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Organizational Behavior Question#3

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  • 1. Question # 3<br />Discuss the role of Information Technology with reference to organizational behavior in organizations.<br />Answer:<br /> In this world of information, managing information and knowledge in an organization is very important. An organization that is good in ‘information and knowledge management’ is bound to be successful in this digital age. It is better to adapt to the technology that aids in ‘information and knowledge management’ so that your business is not behind your competitor. With the advent of information technology in every part of the business, you can find tools that help you to manage information and knowledge in your business with ease. <br /> Information technology is useful in ensuring the smooth functioning of all the departments in a company such as the human resource department, finance department, manufacturing department and also in security related purposes. With the help of information technology, the organization are able to get rid of any sort of errors or mistakes in the proper functioning of the tools used for designing and manufacturing purposes. Due to the development of the information technology sector, the companies are being able to keep themselves aware of the changes in the global markets.<br />THE EFFECT OF TECHNOLOGY ON THE ORGANIZATIONAL BEHAVIOR<br />Information Capture: <br /> First of all the instruments of this technology capture information Passive or actively. The term capture implies gathering, collecting, monitoring, detecting and measuring.<br />Information Storage: <br /> The technology converts numerical and textual information into binary, digital form and retain it in some form of permanent computer memory from which the information can be retrieved when required.<br />Information Manipulation: <br /> IT can rearrange and perform calculations on stored information. In this context, manipulation means organizing and analyzing especially where repetitive calculations are necessary.<br />Information Distribution: <br /> Modern IT can transmit and display information electronically on screens. Technological change and advances may have two possible effects on an organization: firstly, the skill and the knowledge requirements of employees may change as a new devices and program are introduced. Secondly, to the extent that information technologies replace people then some people loses their jobs. One thing is obvious to anyone is that the impact at the level of the organization may not reflect the overall, or “aggregate” impact of technical change in the economy as a whole.<br />Importance of information technology<br />Organization Culture Newer types of IT such as electronic mail and groupware are creating significant changes in the way that information flows around group ware, and between them and their customers and suppliers. It can hasten the development of more open and innovative cultures. However, as experts like Davenport warns, and surveys from companies like Reuters confirm, the notion that " information is power" still reigns large in many or groupware so, our experience shows that many new systems fail to become accepted by their users, because the systems developers have not been culturally sensitive to the department or group ware, in which the new systems are to be used.<br />Organization Structures For many years it has been argued that IT will enable larger spans of control and the flattening of Group ware. This has at last happened, but due as much to initiatives like BPR (business process reengineering) and the drive to cut costs. Research on whether IT encourages centralization decentralizations produced ambivalent results. <br />Management Processes IT is rapidly entering the era where it supports unstructured management processes as well as highly organized business processes It provides more effective ways of accessing information from multiple sources, including use of external information on databases and the Internet. However, group decision support systems that operate in a meeting room environment can help enhance decision making, but it does need someone who is an expert facilitator to help the group master the technique of structured discussion.<br />Work IT is dramatically changing the nature of professional work. There are few offices where professional do not make use of personal computers, and in many jobs involving extensive information and knowledge based work, the use of the computer is often a core activity. Becoming effective not only requires traditional skills of organizing, thinking, writing etc., but knowing how best to use the power of IT for researching sources, accessing information, connecting to experts, communicating ideas and results, <br />The Workplace The way in which IT diminishes the effect of distance means that it creates a variety of options for reorganizing the workplace. At a basic level, it can provide more flexibility in the office, allowing desk sharing and a degree of location independence within a building (this will develop as CTI (Computer Telephony Integration) and wireless PCs become more firmly established. At another level it permits the dispersion of work teams, thus saving costs of relocation and travel. <br />These IT impacts have implications for managers of all organizational functions, and not just MIS managers. Among the most important are:<br />Understanding the Changing Context of IT - as well as the direct impact on their business managers need to be able to see these developments in the context of the wider environment in which their business operates. <br />Keeping abreast of Developments - not about the details of the technologies, but about the business impacts; for example by meeting suppliers business consultant's, attending conferences, <br />Integrating IT and Business Planning - the IT strategy should support the business strategy and vice versa. This may need new planning processes, hybrid teams, and a increased incorporation of the levers into business plans.<br />Addressing Culture Issues - the dimensions of existing and desired culture need to be understood and how proposed systems will affect them. In particular attention needs to be paid to the organization's information culture<br />Experimenting with new Structures - using IT to remove some of the limitations of hierarchy and to encourage the development of innovative teams, using experts located in different functions and places. Managing dispersed teams is challenging but rewarding.<br />Ensuring that new systems are customized change proof - our studies have shown many new systems to be developed around existing customized structures and responsibilities. Since these change very rapidly, new systems should be built with organization customized flexibility and change in mind.<br />Developing New Skills - more of tomorrow's managers will need to become hybrid managers, combining the knowledge and skills of general management, their own discipline and IT.<br />Using IT as a management tool - initiating personal use of IT into every day work. This should include use of decision support tools, groupware, and knowledge management solution.<br />Exploiting Information as a Strategic Asset - using the techniques of information resources management to develop it as a valuable resource for internal use, for adding value to customer activities or services, or for creating saleable products.<br />Reorganizing the Workplace - by introducing flexible working and timework. The business benefits of this in terms of productivity and cost savings are such that there are many personal benefits to be achieved by a successful implementation. <br />The overall effects of the technology may depend on the operation of a number of Instruments:<br />1. New Products and Services: technological innovation generates new products and Services like personal computers, lap tops, commercial databases, these new Innovations change the pattern of consumer demands for goods and services. This guides organizations to invest in these new technologies which in turn lead to new employment opportunities and new skills requirements.<br />2. Lower Costs Increase Demand: Higher productivity indicates producing the same output with the same or fewer resources. Thanks to these lower costs consumers found reduced or stable<br />Prices which then may lead increased demands although it is hard to guess how they will change.<br />3. Time Lags: It is always hard to adopt a new technology into existing systems and Organizations. Sometimes there are technical problems sometimes social and sometimes economical to overcome.<br />4. Risks: Most organizations adopt new technologies slowly to reduce or avoid the risks.<br />5. Expectation of Demand: Expensive investments in new technologies are mainly due to the expectation of higher demands. Thus an organization may need to employ more people to handle the increase in business or new people who have the skills that require using these new Technologies.<br />6. Technical Limitations: New technologies do not always live up to the claims of the salesman. So, for some time existing jobs, skills and machinery may be required to work alongside the new devices <br />EXAMPLE: - AUTOMATION AND ROBOTICS<br /> The use of robots, which are becoming ever more versatile and reliable. Also, robot prices are falling as the cost of human labor rises.<br />Information technology (IT) is dramatically changing the business landscape. Although organization cultures and business strategies shape the use of IT in organizations, more often the influence is stronger the other way round. IT significantly affects strategic options and creates opportunities and issues that managers need to address in many aspects of their business. This page outlines some of the key impacts of technology and the implications for management on:<br />Business strategy - collapsing time and distance, enabling electronic commerce<br />Organization Culture - encouraging the free flow of information <br />Organization Structures - making networking and virtual corporations a reality <br />Management Processes - providing support for complex decision making processes <br />Work - dramatically changing the nature of professional, and now managerial work <br />The workplace - allowing work from home and on the move, as in timeworks <br />Need of IT in organizational behavior in organizations.<br />Four forces are responsible for the increasing importance of information technology <br />
    • Intense competition
    • 2. Global business operation
    • 3. Organization changes
    • 4. Information technology revolution
    • 5. It improves product or service quality by providing quality assurance. There is less error per unit of activity. Perhaps the best example of this is the scanner technology.
    • 6. Information technology can provide value-added services which create differentiation. For example federal express has extensively used information technologies not only to enhance its reliability of overnight delivery of packages are in transit.
    Intense competition. Intense competition is forcing the organization to become more efficient and effective. One way to increase efficiency and effectiveness is the use of information technology. We can gain competitive advantage with the use of information technologies. It reduces the operating costs through office or factory automation. For example telephone companies have computerized billing, account management, and operator services with the use of information technologies that result in significant cost savings<br /> Information technology can be used for competitive intelligence. The SABRE system developed by American airlines provides the airline enormous competitive intelligence. Every airline has to deposit its schedule and fares, which allows American airlines to adjust its schedules and fares to compete more effectively.<br />Globalization of business operations: As the industry becomes more global in its procurement, manufacturing and marketing operations, it requires greater use of information technology to reduce time and space barriers.<br />Organizational changes: With constant reorganization as well as increased mergers and acquisitions, top management recognizes the need for flexibility through compatible information technologies. Technology revolution. The performance-price ratio of a new generation of information technologies is making them more affordable and useful to the organization.<br /> So the conclusion is that Technology provides the resources with which people work and affects the tasks that they perform. They cannot accomplish much with their bare hands, so technology used has significant influences on working relationship, information system enables companies to react, respond, cater, store, retrieve, disseminate, and control their new valuable asset that is information. In the years to come, a good information system within a company will be no longer an option; it will become a compulsory in determining success. It is difficult to think of a situation where businesses can do without technology and computers today.<br />