The Ways to Change Information Technology - Essay Example

INFORMATION TECHNOLOGY 2006 Throughout conferences and seminars the corporate managers and public administrators can be heard remarking, frequently in a jokingly way, that the computer is just too complicated. Managers served the apprenticeship in computer less, or early mainframe driven organizations. Lack of enthusiasm and resistance of information technology in the corporate world persists. Such opposing views display a gap between the organizational structure that existed prior to information technology and the present shrive in employing information at the workplace. There is tremendous reason to expect that the development of information technology will considerably affect the trade-offs intrinsic in various structures for organizing work, the theoretical basis for these changes remains badly understood. According to the website som.csudh.edu, in the age of information, technology is in the forefront in the way we work and communicate. Many companies must now conform to the needs of many to satisfy the few. No longer is money the only criteria for companies to survive. Challenges such as global competition, technological innovation and customer service persist more so today than any other era. In order for the companies to exist in the industry and preserve what they can, they have taken a bold step in reorienting themselves. One way of doing this is through the use of Information Technology (IT) which can be defined as "computer and telecommunications hardware and software that aid in the processing, collection, and transmission of text, voice, and pictorial information" (Lahti, 1994, p. 1). With this technology, I as an employee can do my work virtually anywhere and at anytime that IT allows. The fundamentals of technology allow me to explore many ways of providing accurate and accessible information. The organization must form an infrastructure that will be incorporated into the corporations for its survival. Technology has played a most important role in shaping an organizational structure and processes, and is one of the main catalysts for organizational change. Technological innovation in the factory and office has accelerated lately and foreign competitors have been adopting these innovations promptly and effectively. Unless, companies do the same, they will be at huge disadvantage. Many of the barriers to effective use of new technology are managerial and organizational, rather than technological. For instance in my work we are still semi-computerized, we are still using manual operation in some instances, because of that our report used in meetings or for decision making is not updated. This means that organizational structure is directly associated to the usefulness of technology. The terms, organizational structure and information technology, are subject to various interpretations. Management teams in the 1980's keenly anticipated that new technology would answer the organization problems. Information technology, a term broadly used, is seldom defined. Information refers to the use of two or more elements of data. Information is subject to broad interpretation. In most organizations, on the other hand, data and information are used interchangeability. Organization refers to a group of people working together towards a common goal or objective. Structure is the summary of the ways in which a firm's labor is directed and coordinated into tasks. This definition of organization leads to the supposition that there exists a division of labor. The classical organizational model, the Elite model, was constructed over 50 years ago. Some organizations still follow this model that stresses stability, centralization, division of labor, and command and control. Technology has also influenced the organizational structure. Organizations of the past had cultures that reflect the values of bigness, hierarchy, and rigidity, have little craving to upgrade their technological equipment. Because of these unyielding and inflexible hierarchical structures, U.S. businesses lost much of the competitiveness in the global economy. When communication and information is being exchanged at phenomenal rates, the formal top-down bureaucratic structure can obstruct the flow of communication, resulting in loss of business. throughout electronic commerce, globalize turned into a reality in the 1970s and forced U.S. firms to compete against worthy competitors. Technology has made it easier for individuals at the top of the pyramidal shaped organizations to obtain and process information at a fast pace. Organizations of the future must persuade support, employee participation, empowerment approaches, and teamwork. Open systems reflect these characteristics for the reason that they are flexible, responsive, and customer-service driven. Since telecommunications span time and space, layers of middle managers are becoming expendable and should eliminated. Restructuring get rid of inefficient layers of management. Emphasis on empowering self-managing work teams to schedule and coordinate their own tasks, access to information and technology, drives innovation and creativity which intensifies competitiveness. According from the website www.bus.umich.edu, if you are going to work in business and try to have an impact on how the company does business, how well it coordinates with other companies, how efficiently it conducts its business, how well it manages the knowledge of its employees, then you must understand technology. As the new millennium approaches, the impact of technology on society is a subject of heated debate. The use of technology has grown exponentially this past generation. Information technology has allowed live operating information to be distributed throughout the organization on a continuous basis. For instance, in the company of a friend of mine when they are going in for work Bundy clock is considered an obsolete way for time-in. they are using ID to be scanned and their time of in for work will automatically logged in to the Human Resources Department. Information technology has the potential to significantly affect the structure of organizations. However, the nature of these changes is still being debated. While the heuristics and intuition that managers have applied for years provide some guidance, the changes enabled by information technology are potentially so radical that past experience may not prove a trustworthy guide. Meanwhile, researchers using field studies examining the link between investments in information technology and changes in organizational structure have come to diverse and often contradictory conclusions (Crowston & Malone. 1988). Econometric work has been able to generalize some of the findings of the case studies, but can only claim to have found correlations, not causal links (Brynjolfsson, Malone, Gurbaxani, et al., 1991). Managers and researchers each suffer from the lack of robust theoretical models that provide sharp, testable predictions. During the late 1980's key words were used to describe the new wave of management. Empowerment, employee participation, and self managing-teams are concepts that proclaim a new era in management. Information technology has introduced a new level of complexity within the organization. This complexity brings benefits to the organization and its structure. IT has enabled several organizations to increase revenues and profits as a consequence of utilizing the technology. Technological creativity is an essential ingredient in modern structured organizations because it requires management systems that support innovation. Because modern theorists' emphasizes human relations, creativity, and participative decision-making, they would be more likely to welcome advanced information technologies into their organizations. Information technology has significantly impacted many areas of our lives. In fact, I am consistently being challenged with increasing demands to upgrade my intellectual capacities so that I can remain competitive in society. My career, family, educational institutions, governments, commercial businesses, and entire lifestyles have been extensively impacted. For instance, I am no longer required to leave my house to search for employment or career opportunities; me and my family are telecommunicating through mediums, such as, cellular phones, and e-mail more efficiently; fulfillment of educational credentials are accessible through personal computers from my private residence; our government has increased its ability to facilitate the public through electronic mediums, such as, faxes, e-mail, and PCs; and economic development is increasing at an alarming rate as a result of electronic commerce. In addition, organizational structure has been considerably influenced through information technology. Technology facilitates the acquisition, processing, and dissemination of information at a rapid pace. Those who are unable or unprepared to meet the challenges that advanced technology has created, will be left behind. As explained in the website www.bus.umich.edu the effect of IT on work is astounding. They seem to be more responsible in the wake of this new technology because it is not routine work anymore. The decision-making process of the managers has to be made a lot quicker than usual because of IT. For instance if there is a meeting to be held the necessary reports can be easily made and become available through the use of computer and printer. If multiple copies are needed it can be reprinted again easily. This allows them to be an asset to the organization. And information with regards to a certain topic can be accessed easily using technology. The overall process discussed gives the corporations the opportunity to access available information to build themselves up for the 21st Century. The possible interactions between information technology and organizational information processing are complex and multifarious: Information technology may be used to reinforce and shape the decision premises of an organization; Information technology may change the perception of information sources; Information technology may be used to augment the information processing capacity of organizations; and Information technology may alter the organizational structures used to coordinate economic activity (Choo, 1991). Organizations that exist in specific industries such as banking, and insurance companies are more likely to adapt quickly to the use of information technology. Due to the information-intensive nature of theses industries, the organizations are the most likely to be impacted by information technology. The banking industry experts have noted that a decrease in information technology budgets may lead to a pyramidal increase in bank operations cost (Walfarth 1995). Typical organizations that are in the banking industry have relatively flat organizational structures. The impact information technology has had on the banking industry was a call for changing the corporation's focus from a focus on organization to a focus on process. Traditional banking organizational structures had tiers that designated it as a hierarchical organization. The bank that has a process orientation has a horizontal view of itself (Walfarth 1995). The emphasis is on process. There has been a both positive and negative influence of advanced technology on organizational structure. It is essential that we fully comprehend the formation and structures of organizations so that we can fully ascertain the technological impact. Technology has become a vital part of organizations, in that it has changed the dynamics of power within the organization. Money, prestige and position have taken a back seat to knowledge, information and power. The advanced technology of today has afforded the average individual access to knowledge and information at a moments notice. But sometimes it could be very costly for some businesses to adopt the use of Information Technology for the reason that it could only be attained through modern computers, robots, telecommunication, and other Information Age related technologies that can be bought for a high price.And for another reason that employees should under go trainings for every new technology introduced to the company, this could be helpful for the company operation but not for its budget most especially to small businesses. The employees can exploit IT if they are properly trained and understand the use of it. The difficulty with introducing IT is not with the technology itself, but with the organization baggage that comes with it.There are two disparate views on the impact information technology will have on organizations. Some people worried that managers might become Big Brothers that use information to exert control over her subordinates. This view was rapidly replaced by the view that persists today: if power is decentralized workers might use their newfound powers to serve their own interests. This, some argue, leads to organizational chaos. Many argue that these two views have not entirely materialized (Bradley et al. 1993). Many business owners regard information technology as yet another of many demands on their over head budget--a mountain of cost without any tangible return--and in many ways like disposable equipment (Green and Cooper. 2002). In reality, IT is an integral part of business operations that requires planning, intelligent execution and maintenance (Green and Cooper. 2002). The control of information forms the basis of managerial authority. Business organizations are under great pressure to change their decision-making structures as a direct consequence of information technology implementation. The consequences of information technology are usually identified as knowledge that lies outside it's a formal control structure. Employees are able to access this information at will. The power base that belonged to those in upper management is now shifted to information systems specialists. These individuals are the technicians who control the organizational data. With the increased used of such technologies as the Internet and the proliferation of software programs, the information can be used by every employee who has network access. Access then, will be the controlling agent for information. Some industries have found that they need to require access to all employees, including facilities staff. This has enabled even the custodial worker to have access to electronic mail and media. The major decrease of control of information has made every employee a quasi-participant in the organizational decision-making. Formal control still remains to be a managerial function. Activities such as budgeting, and allocating, continue to be trademarks of administrators. Many managers are finding that information technology is shifting power form line mangers to those who control the technology, such as technicians. Information technology will only become more widely used in the coming years. Most organizations have adopted some type of information system for their organization. While some organizations may have advanced systems and technologies, such as investment firms and the apparel industry, others industries such as education, lag behind. The organizational form is already common in many leading organizations such as Southwest Airlines. This organizational form permits readjustment continually to reflect a changing environment. This organizational structure allows for lateral as opposed to vertical communication. The decision-making process is handled by independent knowledge workers who utilize the IT to their advantage. While the last changes were driven by production, the changes under way today are in coordination. The degree of supervision, a tenet of the Elite model, is what has impacted the organizational structure. Whenever people work together thy most communicate, make decisions and allocate resource. When the information is readily available to virtually every employee, the decision-making becomes a communal activity. The organizational structure will be impacted because information technology reduces the cost of coordination while increasing its speed and quality. Since information is a resource in virtually any organization any employee who has access to it has power. In some cases the organizational structure not only changes in shape and size, but in boudoirs as well. Information technology has led to a new multi-organizational structure. The multi-organizational structure is exemplified by the apparel industry. In this case the structure of three organizations is affected. The consumer is linked to the retailer. The retailer is linked to the clothing manufacturer, who in turn, is linked to the weaving mills. The weaving mill company is linked to the cotton and wool producers. This linkage enables front line managers to request and receive the product that is in demand. Advanced technology does not produce wisdom; it does not change human nature; it does not make my problems go away. But, it does and will speed me on my journey toward more human freedom, freedom to gain the information that I need for survival. The more I know, the better prepared I am for change. In order to provide the best possible strategy for the introduction of Information Technology, organizations must communicate with the employees. After calming the staffers' fear of technology, remember that organizational motivation is the key for employees to accept IT. REFERENCES Bradley, SP, J. Hausman & R.L. Nolan. (1993). Globalization, Technology and Competition: The Fusion of Computers and Telecommunications in the 1990's. Boston: Harvard Business School Press. Brynjolfsson, E., T. Malone, V. Gurbaxani, and A. Kambil. (1991). Does Information Technology Lead to Smaller Firms. MIT Sloan School of Management - Center for Coordination Science Technical Report #123. Business Information Technology - Stephen M. Ross School of Business ... work in business and try to have an impact on how your company does business-how ... School of Business's curriculum in Business Information Technology emphasizes ...http://www.bus.umich.edu/Academics/Departments/Cis/ Choo, Chun Wei. (1991). Towards an Information Model of Organizations. http://choo.fis.utoronto.ca/FIS/respub/CJIS.html Crowston, K. and T.W. Malone. (1988). Information Technology and Work Organization. In Handbook of Human-Computer Interaction, North Holland. Green, Robert P. and Scott Cooper. (2002). Strategies for creating an intelligent IT plan - Information Technology. California CPA. http://www.findarticles.com/p/articles/mi_m0ICC/is_4_71/ai_93306060 Lahti, R. (1994). The Impact of Information Technology on the Quality of Life, California State University, Long Beach. Malone, T.W. and S. Smith, (1988). Modeling the Performance of Organizational Structures. Operations Research, 36, May-June, 421-436. The Effective Information Technology Strategy. The effect of technology on the organization structure changes as well. ... the organization through the introduction of Information Technology may ...http://som.csudh.edu/dkarber/cponce/What%20Am%20I%20Doing.htm Walfarth, John H. (1995). Focusing on Processes Improvement. Bankers Magazine 178 (January/February): 50-52 Read More