Organizational Behavior Question#3
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Transcript of Organizational Behavior Question#3
Question # 3
Discuss the role of Information Technology with reference
to organizational behavior in organizations.
Answer:
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.
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.
THE EFFECT OF TECHNOLOGY ON THE ORGANIZATIONAL
BEHAVIOR
Information Capture:
First of all the instruments of this technology
capture information Passive or actively. The term capture implies
gathering, collecting, monitoring, detecting and measuring.
Information Storage:
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.
Information Manipulation:
IT can rearrange and perform calculations on
stored information. In this context, manipulation means
organizing and analyzing especially where repetitive calculations
are necessary.
Information Distribution:
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.
Importance of information technology
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.
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.
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.
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,
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.
These IT impacts have implications for managers of all
organizational functions, and not just MIS managers. Among the
most important are:
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.
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,
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.
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
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.
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.
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 management tool - initiating personal use
of IT into every day work. This should include use of decision
support tools, groupware, and knowledge management
solution.
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.
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.
The overall effects of the technology may depend on the
operation of a number of Instruments:
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.
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
Prices which then may lead increased demands although it is hard
to guess how they will change.
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.
4. Risks: Most organizations adopt new technologies slowly to
reduce or avoid the risks.
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.
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
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 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:
Business strategy - collapsing time and distance, enabling
electronic commerce
Organization Culture - encouraging the free flow of
information
Organization Structures - making networking and virtual
corporations a reality
Management Processes - providing support for complex
decision making processes
Work - dramatically changing the nature of professional,
and now managerial work
The workplace - allowing work from home and on the
move, as in timeworks
Need of IT in organizational behavior in organizations.
Four forces are responsible for the increasing importance of
information technology
1.Intense competition
2.Global business operation
3.Organization changes
4.Information technology revolution
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.
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
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.
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.
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.
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.