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IntroductionToday's business challenges focus on reducing and controlling costs, competing globally, improving quality, improving customer service, and accelerating the product development cycle. These business challenges are being driven and aided by improved information and communication technologies, globalization of markets, increased competition, unpredictable and turbulent markets, and changes in social trends (Igbaria and Guimaraes, 1999; Kurland and Bailey, 1999; Rollier and Liou, 1997; Townsend et al., 1998; Vivien and Thompson, 2000). Many consider the virtual workplace a solution to these challenges (Tgbaria and Tan, 1998; Kayworth and Leidner, 2000; Townsend et al., 1998).Crandall and Wallace (1998) denned the virtual workplace as "networks of people, a workplace where work is done anytime [sic] and anywhere, and not bound by the traditional limitations of time, physical space, job descriptions, title, and pyramidal reporting relationships" (p. 19). In other words, it provides flexibility to work at any time and in any place through information and communication technologies. The virtual workplace encompasses a number of different working styles, such as telecenters, teleworking, hot-desking, hotelling, and virtual offices. For many, the virtual workplace has become an increasingly preferred workplace. An ITAC 2001 survey found that 28 million employees participated in some form of telecommuting programs in the USA (Thibodeau, 2003).The virtual workplace presents challengesSuccess in making the transition to the virtual workplace requires more than implementing new technology (Handy, 1995). Organizations must build trust among workers (Cascio, 2000; Handy, 1995; Holton, 2001; McCready et al., 2001; Milles, 1998; Staples, 2001a, b). Building trust requires frequent (Staples, 2001a) and high-quality communications (Jensen, 2003; Nilles, 1998).Indeed, communication is one of the most important concerns of managers and workers in the virtual workplace (Cascio, 1999, 2000; Fritz et al., 1998; Staples, 2001b; Townsend et al., 1998) and is one of the largest barriers to effective telecommuting (Ruppel and Howard, 1998). Early studies of communication systems in virtual offices suggest that effective communication is more crucial than in traditional settings (Conner, 2003; DeSanctis and Monge, 1999; Engkavanish, 1999; Kayworth and Leidner, 2000; Whiting, 1997) because the virtual office alters the familiar pattern, content and context of organization communications (Engkavanish, 1999; Nilles, 1998; Townsend etal, 1998).Many have found that the virtual workplace negatively affected communication and interaction with co-workers and managers (Hill et al., 1998; Huws et al, 1990). Hargie et al (2002) found poor communication correlated with lower commitment, reduced productivity, increased absenteeism, and higher turnover. Staples (200Ia) found that employees in a virtual workplace experienced lower levels of job satisfaction and manager-subordinate trust while experiencing higher levels of job stress, all correlated with lower quality communication. Ramsower (1985) found that full-time workers in virtual workplaces experienced similarly diminished work experiences that could be attributed to less frequent communication, reduced quality of information communicated, and a loss of contextual information (the social and professional context of the information flows).This study reports on research that compared organizational communication and communication satisfaction in a single company that moved from a traditional office setting to one with both virtual office workers and traditional office workers. We used a variety of theoretically grounded communication satisfaction variables to test the relative levels of satisfaction among virtual and traditional office workers. The survey took place one year after the company implemented its virtual workplace. The survey variables included:* personal feedback;
* communication climate;
* relationship with supervisors;
* horizontal and informal communication; and
* organizational integration.
We compare our results to previous research and offer an appraisal and discussion of how the sample organization created its virtual workplace climate.
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