Question # 3
Discuss the role of Information Technology with reference to
organizational behavior in organizations.
In this world of information, managinginformation and
knowledge in an organization is very important. An organization thatis
good in ‘information and knowledge management’is bound to be
successful in this digital age. Itis better to adaptto the technology that aids
in ‘information and knowledge management’so that your business is not
behind your competitor. With the adventof 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.
Information technology is useful in ensuring the smooth
functioning of all the departments in a company such as the human
resource department, finance department, manufacturingdepartmentand
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 developmentof the information technology sector,
the companies are being able to keep themselves aware of the changes in
the global markets.
THE EFFECT OF TECHNOLOGY ON THE ORGANIZATIONAL
Firstof all the instruments of this technology capture
information Passive or actively. The term capture implies gathering,
collecting, monitoring, detecting and measuring.
The technology converts numerical and textual information
into binary, digital form and retain it in some form of permanentcomputer
memory from which the information can be retrieved when required.
IT can rearrange and perform calculations on stored
information. In this context, manipulation means organizing and analyzing
especially where repetitive calculations are necessary.
Modern IT can transmitand displayinformation electronically on
screens. Technological change and advances may have twopossible 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 notreflect the overall, or
“aggregate” impactof technical change in the economy as a whole.
Importance of information technology
Newer types of IT such as electronicmail and groupware are
creating significantchanges in the way that information flows around
group ware, and between them and their customers and suppliers. It can
hasten the developmentof more open and innovative cultures. However,
as experts like Davenportwarns, 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 departmentor group ware, in which the new
systems are to be used.
For many years ithas been argued thatIT 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 ambivalentresults.
IT is rapidly entering the era where it supports unstructured
managementprocesses as well as highly organizedbusiness processes It
provides more effective ways of accessing information from multiple
sources, including use of external information on databases and the
Internet. However, groupdecision support systems that operate in a
meeting room environmentcan help enhance decision making, butit does
need someone who is an expert facilitator to help the group master the
technique of structured discussion.
IT is dramaticallychanging the nature of professional work.
There are few offices where professional do not make use of personal
computers, and in many jobs involvingextensive 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,
The way in which IT diminishes the effect of distance means
that it creates a variety of options for reorganizing the workplace. Ata
basiclevel, it can provide more flexibilityin the office, allowing desk
sharing and a degree of location independence within a building (this will
developas CTI (Computer Telephony Integration)and wireless PCs
become more firmly established. Atanother level it permits the dispersion
of work teams, thus saving costs of relocation and travel.
These IT impacts have implications for managers of all organizational
functions, and not just MIS managers. Among the most importantare:
Understanding the ChangingContextofIT - as well as the direct
impact on their business managers need to be able to see these
developments in the context of the wider environmentin which their
Keeping abreastofDevelopments - not about the details of the
technologies, but about the business impacts; for example by meeting
suppliers business consultant's, attending conferences,
Integrating IT and BusinessPlanning -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.
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
Experimenting with new Structures - using IT to remove some of the
limitations ofhierarchy and to encourage the developmentof
innovative teams, using experts located in differentfunctions and
places. Managing dispersedteams is challengingbutrewarding.
Ensuring thatnew systems are customized changeproof - 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.
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.
Using IT as a managementtool - initiatingpersonal use of IT into
every day work. This should include use of decision support tools,
groupware, and knowledgemanagementsolution.
Exploiting Information asa StrategicAsset - using the techniques of
information resources managementtodevelop it as a valuable
resource for internal use, for adding value to customer activities or
services, or for creating saleable products.
Reorganizingthe Workplace -by introducing flexible workingand
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.
The overall effects of the technology may depend on the operation of a
number of Instruments:
1. New Productsand Services: technological innovation generates new
products and Services like personal computers, laptops, commercial
databases,these new Innovations change the pattern of consumer demands
for goods and services. This guides organizations to investin these new
technologies which in turn lead to new employmentopportunities and
new skills requirements.
2. LowerCosts Increase Demand:Higherproductivity indicates producing
the same output with the same or fewer resources. Thanks to these lower
costs consumers found reduced or stable
Prices which then may lead increased demands although itis hard to guess
how they will change.
3. Time Lags: It is always hardto adopt a new technology into existing
systems and Organizations. Sometimes there are technical problems
sometimes social and sometimes economical to overcome.
4. Risks: Most organizations adoptnew technologies slowly to reduce or
avoid the risks.
5. ExpectationofDemand: 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 thatrequire using these new Technologies.
6. TechnicalLimitations: 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 towork alongsidethe new devices
EXAMPLE: - AUTOMATION AND ROBOTICS
The use of robots, which are becoming ever more versatile and
reliable. Also, robot prices are falling as the cost of human labor rises.
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 significantlyaffects strategicoptions 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 managementon:
Businessstrategy - collapsing time and distance, enabling electronic
OrganizationCulture - encouraging the free flow of information
OrganizationStructures - making networkingand virtual
corporations a reality
ManagementProcesses - providing support for complex decision
Work - dramatically changing the nature of professional, and now
The workplace - allowingwork from home and on the move, as in
Need of IT in organizationalbehaviorin organizations.
Four forces are responsible for the increasing importance of information
1. Intense competition
2. Global business operation
3. Organization changes
4. Information technology revolution
It improves product or service quality by providingquality
assurance. There is less error per unit of activity. Perhaps the best
example of this is the scanner technology.
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 overnightdeliveryof 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, accountmanagement, and
operator services with the use of information technologies thatresult in
Information technology can be used for competitive intelligence.
The SABRE system developed by American airlinesprovides the airline
enormous competitive intelligence. Everyairline has to deposit its schedule
and fares, which allows American airlines to adjust its schedules and fares
to compete more effectively.
Globalizationofbusiness 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
Organizationalchanges: With constant reorganization as well as increased
mergers and acquisitions, top managementrecognizes the need for
flexibility through compatible information technologies. Technology
revolution. The performance-price ratioof a new generation of information
technologies is making them more affordable and useful to the
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
significantinfluences on working relationship, information system enables
companies to react, respond, cater, store, retrieve, disseminate, and control
their new valuable assetthat 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