Digitalization and Work Behaviour A Paradigm Shift
Digitalization and Work Behaviour A Paradigm Shift
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Chapter 8
Digitalization and
Work Behaviour:
A Paradigm Shift
Navreet Kaur
Chitkara Business School, Chitkara University, India
ABSTRACT
The digital economy has brought in its wake numerous issues of a technological kind.
It has affected every element within the organization (e.g., structure, informal work
relationships, culture, and most importantly, managerial leadership). Because of
new technologies emerging every day, the process of change has become persistent,
and a paradigm shift has been witnessed in the management of workplace behaviour.
The chapter has three sections. Concepts underlying organizational behaviour and
the meaning of digitalization are discussed in the first section; the second section
is an analysis of the changing leadership framework and its role in digital business
transformation, and the third section highlights the positive and negative effects of a
digital workplace on employee behaviour. The discussion concludes with comments
on the significance of a digital workplace in COVID-19 era. The primary objective of
this chapter is to identify and organize the accumulated knowledge on the implications
of digital transformation for organizational behaviour and provide critical insights.
INTRODUCTION
DOI: 10.4018/978-1-7998-7231-3.ch008
Copyright © 2021, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
Digitalization and Work Behaviour
The effects of digitalization on all aspects of business have been quite widespread.
However, a study of the impact of such a change on organizational work life remained
neglected for quite some time (Foerster-Metz et al., 2018). The two salient features
of the third wave economy are a boom in the service sector and a complex, ever
changing IT mainframe. A change in the nature of work, the workplace and the
worker is witnessed with the evolution of the industrial economy into a knowledge-
based one. Hojeghan & Esfangareh (2011, p. 309) state that this digital economy
“is based on electronic goods and services produced by an electronic business and
traded through electronic commerce.”
Of the various macro and micro variables that affect behaviour within organizations,
an individual himself is the most significant entity. As per the OB model (Newstrom
& Davis, 1997), there are three basic elements that define an organization and are
in a reciprocal relationship with each other viz. structure, technology, and informal
social groups. The organization is not located in a vacuum; there is a socio-economic-
political-cultural environment around it which acts and interacts with it (Richards,
2018). The change in the economic structure and order very conspicuously depicts
the interdependences between the three determinants mentioned. The external factors
have influenced the internal environment of the enterprise: its goals, vision and
mission. The technological revolution apart from changing the reporting lines and
the direction of businesses has impacted work environments and workflows and also
individual and group behaviour. The induction of tech-savvy and digitally sound Gen
Y has brought with it a distinct value system and new attitudes (DuBrin, 2002). In
sum, technology has affected both the composition of the work force and its psyche.
The onslaught of technologies like advanced algorithms, robotics, and analytics
is a megatrend that demands companies to be proactive in their approach. It is
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a. Digitization
According to Ernst & Young (2011), “Digitization means the conversion of analogue
information to digital (computer-readable) information.” The analogue information
is encoded into zeroes and ones so that computers can store, process, and transmit
such information (Bloomberg, 2018).The manufacturing of a transistor and
microprocessor in the 20th century paved the way for the conversion of traditional
media such as video, sound or picture into the binary language of bits and bytes.
Converting handwritten or typewritten text into digital form is also an example of
digitization. With an increase in the amount and complexity of digital information,
the global storage capacity has also increased manifolds.
b. Digitalization
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upon the strength of partners and ecosystems that companies choose to collaborate
with (Accenture, 2017).A network comprising of heterogeneous stakeholders like
customers and suppliers results in value creation and growth of platforms (McIntyre
& Srinivasan, 2017; Thomas et al., 2014).
Gathering of digital data and possessing of digital technologies by organizations
has no utility in the absence of big data analytics capability which includes data
management, data visualization and business skills (Verhoef et al., 2016). Formulation
of strategies depends on quick decision making which further relies on reliable
data (Accenture, 2018). To create value from big data, it is imperative to have a
workforce that has strong digital and analytical skills and is continuously trained
for skill updation (e.g., Kübler et al., 2017). Digital transformation is unlikely
without restructuring marked by separate business units, agile organizational
forms and digital functional areas (Eggers & Park, 2018). The disconnection of
headquarters from autonomous business units allows room for experimentation and
idea generation; agile organizational forms marked by flexibility, decentralization,
effective communication and an atmosphere of innovation and creativity are the
result of de-layering of the tall bureaucratic structure. The IT function apart from
facilitating data flows must also play a supportive role in digital value creation
via fast and explorative responses (Leonhardt et al., 2017) and by the data analyst
assuming the role of a marketing researcher.
Undertaking digitalization projects like automating processes or up-skilling
workers in using digital devices do not amount to digital transformation. Bloomberg
(2018, para. 22) calls it a “customer-driven strategic business transformation’
that requires cross-cutting organizational change as well as the implementation
of digital technologies”. To sum up, digitization and digitalization are essentially
about technology, but digital transformation is about the customer and requires the
organization to make a change in its core competency.
E-LEADERSHIP
The decisive influence of the leader in the evolution of a digitally run enterprise
cannot be negated. In today’s turbulent business environment marked by volatility,
complexity and discontinuous, often disruptive changes, the traditional model of
leadership has become obsolete in many ways (Horner-Long & Schoenberg, 2002).
The cardinal personality characteristics of a leader today are agile thinking, tolerance
for ambiguity, and digital skills which translate into his capacity to lead employees
through fast paced changes – mainly technological in nature – and to make them
change ready. Larjovuori et al. (2016) defined digital leadership as “the leaders’
ability to create a clear and meaningful vision for the digitalization process and the
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capability to execute strategies to actualize it.” (p. 1144). VOPA plus model for
digital leadership designed by Buhse (2014) delineates four aspects that are central
to the leader gaining trust of the employees viz. Networking, Openness, Agility,
and Participation.
New digital tools have made the dissemination and access of information faster and
easier thus bestowing employees with both expert and informational power (French
& Raven, 1959) which has made them efficient and professionally independent.
This autonomy has in turn enhanced their sense of responsibility and their ability
to actively participate in strategic decision making. (Barley, 2015; Schwarzmüller
et al., 2018).There is a change in power relationships and organizations have
become ‘starfish like’ (Brafman & Beckstrom, 2007) with a wider span of control.
The leader in such a situation is mainly a facilitator and is expected to manifest an
inclusive style of leading and not a control-seeking one (e.g., Schwarzmüller et al.,
2018). An interesting paradox here is that autonomy sometimes leads to isolation,
worker alienation, poor accountability and weak social bonding (Lynn Pulley &
Sessa, 2001; Van Wart et al. 2017; Roman et al. 2018) particularly in employees
who find empowerment difficult to handle. Hence, leaders need to be mentors
who enable followers to face the challenges that accompany increased autonomy
(Schwarzmüller et al., 2018).
A learning environment must be created wherein the leader without losing sight
of the vision and mission of the organization instils in the workforce a collective
ambition (Lynn Pulley & Sessa, 2001). E-leadership as opposed to traditional face-
to-face leadership is marked by the ability to communicate via ICTs viz. Information
and Communication Technologies which involves choosing the right digital tool
and sending unambiguous messages in both synchronous and asynchronous modes
(Roman et al. 2018, p. 5). Studies by Horner-Long & Schoenberg (2002) and
Schwarzmüller et al. (2018) show that virtual communication is the key to effective
leadership and emotional intelligence needs to be supplemented by entrepreneurial
and risk-taking competencies along with decisiveness, a tolerance for ambiguity,
and problem-solving abilities. ‘High speed decision making’ and the accompanying
innovative solutions can only be possible if leaders have the capability to process
Big Data. This points at the need to collaborate with IT managers, for data analysis
and for deriving meaningful conclusions (Harris & Mehrotra, 2014; Vidgen et al.,
2017). In this digital age, an exchange of ideas between different stakeholders results
in tangible benefits in the form of innovation and e-leaders need to make optimal
use of networking opportunities (Avolio et al., 2014). Another visible paradigm
shift is the need for the leader to blend two different profiles in his persona viz.
technical-mindedness and people-orientation in order to effectively bring about
a digital transformation (Diamante & London, 2002). A challenge during such a
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process may be the resolution of generational conflicts between the tech-savvy Gen
Y and the sceptical, change resistant, older generation (Coutu, 2000).
A bigger challenge is managing of virtual teams which have been defined as
“interdependent groups of individuals that work across time, space, and organizational
boundaries with communication links that are heavily dependent upon advanced
information technologies” (Hambley et al., 2007, p. 1). These new age work groups
depict a ‘dispersed’ organizational structure and the ‘competency to network’ finds
a special application here. Virtual teamwork due to its very nature of heterogeneity
brings together varied perspectives and enables easy accessibility of global talent
(Jawadi et al., 2013; Gupta & Pathak, 2018). However, this geographical distance
has a flip side to it in terms of the leader being devoid of a personal connect with
the team members which results in difficulties in interpersonal relationships. In the
absence of verbal and non verbal cues, the team’s thoughts, feelings, moods and
actions remain largely hidden from observation (Jawadi et al., 2013). Other than
educational, functional, and geographical differences, cultural diversity between team
members may undermine collaboration, thus restricting the leader from inculcating
team spirit and trust (Gupta and Pathak, 2018). To manage a multicultural team
with its share of similarities and differences, a virtual team leader needs to have
good cross-cultural skills (Schwarzmüller et al., 2018). To avoid conflicts, clear
communication norms in terms of regular feedback, unambiguity, recognition and
monitoring of each member’s performance and an early detection of communication
problems, are more important than behavioural norms (Jawadi et al., 2013).
In the start up phase, it is imperative that the entire team is aware of the diverse
skills possessed by each member (Malhotra et al., 2007) in order to clearly distribute
the roles and tasks (Jawadi et al., 2013) and leverage its potential to arrive at innovative
solutions. However, there are neutralizers and substitutes of virtual team leadership
in the form of high performing, self -managing work teams (SMWTs) that can define
their own collective leadership style (Gupta & Pathak, 2018). Pearce et al. (2009) refer
to ‘shared and empowered leadership’ among virtual team members characterized
by an equitable distribution of leadership responsibilities and participative decision
making (Druskat & Wheeler, 2003) which lead to healthy power dynamics (Hoegl
& Muethel, 2016).
From the aforementioned research it is quite evident that away from the traditional
notions of leadership, the role of the c-suite executives has been recasted into that
of a digital change agent or a digital enabler whose task is the development of a
digital strategy by creating and sustaining a digital culture in the organization (Gerth
& Peppard, 2016) with the aid of the Chief Information Officer (CIO). There is an
increased ambidexterity in the role of CEOs and CIOs alike. A continual dialogue
with the internal and external stakeholders by choosing the appropriate social media
platform has transformed CEOs into “Chief Engagement Officers” who actively
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contribute to the engagement of followers and customers (Tsai & Men, 2017).
Such a dialogue as suggested by Grafström & Falkman (2017) is a powerful tool to
overcome organizational crisis and sustain the company image, build an employee
value proposition, position the brand and propagate organizational values.
The competence model gives two dimensions that are crucial for e-leadership:
(1) attitudes, competencies and behaviours required in the digital age e.g., digital
literacy and (2) competencies that help drive digital transformation e.g., strong
leadership skills (Capgemini Consulting, 2015; Westerman et al., 2012). In a study
on upper level managers, Zeike et al. (2019) found a positive correlation between
low digital skills and psychological well-being defined by WHO (2009) as “a state
of well-being in which the individual realises his or her own abilities, can cope
with the normal stresses of life, can work productively and fruitfully, and is able
to make a contribution to his or her community”. It is a blend of “feeling good and
functioning effectively” (Huppert, 2009, p. 137). Digital leadership skills are seen as
an internal job resource of leaders that help them cope with excessive job demands
and hence, are associated with health outcomes. These are essentially personality
characteristics such as self efficacy, optimism, resilience and social skills along
with a sense of meaningfulness in life and a push towards realization of potential
(Faltermaier et al., 2017).
From a macro perspective, an issue critical to e-leadership is that of ethics
within the organization. Brown et al. (2005, p. 120) define ethical leadership as
“the demonstration of normatively appropriate conduct through personal actions
and interpersonal relationships, and the promotion of such conduct to followers
through two-way communication, reinforcement, and decision making.” The
question addressed here is about the reciprocal influence between technology and
organizational structure at the heart of which is the leader. The leader must display
integrity in terms of:
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The framework is all about training employees to establish (be aware of what is
available and how to use it), safeguard (know about the potential risks in the digital
environment and manage them), optimise (their personal digital working environment
in order to maximise productivity) and, innovate (i.e. leverage digital workplace
tools and resources to arrive at novel ideas, solutions, and ways of working).
Marsh (2017) talks about how technology enhances the mind’s tendency to jump
from one thought to the other, to remain distracted, reactive and in a ‘quick mode’.
This ‘monkey mind’, as mindfulness practitioners call it, needs to be quietened. For
digital devices and apps to serve us we need to adopt the mindfulness approach which
includes qualities of purposeful attention and broad awareness that help mitigate
stress. “Using technology consciously” includes seven techniques (Marsh, 2017) viz.
‘Zoning’ which includes ‘zoning out’ from technology at specific times and places
and intentionally ‘zoning in’ to technology at the appropriate time; ‘focusing’ by
closing down distracting applications; ‘filtering’ out the ‘noise’ by connecting to
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people and content that is important; ‘dialling down’ by muting notifications from
particular applications, for example; ‘pausing’ to restore presence and posture by
logging off, ‘de-cluttering’ by deleting unimportant data, ‘reflecting’ on how one
uses technology and continuously looking for ways to reduce its negative impact.
Thus, mindfulness techniques of technology use pave the way for a digital detox.
CONCLUSION
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