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Dysfunctional effects of ERP systems - An executive summary

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Executive summary of my PhD research. The purpose of this research was to investigate potential dysfunctional effects of ERP systems on white collar employees.

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Dysfunctional effects of ERP systems - An executive summary

  1. 1. Dysfunctional Effects of ERP Systems An Executive Summary Dr. Kerem Köseoğlu http://kerem.koseoglu.info The purpose of this research was to investigate potential dysfunctional effects of ERP systems on white collar employees. In times of industrialization; Friedrich Taylor lay the foundations of scientific manage- ment over blue collar workers, which would later be called as “Taylorism”. His approach involved worker specialization, standardization of working methods, managerial supervi- sion & decision making and corporate power imbalance; but had some dysfunctional con- sequences such as task oversimplification, decreased creativity & self-esteem, alienation and dehumanization. In the information age, ERP systems provide electronic tools to implement the same “Tayloristic” principles. Do they also have the same similar dysfunctional effects on em- ployees? To find an answer, a questionnaire has been distributed among 310 SAP users from various countries, and the results have been analyzed. Turkey %76 Germany %15 USA %3 Belgium %2 England %1 Turkmenistan %1 Czech %1 Sweden %0 Operative %37 Reporting %16 Decision %12 Consultant %10 Technical %10 Data Entry %6 Programming %6 Project Manager %3 Dysfunctional Effects of ERP Systems" Dr. Kerem Köseoğlu http://kerem.koseoglu.info
  2. 2. The conclusion can be summarized on the following figure: Implementation of an ERP system relates to an increased level of standardization within the organization, as well as potential power imbalance problems between manage- ment and employers due to increased transparency and tools of control & supervision. Due to high standardization, users can experience a lack of creativity because new improvement ideas may be rejected due to costs and risks of change. They also get to perform oversimplified tasks, which may get boring over time. Increased control and transparency can potentially lead to a power imbalance between management and employees; which relates to employee alienation, dehumanization and lack of self esteem. To deal with lack of creativity, users should be encouraged for new suggestions, and significant ones should be implemented. To prevent task oversimplification, people working on repetitive tasks can be empowered with additional responsibilities. To preserve the general job satisfaction, power balance between managers and employees should be pre- served at all levels. Dysfunctional Effects of ERP Systems" Dr. Kerem Köseoğlu http://kerem.koseoglu.info

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