Impact of Information Technology (IT) on Organization

Presented to:
Rishi Chapagain
Boston International College

Presented by:
Amir Tamang
MBA II Trimester

NOV 28, 2017

Introduction:
Organization is a group of people that is structured and managed to meet a need or
to pursue collective goals. All organizations have a management structure that
determine the relationships between different activities and the members, subdivides
and assigns roles, responsibilities, and authority to carry out different tasks.
Organizations are open systems i.e. they affect and are affected by their
environment.

Information technology is defined as the purposeful application of information in

the design, production and utilization of good and services and in the organization
of human activities. Information technology (IT) is the use of any computers,
storage, networking and other physical devices, infrastructure and processes to
create, process, store, secure and exchange all forms of electronic data.

Effect of Technology:
Technology has a very deep impact in the field of organization and management.
We live in an age where most, if not all of we use technological devices all day,
every day. From mobile phones, to iPads, to laptops and TVs, we’re constantly using
technology. We live in a world surrounded by technology. It has become a necessity
and something we use every day. Technology is changing the way we live, learn and
work. Technology has changed business in many ways.
Now People Can work from virtual workplace. This concept is based on the idea of
employees being able to work independently as a result of having access to
information. The virtual workplace provides access to information you need to do
your job anytime, anyplace, anywhere. Employees do not have to be tied to their
offices to do their jobs. The idea of not even having a set office space certainly would
be a change from the typical routine of showing up at the office from 9 to 5 (ideally)
and performing our work at our desk. Such a plan would obviously be dependent on
the job to be accomplished, but it is interesting to think of the supervisory
implications. Such employees would have the ultimate amount of autonomy and
would have to be managed accordingly. Tasks would have to be more objective or
goal oriented and measures of job performance could no longer depend on face to
face interaction, but rather would have to be tied strictly on the ability to complete
assigned tasks.

Information systems will also change even more traditional supervisory

relationships. Computer networks allow people to communicate quickly, share
ideas, and transfer information without regard to physical locations, or to a
reasonable extent, even without regard to the temporal dimension. Therefore, a
supervisor will be able to monitor the activities of a larger number of subordinates
without requiring them to report directly to him/her. It is important to note that again
interdependency of people and technology comes up in the form of empowerment.
Obviously, such relationships would not be possible under traditional job limitations,
but through empowerment of employees, such a stage can be appropriately set.

The use of information systems can also impact a firm's relationship with suppliers
or customers. The ability to gain information from others up or down a process or
distribution channel makes having control over that process or entity less of an issue.
This is especially true of companies that may have considered a vertical integration
strategy, but now realize that vertical integration becomes less necessary when
companies use information systems imaginatively. The ability to share information
and the ease of transferring designs can also lead to an increase in outsourcing, which
is a growing trend as companies try to reduce their own workforces and may find
themselves shorthanded.

The tasks that employees perform within an organization are being drastically
affected by the increased mechanization and application of technology as a part of
the production process. In many settings, tasks previously performed directly by
human operators are being automated, changing the human's task to one of
supervisory control. Now the expectations of an average employee in such an
environment has to change, because they are no longer performing repetitive tasks,
but rather must be able to recognize and react to problem situations. Such progress
has to start somewhere, and in reality this movement towards robotics has its roots
in the theories of scientific management.

Technology can greatly assist people to communicate their information and ideas
more easily and efficiently. In business, technology has become a key function of
management which is helping to communicate between different departments.
Technology has no doubt made communication easy. Today we can connect with
anyone anywhere anytime in cost effective way .with the help of technology,
business people now can perform much of their work from the comfort of their own
offices. Computer has made it possible to share information and undergo transaction
between companies. Telephone allows business people to stay in constant touch and
even connect their business with customers.it also adds in expanding communication
opportunities. Now email is been around a very long time as a great example of the
technology enhancing communication. But one of the biggest thing is now with the
speed and ease of email. Now email can be access, send and received from mobile
phone and it’s just easy to send a message with a few clicks.

Technology is great at assisting business communication, however there are some

negative impacts that have changed people/employees behavior over the years.one
negative impact is that people aren’t used to talking to each other face to face which
could hinder their ability to hold conversation without the use of technology. For
e.g. some employees may be very good at written conversation while they don’t have
necessary skills to hold a verbal communication, which could affect their social life.

Similarly, due to the ease of email and phone calls, employees are getting lot of
emails and calls and text messages and they are supposed to respond back quickly.
Which has create the problem of work overload and over communication. Instant
communication can make it harder for workers to deal with one task at a time when
their work is constantly being interrupted by comments and questions that relate to
other projects or even personal issues. Information technology has put more
responsibility on lower-level employees. Using technology can also open up
organizations to possible threats of hacking and stealing of their data and
information. The spread of e-mail, company intranets, and multifunctional
smartphones has made corporate managers more accessible than ever before
Furthermore customer’s details can be misused by the hackers. Technology is also
not always 100% reliable.

Technological change have an impact on all organizations. There is a need for new
types of managerial, diplomatic, and social skills and a concomitant need for a new
type of decision making process that will not be accommodated by existing
organizational structures.
Mainly three particular aspects of the organizational environment is affected by
technological change: the amount of market competition and uncertainty has
increased; the requirements for more diversity and higher quality in the
organization's products or services; and external politics and legislative reform has
increase in complexity. Each of these changes has provoked responses from the
organization in its structure and relationships with employees and customers.

Technological change has force changes in basic managerial functions. There is

increased responsibility on management for organization outcomes leading to
added emphasis on planning, decision making, control, and coordination. These
will often rely on computer-based management science techniques which demand
a higher intellectual capability of managers. This may produce strain on managers
and other individuals, potentially affecting morale, productivity, and output.

Technological change can positively affect individual values leading to increased

time for consideration of both the heart and the brain in decision making. This may
lead to greater moral sensitivity and more tolerance and compassion for others, all
coupled with a more rational approach to decision making. A possible effect of
technological change may be increased loyalty to one's profession rather than to
one's organization.

The net result of technological change for all organizations is a greater requirement
for strategic planning. All of us must continually ask the question "What do we
have to do now to attain our objective tomorrow?" Through this process we can
anticipate changes, including those brought about by technology, evaluate the
various alternatives available to us to cope with those changes, and be prepared for
the future as it arrives.

The relationship between technology and Organization in today's organizations is

significant. IT has revolutionized and redefined the way we interact in society and
organization. It has turned world into a single village where limits of time and
location no more apply. The companies have been using IT to get improved
efficiency and effectiveness. This use has grown at an astonishing rate over the past
three decades. As Information Technologies has influence on nearly every aspect of
modern business operations and communications, the pressing need to manage these
technologies effectively has grown accordingly. Organization should carefully
consider how these kinds of technologies are being used. All in all, we can only say
that technology, especially IT, has seeped through each and every pore of
organizational and managerial operation, without the use of which no business can
achieve its ambition or even run smoothly today.

References:

 Friedmann, Andrew L., "The Information Technology Field: Using Fields and
paradigms for analyzing technological change" Human Relations, Vol 47,
April, 1994, pp. 367-393.
 "Society and Technological Change"; Technology as a Cause of
Organizational Structure; Rudi Volti; 2010
 Ramey, K. (2013, May 9) use of communication technology for
organizational communication. Retrieved from
https://www.useoftechnology.com/communication-technology-
organizational-communication/
 Ramey, K. (2013, February 9) the advantages and disadvantages of
technology in work place. Retrieved from
https://www.useoftechnology.com/technology-workplace-2/
 The positive and negative impact of ICT (2012, June 27). Retrieved from
https://ajahana.wordpress.com/2012/06/27/the-positive-and-negative-
impacts-of-ict-5/