4A: there is a relationship between finish-
ing assigned jobs faster and employee’s
level of comfort.
H5O: there is no relationship between finish-
ing assigned jobs faster and increasing
number of hours worked, and
H5A: there is a relationship between finish-
ing assigned jobs faster and increasing
number of hours worked.
H6O: there is no relationship between time
commuting and employee’s level of
comfort, and
χ2 statistic Decision
44.537 Reject H0
31.474 Reject H0
32.848 Reject H0
47.096 Reject H0
26.057 Fail to reject H0
23.696 Fail to reject H0
H6A: there is a relationship between time
commuting and employee’s level of
comfort.
In every hypothesis, the test is seeking to
determine if the variables that have been
identified are truly independent. If the vari-
ables are independent, then future studies
can be utilized to determine how significantly
each of the variables impact the decision to
implement the HO workplace. Likewise, addi-
tional studies can be used to determine how
the relationships between the independent
variables actually function.
The tests indicate that a statistically signifi-
cant relationship does exist between several
of the factors. The first test suggests that if
the employee is more comfortable, and it is
assumed that the employee’s home is more
comfortable than an office, then the
employee’s productivity should increase
during those times when the employee was
allowed to work at home.
The second test suggests that if the
employee reduces the amount of time spent
commuting, the employee’s productivity will
increase. If the employee does not spend time
commuting, then that time could be spent
working; the third test suggests having more
available time would lead to increased pro-
ductivity. Increased productivity should lead
directly to increases in profitability and
increased benefits for the organizations’
stakeholders.
The fourth test suggests that there is a rela-
tionship between the employee’s perceived
comfort in his or her home office and his or
her ability to complete assigned tasks at a
quicker pace. Although the null hypothesis of
the fifth and sixth hypotheses could not be
rejected, the test statistic was very close to
the critical value, and since the statistics
were run on a sample, these relationships
should not be excluded from future studies or
from consideration in the decisions concern-
ing the adoption of the HO concept.
Conclusions
In today’s world, the HO is becoming more
common for many businesses. There are
several factors to which this pervasiveness
can be attributed: increased employee pro-
ductivity resulting from improved employee
comfort, reduced commuting time and simply
more hours available to work on assignments;
reduced costs resulting from lower office
space requirements to fewer employee com-
plaints and absences and interruptions
during work; improvements in telecommuni-
cation and personal computing technologies.
 Suratin Tunyaplin,
Stephen Lunce and
Balasundram Maniam
The new generation office
environment: the home office
Industrial Management &
Data Systems
98/4 [1998] 178–183
Downloaded by University of Newcastle At 01:38 18 December 2016 (PT)
Any of these factors, alone, might have
motivated the development and implementa-
tion of the HO. For example, in large cities
many employees can spend several hours per
day commuting to the workplace, but by
using the HO concept, these employees find
that the commuting hours can be spent more
productively. Rather than arriving at the
remote office stressed from having to deal
with traffic congestion and pollution, the
employee lives in the workplace and com-
mutes electronically.
The participants in this study were asked, if
they were given the opportunity to be a part
of the HO concept, would they take advantage
of this opportunity. They were also asked, if
given the opportunity, how they would divide
their time between a HO and a remote job
site, i.e. how many days per week would they
work at home. The results of this question are
in Figure 3. Interestingly, the majority of
respondents (over 75 per cent), regardless of
where they currently work, suggested that
they would spend only two or three days per
week in the HO. This suggests that employ-
ees, whether they work in the office or at
home, need to interact on a personal level
with their co-workers.
Figure 3
Place where people prefer to work
% Market Facts of Canada, Ltd (MFC) (1994),
40
30
20
10
0
0 days
1 days
2 days
3 days
4 days
5 days
Key
Work at home
Work at office
This study has attempted to identify a set of
variables that might indicate the feasibility of
the implementation of the HO concept. The
study was exploratory in nature, in that it is
only an attempt to identify appropriate vari-
ables and relationships for future studies.
Although it is only a preliminary study, the
results seem to indicate both the willingness
of employees to work at home and the oppor-
tunity for employers to increase their
employees’ productivity by providing an
alternative job site. If employee productivity
can be improved, and if operational expenses
can be reduced, then it seems logical that this
study should be considered in the decision
process used to investigate the use of this new
work paradigm.
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[ 183 ]
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