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Chapter 16

Impacts of IT on Organizations, Individuals

& Society

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Learning Objectives

Understand the major impacts of information technology on organizations, individuals, and society.

Consider the potential dehumanization of people by computers and other potential negative impacts of information technology.

Identify the major impacts of information technology on organizational structure, power, jobs, supervision, and decision making.

Identify some of the major societal impacts of the Web.

Understand the role and impact of virtual communities.

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Case: Wearable Computers

For years, many mobile employees were unable to enjoy the new technologies designed to make employees work or feel better.

The use of wireless devices that can communicate with each other and with remote IS is increasing very rapidly (m-commerce).

Such systems could easily include GPS (global positioning systems).

So far only a few companies make and sell wearables for mobile workers, but this is expected to change in the future.

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Does IT have only Positive Effects?

While our society generally embraces IT, there are many people who believe that humankind is threatened by the evolution of technology.

We must be aware of IT’s effect on us as individuals and as members of organizations and society.Questions arise, such as;

Will society have any control over the decisions to deploy technology? Where will technology critics be able to make their voices heard? Who will investigate the costs and risks of technologies, and who is going

to pay for that investigation?

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Structure, Authority & Job Content

Flatter Organizational Hierarchies An increased span of control.

Blue-to-white Collar Staff Ratio

The number of professionals and specialists could decline.

Special Units

Technology center, e-commerce center, etc.

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Structure, Authority & Job Content (cont.)

Centralization of AuthorityGreater empowerment and decentralization.

Power and StatusOnline knowledge bases may reduce the power of certain

professional groups.

Job Content If job content changes, people may need training, re-skilling.

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Personnel Issues

Employee Career Ladders

The use of IT may short-cut a portion of the learning curve.

Changes in Supervision

Electronic supervision.

Other Considerations

Job qualifications, training, worker satisfaction.

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The Manager’s Job

IT changes the way Managers make decisions in the following ways;

Automation of routine decisions (e.g,. frontline employee). Less expertise required for many decisions. Less reliance on experts to provide support to top executives. Empowerment of lower and medium levels of management. Decision making undertaken by non-managerial employees. Power redistribution among managers, and power shifts down

the organization.

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Organizational Changes

A large number and variety of people participating in decision making.

A decrease in the number and variety of people participating in traditional face-to-face communication.

Fewer organizational levels involved in authorizing actions.

More rapid and accurate identification of problems and opportunities, so better decisions are made.

Organizational intelligence that is more accurate, comprehensive, timely, and available.

Shorter time required to authorize actions and make decisions.

The use of computer-assisted communication technologies leads to the following organizational changes (Huber,1990);

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Impacts of Individuals at Work

Job Satisfaction Dissatisfied Managers

Dehumanization & Psychological Impacts Isolation and the Internet

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Impacts of Individuals at Work

Information Anxiety Frustration with the quality of the information available

on the Web. Too many sources online. Frustration with the guilt associated with not being better

informed.

Impacts on Health & Safety Job Stress Repetitive Strain Injuries Ergonomics

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IS & the Individual

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Social Impacts

Opportunities for People with Disabilities

Quality of Life Improvements

Potential positive uses of Robots

• E.g., Case: Laying Fiber Optic Cables.

• E.g., Case: Cleaning Train Stations in Japan

Improvements in Health Care

Crime Fighting and Other Benefits

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Technology & Crime

One of the major debates surrounding IT involves situations in which police are using technology to reduce crime.

Scanning Crowds for Criminals.

Casinos use face recognition systems to identify ”undesirables”.

The U.K. police have, since 1998, been using a similar system in East London borough with 300 cameras.

Many banks, gas stations, convenience stores, and even elevators use the system.

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Cultural Lag

Ogburn’s Cultural Lag Thesis: An inherent conflict exists between the rapid speed of modern

technological advances and the slower speed at which ethical guidelines for utilization of new technologies are developed.

A failure to develop broad social consensus on appropriate applications of modern technology may lead to; breakdowns in social solidarity the rise of social conflict.

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IT & Society

Hearst (1999) presents three different views on how IT and society are changing one another:

View #1: Becoming socialized means learning what kinds of behavior are appropriate in a given social situation.

View #2: Newly internetworked IT allows people acting in their own self- interest to indirectly affect the experiences of other people.

View #3 There is a move away from a hierarchical society into a society in which boundaries are more permeable.

“glocalization”- simultaneously being intensely global & intensely local

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Virtual Society

The term virtual society

refers to all components that

are part of a society’s culture

based on the functional

rather than the physical

structure.

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IT & Employment Levels

A major attribute associated with automation is the replacement of people by machines.

There is no doubt that many people have been displaced by automation, but many more have gained employment due to automation.

Computers encourage competition, which leads to a decline in prices. Lower prices mean higher demand, which, in turn, creates more jobs. The computer industry itself has created millions of new jobs.

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Is Mass Unemployment Coming?

Massive Unemployment Will Come No Massive Unemployment

Benefit/ cost advantage of computers increases with time.

New occupations and jobs have always been created by automation.

Less skilful employees are needed. There is much less unemployment in countries that use more automation.

Shifting displaced employees to services is getting difficult.

Work can be expanded to accommodate everyone.

Many employees lost their jobs in the 1990s. Conversion to automation is slow, and the economy can adjust.

Hidden unemployment exists in many organizations.

Many tasks cannot be fully automated.

E-commerce will cause millions of intermediaries/ agents to lose their jobs.

There will always be some areas where people are better than machines.

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Digital Divide

Digital Divide – the gap between those that have information technology and those that do not. Within countries and among countries.

In 2001, only 5 % of the world’s population used the Web, and the vast majority of this 5 % was located in the developed world.

Yet the Web has the potential to turn poor countries such as India into economic powerhouses & dissolve rigid social barriers.

Cyber cafes - One instrument for closing the digital divide.

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Globalization & Free Speech

International Implications Many countries, willingly or

unwillingly, knowingly or

unknowingly, are being

westernized as a result of

information about western

ways of life and values flowing

freely across borders.

Challenge to Free Speech The problem of Internet

pornography is very serious

Some countries take an

entirely different line with

respect to freedom of speech

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Social Responsibility

Social Responsibility. Organizations need to be motivated to utilize IT to improve the

quality of life in the workplace.

Social Services and Privacy. Conflicting public pressures may rise to suppress the use of IT

because of concerns about privacy and “Big Brother” government. • E.g. Hong Kong ID Cards

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Virtual Community

A virtual community is one in which the interaction is done by using the Internet.

Also known as an Internet community or an electronic community.

An Internet community may have millions of members and as a result could have significant effects on e-markets.

• GeoCities (geocities.com) has grown to many million members in less than two years.

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Elements of the Virtual Society

Category Element

Communication Bulletin boards, Chat rooms\threaded discussions (string Q&A), E-mail and instant messaging, Private mailboxes, Newsletters, Web postings, Voting

Information Directories and yellow pages, Search engine, Member-generated content, Links to information sources, Expert advice

E-Commerce Element

E-catalogs, e-shopping carts, Advertisements, Auctions of all types, Classified ads, Bartering online, Classified advertisement mail and instant messaging

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Types of Virtual Communities

Communities of Transactions - facilitate buying and selling.

Communities of Interest or Purpose - people have the chance to interact with each other on a specific topic. Rugby365.com gets rugby fans, and music lovers go to mp3.com.

Communities of Relations or Practice - are organized around certain life experiences, situation, or vacations.

Communities of Fantasy - participants create imaginary environments.

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Business Aspects of E-communities

Value creation arises in virtual communities because the community brings together consumers of specific demographics and interests.

This presents opportunities for transacting business, and for communicating messages about products and services.

E-communities can attract advertising revenues from advertisers eager to communicate their messages to a specific target audience.

Opportunities also arise for collecting valuable marketing information. demographics and psychographics of members

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Value Creation in Virtual Communities

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The IRM Model

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Lessons Learned

The major concern of most organizations today is how to transform themselves to a “new organization” adaptable to the new economy.

The key to survival is the ability to properly and quickly adapt to changes in the environment.

Change in the business environment is demonstrated not only in the increased competition and globalization, but also in industry structures, distribution channels, production systems, and more.

IT can also save organizations, helping them to adjust and survive.

IT is the major driver of the new economy.

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“Digital –Economy Ready”Actions organizations can take to become “digital-economy ready”;

Build strategic information systems and use innovations such as electronic auctions and exchanges.

Create effective and efficient communication and collaboration networks.

Examine possible new models and initiatives of e-commerce Examine supply chains.

Make a continuous effort to increase productivity, quality, security, and effectiveness in every facet of the organization’s operations.

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“Digital –Economy Ready” (cont.)

In moving to a “digital-economy-ready status,” carefully plan IT systems in coordination with the business plans they intend to support.

Increase recognition of knowledge, its creation, preservation, storage, and dissemination.

Support managerial decisions with IT and especially the Web. Have the ability to process a large amount of data.

Facilitate innovation and creativity in digital economy applications by using intelligent systems.

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“Digital –Economy Ready” (cont.)

Carefully address the economies of IT in general and e-commerce in particular, including outsourcing, when moving to the new economy.

Properly build and deploy information systems that will provide for internal efficiency and connect to the many business partners.

Manage the increasing information resources in both business units and a centralized IS department.

Address organizational, personal, and socioeconomic issues associated with the increase use of IT.

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Managerial Issues

Supporting the disabled.

Culture is important.

The impact of the Web.

Making money from electronic communities.

Information anxiety may create problems.

IT can cause layoffs.