Importance of Technology to Organizations - Research Paper Example

? Technology and Organizations This paper appreciates technology from three perspectives used in defining the terminology: human processes, physical system and knowledge. It seeks to evaluate the importance of technology in organizations, its negative effects and the challenges associated with technology adoption. To accomplish these objectives, the paper borrows from various scholarly sources, using examples appropriately to enhance understanding. Introduction The constantly changing technological world has seen organizations take advantage of technological advancement to improve their processes and operations. The influence of technology extends beyond influencing the organization to enhancing the services given to its customers. Of particular importance to organizations has been information and communication technology, commonly interchanged with the terminology technology, which could be attributed to the rapid increase in adoption of information technology in organizations (Zammuto et al., 2007). This paper adopts the definition of technology by Prasad (2009) which encompasses three elements: human processes, physical system and knowledge. Technology occurs through the interaction of human and organization processes and the physical hardware. Knowledge allows the creation of the physical product. Therefore, technology refers to the product resulting from a body of knowledge aimed at achieving a design for a physical system and the human processes interacting with the product, allowing it to meet the intended function. Importance of Technology to Organizations Technology plays a critical role in shaping the function and form of an organization. According to Zammuto et al. (2007), technology, and in particular information technology, propagates automation of organizational operations and increases communication speed. Automation of organizational functions has made it possible to collect and store tasks and replace people and papers with electrons, without necessarily changing the outcome of the tasks. Digital filing saves on paper and printing costs. The use of computer systems allows for instantaneous corrections and also, together with the capabilities provided by information technology, make information available when need be. Therefore, it could be said that technology enhances the efficiency of organizations. Secondly, technology in organizations eliminates time and space by promoting mobility (Prasad, 2009). For instance, video conferencing technology allows people in different localities to interact with each other. This creation of virtual meetings reduces travel costs and distributes data without necessarily being in the same room. Therefore, technology propagates the establishment of a global presence at minimal cost. Another importance that comes with technology focuses on human capital. According to Prasad (2009), technology in organizations enables effective screening, recruiting and hiring of rightful workforce. Various organizations use the Internet to attract potential employees. Technologies such as personality assessments have been useful in determining the fit of candidates in an organization. Negative Impact of Technology on Organizations Even as technology improves organizational performance, it also has limitations which could render it worthless. Birchall and Giambona (2008) point out job elimination as one of the major negative impacts of technology. According to the scholars, whereas technology could greatly reduce paperwork and human intervention on one hand, it reduces employment opportunities for people on the other hand. For example, the introduction of automated telephone answering systems has cut down on the human intervention through receptionists and telephone operators needed in many organizations. This results in elimination of jobs and in other cases alienation of customers. It further makes it difficult for the unemployed specialists to secure future employment. Nonetheless, Freeland (2013) argues against this postulate noting that technology only changes occupation distribution. According to this reporter, technology largely targets the tasks of the middle class, which in turn polarizes the economy to reliance on the top high-paying jobs and the bottom low-paying jobs. Technology has been cited as a facilitator of security breaches by Prasad (2009). It makes information retrieval easy, just with the touch of a button, with the risk being more imminent when networks are concerned. With a slight mistake in observing the rightful security measures, information could be altered, destroyed or used maliciously. Lastly, this paper appreciates the argument by Freeland (2013) that technology increases organizational costs. The higher the associated cost, the lower the rate of adoption while the lower the cost, the higher the adoption of technology. Among the costs associated with technology include infrastructure, training employees, implementation and maintenance. According to Alam and Noor (2009), smaller businesses find it difficult to access financial services and thus bear the greatest burden. While studying small and medium enterprises in Malaysia, the researchers observed that 90% of these enterprises lack finances to adopt the needed technology for effective business operations. Challenges in Adoption of Technology in Organizations In management, finding the fit between an organization and technology has for long been a subject of interest. Not all industries respond similarly to particular technologies. The structure of an organization requires coordination and the flow of information among the human elements responsible for operating the given technological system (Hameed & Counsell, 2012). According to Zammuto et al. (2007), the technology to be adopted in an organization should fit within the structure and size of the organization. While considering the fit, cost also plays a critical role. Technology thrives in unlimited financial resource. Whereas big organizations with more financial capabilities would easily adopt any given technology, smaller organizations would be disadvantaged as they could fail to adopt the necessary technologies due to cost inhibitions (Alam & Noor, 2009). Another challenge associated with technology is the external pressure. This terminology is defined by Hameed and Counsell as “the influence from trading partners and customers” (2012, p. 69). Powerful trading partners may exercise their powers and influence an organization to adopt a particular technology. Similarly, potential customers could also demand a particular technology from an organization so as to satisfy their needs. Smaller organizations would be more vulnerable to such pressures due to their greater dependence on their customers and trading partners for survival. Hameed and Counsell (2012) cite the role of the government as an important component in technological adaptations. According to the researchers, the government could pose a challenge to organizations seeking to adopt specific technologies through regulations and taxations. Therefore, respective governments should be keen to observe regulations that would encourage adoption of technology in organizations within their jurisdictions and by further implementing guidelines that would ensure maximum realization of benefits from such technologies. Furthermore, the government should finance projects aimed at encouraging technological advancement. Even so, measures should be put in place to ensure that the negative effects of technology remain on the minimum at all times. Finally, a challenge that has emerged in the recent past is the attitude of employees, particularly the management. A research study conducted by Birchall and Giambona (2008) where 181 managers were sampled across the world indicated that a majority of managers have less confidence in the technology aimed at managing information in their organizations. Hameed and Counsell (2012) carried out a similar study with the Chief Executive Officers, CEOs being the subjects. Similar results were recorded as the researchers document the important role that the CEOs’ attitudes play in adoption of technology in organizations. The attitude towards a given technology emanates after its adoption. While negative attitudes impact negatively on technology adoption in organizations, favorable attitude from the top management would result in successful implementation of technology. Therefore, even though every adoption has some level of uncertainty associated with it, managers with more positive attitudes challenge such risks and overcome the looming challenges. Conclusion Despite the challenges associated with technology adoption, organizations strive to implement appropriate technologies so as to increase their efficiency, mobility and selection of efficient human capital. However, it could also eliminate jobs, increase security breaches and increase organizational expenses. Therefore, an important aspect in adopting technology would be to ensure organizational fit so as to reap the maximum benefits from it. The government and employees, particularly the top management, have a critical role to play in propagating technology adoption in organizations. References Alam, S. S. & Noor, M. K. M. (2009). ICT adoption in small and medium enterprises: An empirical evidence of service sectors in Malaysia. International Journal of Business Management, 4(2), 112 – 125. Birchall, D. W. & Giambona, G. (2008). The impact of ICT on the work patterns of managers and their organizations. EuroMed Journal of Business, 3(3), 244 – 262. Freeland, C. (2013, February 2013). Technology, trade and fewer jobs. The New York Times. Retrieved 15 May 2013 from http://www.nytimes.com/2013/02/15/us/15iht-letter15.html Hameed, M. A. & Counsell, S. (2012). Assessing the influence of environmental and CEO characteristics for adoption of information technology in organizations. Journal of Technology Management & Innovation, 7(1), 64 – 84. Hameed, S. A. (2011). Effect of Internet drawbacks on moral and social values of users in education. Australian Journal of Basic and Applied Sciences, 5(6), 372 – 380. Prasad, A. (2009). Understanding successful use of technology in organizations in developing countries: a structurational perspective. The Electronic Journal on Information Systems in Developing Countries, 37(3), 1 – 9. Zammuto, R. F., Griffith, T. L., Majchrzak, A., Dougherty, D. J. & Faraj, S. (2007). Information technology and the changing fabric of organization, Organization Science, 18(5), 749 – 762. Read More