The Effect of Information and Communication Technology on Knowledge Workers and Organizational Structures - Literature review Example

The Effect of ICT (Information and Communication Technology) on Knowledge Workers and Organisational Structures Introduction Computer technology is rapidly becoming a significant engine of growth of organisations and the world’s economy. It has created opportunities for many individuals - called knowledge workers, firms, and communities around the world. It has changed the efficiency of operations in organisations, making them more productive. At the same time, the advent of complex information communication technology (ICT) systems implies that many organisations have to invest more resources in order to adapt to these systems. Moreover, due to the change in the nature of work in organisations, some organisations are forced to change their organisational structures by for instance laying off some workers or retraining them to fit to the new environment. These points and others can be viewed to be the problematic aspects of ICT. Nevertheless, this paper puts forward the argument that the benefits of ICT on workers and organisational structures outweigh the problematic aspects. General impacts of ICT on an organisation Modern literature on ICT recognises the impact of ICT on an organisation and its design. For instance Cudanov, Jaško and Jevti (2009, p. 102) cites Daft (2004) who perceives five key influences: shrinking of personnel in the organisation, increasing decentralisation, enhancing the efficiency of internal management, enhancing inter-organisational collaboration and better sourcing. Although decreasing staff in organisations can be perceived to a demerit from workers’ perspective, it is offset by the fact these workers will not necessarily be laid off if they have the necessary skills – that is if they have the required attributes of knowledge workers in their respective organisations. Additionally, improving decentralisation, internal cooperation and inter-organisational cooperation is beneficial to both workers and organisations since the workers are at liberty to make decisions, have better organised work structures, and are therefore likely to be more productive to the advantage of the organisation. Cudanov, Jaško and Jevti (2009, p. 102) also cite Desanctis and Jackson, who present the effect of ICT on organisation and decentralisation, as well as Lars Groth who explains the significant role of ICT on organisational communication, despecialisation and centralisation. Finally, Cudanov, Jaško and Jevti (2009, p. 102) presents the argument of Mintzberg, who is of the opinion that ICT influences specialisation, centralisation, departmentalisation as well as coordination and control. Nevertheless, Wahab (2004, p. 39) points out that the question of whether ICT actually leads to more flexibility in the workplace is still amenable to discussion. This is because there are many other factors to be taken into consideration for this analysis, including the different socio-cultural contexts of organisations, places and organisational settings. Beneficial impacts of ICT on knowledge workers and organisations The beneficial aspects of ICT can be seen by looking at ICT’s relationship with knowledge management. Knowledge objects comprise data, information and knowledge. Effective knowledge management moves these objects smoothly through generation, codification and dissemination to application (IRMA, 2011, p. 593). Such practices streamline the creation, capturing, classifying, organising, transferring and reusing of knowledge. Two aspects of knowledge management – codification and dissemination are increasingly enhanced by the use of ICT applications (IRMA, 2011, p. 593). An online survey conducted by the Information Resources Management Association (IRMA) and further analysis showed that ICT can be used to effectively facilitate the conversion between data, information and knowledge (IRMA, 2011, p. 593). A majority of respondents believed that the use of ICT helps them to gain new ideas and insights, to compare different points of view and to undertake research projects. IRMA’s analysis further show that ICT facilitates the conversion of knowledge objects and enhances the process of exchanging information and knowledge, leading to new information and knowledge (IRMA, 2011, p. 593). Knowledge or information workers benefit greatly from the adoption of ICT in their organisations. Warren, Davies, and Brown (2008, p. 21) discuss some of these benefits by noting that ICT not only speeds up tasks, but it alters how those assignments are accomplished. More emphasis can be added to this given that the output of one knowledge worker is influenced by how fast his or her partners react to information request. Warren, Davies and Brown (2008, p. 21) also note that knowledge workers who utilise a firm’s knowledge systems are more productive; and those who utilise ICT for higher value data processing are even more productive. Additionally, knowledge workers who optimise the management information contacts within a given period of time derive greater benefits over their careers. Discussing the same point, Pokharel (2005, p. 37) cites Chen et al. (2002, p. 2), who argue that ICT offers an augmentative role for human resource activities to improve organisational or personal competence and effectiveness. Turning to organisational structure, it is obvious that the incorporation ICT in organisation warrants organisation structure change. According to Ng and Li (2003, p. 169), the advent of network computing, open system structures and other major improvements has been a major change from the norm. Consequently, organisational structures undergo considerable alterations under the effect of the expansion of ICT. Ng and Li (2003, p. 169) further argue that the development of ICT has caused the restructuring of organisations, the growth of high achievement business groups, integrated organisations, and virtual enterprises. ICT adoption also leads to the emergence of loosely-structured organisations (Ng & Li, 2003, p. 169). ICT adoption by firms leads to a situation whereby narrowly-defined decision making authorities and centralisation are replaced by multitasking and decentralisation. Thus, according to Armbruster (2011, p. 2), the new firm model that is created is characterised by and increased use of teamwork and job rotation, a decline in number of managerial levels, and more direct participation of all employees in decision making. Whether ICT leads to the creation of flatter organisational structures is also subject to discussion as Armbruster notes that Radner’s (1993) and Wyner and Malone’s (1996) work show that ICT promotes decentralisation while works done by Leavitt and Whisler’s (1958) and Bolton and Dewatripont (1994) oppose this view, suggesting that ICT leads to centralisation. But what is clear is that ICT lowers decision information costs, which promotes centralisation, but also enhances decentralisation, by lowering agency costs (Armbruster 2011, p. 3). IRMA summarises the benefits of ICT to organisations by noting that such organisations become knowledge-based organisations, they are able to share documents and best practices organisation-wide, and the adoption of ICT improves their level of customer relationship management. For instance, at IBM, the adoption of technology it not a solution in itself. It helps to offer solutions that meet the needs of its users for sharing, re-suing and managing intellectual capital in the interconnected environment (IRMA, 2011, p. 594). The company uses ICT tools such as the ICM AssetWeb, the enterprise knowledge infrastructure and its associated KnowledgeCafe and Cockpit to transform it into a knowledge based organisation (IRMA, 2011, p. 594). For such an organisation that implements ICT in almost all its businesses activities, there is no doubt that it employs the appropriate knowledge workers and thus puts in place measures to address any challenges that might arise as a result of the adoption of its technologies. But as mentioned in the introduction, challenges are likely to occur as a result of ICT use. These are discussed next. Problematic impacts of ICT use on knowledge workers and organisations According to Mezgár (2006, p. 15), ICT use creates a situation whereby the virtual teams that are created are managed based on trust as opposed to control. The efficient coordination and supervision of the virtual teams that are not centrally run seem to present a significant challenge. Team unity may suffer from lack of closeness in team members’ associations as a result of geographical dispersion, differences in levels of know-how, and socio-organisational differences. Nevertheless, Mezgár (2006, p. 15) argues that in such areas, trust occurs as a form of swift expectation that is premised on articulate role divisions among team members who have distinct specialisations. This is evident in the aforementioned case of IBM and Google. Google has become an organisation with a very low level of hierarchy with the increasing number of offices around the world (Weber, 2008, p. 20). Another problem is the fear that automation of processes through ICT leads to loss of jobs. However, a counterargument to this supposition is put forward by Ayandele and Adeoye (2010, p. 40) who assert that ICT has resulted in the elimination of jobs that involve routine, monotonous and sometimes hazardous tasks. There is no doubt that an organisation that intends to adopt ICT will be prepared to hire the appropriate knowledge workers. Conclusion In conclusion, the adoption of ICT in organisation has both beneficial and problematic impacts on knowledge workers and organisational structures. This paper has argued that the beneficial impacts outweigh the problematic impacts. This is elucidated by the merits that come with ICT use such as better knowledge management, improved organisational decision making, and that ICT generally plays a supportive role to human activities in the organisation. Although there are challenges such as implementation, organisations will generally implement technologies that they can handle as shown by IBM and Google. Additionally, ICT in some cases becomes a necessity especially where monotonous and hazardous jobs are eliminated and replaced with automated ICT practices. References Armbruster, K 2011, ‘Technological Innovations and the Allocation of Decision-Making Authorities in Swiss Firms’, WWZ Discussion Paper 2011/04, March 2011. Ayandele, I A & Adeoye, O S 2010, ‘Changing Work Environment through Information and Communication Technology (ICT): Challenges to Secretarial Staff’, International Journal of Computer Applications (0975 8887), Vol. 9, No. 10, pp. 35-40. Cudanov, M, Jaško, O & Jevti, M 2009, ‘Influence of Information and Communication Technologies on Decentralization of Organizational Structure’, ComSIS, Vol. 6, No. 1, pp. 93-109. IRMA, 2011, Organizational Learning and Knowledge: Concepts, Methodologies, Tools and Applications (4 Vol), IGI Global, New York. Mezgár, I 2006, Integration of ICT in Smart Organizations, Idea Group Inc (IGI), New York. Ng, J J M & Li, K X 2003, ‘Implications of ICT for knowledge management in globalization’, Information Management & Computer Security, Vol. 11, No. 4, pp. 167-174. Pokharel, S 2005, ‘Perception on information and communication technology perspectives in logistics: A study of transportation and warehouses sectors in Singapore’, Journal of Enterprise Information Management, Vol. 18, No. 2, pp. 136-149. Wahab, A A 2004, ‘The impact of information and communication technology (ICT) in users’ interaction between the academic staffs – scientists/engineers in Malaysia’, Jurnal Teknologi, Vol 41(B), pp. 35-46. Warren, P, Davies, J & Brown, D 2008, ICT Futures: Delivering Pervasive, Real-time and Secure Services, John Wiley and Sons, New York. Weber, S 2008, Organizational Behaviour - Google Corporate Culture in Perspective, GRIN Verlag, Munich. Read More