Productivity paradox? The impact of office redesign on employee productivity

Purpose The purpose of this paper is twofold: first, to investigate the relationship between office redesign and employee productivity; and second to highlight the impact of privacy on work productivity across different generations. Design/methodology/approach This study examines open-office policy more comprehensively by integrating socio-behavioral and physical aspects of the office, and by using a mixed-method approach that incorporates most significant change, factor analysis and hierarchical regression analysis. Using a census method, the respondents were all consultants and trainers in an educational institution who were experiencing office design changes from a combi, cellular-like office to a more open, non-territorial office. Findings Three variables emerged as impacts of office redesign perceived by respondents: friendship, collaboration and privacy. Collaboration and privacy exert a positive influence on work productivity, while friendship does not. The relationship between privacy and work productivity is stronger for the Generation Y than for senior employees, namely, the Baby Boomers and Generation X. Research limitations/implications This study examines the impacts of office redesign in one organization. Future studies should advance the findings by empirically testing the theoretical model in broader contexts. Future studies could also enrich the literature by bringing cultural aspects into the discussion and comparing Asian-based and European or Western-based findings. Practical implications For Gen Y employees who prefer freedom, mobility and flexibility to personalization in their workplace, the open office could be a better solution for organizations that aim for both work productivity and efficiency. Originality/value This study provides an empirical value by using a mixed method of qualitative and quantitative research. This study further contrasts the different perspectives of an office redesign between younger and older generations.