Can Information Technology change Organisational Behaviour - Essay Example

? Can Information Technology change Organisational Behaviour Information technology (IT) is one of the emerging concepts of modern era and is most essential to retain in the market for long run. Apart from this, it is essential to improve the productivity and profitability of the organisation among others in the market. In addition, implementation of IT also leads to an unavoidable alteration of organisational efficiency in order to achive its future goals and objectives. Moreover, implementation of information technology in an organisation can become succesful only with the help of mutual coordination and communication which would enhance both organisational and employee productivity. Thus, implementation of IT is beneficial for an organisation to cope up with the challenges thereby retaining its position in the market among others. This is a precise report describing the benefits and influences of IT on the organisational behaviour and organisational culture mainly in three varied sectors namely retail, telecommunication and banking. The report includes a brief introduction followed by discussion including three case studies and a conclusion highlighting the impacts of IT. Keywords: Organisational Behaviour, Information Technology (IT), Organisational Culture. 1.0. INTRODUCTION In this era of globalisation and industrialisation, innovation of information technogy (IT) is one of the most significant and emerging concepts which facilitated the transmition of large scale of information or knowledge very easily from one place to the other. The development of information technology concept offered revolution in the world of technology which rather proved to be highly beneficial. The term Information technology (IT) mainly deals with technology or knowledge to treat varied information. The acquirement, managing, storing and propagation of vocal, picturesque, documented and numerical information by a microelectronics-based arrangement of electronic telecommunications. This is a modern concept of transmition of information of recent times which proved to be efficient in each and every sector such as banking, retail or telecommunication (Reis, 2004). Moreover, Inforamtion technology helps in controlling technology and wide extent of areas including computer software, information technology, computer hardware, programming languages’ but are not restricted to aspects namely processes, and assemblance of data. In addition, information technology (IT) is defined as the concept that transfers data, knowledge or facts in any visual configuration with the help of multimedia distribution instrument, which is often considered as one of the significant components of IT domain. In addition, introduction of information technology not only improved the productivity of the organisations but also augmented human activities as well. IT augmented the skills and knowledge of employees thereby improving the productivity and profitability of the organisations. Therefore, introduction of IT improved both organisational behaviour along with the culture thereby enhancing its sustainability in long run (Forester, 1985). This is a report which highlights the influences and benefits of information technology (IT) in mainly three sectors namely retail, telecommunication and banking in a concise and structured way. It is divided into three parts namely introduction, discussion and conclusion. The discussion part is again sub–divided into three fractions namely case 1, case 2 and case 3 spotlighting the impact of IT on organisational behaviour (OB) in three sectors. 1.1.DISCUSSION Information technology (IT) is that area of engineering which works with the utilisation of varied electronic computers and telecommunications in order to retrieve, accumulate and convey large amount of information from one part to the other in a simple and trouble–free way(The Mathematical Association of America, 2012). The term ‘OB’ is described as the study of the employees actions or performances in a specific workplace. Moreover, it is also defined as the field of study in which employee or individual behaviours highly influence the environment or culture of an organisation thereby recuperating productivity and employee morale and declining skiving and turnovers. Thus, from the above discussion, it can be apprently depicted that IT enhances the corporate image and position of an organisation among others in the market. Hence, it can be depicted that OB and IT are interrelated to one another as one offers high impact on the other. Moreover, only through mutual coordination of IT and OB, an organisation can become successful in the long run (Weber, 2001). 1.1.1.CASE 1 Retail Sector- Amazon.com Inc (Online) Amazon.com, Inc is an American transnational electronic commerce corporation with headquaters in Seattle, Washington of the United states. It is one of the world’s leading and reputed online retailers. Amazon.com is one of the world’s reputed retailers and it was established in the year 1995 by Jeff Bezos. At the initial stages, Amazon.com was started as an online bookseller but very frequently it diversified to other sectors including varied software and video games among others (Amazon.com, 2012). Amazon retailer mainly deals in online retailing in larger number of countries namely United States, Canada, United Kingdom, Italy, Spain, Japan and India among others. Amazon.com offers individual websites for separate countries in order to offer diverse ranges of retail materials which facilitates in satisfying customer demands and changing needs. This is essential to sustain in the market among others for the long run. Amazon.com introduced the idea of online shopping with the help of electronic devices and information technology (IT) in order to ease the trouble of shopping. Online shopping or e-stores mainly includes the concept in which a consumer directly purchases from a business retailer i.e. (B2C) is followed, which enhances its revenue and position in the market. Thus, it can be avowed that implementation of information technology improved the profitability along with the organisational structure and behaviour of the employees as well. Hence, it can be confirmed that information technology is utilised in order to become more competitive and strategically distinctive among others in the market. It can be described with the help of Porter’s five forces model. It is used to analyse the benefits of IT thereby reducing the threats and increasing the opportunities for Amazon.com. The analysis with the help of Porter’s five forces would also enable to recognise the industry scenario in which Amazon.com has been operating and the chaning pattern of the industry factors with the use IT (Amazon.com, 2012). Threat of Substitute Products or Services The introduction of information technology (IT), improved the efficiency and effectiveness of the organisation in the industry as it helped to enhance Amazon.com’s size thereby reducing the substitute threats. Moreover, Amazon.com also offers varied ranges of innovative products in its sites which enhance customer relaibility and dependency thereby improving brand distinctiveness among others in the market. Along with these, due to internet services or e-commerce, the identity of Amazon.com enhanced with an approximate customer base of 22.3 millions as compared to other substitutes in the market. Moreover, It also improved the total revenue of Amazon.com by a significant amount at the end of year 2002. Moreover, due to e-commerce, large number of customers are attracted towards the websites of Amazon.com which is estimated nearly to be 65 million per month (Engen Books, 2011). The prime objective of Amazon.com is to satisfy customer demands with the help of digital techniques in this age of modernism. Thus, IT implementation improved its position and uniqueness among other competitors in the market. Bargaining Powers of Suppliers The utilisation of internet tends to amplify the bargaining powers of the suppliers as it offers higher access to the customers. Thus, the services of internet, enhanced the reach of customers to purchase or sell varied products or services. Moreover, the introduction of information technology also reduced the interuption of many off-line companies thereby enhancing the sales of online retail giants such as Amazon.com. Apart from these, in this era of modernisation and industrialisation, the customers are more interested in purchasing products or services from online dot.com’s rather than offline sites (Porter, 2001). Bargaining Powers of Buyers Bargaining powers of buyers are moderate as online sites offering variety of products are quite less as compared to offline companies. Besides, the passion of online purchase is very high in this era due to lack of time span in front of an individual. Moreover, bargaining power of the buyers reduces many dominant channels and improves the efficiency of traditional channels. Apart from these, it also eliminates the switching costs of the buyers due to lack of availability of such sites (Curran & et. al., 2006). Rivalry Among the Existing Firms The extent of rivalry among the existing firms is rather low for Amazon.com as compared to others due to unavailability of this types of online sites. Hence, the extent of competiting firms are also quite less as compared to other industries. Thus, the pace of growth and dvelopment is also very high for online dot.com’s namely Amazon.com in this era of globalisation. Hence, it also altered the organsiational culture and behaviour as well (Stahl & Grigsby, 1997). Barriers to Entry Apart from the above described factors, the other important factor of Porter’s five forces model is barriers to entry. Due to high incurrence of costs, the entry of new competitors is also rather less as compared to other industries. In additon, in order to sustain the online organisation, skilled workforce is the other important component. This would help to retain the organisation for the long run, which may not be bearable due to high cost incurrence (Porter, 2001). Hence, it can be confirmed that implementation of information technology requires employment of varied skilled employees. As a result, due to sharing of knowledge and skill, the organisational culture as well as the behaviour among the hierarchies is also enhanced. 1.1.2.CASE 2 Banking Sector- HSBC HSBC is one of the prime banking and financial services institutions in the world with its headquarter is situtated in London. HSBC operates globally which comprises approximately 7,200 offices in more than 80 countries and territories in Europe, Asia-Pacific region, Africa, Americas and Middle East. The name HSBC came into existance after its founding members such as ‘The Hong Kong and Shanghai Banking Corporation Limited’, developed in the year of 1865 in order to sponsor the increasing trading business among India, Europe, and China (HSBC Group, 2012). The HSBC Bank was floated in order to meet the needs and desires of local banking facilities. Moreover, very frequently the bank started expanding its branches all round the world in order to enhance its productivity and profitability as compared to others in the market. Apart from these, HSBC was a pioneer in contemporary banking customs in varied number of countries. Besides, in order to improve the number of customers and competitive advantages, HSBC utilised information technology as a strategic technique for the betterment and prosperity of the organisation (HSBC Group, 2012). The implementation of information technology in the bank of HSBC was implemented in the year of 2000. HSBC introduced HSBC.com website as a portal for satisfying the needs and the desires of the customers. Moreover, by the end of the year 2000, internet banking facility was also introduced thereby easing the facility of transcations of customers. It offered the facility of twenty four hours online banking services to the customers thereby improving customer loyalty and relaibility as compared to other competitors in the market. Thus, the introduction of IT services improved the number of customer bases to about 100 million all around the world by the year 2009. The prime objective behind this strategy is to offer quality services in order to pave its path as a leader. Along with this, it would also improve its sustainability in the market among others thereby reducing the risk of competitors. Thus, implementation of information technology improved the amount of total assets to US$2,364b in the year 2009 (HSBC Holdings plc, 2009) as compared to US$696 billion in year 2001 (HSBC Holdings plc, 2001). Moreover, due to the implementation of information technology, varied innovative training programs and workshops are also introduced for the development of employees in order to cope up with this technology. Furthermore, HSBC also recruited skilled and technically sound individuals in order to offer suitable solutions beneficial for sustaining in the market among others (HSBC Holdings plc, 2010). Apart from these, diverse workforce of HSBC also acts as a beneficial factor to improve the strategy of IT in order to replace its weaknesses and threats with strengths and opportunities. It can be possible only with the help of team work with mutual sharing of ideas and thoughts for the improvement of HSBC (O’Donnell & Boyle, 2008). Thus, it can be depicted that although the employess are from assorted cultures but all of them share a universal as well as mutual environment, which made the strategy of IT rather successful in HSBC. As a result, it enhanced the total assets to US$2,716bn in the year 2011 thereby positioning itself as a market leader in the segment of banking and financial services (HSBC Group, 2012). Moreover, uniform organisational culture enhanced employee morale and confidence thereby improving dedication and commitment towards work. It augmented organisational as well as employee productivity. In addition, it also amplified customer reliability and dependability which improved its corporate image in the market among others. Moreover, IT can also be utilized for video conferencing through which meetings are conducted in the banks such as HSBC which reduces the hazard of travelling and helps to save crucial time which might have been otherwise utlised or wasted in travelling. Hence, It offers high impact on the operations of the banks. Thus, it can be evidently depicted from the above discussion that implementation of approach of IT also enhanced the attitudes and ideas of employees thereby influencing organisational culture as well. Hence, it can be revealed that information technology offers high impact on the oragnisational behaviour. 1.1.3.CASE 3 Telecommunication- Vodafone Vodafone Group Plc is a British transnational telecommunication organisation with headquaters situated in London, in the United Kingdom. It is one of the world's leading ‘mobile telecommunications’ corporations as per revenue as well as the second principal leader in number of subscibers amounting to about 371 million (Vodafone Group, 2011). Vodafone possesses and controls networks in over 30 countries and includes associate networks in in excess of 40 more countries. Vodafone is also the owner of Verizon Wireless customers, which is one of the leading ‘mobile telecommunications’ corporations in the United States (Bloomberg L.P. 2012). The name of Vodafone came into existance from the term ‘voice data fone’, selected by the company to offer the facility of ‘voice and data services’ to customers through mobile technologies in order to prvide total communication (Vodafone Limited, 2011). In the year 1991, Racal Telecoms de-merged from the organisation named Racal Electronics and appeared with a new brand name Vodafone Group. Although Vodafone Group Plc is a business concern which attempts to offer uncomplicated and flexible communications strategies which saves time as well as capital. Moreover, it also endeavours to provide varied business solutions to its global clients namely innovative productivity services, voice and messagings, mobile emails and mobile broadband facility among others in order to fulfill the altering demands and desires (Vodafone Albania, 2011). The mobile telecommunication industry is one of the most speedily rising sectors around the world. In order to enhance the market of Vodafone and to augment sustainability, it is essential to offer innovative products and/or services to the clients as compared to others. Besides, maintenance cost along with operational effectiveness offers high impact on the telecommunication industry. Thus, in order to handle these operations, telecommunication industry attempts to implement information technology (IT). Moreover, IT is introduced by Vodafone Group as a management strategy in order to enhance competitive advantages along with profitability margin. The introduction of IT helped vodafone to launch varied new services such as mobile internet facility, I-Phones with 3G facility and ‘Vodafone 360’ among others at a cheaper price than competitors. Thus, IT facilitated Vodafone clients to connect their relatives and friends very easily and effortlessly which enhanced customer loyalty and relaibility as compared to others. Apart from these, IT facilities also eased the transformation of data and information from mobile phones to other sources. Thus, introduction of IT services improved the total revenue to ?45.9bn in the year 2011 along with client base of 370.9 million as compared to others thereby positioning itself as a market leader in the sector of telecommunication. IT also enhanced the reach of Vodafone to numerous customers with the introducing varied social networking sites such as Facebook and Twitter among others. These sites have enabled companies such as Vodafone to communicate directly with the customers and to recognise their changing requirements on constant basis. This enables the organisation to tailor their services according to the chaning demands on a more rapid basis (Vodafone Group Plc, 2011). Apart from the above described factors, uniform culture of Vodafone also inspired employee confidence and morale thereby inspiring diverse workforce to work in a uniform organisational climate, which acts as a beneficial factor thereby enhancing corporate image in the market. Furthermore, due to open and truthful communication structure of Vodafone, proper sharing of knowledge and decision making takes place which enhances employee skills, motivation and dedication towards work. Improvement in commitment augments the productivity and profitability of Vodafone, which is very essential to sustain in the market. This can be possible only due to team work and mutual uderstanding, which is the prime theme of Vodafone’s organsational culture (Vodafone Group Plc, 2008). Thus, due to uniform culture, diversity became one of the significant strengths of Vodafone which facilitated the success of IT strategy. Along with this, due to implementation of IT, employee skills enhanced along with attitudes, behaviours, ideas and knowledge which proved beneficial for Vodafone. Thus, it can be affirmed that due to uniform organsational culture, the management startegy of IT became succesful thereby enhancing Vodafone’s customer base, workforce effectiveness and brand distinctiveness as compared to others in the market. Moreover, due to the implementation of the strategy of IT, high concentration is offered towards research and development part in order to provide varied innovative products and/or services to the customers as compared to competitors (Vodafone Limited, 2012). This would improve customer reliability and confidence thereby enhancing its brand portfolio in the market among others. Hence, it can be avowed that IT was implemented as a management strategy which improved employee morale and self-esteem thereby changing organisational behaviour and culture, which paved the path of success. Thus, it can be evidently revealed that IT offers high impact on the organsational behaviour and culture. Therefore, it can be depicted from the above three case studies related to varied sectors, that implementation of IT offers considerabe influences on the organisational activities and internal well-being. 1.2.CONCLUSION Conclusively, it can be depicted that information technology is one of the significant strategies utilised in maximum organisations in order to enhance their productivity and profitability in the market as compared to others. This can be made successful, only through team work and mutual communication among the employees and management, which can be clearly observed in the above case studies. Moreover, if implementation of IT is successful then it would offer high influence on the organsational actions and performances thereby enhancing employee morale and confidence. It is essential for augmenting organisational efficiency and effectiveness. Thus, in order to sustain in this era of competition, it is essential to implement IT which would facilitate in improving the quality of the services offered to the clients thereby augmenting customer satisfaction and loyalty towards the brand. This would offer a distinctiveness and specific position to the brand among others in the market. Moreover, it would also improve the corporate image and total revenue of the organisation as described above. Thus, it can be confirmed that IT and OB are interconnected to one another and proper implementation of one leads to success of the other. 1.3 REFERENCES Amazon.com, 2012. About Us. Fabric. [Online] Available at: http://www.amazon.com/ [Accessed March 07, 2012]. Bloomberg L.P. 2012. Verizon Wireless Said to Start Offering IPhone in January. IPhone Gains. [Online] Available at: http://www.bloomberg.com/news/2010-06-29/verizon-wireless-said-to-start-offering-iphone-ending-at-t-s-exclusivity.html [Accessed March 07, 2012]. Curran, K. & et. al., 2006. The Power of Long Tail. Journal of Information Technology Impact. Vol. 6, No. 3, pp. 129-134. Engen Books, 2011. Engen becomes an official Amazon Affiliate! Downloads. [Online] Available at: http://www.engenbooks.com/01052011.htm [Accessed March 07, 2012]. Forester, T., 1985. The Information Technology Revolution. MIT Press. HSBC Holdings plc, 2009. Annual Reports. Annual Review, 2009. 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