chapter - Pearson

Opening Case
HOW EUAN BAIRD USES INFORMATION
TECHNOLOGY TO MANAGE ORGANIZATIONAL
BEHAVIOR AT SCHLUMBERGER
Schlumberger is a global technology company that sells products and services
to improve the productivity of its customers. For example, its Oilfield
Services Division is the leading supplier of services and technology to the
international petroleum industry. 1 In the last decade, its chief executive officer
(CEO), Euan Baird, has revolutionized the way the company and the people
inside it operate by introducing new information and communications technology at
all levels and in all areas of the company. In his view, these new technologies have
transformed the way in which the company manages the behavior of its people and
subunits.
Information technology (IT) refers to the computer systems and software that
organizations use to speed the flow of information around an organization and to
better link people and subunits within it. Information technology includes a company’s
internal communications and messaging e-mail system whereby employees
are linked through their desktop and laptop computers to each other, to the company’s
information databases, and often, to its suppliers and customers as well. At
Schlumberger, Baird has utilized IT to improve organizational behavior and performance
in many ways.
First, Baird designed Schlumberger’s IT to increase employee motivation, job
satisfaction, and performance. Information systems were designed to give employees
access to more and better information, and to put employees into closer communication
with each other. Before the new information systems, managers and supervisors
had controlled the flow of information between employees, and the organizational
hierarchy was the main means of communications and control. Now,
everything the information employees need to perform their work is available electronically,
and employees can access this information and use it creatively to better
satisfy customer needs. Moreover, to enhance the level of cooperation between
employees, employees can “sign” their work electronically so that they can be given
credit for their inputs. This builds employee motivation because it allows managers
to better reward superior employee performance. Moreover, Baird and his managers
discovered that the IT network was very effective in promoting trust between
employees and in creating a sense of belongingness in the company. Electronic communication
allows employees to maintain an active everyday working relationship
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