chapter - Pearson

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Chapter 1 Organizational Behavior and Management
Today, developing the information technology that allows employees to handle
information and knowledge more effectively and to better communicate with each
other, and with an organization’s customers and suppliers, is an important challenge
in managing organizational behavior. At Schlumberger, Euan Baird actively seeks
ways to use information technology to obtain input and advice from employees, to
communicate with employees, and to let them know he supports their activities and
is listening to their concerns. Baird strives to find new ways to improve the perforwith
each other even though people are at very different levels in the company or
even very far apart.
New IT systems have also helped Schlumberger to better train its employees
in new technical advances and increase their productivity and responsiveness to customers.
For example, each of the operating subunits, such as oilfield services, established
an online support system that provides employees with up-to-date documentation,
training material, and advice over the network. Called In Touch, employees
can access training information at their convenience and fit it into their busy work
schedules.
Another important aspect of the way in which Baird designed Schlumberger’s
IT systems was to take full advantage of the possibilities offered by virtual teams.
Virtual teams are groups of employees, electronically linked to each other through
e-mail and often video messenging systems, who may seldom or ever meet, but who
work on projects together intensively in real time. For example, consider the way
Baird used IT to overcome the problems of managing the far-flung global operations
of its oilfield services group. Baird split oilfield services into 25 separate regional
groups to service the needs of clients in each of their regional areas, for example,
China, the U.S. Gulf Coast, and Alaska. While employees inside each regional group
use electronic means to communicate with one another, they are also in continual
online communication with the other 24 groups so that they are easily able to
exchange market information, personal experiences, and best practices. The company’s
virtual team structure has greatly improved cooperation and teamwork
throughout the oil services division and the company’s other subunits, speeding customer
service and reducing the time it takes to get new products to the market—
important sources of competitive advantage. 2
Indeed, according to Baird, one of the main functions of IT is to “create companies
that learn and do not forget what they have learned.” Information technology
helps employees to assimilate and manage large amounts of complex information,
and it gives them access to new and changing information so they can be constantly
learning how to do things better; thus, it helps employees to make intelligent choices
and improve the decisions they make. Indeed, at Schlumberger, Baird has almost
eliminated the need for paper. Almost everything employees need to perform their
tasks is now handled electronically and all the reports that he and his managers read
are read onscreen. They are from online databases that employees continually
update to keep communication and feedback quick and effective—something that
pleases Schlumberger’s customers and leads to increased company performance.
Overview