Question # 3

Discuss the role of Information Technology with reference

to organizational behavior in organizations.

Answer:

In this world of information, managing

information and knowledge in an organization is very important.

An organization that is good in ‘information and knowledge

management’ is bound to be successful in this digital age. It is

better to adapt to the technology that aids in ‘information and

knowledge management’ so that your business is not behind your

competitor. With the advent of information technology in every

part of the business, you can find tools that help you to manage

information and knowledge in your business with ease.

Information technology is useful in ensuring the

smooth functioning of all the departments in a company such as

the human resource department, finance department,

manufacturing department and also in security related purposes.

With the help of information technology, the organization are able

to get rid of any sort of errors or mistakes in the proper

functioning of the tools used for designing and manufacturing

purposes. Due to the development of the information technology

sector, the companies are being able to keep themselves aware

of the changes in the global markets.

THE EFFECT OF TECHNOLOGY ON THE ORGANIZATIONAL

BEHAVIOR

Information Capture:

First of all the instruments of this technology

capture information Passive or actively. The term capture implies

gathering, collecting, monitoring, detecting and measuring.

Information Storage:

The technology converts numerical and textual

information into binary, digital form and retain it in some form of

permanent computer memory from which the information can be

retrieved when required.

Information Manipulation:

IT can rearrange and perform calculations on

stored information. In this context, manipulation means

organizing and analyzing especially where repetitive calculations

are necessary.

Information Distribution:

Modern IT can transmit and display information

electronically on screens. Technological change and advances

may have two possible effects on an organization: firstly, the skill

and the knowledge requirements of employees may change as a

new devices and program are introduced. Secondly, to the extent

that information technologies replace people then some people

loses their jobs. One thing is obvious to anyone is that the impact

at the level of the organization may not reflect the overall, or

“aggregate” impact of technical change in the economy as a

whole.

Importance of information technology

Organization Culture

Newer types of IT such as electronic mail and

groupware are creating significant changes in the way that

information flows around group ware, and between them and

their customers and suppliers. It can hasten the development of

more open and innovative cultures. However, as experts like

Davenport warns, and surveys from companies like Reuters

confirm, the notion that "information is power" still reigns large in

many or groupware so, our experience shows that many new

systems fail to become accepted by their users, because the

systems developers have not been culturally sensitive to the

department or group ware, in which the new systems are to be

used.

Organization Structures

For many years it has been argued that IT will

enable larger spans of control and the flattening of Group ware.

This has at last happened, but due as much to initiatives like BPR

(business process reengineering) and the drive to cut costs.

Research on whether IT encourages centralization

decentralizations produced ambivalent results.

Management Processes

IT is rapidly entering the era where it supports

unstructured management processes as well as highly organized

business processes It provides more effective ways of accessing

information from multiple sources, including use of external

information on databases and the Internet. However, group

decision support systems that operate in a meeting room

environment can help enhance decision making, but it does need

someone who is an expert facilitator to help the group master the

technique of structured discussion.

Work

IT is dramatically changing the nature of

professional work. There are few offices where professional do not

make use of personal computers, and in many jobs involving

extensive information and knowledge based work, the use of the

computer is often a core activity. Becoming effective not only

requires traditional skills of organizing, thinking, writing etc., but

knowing how best to use the power of IT for researching sources,

accessing information, connecting to experts, communicating

ideas and results,

The Workplace

The way in which IT diminishes the effect of

distance means that it creates a variety of options for

reorganizing the workplace. At a basic level, it can provide more

flexibility in the office, allowing desk sharing and a degree of

location independence within a building (this will develop as CTI

(Computer Telephony Integration) and wireless PCs become more

firmly established. At another level it permits the dispersion of

work teams, thus saving costs of relocation and travel.

These IT impacts have implications for managers of all

organizational functions, and not just MIS managers. Among the

most important are:

Understanding the Changing Context of IT - as well as

the direct impact on their business managers need to be

able to see these developments in the context of the wider

environment in which their business operates.

Keeping abreast of Developments - not about the details

of the technologies, but about the business impacts; for

example by meeting suppliers business consultant's,

attending conferences,

Integrating IT and Business Planning - the IT strategy

should support the business strategy and vice versa. This

may need new planning processes, hybrid teams, and a

increased incorporation of the levers into business plans.

Addressing Culture Issues - the dimensions of existing

and desired culture need to be understood and how

proposed systems will affect them. In particular attention

needs to be paid to the organization's information culture

Experimenting with new Structures - using IT to remove

some of the limitations of hierarchy and to encourage the

development of innovative teams, using experts located in

different functions and places. Managing dispersed teams is

challenging but rewarding.

Ensuring that new systems are customized change

proof - our studies have shown many new systems to be

developed around existing customized structures and

responsibilities. Since these change very rapidly, new

systems should be built with organization customized

flexibility and change in mind.

Developing New Skills - more of tomorrow's managers will

need to become hybrid managers, combining the knowledge

and skills of general management, their own discipline and

IT.

Using IT as a management tool - initiating personal use

of IT into every day work. This should include use of decision

support tools, groupware, and knowledge management

solution.

Exploiting Information as a Strategic Asset - using the

techniques of information resources management to develop

it as a valuable resource for internal use, for adding value to

customer activities or services, or for creating saleable

products.

Reorganizing the Workplace - by introducing flexible

working and timework. The business benefits of this in terms

of productivity and cost savings are such that there are

many personal benefits to be achieved by a successful

implementation.

The overall effects of the technology may depend on the

operation of a number of Instruments:

1. New Products and Services: technological innovation

generates new products and Services like personal computers, lap

tops, commercial databases, these new Innovations change the

pattern of consumer demands for goods and services. This guides

organizations to invest in these new technologies which in turn

lead to new employment opportunities and new skills

requirements.

2. Lower Costs Increase Demand: Higher productivity

indicates producing the same output with the same or fewer

resources. Thanks to these lower costs consumers found reduced

or stable

Prices which then may lead increased demands although it is hard

to guess how they will change.

3. Time Lags: It is always hard to adopt a new technology into

existing systems and Organizations. Sometimes there are

technical problems sometimes social and sometimes economical

to overcome.

4. Risks: Most organizations adopt new technologies slowly to

reduce or avoid the risks.

5. Expectation of Demand: Expensive investments in new

technologies are mainly due to the expectation of higher

demands. Thus an organization may need to employ more people

to handle the increase in business or new people who have the

skills that require using these new Technologies.

6. Technical Limitations: New technologies do not always live

up to the claims of the salesman. So, for some time existing jobs,

skills and machinery may be required to work alongside the new

devices

EXAMPLE: - AUTOMATION AND ROBOTICS

The use of robots, which are becoming ever more

versatile and reliable. Also, robot prices are falling as the cost of

human labor rises.

Information technology (IT) is dramatically changing the business

landscape. Although organization cultures and business strategies

shape the use of IT in organizations, more often the influence is

stronger the other way round. IT significantly affects strategic

options and creates opportunities and issues that managers need

to address in many aspects of their business. This page outlines

some of the key impacts of technology and the implications for

management on:

Business strategy - collapsing time and distance, enabling

electronic commerce

Organization Culture - encouraging the free flow of

information

Organization Structures - making networking and virtual

corporations a reality

Management Processes - providing support for complex

decision making processes

Work - dramatically changing the nature of professional,

and now managerial work

The workplace - allowing work from home and on the

move, as in timeworks

Need of IT in organizational behavior in organizations.

Four forces are responsible for the increasing importance of

information technology

1.Intense competition

2.Global business operation

3.Organization changes

4.Information technology revolution

It improves product or service quality by providing quality

assurance. There is less error per unit of activity. Perhaps

the best example of this is the scanner technology.

Information technology can provide value-added services

which create differentiation. For example federal express

has extensively used information technologies not only to

enhance its reliability of overnight delivery of packages

are in transit.

Intense competition. Intense competition is forcing the

organization to become more efficient and effective. One way to

increase efficiency and effectiveness is the use of information

technology. We can gain competitive advantage with the use of

information technologies. It reduces the operating costs through

office or factory automation. For example telephone companies

have computerized billing, account management, and operator

services with the use of information technologies that result in

significant cost savings

Information technology can be used for competitive

intelligence. The SABRE system developed by American airlines

provides the airline enormous competitive intelligence. Every

airline has to deposit its schedule and fares, which allows

American airlines to adjust its schedules and fares to compete

more effectively.

Globalization of business operations: As the industry

becomes more global in its procurement, manufacturing and

marketing operations, it requires greater use of information

technology to reduce time and space barriers.

Organizational changes: With constant reorganization as well

as increased mergers and acquisitions, top management

recognizes the need for flexibility through compatible information

technologies. Technology revolution. The performance-price ratio

of a new generation of information technologies is making them

more affordable and useful to the organization.

So the conclusion is that Technology provides

the resources with which people work and affects the tasks that

they perform. They cannot accomplish much with their bare

hands, so technology used has significant influences on working

relationship, information system enables companies to react,

respond, cater, store, retrieve, disseminate, and control their new

valuable asset that is information. In the years to come, a good

information system within a company will be no longer an option;

it will become a compulsory in determining success. It is difficult

to think of a situation where businesses can do without

technology and computers today.