Wednesday, August 03, 2005

Week:2 Report

Executive Summary
The Royal Mail case study was chosen for further investigation in this report; studying Royal Mail is a good opportunity for our company to reinforce our fundamental practices and processes. An expanded version of Scarbrough and Corbett’s sociotechnical model has been used in this report. The framework illustrates the organisation both as a whole and a composition of interconnecting aspects.
Royal Mail has a traditional culture, which is currently undergoing major changes due to the threat of privatisation and the fear of job losses. Technology has had an effect on the culture, yet many in Royal Mail see this as inevitable. In order to change the culture of the organisation the people have adapted, and in some cases been replaced. This might have resulted in the ‘deskilling’ and experience of the workforce (Zuboff, 1988).
Changes in job function have also occurred and are still occurring in many areas. Many managers can see that the new technology is playing a major role within the organisation. The main reason for implementing the Local Area Network (LAN) was to enable people to get accurate up to date information and to standardise the information in one central database. The LAN also gives instantaneous daily contact with other offices through its messaging system and provides statistical monitoring of the workforce to aid improvement of quality control within the company, increasing the panoptic effect (Zuboff, 1988).
Because of the LAN messaging system there is a feeling of improved communication and teamwork; people appear to be more approachable. However, it is important that any change occurring in an organisation needs to be communicated to the workforce. It is apparent from the case study material that there was a lack of communication to the workforce concerning the implementation of the LAN and there was also a lack of training on how to use the technology. Because of this, the approach of the staff to both the technology and the organisational changes was not as positive as it could have been.
The framework and the evidence from the case study indicate that it is not just the technology that shapes Royal Mail, but a mixture of technology, social interaction, culture, structure, working processes and individual people. The impact of these changes is constantly evolving over time and can’t be fully captured and evaluated in a single case study.
1. Introduction
The Royal Mail case study was chosen for further investigation in this report because it is embarking on one of its first major technological changes since the implementation of the Optical Character Recognition (OCR) system. The chance to study a company at this stage should allow a more solid understanding of the fundamental concepts regarding the organisation change that occur with technological change.
By looking at the fundamental changes occurring in Royal Mail, which is faced with many decisions and possible paths, our consulting company will be able to use any learning’s to advise companies in the positions of both Royal Mail and British Telecom (BT). Royal Mail has also had a track record of profit, even through difficult times. Because Royal Mail is facing the implementation of new technology and the prospect of emerging competition, analysing how Royal Mail adapts and remains profitable will also be of value to our company.
Studying Royal Mail is a good opportunity for our company to reinforce our fundamental practices and processes. Our investigation could be vital when advising Royal Mail on how to continue the nationwide implementation of Local Area Networks (LANs) in its company.
2. Framework
Scarbrough and Corbett’s sociotechnical model (Scarbrough and Corbett, 1992) was used in report one to identify how technology and organisational change shape and influence each other. They are not entirely determined by each other, so in order to analyse the Royal Mail case study in more detail the original framework will be expanded as shown in figure 1 below.
The expanded sociotechnical framework illustrates the organisation as a whole, which includes five interconnecting aspects; Culture, Technology, Working Processes, Social Interaction and Individualism. These aspects all affect each other, and if any one of them changes then the whole organisation will change. Time is not static and the impact of change develops over time (Kimble and McLoughlin, 1995), this important concept is illustrated as time encircling the whole organisation.
3. Technological Change
Both the organisational and technological changes have affected the working processes, social interaction and individual’s behaviour resulting in an overall change of culture within the company.
3.1. Affects on Culture
“The problem that we are going to face in our business with the greater use of technology is maintaining the human culture that we have had in the past.” (John Howe, p25).
Royal Mail has a traditional culture, which is currently undergoing major change due to the threat of privatisation and fear of job losses. Technology has had an effect on the culture and this is seen as inevitable, “Obviously if we don’t modernise, our monopoly is nearly gone, we face competition all over the place, we’ll be out of business.” (John Howe, p24). If Royal Mail loses the monopoly they will ultimately face stiff competition, as with other companies like BT. The culture within Royal Mail appears to embrace new technology, although as some point out, “A machine has replaced that person.” and “There are benefits for the business in that it is more efficient, more cost effective and quicker”, but “There is a downside, a human cost.” (John Howe, p25).
The implementations of the LAN and the organisational changes that have occurred have caused a shift in Royal Mail’s culture. This has had to happen to remain competitive and to fulfil the company’s objective in becoming more ‘customer focused’. It is difficult to change the culture of an organisation, but sometimes it may be necessary, to ensure its survival. Literature suggests that organisational culture is often overlooked when implementing information technology projects. Through natural wastage Royal Mail appears to have addressed this cultural issue, “Those managers have now gone, we've replaced them with people who've got fresh ideas” (James Jobs, p30). In order to change the culture of the organisation, the people have been changed and in some cases replaced. A downside to this can be the “drop-off in skills levels” (Harry Bainbridge, p10). This can lead to ‘deskilling’ of the workforce, where knowledge is retained within technology as suggested by Zuboff (Zuboff, 1988). The danger is that the technology is incapable of innovation; it is necessary for the staff to retain the skills of the business in order to maintain creativity and innovation.
3.2. Affects on Working Processes
Organisational changes and the loss of jobs have had a direct impact on the working practices of Royal Mail. Changes in job function have occurred and are still occurring in many areas. Due to a more direct reporting system, managers are being moved within the company and they are “looking at different ways of doing work”, this is not just due to organisational changes, but also to do with technology “coming in and replacing people.” (John Howe, p24).
The majority of the managers believe that the new technology is playing a major role within the organisation. The reason for implementing the LAN was to enable people to get accurate up to date information and to standardise the information into one central database so that “every office would have the same information” (Barry Flynn, p17). In addition, the LAN gives instantaneous daily contact with other offices through its messaging system and provides statistical monitoring of the workforce to aid improvement of quality control within the company, increasing the panoptic effect (Zuboff, 1988).
The senior board initiated the implementation of the LAN in the Newcastle district as a pilot for developing working practices. Since then “lots of big major projects had to be halted until business development was implemented” (Christopher Brickell, p13). At the implementation stage there were high expectations from managers for improvements in efficiency, which did not happen immediately. There was no consideration of the ‘importance of technology’, which ‘depends wholly upon the use to which we use it’ (Grint & Woolgar, 1997).
Conflict in working processes has resulted due to the LAN not being fully implemented. Some management are frustrated at having to work a dual system; the old ‘style’ alongside the new technology, “It is a bit limiting to tell the truth to have only a quarter of my offices on the system. It’s got to be all or nothing for me.” (Barry Flynn, p16). This caused a slow shift in working practices and an underlying reluctance to change, “Until we get everything on the LAN it’s going to be a major weakness because there’s always these piles of paper everywhere” (Barry Flynn, p19).
Strategic information technology is a means of eliminating maverick, ad-hoc projects (Galliers and Sutherland, 1991). If new technology proposals are to succeed they must be integrated into a mainstream training procedure similar to other new major projects. Clearly, the advocates of new technology within organisations need to understand how to incorporate their system into mainstream planning. Most of the managers interviewed felt that they “could do with a lot more training on the computer to get full benefits.” (Harry Bainbridge, p8).
3.3. Affects on Social Interaction
The most apparent social change is that the new technology “has freed up time for other aspects of management, like just managing staff.” (Diane Wilkinson, p48). This has resulting in an improvement of working relationships, “Well, I can get back to what I feel I should do… see what the staff are doing rather than sit behind a desk.” (Harry Bainbridge, p5). There is also a feeling of improved communication and teamwork and people appear more approachable, "I'm a little bit more approachable than I would have been if I didn't have the computer.” (Harry Bainbridge, p5). For some this has lead to a sense of ‘belonging’ and a move away from “individual isolation to collective thinking” (Diane Wilkinson, p49).
Others view technology as a hindrance to personal and social interaction as it reduces the one-to-one contact, “You’re not having the face to face contact that you had in the past.’” (Harry Bainbridge, p9). Some suggest that technology as an “impersonal” way of communicating and has to be handled with care (John Howe, p26). There is also the underlying fear outlined of being “cut-off completely” and relying completely on the computer for information (Harry Bainbridge, p9). This indicates the existence of textualisation within Royal Mail. This is where the implementation of technology leads a removal of staff from hands-on roles and all the events are observed through a computer screen (Zuboff, 1988).
3.4. Affects on Individuals
Social systems consist of individuals with their own values, motivations, and priorities, (Reeve and James, 1997). Therefore employees are not always working towards the same objectives, this is evident in the case study where people appear to use the technology in different ways, “Senior management will be very much more receivers of the information…”, whereas the middle mangers are “the creators and the manipulators of the data” (Diane Wilkinson, p50). The majority of the managers use the LAN for general administration purposes, like producing work schedules or for processing data.
However, it appears that the technology’s main use within the organisation is “…nothing more than a glorified message system.” (Christopher Brickell, p14). Others reinforce this claim; “I use it a lot for communication, just sending notes backwards and forwards.” (Diane Wilkinson, p46), “It’s just another communication system.” and even go on to suggest that “it is more of a toy than a management tool…” (Barry Flynn, p19). It has even been noted by some that the technology is not being used by some senior managers who “would prefer not to turn it on.” (Stanley Mann, p35). A common view is that “Senior managers are paid large sums of money, often with may noughts on the end, to turn them into typists.” (John Howe, p23). This outlines another reason why senior managers do not use the system to its full potential.
It is important that any change occurring in an organisation should be made relevant to all the staff that may be affected by the change. This can only happen with effective training and communication. "Managers need to understand that, for change to be meaningful to individuals, that meaning must be apparent in the day-to-day experiences of those individuals in the organisation.’ (Johnson and Scholes, 1993).
4. Main Findings and Key Issues
The findings from the case study indicate that in Royal Mail it is not just the technology that shapes the organisation, but a mixture of technology, social interaction, culture, structure, working processes and individual people, which are constantly evolving over time.
Royal Mail has a traditional culture, which is currently undergoing major changes due to the threat of privatisation and the fear of job losses. Technology has had an effect on the culture, yet many in Royal Mail see this as inevitable. The introduction of the LAN and associated organisational changes has caused a shift in the culture within Royal Mail. In order to change the culture of the organisation the people have adapted, and in some cases been replaced. This might have resulted in the ‘deskilling’ and loss of experience in the workforce (Zuboff, 1988).
The job losses that have occurred have been managed fairly well by Royal Mail. The majority have been through natural wastage and job role changes. On the whole people have adapted to the new jobs, but younger, more flexible staff has replaced some of the more inflexible, older staff. This in itself has lead to a change in culture.
Changes in job function have also occurred and are still occurring in some areas. Many managers can see that the new technology is playing a major role within the organisation. The main reason for implementing the LAN was to enable people to get accurate up to date information and to standardise the information in one central database. The LAN also gives instantaneous daily contact with other offices through its messaging system and provides statistical monitoring of the workforce to aid improvement of quality control within the company, increasing the panoptic effect (Zuboff, 1988). The suspension of the implementation of the LAN has lead to some disruption in the working processes in Royal mail.
Because of the LAN messaging system, there is a feeling of improved communication and teamwork; people appear to be more approachable. Some think that technology as an “impersonal” way of communicating and has to be handled with care (John Howe, p26). There is also the underlying fear of being “cut-off completely” and relying completely on the computer for information (Harry Bainbridge, p9). This indicates the existence of textualisation within Royal Mail (Zuboff, 1988).
It is important that any change occurring in an organisation needs to be communicated to the workforce. It is apparent from the case study material that there was a lack of communication to the workforce concerning the implementation of the LAN and there was also a lack of training on how to use the technology. Because of this, the approach of the staff to both the technology and the organisational changes was not as positive as it could have been. Additionally, because of organisational changes in the company, the strategy for implementing the LANs nationwide has been put on hold, but the workforce have not received sufficient communication about these events.
5. Conclusion
The Royal Mail case study was chosen for further investigation in this report; studying Royal Mail is a good opportunity for our company to reinforce our fundamental practices and processes. An expanded version of Scarbrough and Corbett’s sociotechnical model has been used in this report. The framework illustrates the organisation both as a whole and a composition of interconnecting aspects. The framework and the evidence from the case study indicate that it is not just the technology that shapes Royal Mail, but a mixture of technology, social interaction, culture, structure, working processes and individual people. The impact of these changes is constantly evolving over time and can’t be fully captured and evaluated in a single case study.
References
Galliers, R.D. and Sutherland, A.R. (1991) Information Systems Management and Strategy Formulation: The 'Stages of Growth' Model Revisited. J. Info. Sys. 1(2). pp 89-114
Grint, K. and Woolgar, S. (1997b) The Machine at Work: Technology, Work and Organization. PolityPress.p21.
Kimble, C. and McLoughlin, K. (1995) ‘Computer based Information Systems and Manager’s Work’. New Tech. Work Employ. 10(1). pp 56-67
Reeve, D.E. and James P. (1997) ‘GIS organisations and People: a Sociotechnical Approach’ Taylor and Francis
Scarbrough, H. and Corbett, J, M. (1992) ‘Technology and Organisation – Power, Meaning and Design’. Routledge Series, Edited by David C. Wilson. pp 1-27
Zuboff, S. (1988) ‘In the Age of the Smart Machine: The Future of Work and Power’ Basic Books. p 321

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