MINDSETS REQUIRED FOR IMPLEMENTING A VIRTUAL WORKPLACE by Karen Luyt A research project submitted to the Gordon Institute of Business Science, University of Pretoria, in partial fulfilment of the requirements for the degree of Master of Business Administration November 2007 © University of Pretoria ABSTRACT The research centres on the theme that, even though there are various drivers for a more virtual workplace, ranging from organisational, workforce and technology to environmental issues, it seems that progress in adopting virtual work on both individual and organisational level, is still low. The purpose of the research is to determine if there are specific mindsets required to make the implementation of a virtual workplace more successful, with the aim of making recommendations to organisations, managers, teams and individuals for improved implementation strategies. The research defined the target population as a large South African Information and Communication Technology (ICT) company, and its customers. A combination of quantitative and qualitative methods was used. Data relating to needs, perceptions, practicality and readiness concerning the virtual workplace was collected on three levels, namely individual, team and organisational level. The quantitative research covered the objectives relating to the individual level through questionnaires which were sent out in the form of online surveys. The qualitative research covered the organisational level research through individual interviews with the IT/HR managers, while the team level research was covered through focus group interviews. The study found that various mindsets and needs do exist, and on an individual level the mindsets and needs are not restricted to specific generations. This could be of significance to HR and IT managers in general, who may need to take a wider target group into consideration when designing policies and standards for the organisation. Secondly the organisation itself emerged as an i entity with a mindset or culture that transcends the individuals working for the organisation. To implement a virtual workplace would, therefore, require an overarching strategy and organisational change interventions to ensure that all the facets of a virtual workplace are addressed in a balanced way. ii DECLARATION I declare that this research project is my own work. It is submitted in partial fulfilment of the requirements for the degree of Master of Business Administration at the Gordon Institute of Business Science, University of Pretoria. It has not been submitted before for any degree or examination in any other University. _______________________ ________________ Karen Luyt Date iii ACKNOWLEDGEMENTS I would like to thank my supervisor, Charlene Lew, Senior Programme Manager (Dr), GIBS, for all her enthusiasm, guidance and assistance. I would also like to thank all the individuals and team members for their participation in the interviews. Your support and co-operation, as well as your enthusiasm for the topic, are highly appreciated. These individuals are not named in order to protect the confidentiality of both the organisation and the individual. Big personal thanks go to my husband who has supported me immensely over the last two years, and who is constantly my source of inspiration and motivation. There are many other individuals who have assisted with preparation, ideas, inputs and general support. Without all of these contributions, this work would not have been possible. iv CONTENTS 1 INTRODUCTION TO RESEARCH PROBLEM ........................................... 1 1.1 TITLE AND SCOPE............................................................................. 1 1.2 RESEARCH PROBLEM ...................................................................... 2 1.3 RESEARCH OBJECTIVES.................................................................. 4 1.4 RESEARCH MOTIVATION.................................................................. 5 1.5 STRUCTURE OF THE REPORT......................................................... 7 2 LITERATURE REVIEW............................................................................... 9 2.1 INTRODUCTION ................................................................................. 9 2.2 VIRTUAL WORKPLACE...................................................................... 9 2.2.1 Introduction to the Virtual Workplace ............................................ 9 2.2.2 Definitions....................................................................................10 2.2.3 Technology ..................................................................................14 2.3 MINDSETS .........................................................................................19 2.3.1 Introduction..................................................................................19 2.3.2 Generational Theory....................................................................20 2.4 MAPPING MINDSETS AND VIRTUAL WORKPLACES.....................23 2.4.1 Model for Mindset Mapping .........................................................23 2.4.2 Technological Issues ...................................................................24 2.4.3 Environmental Issues ..................................................................25 2.4.4 Workforce Issues .........................................................................26 2.4.5 Organisational Issues ..................................................................27 2.4.6 Virtual Team Dynamics................................................................29 2.5 TELEWORKER PROFILES / DEMOGRAPHICS................................31 2.6 CONCLUDING REMARKS ON LITERATURE REVIEW ....................34 3 RESEARCH PROPOSITIONS, HYPOTHESES AND QUESTIONS..........35 v 3.1 INTRODUCTION ................................................................................35 3.2 OBJECTIVE 1: INDIVIDUALS ............................................................35 3.2.1 Proposition 1: Needs and Attitudes concerning Virtual Work.......36 3.2.2 Proposition 2: Generations and Virtual Work...............................37 3.3 OBJECTIVE 2: MANAGERS OF INDIVIDUALS .................................38 3.3.1 Proposition 3: Managers of Virtual Workers ................................38 3.3.2 Proposition 4: Managers and Trust..............................................39 3.4 OBJECTIVE 3: TEAMS.......................................................................39 3.4.1 Proposition 5: Factors, Mindsets and Needs ...............................39 3.4.2 Proposition 6: Age Groups of Managers and Team Members.....40 3.5 OBJECTIVE 4: ORGANISATIONS .....................................................40 3.5.1 Proposition 7: Organisational Readiness.....................................40 3.5.2 Proposition 8: Organisations and Generations ............................41 3.6 OBJECTIVE 5: DEMOGRAPHICS......................................................41 3.6.1 Proposition 9: Extent of Virtual Work ...........................................42 3.6.2 Proposition 10: Virtual Worker Demographics .............................42 3.7 CONCLUDING REMARKS ON PROPOSITIONS, HYPOTHESES AND QUESTIONS .................................................................................................43 4 RESEARCH METHODOLOGY..................................................................44 4.1 INTRODUCTION ................................................................................44 4.2 RESEARCH DESIGN AND METHOD ................................................45 4.2.1 Quantitative Research (Individual Level) .....................................45 4.2.2 Qualitative Research (Organisation and Team Level) .................46 4.3 POPULATION AND SAMPLING OVERVIEW ....................................47 4.4 INDIVIDUAL LEVEL (QUANTITATIVE) ..............................................49 4.4.1 Sampling Frame, Sample Size and Sampling Technique............49 vi 4.4.2 Measuring Instruments: Survey ...................................................50 4.4.3 Data Collection, Data Analysis and Validity .................................53 4.5 TEAM LEVEL (QUALITATIVE) ...........................................................57 4.5.1 Sampling Frame, Sample Size and Sampling Technique............57 4.5.2 Measuring Instruments: Focus Group Interview ..........................58 4.5.3 Data Collection, Data Analysis and Validity .................................59 4.6 ORGANISATIONAL LEVEL (QUALITATIVE) .....................................61 4.6.1 Sampling Frame, Sample Size and Sampling Technique............61 4.6.2 Measuring Instruments: Semi-Structured Interviews ...................61 4.6.3 Data Collection, Data Analysis and Validity .................................62 4.7 ASSUMPTIONS AND POTENTIAL RESEARCH LIMITATIONS ........65 4.8 CONCLUDING REMARKS ON RESEARCH METHODOLOGY.........66 5 RESULTS ..................................................................................................68 5.1 INTRODUCTION ................................................................................68 5.2 OBJECTIVES 1, 2 AND 5: INDIVIDUAL (QUANTITATIVE)................68 5.2.1 Introduction..................................................................................68 5.2.2 Proposition 9: Extent of Virtual Work ...........................................69 5.2.3 Proposition 10: Virtual Worker Demographics .............................70 5.2.4 Proposition 1: Needs and Attitudes concerning Virtual Work.......73 5.2.5 Proposition 2: