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Firms increasingly harness data that are created as by-products of information systems usage to evaluate and manage employees. However, such “trace data” can be a double-edged sword. The data can provide a whole new visibility into work practices but also, make work less transparent if the employees start to change their behavior to shape the data. We study this dilemma in the context of knowledge work that has traditionally eluded behavioral measurement. We show that when knowledge workers become aware of data collection and have an interest in how their work may be represented by the data, they start to actively perform the data. We identify different patterns by which employees shape work practices to produce trace data. The changes affect not only the actions and data of the focal employee but also, the actions and data of their colleagues and subordinates. Therefore, to fully realize the potential of trace data, managers may need to get involved in designing the data and to set a trace data policy that states how the data will be used in the organization.
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Aaltonen et al. (2023) studied this question.
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