Employee actions effective form of management control

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Reference no: EM132247358

Is GPS Tracking of Employee Actions an Effective Form of Management Control?

More companies are using GPS apps to track the whereabouts of their employees. Companies claim such devices increase productivity and help locate employees in times of a crisis, such as the 2016 terrorist attack in Paris.

For example, the city of Aurora, Colorado installed tracking devices inside its sweeper and snowplows “to make sure they’re being used as taxpayers intended.” Management claims a 15 percent increase in productivity by having the tracking devices in the vehicles. Driver Maria Coleman said, “It’s Big Brother. It’s watching you, making sure you do what you’re supposed to do, but if you are doing what you’re supposed to be doing then you shouldn’t have a problem.”

Companies also use tracking devices as part of their wellness program. The Wall Street Journal reported that 40-50 percent of companies with wellness programs use them to provide employees with feedback about their progress. In this application, however, tracking behavior is optional.

The practice of tracking is now heading to the courts. Myrna Arias, a former sales executive for money-transfer company Intermex Wire Transfer, sued the company after she was fired for failing to use a Xora app that “contained a global positioning system function which tracked the exact location of the person possessing the smartphone on which it was installed.”

Arias' boss, John Stubits, admitted that she would be tracked both on and off the clock. He “bragged that he knew how fast she was driving at specific moments ever since she had installed the app on her phone.” Arias agreed to use the app during work hours but thought it was an invasion of privacy during nonwork hours. Stubits “told Arias she was required to keep her phone on ‘24/7’ to answer client calls.” Arias decided to de-install “the app to protect her privacy and was scolded by Stubits. A few weeks later, Intermex fired her.”

Solving the Challenge

What would you do if you were the CEO of Intermex and in charge of deciding what do about the Arias case and the use of tracking employees?

Reference no: EM132247358

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