Impacts of Technology in Management
Rebecca D. Soplata
March 25, 2002
ABSTRACT
This paper discusses the impacts of
technology on management. With the improvement and innovation of technology in
our organizations, management is faced with many challenges in the way they do
business. First, the paper will discuss how technology allows for more
information to be transferred at a faster rate and the impacts on the
organizational structure. Next, the paper will discuss how technology impacts
management globally. Finally, the paper will discuss the diversity of the new
generations saturating the job market.
Table of Contents
Introduction
The digital
revolution of information technology and wireless telecommunication is
transforming work and management. This transformation occurs through electronic
commerce, organizational restructuring, globalization, and generation X and
dot.comer's. Because of rapid advances in technology there has been a tremendous
impact on management practices and the way a company does business. Employees are now united independently
through time and geography with tools such as teleconferencing, fax machines,
email, internet, and groupware. Technology has had a domino effect and has
spiraled most businesses from a typical command and control organization to one
which allows free thought and critical thinking from all employees.
E-Commerce
Technology
drives change in the structure of work. Now electronic commerce is a large component
of most businesses and organizations. Ecommerce allows financial transactions
among and between individuals or businesses from anywhere to anywhere via their
Personal Computer. Databases allow large numbers of users to share and exchange
information between and among themselves. This allows for faster and cheaper
transactions throughout the company and among a large number of personnel. When
information, money, or goods and services are moving rapidly through an
organization the result is a staff with a large amount of information at their
fingertips. This results in a more knowledgeable workforce, a flatter
hierarchy, and a change in job management.
The new
electric commerce method of conducting business is also changing company
strategies in the competitive marketplace. Ecommerce works better when the
product is information (Kanter, 2003, p24).
Technology is typically the motivating force behind continuous
improvements in what an organization produces and the means by which human
productivity is increased. Management must learn to adapt and move with the
changing times; otherwise the organization will be left behind.
The use of
web services allows for outsourcing and low inventory or even no inventory for
an organization. Companies do not need to employ workers who once stocked
warehouses full of freight, now they need to employ personnel to ship
information through the internet. The internet not only affects the inventory
and manpower of the company, it also affects how the company does other business
in such areas as advertising, communication, information, and the companys web
page. The use of web services can facilitate the linking of complex business
systems on an intra-company basis that can save large sums of money and add to
the flexibility in meeting business demands. This impacts the structure of the
organization because now where the organization once needed warehouse manpower,
they now need technology specialists. This aligns the Information Technology
(IT) strategy with business strategy.
Organizational
Structure
Managers
must be more knowledgeable in order to work with a better educated and more
skilled workforce. The challenge becomes teaching them how to use technology
tools to improve productivity and enhance job satisfaction in the
workplace. Because technology so rapidly
becomes outdated, training becomes a critical component of the management
strategy. Many people are resistant to change and prefer the way things have
always been done. This applies to individuals at all levels. They are prone to
resisting change. The leaders of many of the companies dropped from the Fortune
500 lists failed to recognize the need to change and adaptation in order to
survive with rapidly changing technology (Cook & Hunsaker, 2000, p531).
Many large
businesses are struggling to reshape their organization. Companies are now
composed of specialists who rely on mass information from colleagues and
customers to guide their actions. With this, managers must get away from the
detailed orders that used to be given to subordinates. They must now set
performance expectations and allow for feedback from the workers.
Globalization
Technology
creates global competition for jobs and skills. Many companies now compete
globally for products and services. In an effort to compete in a global
marketplace, many companies are asking their employees to work more effectively
across vast geographic distances (Leonard, 2002, p32). Companies want to make
the best product for the cheapest price. They are required to create products
that are specialized and add value due to their high service component. With
the expansion of organizational boundaries globally and the use of electronic
media, distance can be a major impediment to effectiveness. There are many
differences in human relations and with cross-cultural teams, which leads to
delays in planning and implementation. An effective manager will use electronic
tools (email, fax machines, teleconferencing, and the internet) for good
communication. Managers must also define operational procedures and have a
clear plan about how they will use technology to communicate and resolve
disputes. Successful managers must promote the work standards and address any
difficulties promptly (Leonard, 2002, p32).
These same
tools also allow for near instantaneous transmission of sales and inventory
information. This enables the largest retailers to analyze what customers want
without communicating with them personally. Companies review individual sales
histories to determine individual preferences. This enables them to develop
focused marketing strategies for their customers.
Monitoring Employees
Managers now
have to ability to monitor their employees on a whole different level than ever
before. Time cards are a system of the past. Managers are now required to
monitor employees through use of email and other tracking activities. According
to the American Management Association and U.S. News & World Report, 82% of
1,627 large employers said they monitor their workers activities in some fashion,
ranging from tracking employees internet usage or monitoring their email
messages and phone calls to reviewing their computer files. Some even report
that they video tape their employees (Solomon, 2002, p39). Some feel this cuts
down on the internet slackers in the organization. While many employees feel
that this becomes an issue of personal privacy, most managers regard it as an
issue of productivity.
Many experts believe that monitoring
tools wind up crippling morale or driving workers to try to beat the system
(Solomon, 2002, p38). Managers have to consider many factors when trying to
improve the performance of their employees. Trying to balance the human nature
of the organization as we implement many types of technology to be used within
our daily lives is difficult. Two questions that managers must ask themselves
when choosing to monitor employees are; why do we need to track an employees
time usage, and why do we need to monitor in this manner? (McManus, 2000, p18).
Many experts believe that organizational culture plays a key role in answering
these questions and the person in charge is the one who has to think about how
it will impact the organization.
The problem
management faces is determining what is important within the organization. The
company must assure employees are conducting company business. They must do
this without imposing such strict monitoring systems that they reduce
efficiency. Many organizations have implemented such devices as employee
badges. These badges allow managers to track employees throughout the course of
a work day. There are two problems with this approach. First, managers are only able to see where
the badge is located; therefore, an employee can be deceptive by taking off the
badge throughout the course of the day. Second, many employees feel this is a
violation of personal privacy and there is no trust within the organization.
This approach can have a very serious impact on the morale of the employees.
Computers
and information management systems have increased the managers effective span
of control. Since information now flows directly from front-line workers to
upper management, fewer middle level managers are needed. This decreases the
number of positions and reduces the opportunity for promotion and advancement.
Many managers are now forced to restructure, reorganize, downsize, and
outsource within the company. Additionally, many top managers will have to be
computer-literate to retain their jobs and must make sure they monitor the
increased span of control that computers make possible (Cetron & Davies,
2003, p13).
Generation X and
dot.com
Technology
has forced management styles to change and upper managers must empower their
employees to make decisions based on company data. This is partially because of
the advanced skill level of workers that are now in the market and the
technology support they enjoy. A whole new generation is now part of the
employment pool. Many highly skilled jobs are now being filled by the
Generation X or the dot.com era.
This
generation is equipped for work in an increasingly high-tech world, but has
little interest in their employers needs. Most do not choose to stay with a
company until retirement. Instead they view their job as a tool to get where
they ultimately want to be. Generation X and dot.comers want to do things
their way! For this generation of worker, life long learning is nothing new, it
is simply their way of life. Managers have to adjust their policies and
practices to this new generation, including finding new ways to motivate and
reward them. This employment pool thrives off of challenge, opportunity, and
training. They are always looking for their next career move.
Conclusion
Technology, including the internet,
has dramatically changed many businesses. Not only can companies reach new and
distant markets, but the way their employees perform their jobs will also
change. Employees today are required to have more and higher levels of
knowledge, skills and ability to be effective. Employees will interact more with
information and less with people to provide the level of service demanded by
todays customer. This also requires evaluating and implementing policies that
protect the company, but preserve individual privacy and dignity.
RESOURCES
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Marvin J., & Davies Owen. (2003). Trends shaping the future. Futurist. 37(2)
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Cook, Curtis
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workers. Economist. (2002). 364(8290), 64.
Kanter,
Jerry. (2003). Ten information technology (IT) issues and what makes them hot. Information
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Leonard,
Orla. (2002). Remote Controls. Financial Management. 32
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(2003). How will you manage your labor force? Computerworld. 37(1), 28.
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