Information Technology for Management Efficiency - Essay Example

Introduction The use of information technology and its application has created a wider database of new opportunities in the real world and has becomea necessary business tool with its wide range of applications in the ever expanding and competitive global environment. The impact of technology on firms’ performance is far reaching and extensive. Therefore, managers must have essential knowledge of IS/IT to dextrously exploit technology for improved performance outcome. The paper would be discussing three major areas where IS/IT skills significantly contributes to the efficient management. Project management Project can broadly be defined as a specific time bound work with specific objectives and goals; budget; and resources (Reynolds, 2010). Project management helps provide the tools to achieve project goals through well planned strategy. It normally encompasses essential steps like: feasibility study of the project; project development; production and implementation process; monitoring and control mechanisms; and successful completion that leads to the smooth running of the project. Thus, effective management of project is critical to the successful delivery of its goals and objectives within the limited resources of time, budget and human capital. The Project Manager helps coordinate the various team issues of the project, which are vital part of project dynamics that facilitate wider understanding and promote improvement and improvisation of the process to achieve project goals and objectives more efficiently. ‘Access to information represents the basic precondition for success of a firm’ (Drucker, 1998). The access to information becomes vital to only promote efficient and knowledge based discharge of duties by the team but also a great tool for the management to exploit the available information to improve its performance. Hence, Information System Development helps in storing and manipulating strategic business information that are designed to improve the overall business prospects. The proficiency in using computers greatly facilitates the project manager to tacitly exploit data to identify the risks and shortcoming so that they can be addressed timely. When IT system is introduced, training on the use of hardware and software becomes intrinsic part of implementation. Barton emphasizes that ‘hands on real time interaction with the new system… with a more broad based understanding of the flow of information through the system’ is needed (Barton, 2001). TQM promotes quality assurance at various levels of project processes through measures that drastically reduce the percentage of error within the production and maintain a minimum standard. Thus, using IS/IT, the project manager is able to the various challenges within the project operation. It helps him to ensure quality control through regular evaluations of the project stages and use contingency plans to improve and improvise the outcome. The prioritization of the work details become effective linkages in the completion of the project. The contingency situations and practical aspect of the project schedules are critical elements that are judiciously evaluated by PM so the project objectives are not compromised greatly. Corporate governance and IT In the fast changing environment of globalization, business compulsions have become more stringent in their nature and factors like accountability, responsibility and reliability have become important pre-requisites for business to create a credible environment for their trade and investment. The lack of effective controls vis-à-vis malpractices in accounts and auditing, security of confidential information, corrupt practices in the higher hierarchy of management, etc. have become crucial risks factors that have resulted in huge economic loss for its shareholders and adversely impacted its market credibility. The transparency in the Corporate Governance provides effective control measurements that safeguard the interest of all its stakeholders, investors and business partners. For effective corporate governance, all organizations strive to develop a comprehensive information system that would promote and accelerate the organizational aims and objectives. The IS has been evolved to encompass various spheres of the business including administration, management, productions, accounts and other areas which are intrinsically linked to produce the desired outcome of efficiency, quality and profits. The various new approaches to ISD like MIS (management information system), payroll, AIS (accounting information system), networking through website development and internet etc, have smoothed the administration and management of the productions and other related processes. When IT system is introduced, training on the use of hardware and software becomes intrinsic part of implementation. The training of the manager and the workforce in understanding the IT system and usage greatly facilitates acceptance and inculcates confidence. This helps in corporate governance within the organization to use the information system successfully so as to manage people and resources. It also helps to meet the external challenges by judiciously manipulating the diverse information for promoting its own interests. It also ensures compliance of Sarbanes Oxley Act which makes certain that ‘the auditors are expected to report their opinions on the effectiveness of their clients’ internal controls in their annual report’ (Parker, 2003). Corporate governance therefore effectively exploits the potential of IS/IT services to ensures successful measures for internal control vis-à-vis various inter-related processes within its different departments that facilitate smooth operation, conforming to the prescribed parameters of managerial and policy controls. Dissemination of information promotes transparency and significantly reduces risks. It helps to inculcate confidence and trust amongst the various stakeholders. Hence, it can be successfully argued that IS/IT needs to become intrinsic part of corporate governance. Collaboration tools and wireless network Through the judicious use of technology within the business operations, the firms are creating a definite and advantageous position within the industry. They increasingly use the IS/IT services to analyze customers’ psychology through the evaluation and analysis of customer database. IS/IT services have, in fact, become the most effective collaborating to improve networking within the various inter-related units of business operations that might be spread across geographical boundaries. It has also created a wider database of new opportunities. The managers must be able to use computers and IS/IT services because they facilitate better communication among the various economic units that work within the given parameters. Communication through electronic mail has made it easier to disseminate information among office staff of various branches, thereby, making it easy for the management to keep them informed regarding every aspects of organizational vision, mission and daily progress. It is a fast and efficient tool of communication leading to quality management. Creation of bulletin board in official sites has become an effective organizational strategy encouraging frank discussion and reactions to company’s decisions and policies. These electronic boards have become extremely popular medium of assessing organizational progress and at the same time, they have been used to solve employee’s grievances in a more democratic manner. This has helped improved working relationship among the people and making cross cultural adjustments easier. The real time presentation or virtual conferencing has emerged as an important feature of the internet. It facilitates virtual boardroom discussions with people who are at different places in the world. It has become the most revolutionary platform to showcase the individual interests in myriad forms and medium that includes live shows, blogs, videos, music, personal albums, diaries etc. emphatically proclaiming the superiority of emerging innovative approach to contents and formats that would have mass appeal. Firms are increasingly using blogs and networking to interact with people and develop unique relationship with their clients to promote their brand credibility. It has become a very cost effective and time efficient tool with wide ranging ramifications. Hence, it can be concluded that IT skills must become intrinsic part of management strategy and entire workforce needs to include it within their work culture. Conclusion Thus, it can be correctly interpreted that these areas are truly at the heart of management involvement with information system/ information technology. The collation of information, using integrated approach greatly facilitates operational efficiency, employee productivity, customer satisfaction and hordes of other such processes which are important for decision making in the concerned areas. The new approach to IS/IT therefore, have provided a win-win situation for the various stakeholders. Reference Barton, Patricia. (25 November, 2001). Enterprise Resource Planning: Factors Affecting Success and Failures. Available from: [Accessed 28 March, 2010]. Drucker, P.F. Next information revolution. Forbes, 24 August, 1998. Database: Academic Search Elite. Parker, Christine. (2003). The Open Corporation: Effective Self-regulation and Democracy. Cambridge University Press Reynolds, George W. (2010). Information Technology for Managers. Course Technology, Cengage Learning. Read More