Imformation, technology and imformation worker producity
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Imformation, technology and imformation worker producity
Information, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity iness & MIT, 44 West 4111 Street Room: 8-81. New York. NY 10012 sinan@stem.nvu.eduErik BrynjolfssonMIT Sloan School of Management, Room: E53-313. 50 Memorial Drive, Cambridge. NLA 02142 erikbfrt mit.eduMarshall Van AlstyneBoston UniversityImformation, technology and imformation worker producity
essed tluough their electronic communication networks enabled them to multitask more productively. We estimate dynamic panel data models of multitaskiInformation, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity 0 months, (bj detailed accounting data on individuals' project output and team membership for 1300* projects spanning 5 years, and (c) survey and interview data about the same workers' IT skills, IT use and information sharing We find that (1) more multitasking is associated with more project output Imformation, technology and imformation worker producity , but with diminishing marginal returns, and that (2) recruiters whose network contacts have heterogeneous knowledge - an even distribution of expertiImformation, technology and imformation worker producity
se over many project types - are less productive on average but more productive when juggling diverse multitasking portfolios. These results show how Information, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity n other settings, opening new frontiers for research on social networks and IT value.Key words: Social Networks, Productivity. Information Worker, IT, Multitasking. Dynamic Panel Data. SystemGMMForthcoming in Information Systems Research0Electronic copy available at: http;//ssrn.com/abstract=942310I Imformation, technology and imformation worker producity nformation. Technology A Information Worker Productivity“In the physical sciences, when errors of measurement and Ollier noise are found 10 be of theImformation, technology and imformation worker producity
same Older of magnitude as the phenomena under study, the response is not to try to squeeze more information out of the data by statistical means, it Information, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity to secure new kinds of data at the micro level.”•• Herbert Simon1IntroductionInformation workers now account for as much as 70% of the U.S. labor force and contribute over 60% of the total valued added in the U.S. economy (Apte & Nath 2004). Ironically, as more and more workers focus on processing Imformation, technology and imformation worker producity information, researchers have less and less information about how these workers create value Unlike bushels of wheat or tons of steel, the output of mImformation, technology and imformation worker producity
ost information workers is difficult to measure. Yet. as the information content of work increases, measuring information worker productivity becomes Information, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity f information work is the productivity effect of multitasking - the act of taking on multiple projects or tasks simultaneously (Ap-pelbaum et al 2008).1 Over the last several decades multitasking has increased in a variety of industries (Spink et al 2008) and speculation about its productivity effec Imformation, technology and imformation worker producity ts has attracted the attention of managers, academics and the media (Coviello et al 2010). Some claim that multitasking increases productivity by enabImformation, technology and imformation worker producity
ling workers to smooth bursty woik requirements, realize complementarities across tasks and incorporate relevant information from one task into decisiInformation, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity ts that reduce workers' intelligence quotient (IQ) and then ability to complete tasks efficiently (Rubenstein et. al. 2001. Rosen 2008). One recent survey conducted by an IT-market research firm claims that multitasking is costing the US economy as much as ‘S650 billion a year in lost productivity' Imformation, technology and imformation worker producity (Rosen 2008). Unfortunately, little detailed empirical evidence on multitasking and productivity' exists to adjudicate these claims.1 We distinguish bImformation, technology and imformation worker producity
etween multitasking (taking on multiple simultaneous projects) from switching between micro-tasks such as reading email while talking on the phone. WeInformation, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity e of multitasking has been accompanied by a simultaneous increase m the flow of information through communication networks enabled by information technology (IT). Email and other technologies support the rapid dissemination of knowledge and information through organizations and are thought to comple Imformation, technology and imformation worker producity ment systems of organizational practices including decentralized decision making, job rotation and multitasking (Bresnahan. Brynjolfsson and Hill 2002Imformation, technology and imformation worker producity
. Bryrijollsson and Milgrom 201 I). TT-enablcd communication networks are .specifically hypothesized Io support 'multitask learning,1 (he process of aInformation, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity hould increase productivity by facilitating faster, higher quality decisions and enabling workers to utilize information and skill complementarities between tasks to multitask more productively (Lindbeck .and Snower 1996). However. the relationship between information flow in networks and multitaski Imformation, technology and imformation worker producity ng lias never been examined. We therefore econometncally evaluated the effect of multitasking on information worker productivity and assessed whetherImformation, technology and imformation worker producity
the knowledge that workers accessed tlirough their communication networks enabled them to multitask more productively.We analyzed empirical evidence oInformation, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity utput, project start and end dates, the number of concurrent projects, and individual effort devoted to each project. With company and employee cooperation, we also monitored email usage to analyze the film’s communication network, conducted field interviews. gathered survey data, and collected indc Imformation, technology and imformation worker producity jieiidcnt third parly evidence of project difficulty. These micro data allowed ILS Io match individual behaviors to performance and to lesl dynamic paImformation, technology and imformation worker producity
nel data imnlels of the relationships Irelween multitasking, knowledge networks ami productivity. Our analysis uncovered two key findings.First, thereInformation, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity nishing marginal returns. Al low levels of multitasking, taking on more work enables workers to complete more work per unit time. TIow-Electronic copy available at. http;//ssrn.coni/abstract=942310Information. Technology & Information Worker Productivityever, multitasking also increases the time It Imformation, technology and imformation worker producity takes to complete each project on average, creating diminishing returns. This argument IS robust to several alternative explanations.Second, multitaskImformation, technology and imformation worker producity
ing performance improves with access to heterogeneous knowledge made available through IT-enabled networks. There IS conflicting evidence on the valueInformation, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity (Burt 2004). Others contend that networks connecting people with heterogeneous knowledge aie costly to maintain (Rodan and Galhmic 2004) and that processing heterogeneous knowledge is more difficult (Reagans and McEvily 2003). The benefits of access to knowledge heterogeneity have been found to be w Imformation, technology and imformation worker producity orth their costs in the context of innovation (Hargadon and Sutton 1997). We find the same is true when workers are engaged in heterogeneous multitaskImformation, technology and imformation worker producity
ing - that act of taking on multiple dissimilar tasks simultaneously. In our setting, recruiters with network contacts who have heterogeneous knowledgInformation, Technology & Information Worker ProductivityInformation, Technology and Information Worker ProductivitySinan .AralNYV Stem School of Busi Imformation, technology and imformation worker producity e accessed through email contacts is costly to process and maintain, it improves the productivity of workers who are responsible for diverse tasksOur work has implications for managers responsible for the productivity of information workers. In particular, the concavity of the relationship between m Imformation, technology and imformation worker producity ultitasking and productivity implies that optimal levels of multitasking could be identified and adhered to in different information work settings FurImformation, technology and imformation worker producity
thermore. IT investments can be made more productive by encouraging contact between dissimilar employees who juggle diverse multitasking portfolios, wGọi ngay
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