Impact of IT on Organization Culture

Impact of Information Technology On Organization Culture

Muhammad Raheel Umair MBA, 8696

Department of Business Administration Iqra University, Karachi

Information Technology Culture on organization 1

Introduction

To enable managers for good control and manage organization in a crescendo manner have focused on the organization culture. Many researchers have also focused on culture. Culture plays a vital role in any organization. Every culture is different and not all technologies are equally acceptable in all cultures. Trempenaars & Hampden-Turner Stated that "technology do work by the same rules everywhere even on the moon" (Trempenaars & Hampden-Turner 1998). This statement can be true about machine but not about human machine interaction. So it is true that technology is free of culture but some technology such as IT that affected on human behavior may not be free from culture. The main objective of my paper based on to describe the influence and impact of information technology culture on organization. If we understand in better way that what is culture then better we can maximize use of information technology in work place and manage organization. From last past decade there has been increasingly interest in the impact of culture differences on development and use of information and communication technology. Global world is moving forward toward global market with interaction between members of different culture and nation. In fact global activity is crescendo and buttress to a large extent by information system and communication technology. So it is important to understand impact of information system culture (Jarvenpaa, S.L; Ives 1991).

Impact of IT on Organization Culture

Culture The term culture is very important term in business environment. Several writers define culture in different way. To understand impact of information technology on culture it is necessary to understand the term of culture. Groeschland Doherty pointed out that culture is more complex and difficult to define. Culture consists of several elements of which some are implicit and others are explicit. Most often these elements are explained by terms such as behavior, values, norms and basic assumptions (Doherty and Groeschl 2000). I think research of a culture consist on a entire countries and regions large number of people. Tormpenaars, said ,research on culture sometimes focuses on large groups of people such as entire countries or regions (Trompenaars, Greed and Michle 1993). The collective programming of the mind which distinguishes one group or category of people from another. (Hofstede 1993). The distinctive patterns of ideas, beliefs, and norms which characterize the way of life and relations of a society or group within a society ( Reeves and Baden 2000). That part of man's behavior which he takes for granted--the part he doesn't think about, since he assumes it is universal or regards it as idiosyncratic. (Edward hold 1950). These above definitions show that culture is accepted and presented everywhere and culture affected on information process and decision making.

Information Technology Concept

Impact of IT on Organization Culture

Information Technology is also known as information and Communication Technology (ICT) is a broad subject concerned with technology and other aspect of managing and processing information, especially in a large organization. Maintaining competence is a continuous challenge resulting from the continuous stream of technical innovation in applications, as well as the capability, diversity, and complexity of IT and the importance of IT innovation in the overall performance of organizations (Schambach and Blanton 2002). Information technology is a need of every organization to enhance and build good organization culture and in this era of age none of the organizations provide broad culture without using information technology. In information technology every single technological thing is covered. With the help of using technology we can easily enhance businesss effectiveness, efficiency and achieved targeted goal with success. In addition, we can say that information technology is a use of electronic hardware and software system for store, transmit, retrieve and process of information. Mostly Information Technology professional are called IT specialist and they know very well that how to deal with this technology. And in the organization that deals with information technology is called Information Technology Department. Database, Network Communication System and ERP System are also consisting in Information Technology and playing spread role in organization proficiency. In a competitive environment driven by economics and technology, successful organizations must weigh the risk of implementing systems that employ new technologies against the cost of falling behind technologically (AlBanna & Osterhaus 1998).

Impact of IT on Organization Culture

Technology deployment is very important for those organizations who want to win the race in though competition and maintain organized and automated culture.

Impact of Information Technology on Organization culture

Organizational culture is seen as a source of inertia in IT implementation (Cooper 1994). Cooper argues that organizations have two main competing dimensions: order versus flexibility, and demands of the internal systems versus demands of the external environment. This creates organizations that have one of four basic organizational cultures: human relations, survival, stability, and productivity. In order for an implementation of a new Information System to be effective, the Information System should be supportive of the current culture. If the current culture is not supported, then there will be inertial resistance to its adoption. But it can be make more supportive with the help of proper planning and training of the information system and with the creation of information technology culture. Information Technology is an important component for an organization and gives tremendous benefit. We can enhance the power of decision making of manager and their subordinate with the help in Information System. All managers wants fast, exact and accurate information on time and they want to rely on this information. Teng and Calhoun measured two dimensions of IT and defined two types of decisions and demonstrated that IT influences decision making in a study of US managers and professionals. The respondents perceived that use of IT impacted a number of factors

Impact of IT on Organization Culture

associated with decision making and that the impact was often different for computing than communications and also different between the types of decisions (Calhoun and Teng 1996). Other important part of information technology is an electronic communication system. Such as E-mail, Internet, Intranet, Extranet, Electronic Meeting System, Internet Protocol Phone, Internet Protocol TV and lots of different communication system. Culture plays a role in determining the kind of communication media selected technologies are developed with assumptions of what they are to accomplish but also how they are to be used (Straub 1994). Now a days almost every organization is engaged with such type of communication and these communication technology system provides automate culture system for interaction within and outside of the organization and save lots of time of mangers and their submissive and also effective for fast decision making. Most of the researchers provide a model of information technology, information system and organization culture influence. With the help this we are able to identify how information is generated and used in decision making. Information system is responsible for transformation of data into information. Southem and Murray used the term "information-based culture" For expressing the need for all those involved in data collection to share the idea that an information system must be supported by a good data system. In addition to these it should be said that when these data are processed, ethical principles must be considered, which are in turn a result of the general culture existing in the firm (Southem and Murray 1994).

Impact of IT on Organization Culture

Another part of Information System is ERP System (Enterprise Resource Planning). Complete organization can take benefit from one link of ERP system. With the help of ERP system we can interconnect all department resources, interchange data and also give data access and privilege as per user demand. Information data is more consistent and reliable. Members of the organization can easily be accessed subject to privilege of access. Enterprise resource planning (ERP) software provides a coherent integrated electronic business management environment culture (Gelen and Andrew 2008). ERP System also provides technical analysis and graphical presentation of data and it is very effective for decision making and time saving. ERP system creates complete technological culture. ERP system also enables Sales forecast, Finance forecast, Procurement and logistic, Employee Information System, Payroll System, Vacation System ,Customer Relationship Management program and so on. ERP system provides effective information technological Culture System for organization. Some giant ERP system names are Microsoft, Oracle, and SAP so on. To survive organizations, ERP systems have a biggest need and importance today. Information Technology wields positive impact on organization culture and gives positive changes in performance, norms, structure of the organization. For adequately changing in organization culture, Information Technology is that tool which can be rendered to achieve organization goals and desires successfully.

Conclusion

Impact of IT on Organization Culture

This paper research area is very limited. Many scholars and other researcher are also not yet completely explored impact of information technology on organizational culture. This paper study suggested that culture is a very important part of the organization. And to survive in the era of information and automation age information technology use is mandatory. Below are the some point listed as a conclusion of this paper study. Implementation of the information system create automate culture and necessary for organization success. For communication, Electronic Communication is an important mean for within and outside the organization and enables effective communication with bosses and their inferiors. Also interconnect all organization and share information with every one. E-mail is one of the examples for such communication. ERP (Enterprise Resource Planning) integrate all data in a single platform and increase the reliability of result and give access to privileged individual. With the help of ERP System we can take quick, better and accurate information. And helpful for future projection. Information Technology also creates a social control within the organization. For example, the implementation of Information Technology and the correct tendency in organization members towards such Information System is the only mean of formal measures.

Impact of IT on Organization Culture

Information Technology System crescendo the satisfaction of organization members and agility of wok. Information technology culture tremendously gives successes to organization.

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Impact of IT on Organization Culture

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