Effects of Information Technology on Management Functions - Coursework Example

Impacts of Information Technology on Management Functions Name: Institution: Date: Effects of Information Technology on Management Functions Information technology has been promising for various aspects around the world. This is because of the ways in which information technology has revolutionized business operations. One of the fields of business operations that have been impacted by information technology is management. Management refers to the process of planning, organizing, coordination, commanding, and control in an organization. However, management functions have expanded to include aspects such as staffing and budgeting. The role of information technology in the contemporary business context is undisputed, and its impacts have been felt across different management functions. Information technology has proved to be a source of competitive change for various businesses around the world. The possession of advanced technology in business is the strength that can be used to counter weaknesses and threats that face a company. Information technology has, therefore, had an impact on management functions such as planning, organizing, staffing and coordinating as well as controlling. Impact of Information Technology on Planning Planning is an essential primary function of management as it provides a basis for other management functions. It refers to the process of collecting relevant information from the past and present in order to be read for the future. Planning involves decision-making and problem solving in an organizational context. Information technology has revolutionized the way in which management plans for the future of an organization (Daft 2013). Information technology helps a business come up with strategies that are more efficient. Unlike in the past where businesses could spend significant amounts of money to plan, information technology means that businesses can now plan with lower costs. The organization is able to reduce the costs of planning by effectively incorporating information technology in the entire process of planning. Moreover, management has to meet from time to time to pan on the strategies that a firm needs to use to attain its goals. Multinational organizations such as Walmart use technology for all aspects of planning and this has led to the success of the organization over the years. Information technology presents managers with effective tools that they can use to plan effectively. According to Mujtaba (2011), twenty-first-century managers can now carry out the role of planning by using a variety of IT systems and tools at their disposal. One of the most common planning systems available to managers is the Material Requirements Planning; this is a computerized model that helps the manager to plan for production schedules. This tool helps organizations determine when additional materials are required and deliver them effectively and this improves the overall functioning of the organization. Moreover, managers from several departments play a critical role in the planning aspect in the organization. Hence, all their input has to be taken into account. Information technology has enhanced the way in which businesses communicate their plans. Managers from various departments in an organization can communicate their ideas through emails or video-conferencing, and this improves the operations of the firm (Mujtaba, 2011). Planning in the contemporary organization has also been improved with the use of computer simulation programs that are available to managers. Managers do not have to waste time on rigorous simulations and revisions to determine how resources have to be allocated effectively to achieve organizational goals because computer simulation programs have made this easy. Impact of Information Technology on Organizing Organization is the creation of the structure of duties and functions so as to identify and divide work and improve the efficiency of the organization. It defines responsibility and gives authority to the management. According to Mujtaba and McFarlene (2005) information, technology has facilitated the way in which firms organize various teams to enhance the completion of tasks. Technology has enabled managers to issue virtual commands to employees with enhanced accuracy due to technology. These impacts of information technology in the management function of organizing are evident today in workspace and plant capacity. Mujtaba and MacFarlane (2005) notes that information technology has enabled the management to utilize the workspace more efficiently by allocating employee tasks through information systems. Moreover, the information available from the systems in terms plant capacity are used by the management to decide on how the ability can be enhanced. According to Jones and George (2003), information technology facilitates the way in which problems within the organization are solved. Manager uses information to analyze the information they have accessed from the systems to be able to organize with greater accuracy. Transactions in the virtual marketplace in the current business context have also made it hard for businesses to organize efficiently. Nevertheless, with the use of information technology, managers are now able to use electronic data and organize virtual teams that enable the firm to work efficiently. According to Mujtaba (2011), the contemporary businesses use teamwork to achieve organizational goals and information technology has enhanced the way in which these teams are formed. Each team can track its performance through information technology and increase its working procedures so as to improve performance. Impact of Information Technology on Staffing One of the most important functions of the management of any business is staffing. According to Weirich, Cannice and koontz (2013) information technology affects the staffing function of management in various ways. The staffing function ensures the availability of human resources to achieve organizational goals (DuBrin, 2011). Information technology has impacted on all aspect of staffing from hiring, selection and performance appraisal. A large number of contemporary organizations now hire their employees through the use of technology. Prospective employees can apply for jobs through company websites and emails. Moreover, professional firms such as PricewaterHouse Coopers and Deloitte also carry out virtual interviews of their employees before face to face interviews are conducted showing one of the ways in which technology has revolutionized staffing (Weirich, Cannice & Koontz, 2013). Moreover, information technology has also impacted on the ways in which organization performs their selection process. Through information technology, an organization can perform background checks with previous employers on the potential candidates that are likely to take up the job. Organizations can also look up for prospective employee profiles on professional networks such as LinkedIn to determine the suitability of an employee for a given job. Performance appraisal refers to the process by which an organization determines the performance of its employees. Information technology has revolutionized the way in which the management evaluates the performance of its employees. Through information technology, an organization is able to collect information about its employees and identify those that need to undergo the training process. Through information technology, the organization the staffing process in contemporary business context has been enhanced. Impact of Information Technology on Directing Directing is the process of guiding, influencing, communicating, supervising, leading and motivating the employees to achieve organizational goals (DuBrin, 2011). According to Mujtaba and McFarlene (2005), the impact of information technology in directing of organizations cannot be underestimated because it has enabled the top management to work better and realize organizational goals. The management uses information technology to communicate ideas to the employees and supervise how the employees work. Information technology systems help the management to empower the workforce by improving their participation in organizational decision-making through information technology (Mujtaba, 2011). In the past, managers were tasked with the role of directly supervising employees but thanks to information technology, this is now a thing of the past. Contemporary managers now use information technology to assess the input of employees. Moreover, managers can form self-managed teams that can evaluate their performance through the systems available in the organization and ensure that they work effectively. Mujtaba (2011) notes that the use of information technology in the directing function of management has reduced the roles and responsibilities of managers, and this means that they can channel their energies towards achieving other organizational goals other than supervising employees. Employee training is also part of the directing function of the management and the use of information technology has enhanced the way in which an organization trains its employees. Mentoring and coaching are one of the most effective ways of ensuring employees are successfully trained. According to Mujtaba (2011) coaching and mentoring can now be done through information technology as the physical presence of the mentor or coach is not required. The mentor or coach can use emails or web chats to guide the employee on what to do or give them feedback on their performance, and this enhances organizational performance. Impact of Information Technology on Controlling According to Koontz (2010), controlling refers to the aspect of measuring and controlling individual performance to ensure that organizational events conform to plans. It is a process through which organizational performance is gauged against goals. Information technology has provided management of organizations with effective tools to establish control systems that are used to monitor the performance of organizations. Through the control systems, the manager can establish whether their strategies are working or they need to be modified. Control systems enable managers to establish when some aspects of organizational strategy are not working and come up with corrective measures (Jones & George, 2003). Moreover, managers can now rely on the modern control systems for timely and reliable information on how to implement strategy. The control systems have also enabled business to control costs and carry out real-time evaluation of the organizational performances. Additionally, quality has also been the other aspect of control that has greatly benefited from information technology. Managers can now use computerized quality control systems to ensure that the quality of products is maintained throughout the production processes. This ensures that the end product that gets to the consumers represents the organization (Mujtaba, 2011). Modern organizations have to also monitor and control their supply chain systems to ensure that they are coordinated effectively. Information technology has ensured that the modern supply chain system is computerized and organization can track the movement of their products from their headquarters. Furthermore, the supply chain control systems ensure that the demand of the products matches what is supplied by the company. Controlling also entails the measurement of the financial performance of business. The increased transparency of financial statements provide by modern companies can be attributed to the increasing use of technology to generate the statements. The top management which is responsible for ensuring better financial performance for a company can use information technology to detect any errors in the statements and correct them. For example, cutting-edge technologies that have been developed by computer companies have enabled businesses to generate financial results and make them available to various stakeholders through the use of emails Conclusion Conclusively, information technology has had a profound impact on management functions such planning, organizing, staffing and coordinating as well as controlling. While the implications for these functions has already been felt for many organizations, it is expected that the increasing use of technology on organizational level will increase the impact. The impact of informatics on the management functions comes in terms of reduction of operational costs and reduction of the time spent in decision making. In terms of planning, the impact has been that technology has enabled organization to make informed decision in terms of their goals and strategies. Organizations can now organize their process better thanks to information technology. The use of technology has also enabled organization to attract as well as retain the best employees due to the ease of doing thing on the organizational level. The implication of this on the top management is that the management has to constantly invest in technology, as this will result in a competitive advantage. In general, information technology is in place to make management and the entire organization function better. References Daft, R. (2013). Management. Boston: South-western. DuBrin, A. (2011). Essentials of management. Australia: South-Western. Jones, G.R., & George, J.M. (2003). Contemporary Management, Third Edition. McGraw-Hill – Irwin, New York. Koontz, H. (2010). Essentials of management. New Delhi: Tata McGraw Hill Education Private Ltd. Mujtaba, B. (2011). Traditional And Virtual Performance Management Functions In The Age Of Information Technology. RBIS, 9(3), 53. http://dx.doi.org/10.19030/rbis.v9i3.4454 Mujtaba, B., and McFarlane, D. A. (2005). Traditional and Virtual Performance Management Functions in the Age of Information Technology. Review of Business Information Systems, May Issue Weihrich, H., Cannice, M., & Koontz, H. (2013). Management: a global, innovative, and entrepreneurial perspective. New Delhi. Read More