Telecommuting
From Isopedia
Telecommuting, e-commuting, e-work, telework, or working from home (WFH) is a work arrangement where the employee can work as they please using a computer, telephone, or mail system to complete the work that was given to them by an employer(wikipedia, telecommuting). This is useful when an employee is not working in the office but a long distance away. This saves money so the employee does not have to spend it on travel arrangements or waste time traveling.
Contents |
History
The term of telecommuting was created by Jack Nilles. This word is used by people in the United States. This is where the trend of working from home or using a computer, telephone or mail system to complete work, first originated. The first formal test was done in 1973 where the employees were working from a satellite office for a company. They needed a way to communicate back and forth, which is when they created the idea of telecommuting. They "used a computer terminal that does not have a lot of functionality, and connected it to a downtown mainframe" (wikipedia, telecommuting). They were able to do everything that a normal office could do but do it virtually. This idea was then broadened into making this idea of telecommuting into something that employees could do from home. In the late 1980’s, employees were able to work from home offices when ever they wanted to with the desktop PC from their company.
The Clean Air Act amendments were established in 1990, which was to improve air quality by trying not to release hazardous pollutants into the air. Telecommuting was a solution for the polluting of the air. Instead of having to drive to work, employees would work from home which would decrease pollution into the air(eia).
Even though telecommuting seems like a great idea, “only between 1 percent and 5 percent of employees participate in it. This fact is true in a majority of the Fortune 1,000 firms offering telecommuting,” stated by S. Wells in HR Magazine. Telecommuting helps people work from home even if they cannot go to an office and work because of children, location or disability. This gives everyone a chance to work even if it is from home.
Telecommuting has transformed into a something that is very beneficial. Offices today can access voicemail, faxes and e-mails from satellite offices, laptops or even home because of the technology from telecommuting(wikipedia, telecommuting).
Technology
How telecommunication works
Telecommunication occurs when signals are transmitted over a distance in order to communicate with others. Electomagnetic waves are sent by electronic transmitters. Home offices are linked to corporate offices through groupware (wikipedia, telecommuting). Certain devices are used to help this process, such as the television, the radio, and the telephone. The internet is also helpful to communicate via e-mail and instant messaging.
Long distance telecommunication works through Virtual Private Networks (VPN), Voice over Internet Protocal (IP), and video conferencing. VPN are tunnel pathways that use encryptions (codes) in order to keep the network secure and priave. Voice over IP sends conversations over the internet. Video conferencing uses two-way video and audio transmissions at the same time in order to allow seperate locations to see and hear one another. To connect internationally, optical fiber is used.
Market Conditions
Customer Profile
One type of telecommuter is the person who enjoys flexibility in both the location and the time aspects of their job. Since they do not have to focus all their energies on completing their work at the office at certain hours, they are left with more room and time to focus on other occupations, activities, or the ever popular raising a family. Mothers and fathers with children are common telecommuters because the flexibility of hours and location allows them to work at home while looking after the kids, dramatically cutting back on daycare costs.
In addition to these users, handicapped people or people living in remote areas are frequent telecommuters. And because there is no daily commute to work, significant amounts of travel cost and travel time are eliminated for all telecommuters. Therefore, with smaller or new businesses, where so much of their limited funds are tied up in rent, overhead costs, and launching the business, smaller or newer businesses can profit immensely from telecommuting. Employees are proven to be more productive and have reduced absentee amounts with telecommuting (Wikipedia, Telecommuting).
Established Firms
A large share of telecommuting firms are small businesses, dealing from website maintenance, printing, IT programming, data entry, design, accounting, and sales.
Groups like the National Telecommunications and Information Administration (NTIA) and the northern based Canadian Telework Association (CTA) are organizations that promote telecommuting through their website, offered events like conferences, job postings, and academic institutions, like the Institute for Telecommunication Sciences (ITS) in Boulder, Colorado (Wikipedia, Telecommuting).
Substitute Products/Services
Telecommuting is a substitute for working in an office, which can be helpful to employees who live far away or employees who take care of young children or elderly relatives. Besides working from home, technology is now allowing people to work from virtually any location. For example, wireless internet and cell phones allow people to work or communicate with the home office anywhere in the world.
Future of the Market
With the constant improvements in technology the future of the market for telecommuting looks immense. With more and more technological advances it is easier and more convenient for employees to work at home. With this growing trend we can expect to see less pollution and less traffic congestion from daily commuters, also a greater increase in offshore outsourcing (Wikipedia). The rising cost of gasoline could be a big reason for people to work at home.
However, there are also disadvantages to telecommuting. These can include communication barriers between employees, and feelings of alienation (Wikipedia). It is difficult to supervise employees who work from home, meaning that management styles need to change. Privacy is another issue for companies who allow telecommuting. It is easier for laptops and other technology with confidential company data to get stolen when people take them out of the office.
Sources
http://en.wikipedia.org/wiki/Telecommuting
http://www.eia.doe.gov/oil_gas/natural_gas/analysis_publications/ngmajorleg/clnairact.html
http://www.its.bldrdoc.gov/
http://www.ntia.doc.gov/
Team Members
Cristina Gorman
Colleen Kennedy
Caitlin Kudlicki
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