The Impact of Technology on Business - Essay Example

1. The impact technology has on organizational performance depends on the industry in which a business operates. Technology in general has changed the way business is performed in the 21st century. New technological advances such as fast broadband internet access allowed firms to develop information systems that can be accessed by employees from remote locations. Such innovation increases organizational performance because employees are able to gain access to company information and without the need being physically at the company. In industries that are highly dependent on manual labor technology does not impact the operation as much as in technological dependent sectors like the communication industry. Technology can be used to increase the performance in both the manufacturing and service sector. Societies such as Hungary and Ireland have been able to achieve higher educational performance in math and science among its students due to their ability to integrate technology into the educational system (How are we doing in science and math, 2009). In the corporate world technology can be utilized by managers to improve their decision making by providing them with timely information. Technology has improved organizational performance by allowing production managers to implement methods that minimize waste while increasing productivity. How are we doing in science and math? (2009). American School Board Journal, 196(10). Retrieved September 16, 2009 from EBSCOhost database. 2. The consultant’s job is to find alternative solutions to the problems the clients are facing. The integration of technology can assist the consultant achieve his job. If the utility of technology is part of the solution its implementation should have attributes such user friendliness, compatibility, and ease of use. The utility the technology provides should enhance the company without imposing any constraints that limit productivity. A consultant must analyze the cost viability of integrating any new technology. If the cost of a technology is higher than the benefits its implementation provides the technology should not be integrated (Horngren & Foster & Datar, 2000). A characteristic of a successful technology integration project is one in which the consultant consider the implications the technology has on the employees of the company. For example if the new technology creates a new process that increases the work effort on the employees, the added labor costs could make the implementation of the technology an unviable alternative. The employees must accept the technology as a good thing for the company. If the employees do not like the technology the company could face resistance to change issues. Horngren, C., Foster, G., Datar, S. (2000). Cost Accounting : A Managerial Emphasis (10th ed.). New Jersey: Prentice Hall. 3. Technology integration is needed in order to improve the productive capacity of an enterprise. The managers are the ones responsible for integrating technology into the workplace. There are different managerial techniques that can provide help in the process. Change management is a method that can help managers deal with the employees during the transitional period after the implementation of a technology. Change management is a set of processes employed to ensure that significant changes are implemented in a control and systematic manner (Tech-faq, 2009). When new a technology is integrated change management can be used to keep the employees informed about the benefits the new technology brings. An aggressive educational campaign can help the company achieve employee acceptance faster. Constructivism is another method that can help managers deal with technology integration. The principles of constructivism could be used by the manager to determine the connection between actual employee behavior and the consequences of changing the work environment with a new technology. Empowerment is another managerial technique that can be used for technology integration. Empowering employees can help accomplish technology integration because it motivates the employee due to the fact the company is giving them the liberty to make their own decisions. Technology integration increases the availability of information (Understanding Technology Integration: You’ve heard of it, but what does it really mean, 2009). Communication is another powerful technique to implement technology integration. A manager must keep the employees informed about organizational changes and its impact on the workforce. Understanding Technology Integration: You’ve heard of it, but what does it really mean? Journal of Financial Planning. Retrieved September 16, 2009 from EBSCOhost database. Tech-faq.com (2009). What is Change Management? Retrieved September 16, 2009 from http://www.tech-faq.com/change-management.shtml 4. Outsourcing has become a business trend that is here to stay. Many companies utilized outsourcing in order to reduce their operating costs. It is cheaper to hire contract workers than to hire full time company employees because the company has no obligation to pay fringe benefits to contract workers. Hiring employees by contract also provides greater payroll flexibility. Corporate downsizing and hiring trends have shifted and companies do not feel obligated anymore to offer permanent employment positions (Cole, 1995). Many companies are looking only at the short term financial gains of contracting and are forgetting about the deficiencies and negative aspect to such work arrangements. Contract employees do not feel any loyalty towards their employer. A contract employee does not enjoy any added benefits if they how initiative or give the effort. Since the presence of rewards is not existent for contract employees they do not have any motivation to perform beyond the minimum required effort to perform satisfactory work. At times contract employees may work in an inefficient manner in order to extend the work and push back the contract completion date. Contract employees are not able to reap the benefits of being part of a corporate culture. The human resource department cannot invest in training and development to increase the skills and abilities of contract workers because these workers represent a short term solution for the company. Companies that utilize permanent employees typically have a higher talent pool than corporations that select contract employees as continuous supply of labor solution. The employee retention rate of companies that use contracting is lower. Human capital represents the most valuable asset of a firm. The utilization of contract employee hinders the ability of corporation to increase the value of its human capital. Cole, P. (1995). Contracting vs Permenant Employment. Retrieved September 16, 2009 from http://www.pamcole.com/DOCS/contract.html Read More