The Impact Of Computer Technology On

Accounting System And Its Effect On

Employment
PROPOSAL

The world over continues to grow in population, size and

sophistication technology. It becomes imperative that the

educational and business sector on which the teeming

population depends on for knowledge also grows.

The Nigerian situation is such that we, for the sake of

advantages associated with technological growth have

started computensing most business and educational

operations in our higher institution of learning and

business organizations big and small. Two of such

organizations are A.G Leventis and Pak – Micro computer

Ltd, which were layed out for the study of impact of

computer technology on accounting systems and its effect

on employment.
The problem, purpose and significance of the study to

A.G. Leventis and Pak – Micro computer will be

considered in this research tools for collection of data.

Statistical and necessary mathematical tools will be

collected. Also a careful analysis of data will be generated

and revealed to the researcher that the use of computer

in A.G Leventis and Pak – Micro computer will be set up

for future enquire.

The following areas should also covered for computer

application:

1) General Accounts

2) Inventory and

3) Payroll
Consequently, the researcher will use primary

questionnaire to deduce inferences from the related

literature, research methodology in other to throw more

light in anlysing data to reveal the problems and give

some reasonable suggestions. The primary data will be

conducted among the staff of the A.G. Leventis and Pak-

Micro computer with the supplement and oral interview.

However, the writer will give recommendations and

conclusion from the findings, she will also make

references. Data will be analysed using the chi – square.

 ABSTRACT

The world over continues to grow in population, size and

sophistication Technology. It becomes sector on which the

teeming population depends in for knowledge also grows.

Be it as it may, the Nigerian situation is such that we, for

the state of advantages associated with technological

growth have started computerizing most business and

educational operation in our higher institutions of learning

and business organizations big and small. Two of such

organizations are A.G Leventis and Pak – Micro

Computer Ltd, which were understudied for the impact of

computer technology on accounting system and its effect

in employment.
The problem, purpose and significance of the study to

A.G Leventis and Pak – Micro Computer were

considered. Review of existing literature will then follow.

The research method made use of diverse research tools

were equally employed to analyze data collected. A

careful analysis of generated data revealed to the

researcher that the use of computer in A.G. Leventis and

Pak – Microcomputer was set up ten years ago. Areas of

computer application include:

1) General accounts

2) Inventory and

3) Payroll

In testing the problem, respondents agreed that

computerization led to mass retrenchment of workers.

However research revealed otherwise.

TABLE OF CONTENT

Title page

Approval page

Dedication

Abstract

Acknowledgement

Table of contents

List of figures

Chapter one

1.0 Introduction

1.1 Background of the study

1.2 State of the problem

1.3 Objectives of the study

1.4 Significance of the study

1.5 Scope and limitations of the study

1.6 Research Questions

1.7 Definition of terms

Chapter two

2.0 Literature review

2.1 Some applications of computer technology in

Nigeria

2.2 Union Response to the technological changes

2.3 Implications of technological changes on employees

2.4 Specific implication of computer application to

employment.

Chapter three

3.0 Research methodology

3.1 Research methodology used

3.2 Description of Respondents

3.3 Determination of sample size

3.4 Sources of Data

3.5 Methods of investigation

Chapter four

4.0 Presentation, analysis and interpretation of data

4.1 Data analysis

Chapter five

5.0 Summary of findings, conclusion and

recommendation

5.1 Summary of findings

5.2 Conclusion

5.3 Recommendation

Bibliography
 Appendix

a. Survey questionnaire

b. Interview questionnaire

c. Chi-square distribution table

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Days are when most accounting operations and decisions

that have to be made on or from them are on first hand

basis. This is because accounting operators and decision

makers are in close contact with such accounting

operations and as such, collected, analysed and

interpreted data from such operations for decision

making.
Today, as company and educational operations expand in

size and complexity, company executives grow further

removed from first hand contact with business scenes.

They are to rely increasingly on second hand information

about what is happening at the various stages of

business operations2, vis-à-vis research and

development, production, marketing and consumption of

goods and services. Since decisions that have to be

made by executives are of profound consequences and

have to be based on highly fragmented and typically

tenous information, then it is of great importance that

such second-hand information is from a very accurate

and reliable sources3.

According to A.$. fapohunda, to remedy these accurate

information difficulties in 1963, sears began establishing

their twenty – two regional computer centers covering the

entire unites states of America4. initially, the regional

computer systems processed customers credit accounts

and general accounting data.

Later, merchandising and inventory information from

system were established to provide information that the

business accounting world and business operations are

also busy expanding their technological and industrial

bases 6 by breaking into new grounds and improving in

existing ones through the use of computers.

With the introduction of computer to many business

applications, those business areas that involve repeated

tasks which are often monotonous and fallible to human

errors (cash, inventory control, payroll and etc) are

increasingly being simplified accurately by combining the

cost, effectiveness, simplicity of use, efficiency, reliability

and accuracy of the computer to obtain, analyze and

interpret data information for efficient business decisions.

Nigerian business organizations being to grow in size,

business operations and processes become increasingly

complex, hence computers are being rapidly introduced to

cope with the overwhelming demands of business and

growth. Though the introduction of computer to many

facets of business operations is a welcome idea, its use is

further implicated on accounting system and as such

organizations need to strike a balance between

accounting areas to be manually operated so as to

control or limit the menance associated with

unemployment.
Some of the business operations to which computer has

been successfully introduced;-7

- Printing graphic designs of complicated nature.

- Payroll system.

- Billing system.

- Predict election result.

- Mark examination results such as JAMB and

WAEC.

- Control inventories.

- Predict performance of an aircraft or missile still.

- On drawing boards.

- To calculate the critical path of most efficient

assignment of troops or problems and so on.

It therefore becomes important that technological

changes such as the introduction of computers in

organizations be carefully evaluated so that the gains in

technical efficiency are not made at the expense of the

well-being and integration of employees.8. In the

circumstances, then a study of the implication of

computer introduction to accounting system of business

operations is not only timely but mandatory so as to avoid

some of the problems associated with technological

changes in organizations.

This research is however, limited to the implication of

computer introduction to accounting system of business

operations using A.G. Leventis and Pak – Micro

Computer Centre as computerized model organizations.

1.1(a) HISTORICAL BACKGROUND OF A.G.

LEVENTIS PLC AND PAK-MICRO COMPUTERS

INTERNATIONAL LTD.
A.G. Leventis (Nigeria) PLC was incorporated in 1958.

This company went public in 1978, and is quoted on the

Nigeria Stock Exchange.

It provides properties, company secretarial and share

registration services. Industrial and public relations

services, legal services, financial management and other

services to all the companies under the group.

This company has an ultra modern and functional

electronic data processing centre in Lagos where most of

the group’s data are processed with an “OLIVETTI SP

600 Computer” which has a network of terminals located

at various departments/companies of Iddo House Head

Office data input and output. Some of the areas of

computer application include Accounts Receivable,

Inventory and General Ledger package used by A.G.

Leventis and company (Nig) PLC, Leventis Technical

PLC.

There is payroll system for the staff and all managers in

the group. Other areas of computer application include

inventory, billing and share registration.

Leventis stores – formerly a legal entity is now a division

of A.G. Leventis and company (Nig) PC after the

successful merger in 1995. This division has an “Olivetti

SP 600 computer located at Malu Road, Apapa which

handles the inventory control of Leventis stores

throughout the country as well as the account receivable

and general ledger of leventis stores.

Pak – Micro International Ltd is a group name with Data

Training Institute and Master Maintenance Under it. It has

its Headquarters at Lagos, 77 Ikorodu Road, Fadeyi.

Regional office in Enugu, 31 Ogui Road, Enugu.

Paks – Micro specializes in computer sales, installation,

maintenance, account receivable, inventory and share

registration, training software development and Bureau

services. Because of the nature of its business, the

company has the following sections sales, maintenance

and bureau services, software development laboratory,

training section (DPI). Each section has its own manager.

The master maintenance is a civil Engineer contracting

firm with its General Manager.

1.2 STATEMENT OF THE PROBLEM

The importance of personnel in the accounting section of

an organization cannot be over emphasized especially

when one remembers the facts that these personnel

support the organization from its small scale to the large

scale stage when it begins to introduce computers to

many of its hitherto manual operations.

However, an organization has the obligation of profit

making and as such promptness of information, accuracy,

speed, cost effectiveness, becomes prime factors to the

organizations.

The problem of this study is therefore to find out whether

or not the introduction of computer technology to

accounting systems of business operations has reduced

the output of the accounting sections at A.G. Leventis

PLC and Pak – Micro computer centre.

1.3 OBJECTIVES OF THE STUDY

The purpose of this research work is to find out and

evaluate the implication of computer introduction to

Accounting sections of business operation with particular

reference to A.G. Leventis PLC and Pak – Micro

International as some of the largest organizations in

Nigeria today.

The study will also attempt to find out the efficiency and

effectiveness of such application to overall management

capabilities in decision making.

1.4 SIGNIFICANCE OF THE STUDY

This research work provides a clear understanding of one

of the social implications of computer application on

accounting system. The information obtained will be

useful to management, consultants, about unions,

professional, students, shareholders, investors, institute

of higher learning, training managers, economist, the

government and so on.

The study will also be significant to other organizations

willing to computerize their accounting operations as well

as to A.G. Leventis Plc and Pak – Micro computer centre.

1.5 SCOPE AND LIMITATION OF STUDY

For the purpose of this study, the impact of computer

technology on accounting system will in scope be limited

to A.G. Levenits and Pak – micro Computer. Both of them

are of Enugu Branch. This is because of it’s many

computerized application areas and therefore makes for

better study.

The researcher encountered some problems which stood

as limitations to this study. Such problems include, time

available for this study, time to generate primary data

from such large organizations. Other limitations include

the rigor of having to move around Enugu and also

problem of combining, course work, research work and a

full time job among other things.

1.6 RESEARCH QUESTIONS

The following research questions form the basic postulate

of the study:-
 1. Has computer introduction had any impact on

accounting system?

2. Has computer introduction made the

accountant’s job easier?

3. Has computer introduction provided more

accounting information with same staff?

4. Has computer introduction made the storing and

retrieval of accounting information faster.

5. Has computer introduction made the accountant

more efficient?

1.7 DEFINITION OF TERMS

The purpose of this section is to give conceptual

clarification of terms within the scope and limitation of the

study so as to avoid ambiguity of concepts used.

A.G.L. – A.G. Leventis and company (Nig.) Plc.

DATA – Coded information i.e. information that has been

captured for processing or recorded in any way 12.

E.D.P. – Electronic Data Processing.

PROGRAM – A list of instructions which is to be followed

by a computer to solve a given problem.

INPUT – The process of entering data into computer.

OUTPUT – The section of the computer needed to take

result out of computer.

SOFTWARE – Generic term applied to most non physical

aspects of computing i.e. programs, operating

systems, packages, compilers and to some

extent, systems in general.

P.M.I – Paks – Micro computer international ltd, Ogui

Road, Enugu.

COMPUTER – A unique, sophisticated magnated

 machine which has been carefully put

together in such a careful manner that

enables it to manipulate or handle any given

task, be it in Engineering, science, business

etc.

IMPLICATION – Implicate, enfold, entangle, involve,

something implied, or suggested as naturally

to be inferred. What is implied, hinted act or

suggested, but not expressed.

IMPACT – Effect
 REFERENCES

1. A.H. Fapohunda, The utility of computer and

Marketing information in Retail Trade, in
management in Nigeria. Vol. 20 No 9, Nov/ec, 1984,
pp. 32.

2. Ibid, pp.32 - 34
3. Ibid
4. Ibid
5. Ibid,
6. Ibid
7. D.C. Chukwu Effective computerization an
unpublished lecture Handout in Cs 604 at the
 Enugu state university of science and technology
(Esut, 1992, p.187)
8. Dr. D.M. Akinnusi, “Technological changes in
development Economics: A study of the Application
of computer technology in Nigeria in management
in Nigeria, vol 27 No 3, June 1991, P.46.
9. Ibid, p. 46.
10. Daily champion, Thursday June 13th 1991, p.7
11. The Guardian, Sunday, March 25th, 1990 P.8.
12. John Moss, foundations of programming input T –
Nine limited, London 1978, P.124.
13. Ibid Pp, 126 – 127.
14. K.C Agbasi, introduction to computer science and
programming, ABIC Books and Equip Limited, P.10,
1992.
15. H.D. Cliffton, choosing and using computer
business books London, 1975, P.185.
16. Ibid P.179.
17. Op Cit.
18. The Lexican Webster Dictionary, Mario Pel,
published by Delair publishing company,
Incorporation, U.S.A, 1980, p. 481.

CHAPTER TWO

2.0 LITERATURE REVIEW

It is an established fact according to Dr. E.O.

Adegbeyemi, that the use of modern technologies

enhances better performance, reliability and positive

results. This is evident from the study of some countries

where such modern equipments are applied in their

everyday activities to ensure consistency of information,

timely and adequacy of such information for planning and

decision-making. The introduction of new technology

involves changes in the product, methods, processes or

the means of manufacturing at a location, which reduces

the existing job at the location. One phenomenon of

working life in the past twenty five years has been the

implication of new technology. Luthans F. argued that

“resistance to change is a facet of organizational life 2.

This “resistance” to technological changes is termed

“technolostress”3 according to Brid C., Technology may be

said to be of three main types namely:-

- Long linked

- Meditating and

- Intensive

These types of technologies have been defined as:-

LONG LINKED
A set of linked interdependent tasks or operations

analogues to a mass production assembly line. The

production rationalized and simplified.

MEDIATING TECHNOLOGY

These involve activities which link clients or customers

who are interdependent or who wish to become

connected. The technology is exemplified by organisatins

serving primarily, these linking or meditating functions

such as banks, insurance agencies, trust companies and

so on.4

INTENSIVE TECHNOLOGY

These involve complex and on-routinised tasks. A variety

of techniques and methods of work may be used in

carrying out a job component depending on the nature of

the job itself.5. Until very recently, only clerical and factory

workers equipped with word processors, electronic

accounting systems and computer controlled tools have

really benefited from computer technology. Now though,

the personal computer explosion is changing the

organizational structure of companies as well as the

function of managers.6

Most reports on the effective management and

application of computer technology for development have

demonstrated the important role of computers in transfer

of technology.7

According to Thompson I.D address to policy makers,

which stress the application of computers for social and

economic development. The following recommendations

should be followed for better implementation of computer

application:-

- Education and training for the application of

computers and computer related areas of

accelerate the process of economic and social

development must be of top priority.

- It could be conceived that computer technology

is on the increase and its diffusion and sound

application can make a significant contribution in

accelerating the rate of national economic and

social development.

- There must be a national policy consistent with

the nation’s material goals (aims and objectives)

on the application of computer technology.8

 - There must be need to increase or rather

establish the international co-operation in all

areas of computer technology.

The implementation of new technology can be costly both

in terms of personal injury and organizational

ineffectiveness. However, resistance to new innovations

(like computer) is not total; and only occurs when the

innovation is seen as a threat or barrier by the individual

or it affects a person’s security, causes economic loss and

or creates social problems due to new relationships that

may be formed.9. If these threats can be overcomed,

people can be very enthusiastic about technological

changes and embrace them with little or no resistance.

There is therefore little doubt, that the world has become

a hostage to modern technology. Human inventions have

climbed to the heights in its zeal to enhance progress on

earth just as it has descended to the lowest spot in the

valley in its capacity to eliminate mankind from the “face

of the earth”. The pace of technological growth is so fast

that there seems to be a tenuous line between modern

and ‘obsolete’ technology. 10.

Individual managers now make decision by combining

information developed within their companies with outside

databases including economic and industry statistics as a

methodology for studying their business, markets,

competition pricing and forecasts in a few hours studies

that one took months to work.11

2.1 SOME APPLICATIONS OF COMPUTER

TECHNOLOGY IN NIGERIA
According to D.M. Akinnusi, the introduction of computer

technological development, has a recent history dating

back to early 1960’s when only a handful of organizations

acquired the computers. By the late 1979’s there were

about 110 computers in the country representing

equipment from seven different manufacturers. However,

by 2001, there were about 800 computer installations sold

by local vendors representing nearly every vendor in the

western world. Organizations that have one or more

computer installations now number over 3000 and

ownership by individuals has also multiplied

considerably.12.

THE DISTRIBUTION OF COMPUTER BY BUSINESS

TABLE “A”

Number Percentage
 %
Service industry 390 48.4
Computer vendors 162 20.1
Manufacturing 116 14.3
Government 50 6.2
Petroleum 38 3.6
Construction 28 3.4
Others 25 3.0
TOTAL 805 100

Source:- Companies, from Nigerian computer users’

Directory: 2000

The areas of computer applications have also grown

somewhat in recent years and many important sectors of

the economy, notably manufacturing, banking,

government ministries and parastatals, the petroleum

industry and educational institutions are computerising

their system.13
 At every state, there are information about the inputs,

information about the central processing unit, about the

output and even about the interaction between the output

and the environment with a feedback into the system as

to whether the system, objectives are being met.14

perhaps a simple example will illustrate the importance of

good information management and computerization:-

Customers Sales order Costing Operational

order and processed final level
specs

Production order Error

problem

Sales

Report Functional
Report Marketing
format level
format

Finance

Strategic Strategic
Report level
Fig. 1

Source:- Management in Nigeria, vol. 27, No.3,

May/June, 2001.

Our fictions firm, better doors plc manufactures doors. A

customer comes in and gives and order for so site within

90 days.

It is necessary to see the type of data/information

generated (or ought to be generated) and how it flows

through the organization.

STEP 1

Customers’ name and address

Internal order Number

Required Delivery date

Description of order, Quantity, Price.

Customers signature

Approved by;

STEP 2/3

Production order – job order No. Scheduled completion

Date

Deposit or credit

A. Materials required – Quantity unit cost

B. Labour required – M/hours cost/hour

C. Overhead - % of A + B.
 D. Total Cost of production ------- Delivery date ------

Are the materials in stock? -----Approved by ------

Inventory level, new purchase ---- Total ------------

Sub-contracting? Costs, delivery

Date -------------------------- Total -----------------------

STEP 4

Reports going to various functional levels.

- Sales will prepare sales report.

- Marketing will also prepare their marketing report

of actual sales cumulative – budgeted.

- Finance department will not deposits, Gross

sales, any discounts, net sales, direct costs,

indirect costs and profit/loss.

It immediately becomes apparent from this simple

example that information has to reach each decision

maker in time and in a clear and precise form for him to

make the right decision.15.

Advances in technological sophistication have combined

with the need for better, faster information to accelerate

the use of computers. The advent of desk top computers

and other information tools; such as mainframe; personal

computers teleprocessing, stand-alone network, time-

sharing, linked together by advanced telecommunication

networks that provide access to widely diverse sources of

data, heralds a huge source in use of computer according

to Watson and carroll, (1984). (Computers for Business)

Business publication incorporation USA)

For example sears point – of – sale merchandising

information system (I.S.)

POINT OF SALES OTHER RETAIL

DATE

DATA COLLECTION RETAIL

PROCESS STORES

COMPUTER

SYSTEM.
 BAC
K UP

TO TO TO TO TO TO
A/C INVENTORY PAYROLL FINANCE OTHER PRODUCT LINE

ACTIVITY
1.5 1.5 1.5 1.5 1.5 1.5

Fig. 2 (Title) SEARS POINT OF SALE MERCHANDISING

INFORMATION SYSTEM

Experts systems have been developed and used for

various business applications, such as financial

assessment, marketing (like sears above), audit,

Logistics, inventory control, and so on. 17.

 START

FLOWCHART OF STOCK CONTROL ROUTINE

Transfer next stock record from disk to core

ADD TO RE-ORDER
ITEM COUNT
No Stock in
hand Re-
Order level
PRINT DETAILS OF
THE ITEM

No Yes
End of stock
records?
Print Re-order
item count

STOP
Fig 3

Businesses are now going from those systems in the

computer revolution that have been solving their easier

problems to those applications that have the potentials of

solving their more complex problems. 18.

2.3 IMPLICATION OF TECHNOLOGICAL CHANGES

According to Dr. Adegbeyemi, in all developing countries

the levels of their economic, social, cultural and

technological development and the nature of their

capabilities and needs in computer technology and its

application differ to a commensurate extent from one

country to another.19.

The effect of a technological change depends in part on

whose data analysis are being examined, whether the

time lag being used for the evaluation is short or long –

term; and whether the technological change is slight

marginally or extremely labour intensive or indifferent.

There is no doubt that the application of technology in a

business organization brings advantages such as

increased productivity, increase quality, improved position

within an industry, compensating for the shortage of

skilled workers and acquisition of technological know-

how.20.
Though there are other implications, which are quite

numerous, this research work will limit itself to two broad

areas – the unions and the employees.

2.4 UNION RESPONSE TO TECHNOLOGICAL

CHANGES

Computers are one of society’s most formidable

technological developments; they affect the structure and

operation of organizations, people, the way in which

people work, and the effectiveness of economic effort.

With the proliferation of computers, high unemployment,

skill obsolescence, and arbitrary barriers to employment

and rewards continue to be major problems to

government and labour unions.21. According to Wason

and carroll (1994), in a study carried out in united stated

of America, to determine the response of unions to

technological changes, varies from a range of:

a. Willingly acceptance;

b. Opposition,

c. Competition (attempting to keep old method in

use with the new)

d. Encouragement (taking the leads in urging

employers to adopt the new technological

change), and

e. Adjustment by attempting to maximize benefits

and minimize harm.

The study indicated that “the most usual policy toward

technological change; however, was willingly acceptance.

The study points out that the gain in productivity of unions

are the opportunity to bargain for wage increase with one

of the trade-offs being a reduced number of jobs. The

study also pointed out that there was no record of union

being capable of preventing technological change by

opposing change.22.

According to Mclaught in Doris B. (1999) in his study,

using the approach generated in the first report, found

willingly accepted, was still the most common American

labour union responses to the introduction of

technology,23. The reaction of unions to technological

changes in Australia is not much different from the above

as shown by the country banking industry. The unions’

attitude to the introduction of ledger machines, adding

machines, proof machines and out right computerization

varied from staff opposition to co-operation. For example,

Federal Executive passed a resolution which said that “All

banks be advised that from this date, should any bank

introduce, or advise the Association of its decisions to

introduce, any substantial change in organization or

methods of carrying out work in the industry without

having consulted Australian Bank Officers Association in

the planning stages, the Association may instruct its

members not to perform any work connected with the new

organization or method of working and will enforce their

ban by every method available to it.24.

Another view by a section of the Australian Labour Union

was that new technology brought a relief from tedium as

one article suggested that “no longer shall we hunt the

elusive account that was out of order; no title evening

parties on Monday night hunting the differences”. … Thus

unions are generally prepared to co-operate with

employers given meaningful and effective communication

and/or the opportunity to take part in the planning and

development of new technological changes for it is better

to belong in than to belong out. 25

2.5 IMPLICATION TO TECHNOLOGICAL CHANGE

ON EMPLOYEES (HUMAN).

The other more important effect of technological change

is on the employee. If one asks the question? What is the

nature of technological change? This can be machinery,

automation and control devices. These points in the

direction of labour saving tendencies which have serious

consequences on the employees.

According to I.L.O. (1996) these effects can broadly be

classified into 3 categories:-

1. Employment implications

2. Occupational implications

3. Wage implications.

According to I.L.O (1996) these implications hinge on

labour management relations, which cannot be divorced

from industrial relations, 26. Using the ILO Automation

studies taxonomy of the effects of technological change

and relating these effects to industrial relation we have

the table below, 27.

 TECHNOLOGICAL CHANGE AND RELATED

INDUSTRIAL RELATION ISSUES TABLE ‘B’

A EMPLOYMENT IMPLICATIONS INDUSTRIAL RELATION

ISSUES
1 Change in total number employed. Job security, union security
2 Displacement Union survival
3 Change in Age and Sex distribution Redundancy Retrenchment

B OCCUPATIONAL IMPLICATIONS
1. Change in occupational requirement Skill-mix, de-skilling.
2. Change in occupational conditions Physical condition at work.
3. Changes in social interaction Job satisfaction
C WAGES IMPLICATION
1 Implication on wage level. Wages negotiation
2. Implication on waged payment Wage differentials.
systems.

Source: - ILO AUTOMATION STUDIES TAXONOMY.

This it can be said that “The implementation of technology

impacts on employment security in a variety of ways and

in a worst case scenario, technology can eliminate

employment for an industrial within the organization.28.

2.6 SPECIFIC IMPLICATIONS OF COMPUTER

APPLICATION TO EMPLOYMENT

For a while, new technologies will change the process,

not the structure until we have reached the point where

we use the technology to its potential, intensitive

approaches to computerization often result in alienated

employees whose work has been in some way affected

by computer systems. It could also be “the elimination of

a job or position within the organisation’. 29. And

“technological change may modify the tasks on

individuals in such a manner as to require new and/or

additional knowledge and response”.30. Negative

reactions (which can include sabotage of the systems)

are not necessarily restricted to clerks, even managers

may react negatively. They may oppose computerization

because it threatens their economic security status, or

power, or because it changes interpersonal relations,

causes obsolescence, and the like.31. Generally, the

above implication of technological change also apply to

the use of computer in many business operations

especially now that the size and cost of computers have

come so low.

Taking specific example from the Australian banking

industry, where ledger machines were introduced as early

as 1950, the result was to reduce the number of staff by

half and to feminize ledger posting. Women also used

adding machines to balance transactions, social security

payments and to do other routine works. The

computerization of this industry brought radical changes

which eliminated ledger machinists and exchange clerks,

centralizing these functions in the Electronic data

processing Departments, (EDP). Within the EDP centers,

the work force is divided between the few highly paid, and

skilled areas, (programmes analysts, processors etc) and

the routine jobs of machine operators.32.

Another example of the implication is that budget analysts

at one firm who were responsible for preparing complete

budget forecasts, were reduced to almost blindly placing

numbers in certain boxes on prepared forms because of

computerization.33. Consequently rapid technological

change must be balanced by the capacity and willingness

of people to adopt to such change.

Moreover, the introduction of advanced computer

technology should be weighed against social

considerations as well as technical and economic factors.

REFERENCES

1. Dr. E.O. Adegbeyemi, “Computer Applications in

Nigeria in management in Nigeria, Vol.
21, No. 9, September, 1989, p.33.
2. F. Luthans, Organisational Behaviour: A modern
Behavioural Approach to management,
New York, Mc Graw-Hill Book Company,
1973, p. 476
3. C. Brod, “Management Technostress; optimising,
the use of Computer Technology” in
Personnel Journal, Vol. 61, No. 10,
October, 1982, p. 754.
4. J.D. Thompson, Organisations in Action, New York,
Mc Graw-Hill, 1976, p.42.
5. Y.Vardi, and T.V. Hammer, “intra-organisational
mobility and carrier perceptions among
the file Employees in different
technologies, in Academy of
Management Journal, Vol. 20, No. 4,
1997, pp. 622 – 624.
6. J. Hugh Watson and B. Archie Carrol, Computers
for Business, Business publication
incorporation. U.S.A, ’84 p.354.
7. E.G. William “Changing systems and Behaviour,”
Business Horison, August, 1969, pp. 55
– 56.
8. Mike Asuquo, “Devices that keep felons At Bay.”
The Guardian Friday, October 4 th, 1991,
P. 14.
9. Adapter from a paper titled: Effect of Technological
changes on Banking Industry
Employees by Norman F. Dufty.
10. I.L.O. Labour and Automation series Bulletin, 40. 2A
 Tabulation of Case studies in
Technological change, Geneva 1986, P.
24.
11. Dr. Eleagu Uma “information management for
Decision Making”, in Management in
Nigeria, Vol. 27, No 3, May/June 2000.
P.41.

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

Different methods of data collection were employed by

this study to obtain answers to research questions which

were valid and reliable.

3.1 RESEARCH METHODS USED

Though survey and historical research methods were

used for the collection of primary data, a complementary

method, was also used as the former was found to be

inadequate for computer applications, because it can only

suit “why something happen”. Personal observation was

employed in order to enhance the research results by

limiting the possible errors. It also enables the

Researcher to assess population sample size, attitude of

respondents, existing literature on subject matter.

3.2 DESCRIPTION OF RESPONDENTS.

The demographic characteristics of the respondents are

as follows:

80% male and 20% female 13% of them were below 21

years of age while 87% were non-managerial and 24%

were managerial staff. Since the phenomenon under

study has a social origin, a combination of closed and

open – ended questions were employed to allow

respondents build in their respective feeling as a

combination of both is usually better.

3.3 DETERMINATION OF SAMPLE SIZE

A sample size of ninety was selected to help in the

analysis of the historical data available from the

personnel department and such other records for internal

consistency.

The sample size was determined using Yamane formula

for determining sample size.

= formular

n = Sample size

N = Population (214)
 e = Margin of error (usually selected by the

researcher is 8%)

n = 214
1+(214)(0.022)

= 214
2.3696 = 90.

TABLE FOR DETERMINATION OF SAMPLE SIZE

Firm Population Sample %

A.G. Leventis 74 31 34.44%
Paks Micro 140 59 65.56%
Total 214 90 100%
 The large sample size was intentionally chosen to give a

reliable and valid result because the larger the sample

size, the nearer the result to the universe.

TABLE FOR DISTRIBUTION OF QUESTIONNARIE

Firm Population Respondent %

A.G. Leventis 59 59 100
Paks Micro 31 31 100
Total 214 90 100%

3.4 SOURCES OF DATA

Two main sources of data collection were employed. I.e.

a. Primary sources

b. Secondary sources

A. PRIMARY SOURCES
The survey research method was used for collection of

primary data. Questionnaires were used. Ninety copies of

questionnaires forms were distributed through personal

administration to members of staff and union Executives.

Out of these, eighty five were returned duly completed by

respondents. The questionnaire consist of twenty five (25)

items which the researcher requested for the opinion of

the respondents based on their experience in the

services. Use of personal interview was also made as

another instrument for collection of primary data which

where not possible through the written questionnaire

method. The personal interview method was also

designed to gather information, extra response through a

planned sequence of questions to generate valid, reliable,

and accurate information from the respondents.

B. SECONDARY SOURCE

The source of secondary data used in the study were:

i. I.M.T library.

ii. The British council Library

iii. The Enugu state Library

iv. Stock of material from the Researcher friends

and Associates.

3.5 METHODS OF INVESTIGATION.

Some research questions asked are as follows:-

1. Has computer introduction had only any impact on

Accounting system?

2. Has computer introduction made the Accountant’s

job easier?

3. Has computer introduction provided more

Accounting information with same staff?

4. Has computer introduction made the storing and

retrieval of Accounting information faster?

5. Has computer introduction made the Accountant

more efficient?

Two weeks was given to respondents to file the

questionnaire. Due to proximity, the researcher embarked

on hand delivery and collection from responses to

research questions formulated for the study were

tabulated and analysed using percentages and

proportions. Furthermore, the researcher used additional

statistical tools, such as percentage for easy

interpretation and chi-square (x2) was employed for

testing hypothesis.

Personal interviews were also used to determine:

- rate and reasons for retrenchment.

 - Rate of employment before and after the

computerization of the affected department.

REFERENCES

1. M. Slater, Meeting Users Need Within library:

Trends in special librarianship (London)
(Slive Bingley, 1968) pp.122
2. E.C. Osuala, “Introduction to Research
Methodology” (Onitsha: African – FEB
publishers limited, 1967) pp.194
3. Y. Yamane, Statistics: Introduction Analysis: 3rd
Edition 5 New York, Harferad Row
Publishers, 1964) P.280.
4. M.O.G. Odo, Unpublished lecture note in research
Methodology at Enugu state University
of Technology Enugu, 1991 (Bus 502).
5. T. Lucey Quantitative Techniques: An instruction
 Manual, 3rd edition (London: ELBS,
1988) p.73.

CHAPTER FOUR

4.0 PRESENTATION, ANALYSIS AND

INTERPRETATION OF DATA

4.1 DATA ANALYSIS

This chapter deals with the analysis of data collected

during the study. There were primary data collected by

means of such research instruments as questionnaire and

personal interviews. All efforts on data collection were

concentrated on the computerized departments of A.G

Leventis and Co. (Plc) and Pak – Micro computer centre

Enugu.
 As at date, A.G. Leventis and Co. Plc involvement with

computer based information is quite on the high side,

therefore, its management is investing a lot of funds on

both computer equipments and computer personnel.

TABLE 1

EDUCATIONAL BACKGROUND OF RESPONDENTS.

Certification No. of respondent (x) Percentage

A.G. Paks- Total

Leventis Micro
First school leaving

certificate 6 3 9 10.00
WASC 23 10 33 36.67
Post secondary

qualification 11 6 17 18.89
University Degree

or its equivalent 10 7 17 18.89

Others 11 4 13 16.67
Total 59 31 90 100

Table 1 above shows the educational background of

respondents. Nine (10.00%) of First School Leaving

holders, thirty three (36.67%) are West African school

Certificate holders. Seventeen (18.89%) has post

secondary qualification (NCE). Seventeen (18.89%) has

university degree or its equivalent (OND, HND) while the

remaining fifteen (16.67%) have professional certificates.

It follows that 35.56% of the respondents are either

university degree or its equivalent holders or are

professional staff. 55.56% are either WASC or other post

secondary qualification certificate holders while the

remaining 10.00% are with first school leaving certificates.

 TABLE II

LENGTH OF SERVICE WITH A.G. LEVENTIS & CO.

AND PAK-MICRO COMPUTER PLC.

Length of service No. of respondent (x) Percentage

A.G. Paks- Total
(x/90x100)
Leventis Micro
Below 3 years 19 7 26 28.89
3 – 6 years 15 7 22 24.44
7 – 10 years 15 10 25 27.78
11-14 years 2 1 3 3.33
Over 15 years 9 5 14 15.56
Total 59 31 90 100

Table 11 above reveals the findings of the researcher in

area of length of service thus: twenty – six (28.89%) have

bee working for the company for less than three (3) years.

Twenty – two (24.44%) of the respondents have been in

the employment of the company for up to six years,

another twenty – five (27.78%) indicated joining for up to

six years, another 46.63% stood competent enough to

discuss events with the companies having served for not

less than seven years.

Table 111

THE SPECIFIC WORK OF RESPONDENTS

Office of work No. of respondent (x) Percentage
A.G. Paks- Total
Leventis Micro
Accounting 39 14 53 58.89
Inventory control 3 1 4 4.44
Management 6 4 7 7.78
Personnel 3 4 7 7.78
Share registration 5 3 8 8.89
Others 4 6 10 10.00
Total 59 31 90 100.00

The data in tale iii represents various departments in both

companies in which the respondents work within the

company. Fifty-three (58.89%) are located within the

General Accounts department, four (4.44%) within the

inventory control departments, ten (11.11%) from

management staff, seven (7.78%) located in the

personnel departments, eight (8.89%) are from the share,

registration departments while the last ten (10.80) belong

to other departments of the companies.

 TABLE IV

LENGTH OF USE OF COMPUTER

Length of Time No. of respondent (x) Percentage

A.G. Paks- Total
computer is used (x/90x100)
Leventis Micro
Below 3 years 27 10 37 41.11
3 – 6 years 19 11 30 33.33
7 – 10 years 7 7 14 15.56
11 – 14 years 1 1 2 2.22
Over 15 years 5 2 7 7.78
Total 59 31 90 100

The data in table iv reveals the duration of involvement of

respondents with computer in the companies.

Thirty – seven (41.11%) say they have been using

computer in the company for less than three years, thirty

(33.33%) indicated their involvement for up to six years.

Fourteen (15.56%) said their involvement is up to siz

years, two (2.22%) for up to fourteen years and seven

 (7.78%) have been involved with use of computer for over

fifteen years in the companies.

This is a further revelation that A.G Leventis and Pak –

Micro computer still keeps a fleet of their old computer

involved – staff while recruiting new ones. Also the

companies use of computer is some how not a new

phenomenon.

TABLE V – JOBS UNDER COMPUTER APPLICATION

Job Areas No. of respondent (x) Percentage

A.G. Paks- Total

Leventis Micro
Billing 00 00 00 00
General account 25 14 39 43.33
Inventory 20 12 32 35.56
Invoicing 00 00 00 0.00
Payroll 14 5 19 21.11
Total 59 31 90 100

Table V shows the various areas of computer according to

respondents. Thirty – nine (43.33%) say computer is used

for general accounting purpose, thirty – two (35.56%)

informed about its used for inventory control while

nineteen respondents (21.11%) say it is used for invoicing

as well.

TABLE VI

LENGTH OF TIME OF COMPUTER APPLICATION IN

JOB AREAS

Length of time of No. of respondent (x) Percentage

A.G. Paks- Total
Computer application

to jobs Leventis Micro

Below 3 years 5 3 6 8.89
3 – 6 years 30 13 43 47.78
7 – 10 years 15 12 27 30.00
11 – 14 years 5 2 7 7.78
Above 15 years 6 1 7 7.75
Total 59 31 90 100

The data in table VI shows the length of time of computer

application to various job areas in A.G Leventis and Pak –

Micro computer firms. Eight (8.89%) of the respondent

indicated a less than three years period of use, forty –

three (47.78%) said the application of computer to various

task has been on for up to six yeas, twenty – seven

(30.00%) believed that the phenomenon is as old as ten

years, seven (7.78%) indicated up to fourteen years of

use while seven (7.78%) said the use quite exceeds

fifteen years ago.

 TABLE VII

COMPUTER APPLICATION AND

RETRENCHMENT/LAY-OFF IN RECENT YEARS OR

PAST

Occurrence of No. of respondent (x) Percentage

A.G. Paks- Total
retrenchment/lay
Leventis Micro
off
Yes 25 14 39 43.33
No 19 7 29 28.89
Don’t know 15 10 25 27.78
Total 59 31 90 100

The data in this table Vii reveals that retrenchment or lay-

off occurred in recent past in A.G. Leventis and Pack-

Micro computer according to respondents. Thirty – nine

 (43.33%) of the total number of respondents answered

no, while the remaining twenty-five (27.78%) respondents

had no ideas.

However, this view will be tested using the chi-square.

TABLE VIII(a)

NUMBER OF STAFF AFFECTED

RETRENCHMENT/LAYOFF

No of staff No. of respondent (x) Percentage

A.G. Paks- Total
retrenched
Leventis Micro
Below 5 people 7 6 13 14.43
6 – 10 people 40 16 56 62.22
11 – 15 people 10 7 17 18.89
16 – 20 people 1 2 3 3.33
Above 20 people 1 0 1 1.11
Total 59 31 90 100
Table viii is an analysed view of ninety respondents over

the number of occurrence of retrenchment or lay – off

exercise in A.G. Leventis and Pak-Micro computer firms.

Thirteen respondents (14.44%) are of the view that is not

more than five staff were affected, fifty six (62.22%)

agreed to between six and ten people have been

affected. Seventeen (18.89%) say the number of affected

staff is between eleven and fifteen, three (3.33%) puts the

number at between sixteen and twenty while only one

respondent (1.11%) stated a figure of the number of

people that have been affected by the lay off exercise.

 TABLE VIII(b)

CLASS DISTRIBUTION OF STAFF AFFECTED BY THE

LAY-OFF EXERCISE.

CLASS Frequency mid-Point class (x) Approximate

(F) no of staff

affected (FX).
0–5 13 3 39
6 – 10 16 8 128
11 – 15 6 13 78
16 – 20 3 18 54
Over 20 1 23 23
Total 39 65 322

Using the mid-point of class distribution, one can obtain

the approximate total number of people affected by lay-off

exercise in A.G. Leventis and Paks-micro computer in the

recent past.
 Table Viii(b) reveals that the affected number is about

three hundred and twenty-two staff. This table will be

further analysed with table X.

TABLE IX

JOB AREAS OF LAYED-OFF WORKERS

Job description No. of respondent (x) Percentage

A.G. Paks- Total
Leventis Micro
Billing 00 00 00 00
General account 17 5 22 56.41
Inventory 5 2 7 7.95
Payroll 6 4 10 25.64
Total 59 31 90 100

Table ix reveals to the researcher the job areas of layed-

off workers, some of the respondents (17,95%) said the

layed-off workers belong to inventory control department,

ten (25.64%) said the retrenched workers were from the

payroll department while twenty-two (56.41%)

respondents were of the view that the layed-off workers

came from General Accounts department.

One revelation here is that the affected staff was those

concerned with performing repetitive task which are often

monotonous. Such jobs include preparing trial balance,

posting and ledger recordings.

TABLE X

YEARS AGO WHEN THE RETRENCHMENT EXERCISE

OCCURRED

Years of retrenched No. of respondent (x) Percentage

 A.G. Paks- Total
Leventis Micro
Below 3 years 15 5 20 51.28
3 – 6 years 4 2 6 15.39
7 – 10 years 0 0 0 0
11 – 14 years 8 5 13 333.33
Above 15 years 0 0 0 0
Total 59 31 90 100

Table X shows the time when the retrenchment exercise

took place in the economy. According to the respondents,

twenty believed it occurred less than three years ago.

(51.28%) another six (15.39%) said that it occurred about

six years ago; the last thirteen (33.33%) believed the

exercise occurred about fourteen years ago.

Application of computer to tasks in the companies

commence some ten years ago. Hence the retrenchment

exercise which can be implied by use of computer are

those that occurred ten years ago in the organization. The

sum of the percentages of respondents who identified this

period are (66.67%) (51.21% + 15.39%) as revealed by

table x.

A correlation of this percentage (66.67%) when applied

total number of retrenched staff in table viii(b) gives the

number of staff retrenched around the time computer was

introduced. This figure stands at two hundred and fifteen

workers (66% of 322 = 215).

This is the figure implied by the introduction of computer

to business operation (job areas) in A.G. Leventis and

Paks-Micro computer firms as indicated by respondents.

TABLE XI
ANY RE-TRAINING OF EXISTING STAFF.

Any Re-training No. of respondent (x) Percentage

A.G. Paks- Total
Leventis Micro
Yes 52 20 72 80
No 3 4 7 7.78
I don’t know 5 7 12 13.33
Total 59 31 90 100

Table Xi reveals whether or not re-training of existing staff

took place at the inception of computer introduction. From

the data collected and analysed, seventy – two (80%)

was of the view that re-training of staff took place while

seven (7.78%) gave “No” as an answer and twelve

(13.33%) did not know.

TABLE XII

INDICATE STATE-RE-TRAINING AREAS

Re-training areas No. of respondent (x) Percentage

 A.G. Paks- Total
Leventis Micro
On existing jobs 37 13 50 58.82
New jobs 22 13 35 11.18
Total 59 26 85 100

Table xii is a revelation of areas where staff re-training

took place. Fifty respondents (58.82%) were of the view

that re-training was on existing jobs of the staff concerned

while thirty-five (58.82%) were of the view that re-training

was on existing jobs of the staff concerned while thirty-

five (41.18%) said the re-training was on new jobs.

Personal interview conducted by the researcher further

revealed those personnel that were trained on new jobs

(41.18%) were those to be refrenched but hitherto were

found trainable on job areas involving computer, such

jobs include data operations, computer operators and

data preparation workers. This show that introduction of

computer created new job areas.

TABLE XIII

EMPLOYMENT OF NEW STAFF TO WORK WITH THE

COMPUTER

Was any new staff No. of respondent (x) Percentage

A.G. Paks- Total
employed
Leventis Micro
Yes 25 12 37 43.53
No 20 8 28 32.94
I don’t know 15 5 20 23.53
Total 60 25 85 100
Table xiii reveals the views of the respondents on new

appointments due to introduction of computer in the

business operations of A.G. Leventis and Paks-Micro

computer companies. Thirty seven (43.53%) of the

respondents opined that there were appointments created

by the introduction of computer while twenty-eight

(32.94%) were of the opinion that there were no new

appointments and twenty (23.53%) of respondents did not

know that the introduction of computer implied new jobs.

TABLE XIV

NUMBER OF NEW STAFF EMPLOYED

No of New staff No. of respondent (x) Percentage

A.G. Paks- Total
Leventis Micro
Below 5 people 23 10 33 89.19
6 – 10 people 3 1 4 10.91
Total 26 11 37 100
 Table xiv shows the number of new staff that were

employed due to introduction of computer in A.G.

Leventis and Paks- Micro computer. Out of the thirty-

seven respondents, thirty-three (89.19%) were of the

belief that not less than five new workers were employed

and four (10.81%) said the number of new employees

between six and ten.

TABLE XIV(a)

CLASS DISTRIBUTION OF NEW STAFF EMPLOYED AT

THE INTRODUCTION OF COMPUTER

CLASS Frequency mid-Point Approximate no of

(F) class (x) staff affected (FX).

0–5 33 3 99
6 – 10 4 8 32
11 – 15 0 13 0
16 – 20 0 18 0
Over 20 0 23 23
Total 37 65 131

Table xiv(a) shows that approximately one hundred and

thirty – one new members of staff were employed due to

computer introduction.

However, from the personal interview used a data

collection tool (Appendix I) the researcher gathered that

four members of staff were retrenched as a result of

computer introduction while thirty new staff were

employed in due course.

The questions were administered on the department

heads of the computerised sections, the personnel

manager, the EDP manager and the union leaders.

All these officers were in the company before the

introduction of computer and all except the EDP manager

were heads of their respective departments at that time.

These officers did not mince words in their responses to

the time computer application started in A.G. leventis as

2001.

According to the financial accountant, two members of

staff that were retrenched is as a result of computer

application to operations, were old elerks whose jobs

were to prepare some management reports such as trial

balance and balance sheet which are informations now

obtained from the computer.

These retrenched staff according to him, could have been

given re-orientation with the scores of other staff

members who were either transferred or retrain but they

(retrenched staff) were hither to showing signs of

weakling old, inefficiency and not too bright tract-record.

Twelve staff were transferred from old department to new

ones while sixty two other members of staff were either

trained or retrained as a result of computerization.

The training and or retraining staff were on computer

related jobs, some trained to complete the input forms

into the computers from source documents, some enter

data from input device onto the computer and others

check the print outs or outputs of computer against input.

The senior management staff who participated in the

training/retraining exercise were trained on how to

interprete and use computer information.

The EDP and personnel Managers opined that thirteen

new members of staff were recently employed as a result

of computerization. Six of the new staff are management

staff, there supervisors and four junior staff. These new

staff are technical specialist in various areas of computer,

such as computer engineers, software analyst, hardware

specialists, system analysts programme and computer

operators.

The union leaders on the other hand agreed with the

departmental heads on figures of retrenched workers and

expressed satisfaction at the way the exercise was

carried out saying “that management was very fair with

the exercise especially as staff were either transferred or

retrained.” They equally agreed to the fact that

management held dialogue with them on several

occasions and expressed satisfaction at the maturity and

good leadership potential of management.

TABLE XV

JOBS PERFORMED BY THE NEW COMPUTER STAFF

2002 2 5 15 10 5 4 9 5 55
2003 2 4 13 11 6 2 11 5 54
2004 4 6 11 13 8 3 10 7 62

SOURCE: PAK-MICRO INTERNATIONAL PLC

EMPLOYEE FILE OR RECORD.

Table xxiv and table xxv indicate the employment history

of A.G. Leventis and Co Plc and Paks-Micro computers

Plc between the year 1995 through 2004.

Full computerization of the companies various job areas

started in 1995 with the establishment of Electronic data

processing (EDP) department which occupies a separate

building – the computer centre.

The drop in number of employment level is not due to

computer application parse but was due to downward

trend in the economy of the nation, however, the figure

have started to pick up in recent time. This again is due to

the adaptation of company policies towards the economic

environment requirements for revived and survival.

TESTING OF HYPOTHESIS

The hypothesis testing was based on the response

obtained from the respondents. The test became

necessary in order not to pre-empt the research findings

by using the null hypothesis test technique and chi-

square x2 distribution.

HYPOTHESIS I

Problem

Ho: The introduction of computer to business operations

of A.G. Leventis and Paks – Micro computer does not

imply unemployment.

Hi: The introduction of computer to business operations

implied unemployment.
 To satisfactorily test the above hypothesis, a contingency

table, which was sourced from table vii, which had to do

with whether or not computer application led to

retrenchment, became the basic data bank.

CONTINGENCY TABLE XXIV

Response Junior Union Senior Total

workers members staff

Yes 12 8 19 39
No 9 7 8 24
Don’t know 12 5 5 22
Total 33 20 32 85

Source: Researchers survey result using

X2 = ∑(O – e)2

e
where O = Observed frequency

e= Expected frequency

but expected frequency (e)

= row total x column total
grand total
but level of significance chosen = 0.05.

degree of freedom for a 3 x 3 contingency table is

= (R – 1)(c – 1)

where R = No of row.

C = No of columns.

d.f. = (3 – 1)(3-1) = 4

critical value at 4 d.f at 0.05 level of significant = 9.488

decision rule : if critical value is  computed value from x2

then accept null hypothesis and otherwise reject.

e = Row total x column total

Grand total

C11 = 39 x 33
 85 = 15.14

C12 = 39 x 20

85 = 9.18

C13 = 39 x 32

85 = 14.68

C21 = 26 x 33

85 = 10.09

C22 = 26 x 33

85 = 6.12

C23 = 26 x 32

85 = 9.78

C24 = 20 x 33

85 = 7.76

C32 = 20 x 20

85 = 4.71

C33 = 20 x 32
 85 = 7.53

TABLE OF DISCREPANCY XXVII

Cell O e (O – e) (O – e)
e
C11 12 15.14 3.14 0.65
C12 8 9.18 1.18 0.15
C13 19 14.68 4.32 1.37
C21 9 10.09 1.09 0.11
C22 7 6.12 0.88 0.13
C23 8 9.78 1.78 0.32
C31 12 7.76 4.24 0.43
C32 5 4.71 0.29 0.02
C33 5 7.53 2.53 0.85
X2 3.93

Decision: since critical value (9.50) is greater than

computed value for x2 (3.93), the decision will be to

accept the null hypothesis.

Interpretation: The introduction computer to business

operations does not necessarily imply unemployment as

 the null hypothesis is valid within the frame work of the

problem of study.

HYPOTHESIS II

Problem: Ho: that there is a direct relationship between

computer introduction and employment of new staff.

Hi: that there is no direct relationship between

introduction of computer and employment of new staff.

To Test the above a contingency table from table Xiv was

used.

CONTINGENCY TABLE XXXVIII

Replace Junior Supervisors Managers Total

workers
Yes 15 13 9 37
No 12 9 7 28
Don’t know 8 6 6 20
Total 35 28 22 85
SOURCE: Researcher survey resulting using

X2 = ∑(O – e)2

e
but expected frequency (e) =

Row total x column total

Grand total

Level of significant chosen = 0.05

Degree of freedom for a 3 by 3 contingency table is

(r-1)(c-1)

where R = No of row.

C = No of columns.

d.f. = (3 – 1)(3-1) = 4

Critical value at 4 d.f at 0.05 level of significant = 9.48

Decision rule: if computed value x 2 is  critical value from

reject null hypothesis and otherwise reject.

Computation:

e = marginal row total x marginal column total

Grand total

e11 = 37 x 35

85 = 15.24

e12 = 37 x 28

85 = 12.17

e13 = 37 x 22

85 = 9.58

e21 = 28 x 35

85 = 11.53

e22 = 28 x 28

85 = 9.22

e23 = 28 x 22

85 = 7.25
e31 = 20 x 37

85 = 8.71

e32 = 20 x 28

85 = 6.59

e33 = 20 x 22

85 = 5.18

TABLE OF DISCREPANCY XXVII

Cell O E (O – e) (O – e)
e
C11 15 15.24 0.24 0.01
C12 13 12.19 0.81 0.05
C13 9 9.58 0.58 0.04
C21 12 11.53 0.47 0.02
C22 9 9.22 0.22 0.1
C23 7 7.25 0.25 0.01
C31 8 8.71 0.71 0.06
C32 6 6.59 0.59 0.05
C33 6 5.18 0.82 0.01
X2 0.26
 Decision: since x2 computed is not greater than critical

value, the decision will be to accept the null hypothesis.

CONTINGENCY TABLE XX

CONTINGENCY TABLE XXXVIII

Response Junior Supervisors Managers Total

workers
Yes 20 14 6 40
No 15 8 6 29
Don’t know 6 5 5 16
Total 41 27 17 85

SOURCE: Researcher survey resulting using

X2 = ∑(O – e)2

e
but expected frequency (e) =

Row total x column total

 Grand total

Level of significant chosen = 0.05

Degree of freedom for a 3 by 3 contingency table is

(r-1)(c-1)

where R = No of row.

C = No of columns.

d.f. = (3 – 1)(3-1) = 4

Critical value at 4 d.f at 0.05 level of significant = 9.48

Decision rule: if critical value is  computed value x2,

accept null hypothesis, if otherwise reject null hypothesis

and accept the alternative hypothesis.

Computation:

e = marginal row total x marginal column total

Grand total
e11 = 40 x 41

85 = 19.29

e12 = 40 x 27

85 = 12.17

e13 = 40 x 17

85 = 8.00

e21 = 29 x 41

85 = 13.97

e22 = 29 x 27

85 = 9.21

e23 = 27 x 17

85 = 5.80
TABLE OF DISCREPANCY XXVII

Cell O E (O – e) (O – e)
e
C11 20 19.29 0.71 0.0261
C12 14 12.71 1.29 0.1309
C13 6 8.00 2.00 0.5000
C21 15 13.99 1.01 0.0729
C22 8 9.21 1.21 0.1590
C23 6 5.80 0.20 0.0069
C31 6 7.72 1.72 0.3832
C32 5 5.08 0.68 0.0013
C33 5 3.20 1.50 1.0125
2
X 1.2928
Decision: the decision will be to accept the null

hypothesis and reject the alternative hypothesis because

the critical value is greater than computed value (x 2).

Interpretation: Computerization makes more information

available with less staff.

CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATION.

5.1 SUMMARY OF FINDINGS

1. Computer has been introduced in all the

departments of studies. This introduced bean

about ten years ago to process various jobs,

such as inventory control, payroll system and

General ledger Accounts.

2. 45.88% of the respondents according to table vii

observed that there was retrenchment exercise

in the recent past. The number of people affected

by their exercise varies from one department to

the other 41.03% of the respondents observed

that the number of those affected is between six

and ten people (table viii) some (33.33%) said

less than five workers were affected while

 15.39% agreed that they were over twenty

employee affected by the retrenchment exercise.

Table vii(a) shows that the estimated total

number of employees affected at the time

computer was introduced were about three

hundred and twenty-two people.

However, persona interview conducted by the researcher

on the personnel manager, Heads of the computerized

departments, the EDP Managers and the Union Leaders

show that only four employees out of these three hundred

and twenty-two people were retrenched as a result of

introduction of computer to business. While about 89% of

the respondents (table vi) agreed that computer was

introduced between seven and ten years ago, the view as

to when retrenchment took place was divergent. Table x

show that 51.28% of the respondents are of the view as

to when retrenchment tool place about three years ago

while 33.33% of respondents said it took place about ten

years ago.

4. 84.71% of the people interviewed (respondents)

confirmed that there was retraining of existing workers.

(Table xi) 41.18% of the respondents said the retraining

was on new job while 58.82% of the respondents said the

retraining was one xisting jobs (table xii). Interview

conducted showed that sixty-five members of staff, were

actually involved in the training/retraining exercise which

was conducted as a result of the introduction of computer.

5. It was revealing from table xiii that 43.53% of the

respondent agreed that the new employees were

employed to work with the computer. 89.19% (table xiv) of

the respondent viewed that the new workers in each of

the departments were below five in number while 10.91%

said they were between six and ten people in number. In

all the actual number of new staff employed as a result of

introduction of computer to business operations was

found to be fifteen. These new employees work as

computer engineers, system analysts, programmers and

operators.

6. It was discovered during the investigation that the

computer provided more information. In table xv 8.70% of

the respondents agreed that more information comes out

from use of computer than manual. Table xiii indicates

that these information are presented in a better, concise

and easy to assimilate format than the information from

manual operation as confirmed by the view of 53.94%

(table xx) of the respondents said that the information

from the computer is more accurate than information from

manual operations. Furthermore, the reliability of

computer information relative to manually generated

information is put at 92.94% according to respondents

(Table xx(a).

Moreover, 90.59% (table xxi) of respondents said that

they have better confidence in computer generated

information.

8. Many of the respondents were of the view that the

volume of information generated by use of computer

would not have been possible by use of manual

operations indicated by 88.23% of people served with

written questionnaire Table xxii.

9. It was revealed that to achieve the present volume

of information extra resources will be needed. 24.70% of

the respondents said that more time than used will be

required, 47.06% agreed that more personnel would be

required while 17.65% said more money will be required.

10. The researcher gathered that there was better

understanding and co-opertion between management of

A.G Leventis and the trade union executives in the

company on the introduction of computer. The personnel

department on behalf of management held several

meetings and consultants with union executives

(members). As a result, the union gave a willing co-

operation.

11. Economic recession and rough business climate

were implicated for decline in employment as shown in

table xxiv rather than introduction of computer to business

operations in the organisation. Very recently, many

business organizations includeing A.G Leventis and Pak

Micro computer are all trying to cope with the demands of

the structural adjustment programme of the federal

government as a step to revamp the economy. Other

economic measures indiginizaiton, local sourcing of raw

materials and backward integration research and

development as well as others have in the short run

increased cost of production astronomically. Therefore

companies like Pak-Micro computer and A.G. Leventis

have to control cost by either reducing staff strength or

maintaining same level of employment.

CONCLUSION
Although computers are the society’s technological

marvels, they are also one of its greatest headaches.

Interestingly, many of the problems not technical or

economic problem.

The literature review shows that many of the implications

of technological changes are sources of industrial conflict

and turbulence – employment security, job security, the

perceived threat to union survival, deskilling and

retrenchment.

In conclusion, one may simply say that as technological

changes proceed, labour management relations may

become more prone to cross fires and industrial unrest.

“It is important to recognise that technological

changes set in motion initiatives and dispositions

 one hand, and reactions and responses on the

other hand, which together create scenarins for

conflicted labour management relations”.

As computers continues to play an increasingly greater

rile in all segments of the society, both government and

business concerns must begin to move rigorously and

attack the human related problems they created before

these problems become entrenched and imporrible to

rectify.

The computer and associated technologies have not only

formed to be efficient but also effective as means of

processing and managing information.

It has been shown in the course of this study that use of

computer for processing clerical tasks implies displacing

employees who perform these repetitive and monotonous

duties manually. It has equally been shown from this

research that the introduction of computer implies a

change in method of processing. Introduction of computer

does not necessarily imply reduction in employment. The

number of employees applicated by introduction of

computer to business operation in this study is quit

insignificant to conclude otherwise.

Moreover, the four employees implicated would have

been retained of only they were productive, capable and

willing to learn. On the contrary, existing employees

received training to use the new equipment thereby

increasing the productivity, awareness knowledge and

efficiency in their job areas and other related tasks.

Furthermore, the introduction of computer to business

tasks implied new jobs, such as computer engineers,

system analysis, programmers, computer operators and

data preparation clerks.

Since computer increase the scope of work performed,

total employment level in the economy may not have

changed considerably.

The jobs created by computer application are probably off

set by jobs displaced by the computers. (i.e. a sort of

substitution effect).
5.3 RECOMMENDATION

From the data collected analysed in chapter four, the

following proposals are hereby recommended:

1. As business organizations grow bigger and

bigger in size, executives get further detached

from processes and rely on second-hand

information, therefore, such big organizations

should “go computer” as to give or generate

accurate and reliable information for which for

quick and dynamic decision making process.

2. Qualified computer personnel should be

employed to manage the areas of computer

operations.

3. Existing staff should be retrained to effectively

handle the computers, interpret and use the

 information thereby generated for better overall

management.

4. The computers should be maintained constantly

by qualified engineers and standardized from

time to time to avoid computer – down- time and

malfunctions.

5. Practices such as on the job training, job

enrichment, job rotation and so on should be

practiced to ensure that other staff not directly

involved with use of computers for now, can later

be changed with those currently using computers

to avoid boredom, retarded productivity and

other short comings of repetitive tasks.

The researcher revealed that computers provided more

information with less number of staff to a large extent that

can be manually provided. This computer generated

information is more accurate, reliable and dependable.

Larger volume of data can be processed and handled

within a very short period of time due to high speed and

efficiency with which the computer operates.

Computer generated information are well designed, clear,

magnificently presented and easily digested. These

information can also be produced to a large extent in

various sizes of prints, colours, business language, and in

large copies as quick as possible.

The quality of decision – making have to a large extent

been increased by the introduction of computers to

business tasks. It has also increased the security and

retention of vital data for longer periods of time in a

manageable space (diskette) for easy retrieval.

It is quite possible that the lukewarm attitude of most

people towards computer introduction will in the longrun

change for the better as this study revealed that

computerisation does no to a large extent imply

retrenchment or lack of employment.

 SELECTED BIBLIOGRAPHY

Agbasi, K.C., Introduction to computer science and

programming.

(Enugu, A.B.I.C, Books and Equip

Limited, 1991).

Cliffton, H.O., Choosing and Using Computer.

(London; Business Books, 1975)

hugh, J. Watson and Computers for Business

Archie B. Carroll, (USA, Business Publications

incorporation, 1984).

John Mossi;, Foundations of programming

(London, input too – Nine Ltd, 1978)

lucey, T Quantitative Techniques:

An instruction Mannually.

(4th Edition (London, ELBS, 1989)

Luthens F. Organisational Behaviour: A Modern

behavioural Approach to Management.

(New York: MacGraw – Hill Book

Company; 1979)

Osuala, E.C. Introduction to Research Methodology

(Onitsha: African – FEP Publishers Ltd,

1987)

Slichter, Summer, H: The Impact of Computer

Healy, Hames, Jr. Collective Bargaining on Management

(Washinton, D.C: The Bookings

Institution 1960).

Thompson, J.D. Organizations in Action.

(New York; McGraw – Hill, 1979)

Yamane, Y:Statistics: Introduction Analysis

(New York: Harper and Row Publishers,

(1964).
ARTICLES:

Adegbeyeni, E.O. “Computer Applications in priority

Areas in Nigeria in Management in

Nigeria

(Vol. 21, No. 9 September, 1989.

Akinnusi D.M.: “Technological changes in

Development Economics”. A study

of the Application computer

Technology in Nigeria” in

Management in Nigeria

(Vol 27. No. 3 May/June, 2001)

Asuquo, Mike, “Devices that keep felons at Boy”

The Guardian (October, 4th 2001)

Attahir, B. Yusuf. “Developing a shell Based Expert

System in a Business

Environment: An application in
 insurance underwriting” in

Nigerian Financial Review.

Nigerian Financial Review.

(Vol. 3. No 3 September, 2000)

Biod C. “Managing Technostress:-

Optimizing the use of computer

Technology”. In personnel Journal

(Vol. 61 No.10, October, 1982)

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marketing information in Retail

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NEWSPAPER/REPORTS

Annual reports, Western Austrailian Division of the

Austrian Bank Officers Association May,

2003

Australian Bankers, August, 1932

Daily champion, June 13th 2003

Daily champion January 10th 2004

I.L.O. labour and Automation Bulletin No 2.

A tabulation of case studies in technological change

General 1986.

The Guardian, March 25th 2003.

PERSONAL INTERVIEW WITH UNION LEADERS

QUESTIONS:-

1. When did you join the company?

2. How long have you been involves in union

activities of this company?

3. When was computer introduced?

4. Were the union leaders informed prior to

introduction?

5. How did your union react to the introduction?

6. So far, how many number of staff have been:-

a. Trained

b. Transferred or redemployed

c. Retrenched or laid-off due to computer

introduction?

7. What was the grade of each of the workers

involved?
8. How many people (if any) have been newly

employed as a result of computer introduction?

9. What’s the status of the newly employed

10. Would you say computer introduction has been a

fair management decision by your company?

APPENDIX

PERSONAL INTERVIEW WITH HEADS OF

COMPUTERISED DEPARTMENT

QUESTIONS:-

1. When did you join the company?

2. When was this department computerised?

3. What was your post/designation at that time?

4. What was the number of staff in your department

before it was computerised?

5. How many workers do you have after the

computerization?

6. a. what happened to the difference in number (if

any) were they transferred, redemployed, re-

trained for another job or termination?

b. How many workers were involved in each

case?
7. How many new employees were offered

appointment as a result of the computerisation

exercise?

8. What are the jobs being undertaken by these

new people?

9. Did these jobs arise as a result of

computerization or they are computer –

influenced jobs?