South-Western - Management  
Sun's Shining Example
Topic Job Design
Key Words Telecommuting, virtual office, flextime
News Story

Sun Microsystem's iWork program demonstrates the company's commitment to virtual work arrangements and flextime and has slashed costs while boosting productivity and employee satisfaction. With about 80% of its workforce connecting to the company remotely, Sun lives up to their slogan "Everyone and everything connected to the Net."

Sun believed that employees needed more flexibility in the way they work, so they created a new office model that includes flexible work spaces and drop in centers. Employees can connect to their applications and files from anywhere they go using a smart card known as a Sun Ray. They also have access to portal technology, collaboration tools, and videoconferencing to help them get their jobs done remotely.

The company has saved money by eliminating the need for 7,700 cubicles and cutting the budget by $24 million annually in IT and power consumption costs. 43% of the firm's 35,000 workers use iWork up to two days a week and another 1,500 work from home three to five days per week. Workers who use the program say they save about 90-minutes a day on average in commute time. The program also helps employees with work life balance issues, for example, to pick their kids up from school and attend soccer games, knowing they can log into work at the time and place that is convenient for them. 80% of Sun employees say they like the program.

Questions
1.

Define "flextime" and "virtual office," two terms used in the article.

2.

The article highlights the benefits of telecommuting for companies like Sun and their employees. What are some of the possible drawbacks of this type of job design for companies or the employees who use it? What can be done to lessen or overcome these potential problems?

Source "Sun's Shining Example" Workforce Management, March, 2005, pp 48-49.
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