Impact of Technology on an Organization

Impact of Technology on an Organization

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In adapting to new technology, universities face many challenges. This is in terms of systems for performance evaluation, compensation systems and decision rights. Problems usually arise when people have to adapt to changes. Information has to be communicated as well as processed. Everyone in the university has to have access to information; otherwise it will not function as it is meant to. Universities are in need of technology, which will facilitate their work processes. They have to ensure that they effectively deal with challenges, such as decision authority. The other challenges include how to have proper incentives as well as team work. Some universities are still using a system, which is traditional and in turn, it has made the mass markets become exhausted. Organization structure is affected if it does not employ the use of information technology (Hitt & Brynjolfsson, 1997).

Most of the employees who work in universities, which are traditional, are not happy with changes related to the existing organization structure and coming up with an organization, which is virtual. There is usually a need in universities to ensure that people are united, in order to increase their productivity. The theory of social action is extremely useful in knowing the impact technology has had on the universities. This is because their failures and successes are easily made known. According to Brynjolfsson and Hitt, organizations are forced to obey authority, which is decentralized. The latter is as a result of the impact of Information technology. Furthermore, they believe that transmission of knowledge becomes cheap as a result of IT. Universities are now ensuring that all their departments are connected, in order to increase efficiency. Rights for making decisions are thus allocated to the entire optimum knowledge chamber, which exists (Hitt & Brynjolfsson, 1997).

Centralization in universities is often measured in terms of rationality, which is human or cost based. This in turn affects the level of centralization at the different universities. It is easy to obtain and measure information, based upon effective decision making. The result is that communication costs are economized as well as optimized. In order to obtain information, there is a central agent. It is vital in matters related to cost saving as well as its benefits. The disadvantage is that those involved in decision making especially the central ones are the ones who lose a lot. Decentralization occurs as a result of efficiency, which is induced. Decentralization is affected by the presence of decision makers who are multiple (Hitt & Brynjolfsson, 1997).

On the other hand, Baroudi and Lucbas believe that there is a link between organizational design and IT design. There are many ways, which tasks can be coordinated, as well as be divided in order to increase productivity. The process of organizational design can also be used because it advocates for management decentralization (Lucas & Baroudi, 1994). This means that all the employees working in the university will be involved in decision making. Span control is an element of a variable used in the design process. At the different universities there will be many people in management and they have to report to their heads. In every organizational chart, every employee’s job titles are made known and can easily be altered. The latter can easily be achieved as compared to strategy, culture and behavior. The frame work of social action advocates for constructs, which are key in any university. The most vital aspects of any organization should be technology, structure, tasks and people. Technology plays an essential role in bringing about changes in the universities structure. This means that there is a direct relation between organization form and IT. Relationships, which exist in firms, are due to communications as well as computers. In modern times, universities are seeking to become hybrid as compared to before when they were centralized. This is because a lot of emphasize has been placed on micromarketing (Lucas & Baroudi, 1994).

Universities are adapting to the use of technology, in order to modify their outlook as well as processes. Technology has reduced the number of employees who are employed. This has had a negative impact on the manner, which the university is perceived. Competitive advantage and cost saving is what is often sort by traditional organizations when they choose to incorporate technology into their structure. The universities operation is improved by re-engineering processes. Shifting to models, which are virtual, is what is being done by universities, which are traditional. This is for the purpose of ensuring that responsiveness is improved. Negative impacts are brought about by being slow and with technology this is not possible. For crisis to known before hand, change should be accepted by everyone (Lucas & Baroudi, 1994).

In conclusion, this case study provides a lot of information concerning the advantages of IT in an organization. Organizations, which are traditional, should adopt an approach that is modern in order to improve their performance and processes. Thus, the research by the different authors is extremely beneficial. Almost every organization in the world is being run by technology and this has in turn, brought about increased competition. Consumers are the ones who are benefiting from the advantages of technology.

References

Hitt, Lorin. & Brynjolfsson, Erik. (1997). Information Technology and Internal Firm Organization: An Exploratory Analysis. Journal of Management Information Systems. 14.2, 81-101.

Lucas, Henry jr. & Baroudi, Jack. (1994). The Role of Information Technology in Organization Design. Journal of Management Information Systems 10, 4, 9-23.