BACKGROUND OF THE TOPIC
Technology has affected every aspect of human life. Every field of business has been affected by it. It has changed the ways of living of human ,the way we communicate, the way we learn, the way think. It has a great impact on private and business sector as well. It provides huge opportunities to help the development of business. Due to technology many impossible things have been become very easier for businessmen. It has reduced the large need of employees, but increased the efficiency of work. In past times which work required a lot of people and a lot of time to be completed, nowadays only single person finish that work in just few minutes. For example, in past time the work of typing required many people to do that work, but now only a man can do that work in just few seconds. So we see how technology is affecting our business. Human resource management also has its great influence. Technology has affected directly organizations and HR functions. It has some positive and negative influences on HRM organizations and its functions. In this dissertation researcher have going to discuss the influence of information technology and telecommunications on human resource management. What are its good and bad effects on HRM, researcher will discuss in this dissertation.
A)POSITIVE IMPACTS OF INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS ON HRM
In past few years it was a belief that human resource managers use technology only to fulfill few needs such as administrative tasks. But nowadays it is no longer like this, these days the whole structure of business depends upon technology. A single step cannot be taken further without the think of information technology. ‘The future growth and development of business will depend on the use knowledge of technology, information technology and services provided by them' (Barley 1996). So these days information technology is helping businesses to grow and to develop on a large scale. It helps managers to recruit efficient employees, to save their personal information, for the motivation and good leadership if the employees, to finding new techniques of work, to increase profit and for future planning for business. So let's discuss the positive impacts of technology on human resource management:
Recruitment of new employees:
As we see these days maximum people rely on the internet, and according to the predictions of researchers number of people who use internet is growing in millions every year. ‘Well educated people, who have skills and full of ambitions, regular working with information technology and communication, have more influence of information technology' (Bola and Truman, 2003). So many companies are taking advantage of this thing; they are recruiting efficient, skilled and passionate people online according to their needs. This procedure of recruitment is very much beneficial for the employers, one side it provides those efficient employees and on the other hand it is very cheaper and the third thing is it is a very quicker way of recruitment. By postal or any other way only limited people can be informed for the company's requirement, but via internet hundreds of people can be attracted by your job and company. So we see information technology has made recruitments very easier.
To save employees full data:
Because of information technology the whole data of each employee can be saved for years. Means even after 50 year it can be confirmed that who worked on which post that time. An employee's personal details, job title, post, pay, duty hours etc can be saved for future use. Even his or her performance at work also can be measured, an organization can come to know that who is performing in the favor of the company and when time comes he or she can get promotion or can be fired from the job due to bad performance. On the other hand organizations required to save employees skills, work experience, his efficiency on work and his performance in previous job and his salary for that job. These all things organization can get through internet can save on their system. This information that firm can use in future, and if any employee needs any additional training then that firm can arrange it for him.
Organizations are finding new ways of work:
Because of developments of technology and communications now organizations are finding new advanced ways of work. ‘Communications and information technology is providing a wide range of opportunities to organizations to perform well' (Lindstrome, mob erg and Rapp, 1997). These days' organizations are adopting new ways of ways of work which are more efficient, advanced, and profitable for them. By using these ways they are getting more productivity and more presence of employees at work.
The most relative of changing ways of work due to technology is teleporting, in which method an employee of an organization can do his or her job sitting at home even in his bed. ‘In this term of work, work comes to the worker not worker goes to the work' (Niles, 1998). Because of this term of work an organization can save a lot of money. If they will do work at offices then organization would have to provide a lot of facilities to the employees, like a table, chair, computer, and a lot of other things but in teleconferencing an organization can save the cost of all these things. There is another term of work which is being used in project oriented work with subcontracting. Today most skilled and ambitious people do not want to be bound with a company and organizations also hire those people who are necessary for their projects they need their assistance for work just for a limited time of period. So those people are not formal members of the company. It is very beneficial for the firms because they can get 100% benefits of the skills of that man, and they need not to employee him for a long time and if firm starts a new project then they can hire another man required to that project. ‘A huge number of people who work for an particular organization may be still work for the same job in future, but a slowly growing small number of people will not work like this. Part timer workers are the contractors for a limited period of time for an organization,' (Ducker, 2001).
Better information management
Because of information technology and communications storage of data and information has become so easier. IT is providing a lot of possibilities for the betterment of information management in organizations. ‘By using IT an organization can protect its information from outside world and IT also provides simple storage, maintenance, and sharing of information among organization's members. These all are the essential tasks for a better information management' (Marched et al. 2001). Information technology helps to improve the performance of a business so to improve the performances.
For the motivation of employees:
Information technology helps organizations to motivate its employees for better performance. They can offer their employees much psychological, financial reward. An organization can offer many beneficial policies to its employees, by these rewards an employee tends to be honest with his work the organization can achieve its goals because without the co-operation of employees organization cannot be successful. ‘Because of information technology we can think of many changes about the motivation of an organization employees' (Bola and Truman, 2003). So we can say that information technology helps a lot for the motivation of the employees, an organization can allow them to know how it is going to satisfy its employees. Like this it can attract other firms' skilled employees who are unsatisfied with their firm or organization.
Technology used in training of employees:
Nowadays many companies required employees trained with modern techniques of information technology because technology is developing with a fast pace and to compete in the industry organizations need employees with the knowledge of modern technology. Organization using technology for the training of employees, they can train them according to their requirements in a particular skill and they can be used for organization's favor and these trained workers can proved to be a profitable asset for the organization. Organizations need not to recruit a large number of employees, who are not perfect for that job, organization can spent money in a positive manner instead of giving wages to those employees who are not useful for them. Another term is related to that is a company can give training of more than one to a single person, it is beneficial for them in case of one of the employees left the job who was working on a particular project then organization can recruit another employee from their own organization on the same post rather than finding another employee with the same skills, wasting time. Like this an organization can save a lot of time and money.
More profit for the organizations:
Today we can reduce the cost of organization with the effective use of information technology and the profitability of the organizations is increasing day by day with more improved technologies. There are a lot of things to get more profit for instance, these days due to technology; recruitment of people has been decreased. In past organizations had to recruit employees in a large number, their speed of working was less, but organization had to pay them a lot of money without getting much profit. But these days because technology has developed on a large scale so a large part of work which was done by people in past, now days by developments in technology has been done by fewer employees in a very short time period. Due to advancement in technology many HR functions such as recruitment of employees can be performed with less usage of time and resources and organizations can find easily the right persons for their jobs. Another thing is organizations can always keep an eye on the performance of employees, due to this employee cannot shirk work. He gives his 100%. So like this an organization can get more profit, and more productivity. So all these are the positive impacts of Information technology and communication but there are some negative impacts also. So let's discuss those too.
B)NEGATIVE EFFECTS OF DEVELOPMENTS IN THE FIELD OF INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS
There are many positive influences of speedily improving information technology but there also some negative effects of it. Due to the developments in this field of business every aspect has been changed, strategy of work, planning of work etc. and it is continuously changing even in present too. So for employees who are working with the old techniques, it is hard to understand new techniques of working. Those organizations which do not adopt new method cannot meet the ever changing requirements of the industry and it is also very hard for an organization to find out right skilled person for them, because persons with the knowledge of latest technology are rare. Technology is directly affecting the functions of human resource management. So these all things are discussed here:
As we have discussed above that technology is very cheaper and very fast, by technology any type of work can be done quickly as compare to men. So in past a huge number of employees had been recruiting. But nowadays organizations need a few employees with proper skill. As manpower planning a human being is referred as a machine in this technological era means if he is working or giving profit then it's ok otherwise through him out. It is not fault of organizations or human beings rather it is the requirement of today's world. Because of technological developments organizations require less but skilled person for employment to compete the world. An organization cannot tolerate the burden of overstaffing, because it is wastage of money, so organizations are cutting jobs. This action gives harassment to many people, especially to them who were old employees of the firm, having comparatively less knowledge of information technology, but now companies have to kick them out, so they do not have any other way of survival. People are compelled to study technology. The competition among today's generation has been increased. They have to do hard work to have a good job, but cutting in jobs harass them.
Unsatisfied employees of the company:
Organizations are using advanced technology in their work to get more profit and to be more efficient but this makes many employees unsatisfied and angry with the organization because they do not know about that technology and how to deal with that, and they also afraid of to lose their job. So it results in strike or other activities like this which affect the whole structure of the organization. The latest example is ‘royal mail's strike and strikes in bus and train departments because all these companies want to adopt new and advanced techniques but their employees are unsatisfied with them. The reason is same because they do not know how to deal with rapid changes in firms technology, they are also afraid of losing their jobs.
Skill shortage for organizations:
As we know that using new technology in today's era is necessary for organizations, but to use that technology properly organizations need proper skilled persons for each project but there is a shortage of skilled persons for the organizations, because people are known to last techniques of work, and if an organization immediately decides to adopt new technology then it results in shortage of skilled workers. For example, in last time period, Australian organization experienced growth in economic era, but suddenly they also faced crises due to the same problem of skill shortage as they want to adopt new technologies. So this thing is more challenging for the organizations, because on one time they have to consider about so many things, like they have to manage their staff properly, have to satisfy the needs of their staff, and have to maintain themselves in this competitive industry.
Expenditure on employees for further training:
To get employees with proper skills organizations have to train people themselves with new technology, it costs a lot. Organization spend a lot of money on the training of people, but it is not guaranteed that all of them who are taking training will be able to perform a good job, will stay in your company and work with you for long time. All these things are not guaranteed. Moreover, other thing is technology is changing day by day, so in future a new technology can be introduced so it will cost again for the organization to retrain their employees with these changes, so all these factors are affecting organizations.
Hard to do for old people:
If a company is adopting new technology, but its old employees who are working with them for a long time cannot tolerate this change because they are working with old techniques and new ones are difficult to understand for them. On the other hand, organizations also not want to train those people because they want to use new ideas from new generation and if organization will train those old people then it will cost them a lot because those people are near to retirement and spending money on them will be wastage. Next thing is due to changes in technology organizations are transforming people to one side to another side. So it irritates them a lot and results in strike etc.
Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. Many writers and consultants are using the term “performance management” as a substitution for the traditional appraisal system. I encourage you to think of the term in this broader work system context. A performance management system includes the following actions.
- Develop clear job descriptions.
- Select appropriate people with an appropriate selection process.
- Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.
vProvide effective orientation, education, and training.
- Provide on-going coaching and feedback.
As companies reorganize to gain competitive edge, human resources plays a key role in helping companies deal with a fast-changing competitive environment and the greater demand for quality employees.
- Effectively managing and utilizing people.
- Increasing the innovation, creativity and flexibility necessary to enhance competitiveness.
- Applying new approaches to work process design, succession planning, career development and inter-organizational mobility.
- Managing the implementation and integration of technology through improved staffing, training and communication with employees.
To explore how much information technology is deeply rooted in the organization and effect the efficiency of employees in ICI Paints.
OBJECTIVES OF THE STUDY
- To find out the impacts of information technology on the ICI paints.
- To see the impact of independent variables i.e., data processing, work burden, record keeping, on the dependent variable efficiency of employees in ICI Paints.
- In this study researcher try to find out to what extent the work has become easy because of the use of computer based information technology in ICI Paints.
H1Information Technology is designed to make people more effective and efficient when performing daily activities. HoInformation Technology is not designed to make people more effective and efficient when performing daily activities.
SIGNIFICANCE OF THE STUDY
It has great advantage for H.R. It is useful for human resource department as well as executive level management. It has benefit of future and future decisions. It is useful for common people who are working in Human Resource Department and Accounts Department. It is helpful for maintaining records and retrieving records. It gives analysis reports of the employees. It helps for H.R managers for hiring the new employees in particular job.
PURPOSE OF THE STUDY
Purpose of this research is to understand and to analyze the process of development of I.T to enhance the efficiency of H.R, so as to have better understanding of the MIS and to make an informed judgment about the future decisions. The purpose of this evaluation is to identify strengths and weaknesses of the process of development of I.T in HRM. Main purpose is to achieve future objectives of the organization.
To understand the nature of the IT impact on human resource and firm performance, we must consider the fit between the characteristics of the IT and the users' tasks (Goodhue and Thompson 1995). Since the primary responsibility of professionals in public accounting firms involves information-intensive activities (Auditing Concepts Committee [ACC] 1972) such as gathering, organizing, processing, evaluating, and presenting data, the use of IT is likely to improve the productivity of accounting professionals (Pinsonneault and Rivard 1998). Teamwork is critical in a public accounting firm as audit engagements are performed by teams composed of professionals at different ranks. Therefore, the use of groupware technology is also expected to improve work collaboration and communication within teams, and thus enhance their productivity (Ellis et al. 1991). Although previous IT research has examined the impact of IT investments on firm performance in different industries such as manufacturing (Barua et al. 1995), banking (Parsons et al. 1993), insurance (Francalanci and Galal 1998), healthcare (Menon et al. 2000), and retailing (Reardon et al. 1996), empirical research has not examined the professional services industry, such as public accounting firms, in which information and knowledge work play a prominent role. Hence, examining the impact of IT implementation on public accounting firm productivity is of considerable interest to both academic inquiry and practice. Exploration of the productivity impact of IT implementation requires the recognition that the conversion from IT expenditure to business performance enhancement is a longitudinal process (Soh and Markus 1995). Proper IT management is essential to convert IT expenditure to IT assets. Appropriate use of IT assets generates organizational innovations and redesigned business processes, and favorable competitive dynamics enable improved organizational performance due to these organizational innovations. Davern and Kauffman (2000) extended this IT conversion process sequence to emphasize the importance of considering the impact of IT planning and selection activities on realized IT value. A few field studies have explored the longitudinal IT conversion process to identify the factors at different points of the process that determine the success of IT adoption. Venkatesh and Davis (2000) found that at different time points before and after IT implementation, factors such as subjective norm, voluntariness, job relevance, and output quality consistently influence users' perceptions about the usefulness of the systems. Bergeron and Raymond (1997) reported that organizational support, implementation process, and control procedures impacted the initial realization of benefits from Electronic Data Inter exchange (EDI) adoption, but three years later, only organizational support and control procedures remained significant. While these studies have examined factors that may impact the IT value creation process, they did not estimate the improvement in firm performance, if any, due to IT implementation. Lucas et al. (1996) conducted a case study of the introduction of a financial imaging system at Merrill Lynch. Comparing the data flow diagrams of the old and the new business processes, they identified changes in organization structure, workflows, and operations. They reported improvement in customer service and reduction in costs. However, they did not conduct any statistical evaluation of improvement in firm performance after IT implementation. Some cross-sectional studies of IT impact have compared the business performance of firms with IT to those without IT, and statistically estimated the impact. Using data from Hardee's fast food chain, Banker et al. (1990) compared the performance of the restaurants deploying the Positran technology (a computerized cash register point-of-sale and order-coordination technology) to those without Positran. They found that the use of the Positran technology is associated with a significantly greater productivity for stores with high diversity of sales. Analyzing data for 107 banks, Pennings (1995) found that the banks with ATM adoptions incurred significantly less non personnel operating expenses than those without. There are several IT productivity studies that evaluate the contribution of IT as an input factor in the production function, for example, Brynjolfsson and Hitt (1995) and Barua and Lee (1997) estimated the economic production function using cross-sectional data to evaluate the marginal contribution of IT on output. Wang et al. (1997) and Shafer and Byrd (2000) employed DEA to evaluate the role of IT investments in firm production. Our research differs from this stream of research in two important ways. We consider EU adoption as an event and evaluate the extent to which it shifts the production function for a firm, instead of the marginal contribution of the IT input that differs cross-sectional. Thus, we make a longitudinal instead of cross-sectional comparison of the impact of IT implementation. For IT to positively impact a user's performance there should be a good fit between the IT and the user's tasks (Goodhue 1995). In addition, training is a significant determinant of the IT user's effectiveness (Igbaria 1990). The FIRM has designed the new IT program to fit the requirements of its professionals, and enforced the training in the use of the software. Our field interviews suggest that the IT changes had a positive impact on the auditors' performance. Since an audit team is composed of professionals at different ranks (such as managers, seniors, and juniors) with different job responsibilities (Carmichael and Willingham 1989), IT adoption may benefit audit professionals at different ranks in different ways.
IT Impact on Auditors
The primary tasks that junior auditors perform are assigned audit procedures and preparation of working papers. Most of these tasks are relatively repetitive and involve substantial calculations and referencing across different accounts. Computer applications can automate such structured tasks and substantially reduce the processing time (Abbe and King 1988). In addition, the reduction in monotone work allows individuals to concentrate on more complex tasks and enhance their individual performance (Giuliano 1982). Our field interviews indicate that the principal benefits to a junior auditor from the IT changes are the savings in effort and the reduction in errors afforded by the electronic preparation of working papers. Incorrect computation is one of the major causes for misstatement (Bell et al. 1998), and by reducing such errors; IT use also benefits other audit team members. A junior auditor describes his experience using the new computerized systems as follows: The most important benefit to me is that I can develop the working papers electronically. Without the computer, I have to write down all the numbers by hand and make difficult calculations using a calculator. Sometimes I need to repeat the same entry several times on different sheets. For example, the amount of cash may appear on the balance sheet, the working trial balance, the cash flow schedule, the bank reconciliation and so on, and all the numbers are the same or related. I have to be very careful when I write those numbers down. It is very tedious! However, using the audit software, I only need to key in the entry once and make the appropriate choice. Then, all the related numbers are generated automatically and cross-referenced, and there is no need to punch any keys on a calculator. With a computer, my working hours on an engagement can be reduced by more than half of that without the computer. As the middle-level member of an audit team, a senior auditor assists in audit plan development, organization of audit activities, and supervision and review of the work of junior auditors. The firm's audit software organized all required audit procedures in a common list and cross-referenced them to items in the working papers. Since electronic presentation of information facilitates user's information acquisition (Jones et al. 1993), a senior auditor is likely to benefit from the convenient information gathering and organization enabled by the new software. A senior in the FIRM describes her favorite IT helper as follows: I like to use the audit software to edit my audit plan and programs. It helps me get organized. The software lists all the necessary planning items for me, so I don't need to worry about missing an important element. All related forms are available by clicking a button, which is really convenient. In addition, we also have a database of document templates that I can use for almost all occasions.
IT Impact on Managers
As supervisors and reviewers, audit managers do not benefit directly from the audit automation process, except for the convenience of computer-based presentation of information. Analyzing survey data from 260 public managers, Kraemer et al. (1993) found that managers perceived computer-based information to be more useful. Since the firm's audit software organizes all audit evidence collected by juniors and seniors in an electronic format, audit managers are likely to be more effective when reviewing such data. Since the order of audit working paper documentation can impact the decision of the reviewers (Ricchiute 1992), electronic working papers that comply with a regular organization should provide more consistent audit decision quality. An audit manager expresses his support for electronic working papers as follows: I don't use many functions of electronic working paper software. I just review its output. However, I do enjoy the neat screen output because everything is clear. Also, every item is cross-referenced which makes it easy for me to trace them. I can easily switch around and search for the items I want to see. In the Notes, the FIRM includes various local and international databases regarding companies, industries, and regulations. Managers can easily search for information relevant to a certain client to help them perform analytical review (Cohen et al. 2000). In addition, the information in the databases is more reliable and objective (Reimers and Fennema 1999). The FIRM has also created some exclusive case databases that can be shared by its professionals. Such knowledge-sharing applications have been found to improve the quality of decision making (Orlikowski 1997). A manager describes his experience as follows: Our Notes database has helped me increase my professional knowledge. We share our case experience, and business regulations using the database. It helps a lot in problem solving and keeps me updated on the current trend.
IT Impact at the Business Process Level
A current trend is to create a paperless office environment that replaces paper documents with electronic documents so that information can be accessed easily and with much less effort. In the practitioner-oriented literature, advantages of a paperless office in improving work efficiency and reducing operating costs have been reported (Hunton 1994). Together with the audit software, the FIRM created a client database to store all related audit files for each client. The documents in the database can be easily retrieved by a search function or with associated links. Consequently, auditors in the same team can share audit files and significantly reduce the coordination effort of the senior auditors (Salamasick et al. 1995). An audit senior at the FIRM also observed that database storage allows quick reference and modification from previous audit plans and reports for the client and, consequently, work hours for a client can be reduced significantly. In addition, the FIRM uses Notes as a tool to manage internal resources and documents to save time and increase effectiveness.
IT Impact at the Work Group Level
A professional service firm stands to benefit substantially from the knowledge-sharing applications (Vandenbosch and Ginzberg 1996). The Professional Development Department in the FIRM updates the Notes database everyday and communicates the update to everyone by email. To encourage audit professionals to collaborate, a Question and Answer electronic bulletin board in the Notes was set up for the discussion of all types of work-related questions. The Professional Development Department checks the board periodically and ensures responses to all the questions. Network applications that enable real-time information circulation can also facilitate communications efficiency in a public accounting firm (Zarowin 1994). Email is the most important network application for the professionals in the FIRM to communicate with each other, clients, and overseas colleagues. Some groups in the FIRM described to us their positive experience in utilizing the "net meeting" function in Notes to conduct group discussion. This is consistent with the experiments by Bamber et al. (1996) that found the use of group support system technology resulted in higher quality audit decision making. Also, a manager observed that the use of telecommunications applications had led to a decrease in operating costs such as postage and travel expenses.
Our qualitative analysis suggests that the FIRM's new IT program matches its audit professionals' tasks in three aspects (Goodhue and Thompson 1995). First, the new IT provides data to support audit decision making. The audit software organizes the audit evidence for audit judgments and the Notes databases provide relevant supplemental information. Second, the new IT fulfills the requirements of the FIRM's routine operations in its audit engagements. The audit software automates the preparation of working papers and the Notes applications facilitate communication between the professionals and the clients. Third, the new IT program fits the business needs. The Notes applications facilitate knowledge sharing and supply up-to-date information that supports the professional requirements of the information-intensive public accounting industry. In the firm, the use of the audit software is mandatory. Our field interviews also indicated that audit professionals perceived the Lotus Notes applications to be highly useful. Davis (1989) indicates that satisfaction with IT is associated with high utilization of the technology. Goodhue and Thompson (1995) suggest that a good fit between the IT and the user's tasks is the key determinant of IT success when IT utilization is high. Therefore, we expect that the IT changes have enhanced the productivity of the FIRM.
Use of Internet for Staffing
American research (Global 500 Web Site Recruiting, 2000) shows, that 79% of companies from the Global 500 group (500 largest world companies by revenue) at least to a certain extent use the Internet for seeking new personnel. Also, comparison of data for years 2000 and 1998 shows that percentage of companies that use the Internet for mentioned purpose has grown considerably from 29% in 1998. According to 1999 RIS-research (RIS - "Raba Interneta v Sloveniji" - Usage of Internet in Slovenia.), only 4% of companies have used Internet for recruiting in same fashion. The main advantages for Internet supported recruiting are (Achieving Results with Internet Recruiting, 1998):
- Lower costs of recruiting (savings in invitations for application, postal-costs, data-processing costs).
- Quicker process of recruitment: period from the point when the need for a new employee is sensed until the point when he starts doing his job is, according to the research, cut for twelve days.
- Possibility to attract better and more candidates - invitation for application published on a website can also be spotted by those, who are currently not seeking new employment actively.
Besides the corporate websites, third-party websites are gaining importance. Not only that they act as "work- force exchange" where supply meets demand and vice versa, many of them also publish relevant business news, articles on job-hunting, CV writing etc., which acts as additional pull mechanism for web users, which ensures head- hunting companies that their call for applications is seen.
Use of Internet for New Ways of Work
With Internet and (more broadly) Information-and-Communications-Technology (ICT) deve lopment in the full swing for the last two decades, organisations have been provided with 'a whole range of new possibilities for performing work and structuring organisations' (Lindstrom, Moberg & Rapp, 1997), which will undoubtedly extend even more in the future and therewith grasp even wider sphere of employees. Two of new ways of work are discussed below.
There are many definitions of tele-working and in the field also many various terms are being used, for example tele-work, telecommuting, flexi-places, electronic cottages. Yet as the purpose of our paper is not tele-working itself the following definition will be quite satisfactory. As outlined in European Commission's annual report for year 2000 (Johnston & Nolan, 2001), telework is a wide concept, whose 'common element' is 'the use of computers and telecommunications to change the accepted geography of work'. It means that we are 'moving the work to workers instead of moving the workers to work', with help of information technologies (Nilles, 1998). Teleworking offers significant advantages, which could be summarized and classified in three views: individuals, organisational and macro-societal; from the second perspective, benefits of telecommuting include higher productivity ("more work being done") and "decrease of absenteeism". Because the employees are more satisfied and their morale is increased, they are more unlikely to be searching for another job - organisations experience lower turnover rate; according to Dash, employee fluctuation can decrease by 50-80% when teleworking is introduced (Dash, 1999). Besides, organisations have 'the ability to access a broader pool of employees as the geographic tie to an "office" is diminished' (Venkatesh & Speier, 2000). Furthermore, organizations 'real estate costs can be cut because of the reduced office space requirements' (Nilles, 1998). Additionally, customer service improves due to flexible working hours (twenty- four-seven concept) (Telework the Benefits - and some Issues, 2000). According to a research, 18% of Dutch, 12% of US and 5% of German and English employees were regularly teleworking to a certain extent (How many teleworkers, 2000), furthermore, the percentage has been increasing with a yearly rate of 10 to 15% in all of ICT-developed countries (Gordon, 1999). In this area, Slovenia is out of step with "developed" countries. According to a research (Raba Interneta v Sloveniji, 2000), there were approximately 50% of companies that have technological possibilities for teleworking yet only 29% of these companies have introduced teleworking. Viewed from the whole work- force population and taking into account the size of the companies, only 2% of full-time employed workers can be considered to telework in same fashion as their Dutch and US counterparts.
Use of Internet for Employee-Development
Acquiring new and supplementing existing knowledge is one of the top- level motivational factors for a person that has covered his basic existential needs, therefore as it a key success factor for an individual it is also critical for successfulness of organization as a whole. Internet-based technology offers numerous possibilities for getting hold of new knowledge and skills. Firstly, company wise, it offers much quicker access to latest scientific and technological innovations of other companies and research institutions (Jerman-Blazic, 1996). For each individual it offers itself as vast searchable database of web pages, newsgroups, mailing lists, online courses, forums, etc.
Effect of ICT and Internet on Organization
Information and communication technology and the Internet have not affected only the IT professionals and those employees that use IT for their work on a regular basis but also the environment of the organization, organization itself and the "social universe" (Drucker, 2001). Managers need to be aware of these changes, try to sense them in advance and adapt to them appropriately. Especially in the field of employee-motivation we can expect essential changes. Even though visionaries predict deep and fundamental shifts in society, authors believe that first and foremost task of managers will remain motivating employees: firstly to arouse needs in employees and secondly to show them the way how to satisfy those needs in a manner, which contributes to achievement of organizational goals. Yet if the fundamental concept remains the same, the changes will most definitely occur in employees' values and consecutively in their needs and in a manner in which their needs are satisfied. It is expected that "traditional" needs, i.e. salary and benefits, guarantee for permanent situation, loyalty to the company etc., will gradually lose their meaning. Infoworld's research (2000) that was undertaken between IT professionals, reveals that most of them feel that the most important benefit, expected from a company, is possibility to work from home, with salary and chance for promotion being less important (Battey, 2000). IT professionals are, naturally, more susceptible to novelties, therefore the cited research cannot be taken as representative situation in other professional fields, yet very similar changes can be expected elsewhere as well. We can compare this finding with a survey of Slovenian employees (Siok, 2002). 51 different companies and over 5.100 employees (mostly middle management positions) participated in the study. The most interesting finding is that employees- out of 13 possible categories - ranked salary and chances for promotion as categories, which they were least satisfied with. Although the results cannot be directly compared with the Infoworld's survey due to different methodology and structure of population surveyed, this possibly shows that Slovenian companies as yet lag behind their US counterparts in that area and that the goals of Slovenian employees (higher salary, better chances for promotion) are still different (and more "traditional"). However further changes in the values and needs of Slovenian employee could be expected in the near future as we make further steps in knowledge economy. Additionally, individualization will be evident - the needs will become specific to employees and will differ amongst them: "What motivates… knowledge workers… is what motivates volunteers. Volunteers, weknow, have to get more satisfaction from their work than paid employees. They need,above all, challenge, to know organization's mission and to believe in it, continualtraining, to see results. Implicit in this is that different groups in the work populationhave to be managed differently, and that the same group… has to be managed differentlyat different times," (Drucker, 2001). Furthermore, employees that will only be subcontracted for a specific project, and probably also those that will be working from home, will identify themselves with the company and its goals to a much lesser extent than in traditional environment. Finally, productivity, efficiency and successfulness of intellectual work are much harder to quantify measure and analyze, than they are with physical labour. All that indicates that the crucial challenge for companies will be to ensure that tasks can be carried out at any time by the best (or at least good enough) employee or subcontractor. Since people are of vital importance in information society, it is clear that the companies, which answer to the challenge properly, will be the ones that not only survive but also thrive; as Drucker suggested, "we need an economic theory that puts knowledge in the centre of the wealth-production process," (Drucker, 1993).
How to Manage Changes?
So it is evidently that "lump sum" manner of rewarding people with money, position or other tangible benefits is not going to be appropriate any longer for more and more employees (speculatively said, "possibility for promotion" is transformed from motivating into "hygiene factor", as Frederick Herzberg called it in his 1959 book "The Motivation to Work"). Besides, authoritative leadership style grows to be inappropriate due to the fact that employees with more and more knowledge don't want to 'bend under tyranny of dictator', if they can simply - change jobs. According to a research (Battey, 2000), dissatisfaction with the manager is the principal reason for changing the job. Organizations will have to adapt in several areas to the coming changes. Initiators of changes will probably be employees themselves, yet the success of adaptation is in hands of managers. Some of possible changes - and by no means all or even majority - in specific areas are discussed below, together with possible solutions for managing those changes.
Change of leadership style
Using any other leadership style than the authoritative one can represent a major challenge for any manager, since he has to rely on leadership based on expertise and personality. The gap between the fact that her work and results are progressively dependent on "her" employees on one side, and higher degree of work- inter disciplinarily (being a project manager with team that consists of various highly skilled experts) and lesser "power of authority" with not as much of possibility to influence subordinates with "power-rising-from-position" on the other side, can be frustrating. The personality of the manager will therefore become the manager's lever to enrapture employees for reaching common organizational goals. Firstly, manager will have to motivate employees appropriately, in order to make them work without need for supervision. Secondly, he will have to ensure appropriate working conditions and act as a support to the specialists in those areas, for which they are, not qualified (i.e. management skills like planning or organizing). "Their [manager vs. employee] relationship…is far more like that between the conductorof an orchestra and the instrumentalist than it is like the traditional superior/subordinaterelationship. The superior in an organization employing knowledge workers cannot, as arule, do the work of the supposed subordinate any more than the conductor of an orchestracan play the tuba. In turn, the knowledge worker is dependent on the superior to givedirection and, above all, to define what the "score" is for the entire organization…Andjust as an orchestra can sabotage even the ablest conductor - and certainly the mostautocratic one - a knowledge organization can easily sabotage even the ablest, let alonethe most autocratic, superior," (Drucker, 2001). Thus we can expect a downturn of the hierarchy in the organization - employees (specialists with their knowledge) as a critical success factor, managers as support for the specialists. Proper management support is also one of the key things for work of specialists: this work should not be only efficient and successful for employees personally, but it should simultaneously contribute to overall success of a company.
Changes of personnel-function
Employees that are critical for success of a company are the workers with (proper) knowledge. Even though "no other decisions are so long lasting in their consequences or so difficult to unmake… at most one-third of such decisions turn out right," (Drucker, 2001). As people determine the capacity of the organization, the staffing (and promotion) decisions should (at least try to) be flawless. The personnel function will grow its importance and might even become the central function in many organizations. For the staffing purposes it will - most probably using the Internet - constantly have to monitor the "supply-side" of work on the market and compare it with current "gap" in company's needs and disposable human resources. Other scenario is also possible: due to the growing importance of the personnel decisions, the personnel function as we know today might disappear from the organizations' structures. Such tasks would be performed in collaboration with external contractor, who would, 1) using their knowledge and information and communication technology automate simpler and routine operations, 2) supply managers with relevant database (with much wider scope than the company could reach by itself) of appropriate candidates, 3) with their knowledge act as manager-consultants in important decisions.
Changes in employee-control
The importance of control as continual observation of work performed by employees will be lower. On one hand, due to the fact that such traditional control is impossible or at least very difficult (how to control teleworkers?), and on the other hand, because of individualization of employees that will also bring demand for higher level of autonomy in their work; ceaseless control would demotivate them. The solution for the problem is, according to (Drucker, 2001), management by objectives and self control. Business performance depends on how each task is directed toward the objectives of the whole company. The number of highly educated specialists will increase dramatically and at the same time, the new technology will demand much closer coordination among specialists. Furthermore, the performance of the manager is also measured by the contribution he makes to the success of the enterprise; "the greatest advantage of management by objectives is perhaps that it makes it possible for a manager to control her own performance" (Drucker, 2001), with help of state-of-the-art technology that enables fast gathering, analysis, synthesis of data and retrieval of relevant information. Additionally, managers will have to tolerate that employees "waste" some period of time when they perform activities, non-related with main goals of the organization (i.e. playing chess via Internet). If these activities prevail, employees' satisfaction will be at high level yet the goals of the company would not be achieved. The recommended way to control employees is therefore to check the final results of each individual project and to set goals according to the results of those projects. It is especially important that those goals are set objectively. Therefore it has to be assured that the employees will have enough intrinsic motivation to set adequately demanding goals.
Changes in employee motivation
The differences between different employees and their needs will probably increase in the future. If the company would try to cover those needs with a unified motivational scheme, this scheme should be very broad. Offering such a scheme would be very expensive and inefficient, since the company would offer a variety of benefits to each individual. This individual would consider many of those benefits as less important. The possible solution is to adapt the motivation system to each individual employee and offer her only those benefits that stimulate her to perform better and more efficiently. It is hard to find out the best possible way of motivation without the cooperation of that employee. The employees will have to play a more active role in the motivation process and should have a clear picture about their own goals and especially about that what they expect from a company where they are employed (full or part time). It is in the best company interest to encourage the development of this clear picture about individual goals with improved communication (for example with different seminars or workshops). The main goal of this kind of motivation is that every employee would set her own goal that would be demanding enough. The employee should have a strong enough motivation to fulfill those goals - not because of company goals or supervisor's orders but due to his own interest. The task of the manager is to assure that those individual goals are harmonized with the goals of other employees in this department, across different departments and with the goals of the company as a whole.
Changes in information management and exploitation of knowledge
"Managing your company's knowledge more effectively and exploiting it in the marketplaceis the latest pursuit of those seeking competitive advantage," (Skyrme, 1998). Acquisition of knowledge by individual is relatively easy compared to successful exploitation of all the knowledge that resists in organizations' employees' minds. According to American research (Gopal, 1995); companies take advantage of only 20% of the knowledge that exists inside their employees. Information and communication technology offers numerous possibilities to improve information management in organizations and therewith make better use of employees' knowledge. One of such options is use of intranet as internal information system of a company, which is based on Internet protocols and services (Turk, & Jaklic, 1998). It enables relatively inexpensive and simple storage, organization, processing, maintenance and sharing of information between organizations' members; all these tasks are essential for good information management, according to (Marchand et al., 2001). At the same time such information is (in technological manner at least) securely kept from the outside world. There are many other ways besides intranet for better use of stored knowledge (and for processing of information from piles of data), i.e. data warehouses, data mining, expert systems. Contemporary state-of-the-art soft- and hard-ware solutions offer support for knowledge-use, yet the main obstacle is the one of the content and of the people - how to achieve that existing knowledge will be shared, stored and transferred organization-wide with help of IT in the best way. Better business performance, according to a twenty-eight month research which included over 1.000 senior managers worldwide, comes not just from information technology but also from information management and management of organization's people (Marchand et al., 2001).
Enhancing the women productivity
According to Dilevko and Harris (1997) women are depicted as passive users while men are active agents in the computer world. This may be debatable in some circles, however, Hovendrick (2002) supports the outlook by asserting that the IT industry is male dominated. Coyle (2001) builds on this belief by acquiescing that questioning the masculinity of computers is tantamount to questioning our image of masculinity itself. She goes further to say that computers are power, and power in our world must be the realm of men. She advises that women librarians should take advantage of information technology to step into positions within libraries that would afford them access to this power. Undoubtedly, librarians are changing in nature, in the essence of their job and in their image due to the impact of information technology (Harding, 2002). The same Hovendrick (2002) while analyzing how digital technology has transformed librarianship asserts that women librarians do create web pages, pathfinders, web-based tutorials, CD-ROMs, and databases so as to bring together useful and organized information. This can be confirmed with such web sites as cybergrrl.com; webgrrlls.com and the coining of such concepts as “cyberfeminism”. Women are also known to be forming such organizations as Joan's Centre for Women and Information Technology, or Women in Technology International (WITI). These all go to show that technology has positive qualities which can promote the empowerment of women worldwide. Even though it is difficult to get reliable statistics on women's internet use in developing countries because of lack of data, it is clear that the number is small and the distribution limited (Hafkin and Taggart, 2001). Africa being a continent of developing countries depends on the developed countries of the world for most of its needs including information need. One can image a situation where much of Africa's food, drugs, weapons, human resources, market, goods, raw materials, finance, technology, books, journals etc. come from outside the continent. This means that even though African countries are politically independent, yet, for them to survive, they depend heavily on their former mentors. Zulu (1994) asserts that about 90 per cent of data on Africa resides in databases in the West and for Africans to get reliable and sufficient information about their continent they must source for the data outside their continent. This may sound pathetic, but the dawn of information and communications technology (ICT) and especially internet services has broken down the barriers against such achievement. Information acquisition, storage, retrieval and dissemination have become so revolutionized that information on the African continent and elsewhere can be accessed easily, timely and stress-freely at any time and from any part of the globe. How feasible this is in developing countries and especially in the African continent is another matter because there is low application of ICT in the African continent. A study conducted by Internet World Statistics (IWS) asserts that there is no country in Africa whose internet usage is up to 7 per cent and that more than 99 per cent of all users are in main urban centers (Fadeyi, 2004). This means that the rural areas of Africa have no internet services and as a result, no internet users. This situation can be compared to that in the UK where, according to Fadeyi, almost every home has a computer which is hooked on to the internet. In the African continent, most homes have no computer, let alone being hooked to the internet. The digital divide in this comparison is very glaring. Barbu et al. (2001) note that in the satellite technology market, the African continent has the lowest teledensity. No wonder many African countries are currently investing heavily in their ICT infrastructures, at least, to qualify to attract such IT assistance as the Digital Freedom Initiative (DFI) which has already been awarded to Senegal as a result of its technological infrastructure already in place. International Labour Organization Report (2001) records that there is a digital gender gap in many parts of the world including some OECD countries. One is not surprised at this report because women are internationally regarded as a disadvantaged group, which includes low-income families, rural populations, minorities and the elderly (World Bank, 2002). Moreover, the empowerment of women through education, which was instituted by the United Nations as a strategy to reduce such gaps, is yet to be fully realized. However, in spite of the fact that a developing country such as Senegal in the African continent has only 12 per cent women internet users, countries such as Taiwan, China and Korea can boast for near parity in internet use amongst male and female citizens. A survey of cybercafes in Delta State of Nigeria conducted by Adomi et al. (2003) shows that females make greater use of internet services than males in seven of the cybercafes studied. Even though this may not be representative of women in the country as a whole, in other words, one cannot generalize that it is the same situation in all the cities of Nigeria, yet, one thing is clear from the result of the study - that Nigerian women are interested in information sourcing through the internet and need to be encouraged. While acquiescing that IT has become a potent force in transforming social, economic and political life globally, Hafkin and Taggart (2001) assert that it can also become an important tool in meeting women's basic needs by providing them with access to information which can salvage them from their disadvantaged position and enhance their productivity.
NATURE OF STUDY
In this study researcher try to explore the impact of computer based information technology on the efficiency of employees working in an established multinational company ICI Pakistan Limited. So it is an analytical study.
TYPE OF STUDY
In this study the relationship between dependent variable i.e., employees efficiency & independent variable i.e., data processing, record keeping, work burden, recruiting and training of employees etc is analyzed.
UNIT OF ANALYSIS
Researcher selected the sample of 40 employees of ICI Paints. So the unit of analysis is each employee of ICI Paints.
A primary data is the one which is collected by a researcher for the particular marketing research project currently being undertaken where as secondary data is the one which is collected by an individual other then the researcher for a project different from the one currently being undertaken. In this project the data collection method which we have used is primary. The reason for emphasis given to primary data is that it is specifically collected for this project which is tailored to meet the exact impacts of I.T on H.R. I as researcher have a direct control over the data collection process so it is more likely to result in impact information that is more accurate, current, sufficient, available and relevant then secondary or commercial data. Out of two general forms of primary marketing research data, researcher is using overt primary data which results from asking questions of study participants. Researcher has collected the information by asking written questions to respondents.
Ethical Methods / Issues
By having overt primary data, it enables us to understand the reasons for the behaviors of respondents. Moreover this is an ethical method of data collection in the sense that the researcher cannot get the information from respondents without their willingness and knowledge. In this research, results have been collected be survey method, because it describes the relationship between different variables. It is specific which means it specifies the methodology the procedure of doing research.
To find out the impact of information technology on Human Resource, researcher has adopted survey method. Organization of my choice is ICI Pakistan Limited. Infact ICI Pakistan Limited is a very wide company. So researcher takes only ICI Paints which is situated on Ferozepur Road Lahore for convenience. First of all researcher prepare questionnaire which contains 20 questions. The questions are very simple & straight forward. Most of the questions are based on Likert Scale. While in start some general questions are asked about the employee.
To find out above topic researcher has also collected secondary data from ICI Pakistan Limited and from books, magazines, internet, journals and articles for literature review.
THE BACKGROUND OF RESEARCHER
This research has been selected for this, because researcher deals with H.R and Accounts. Researcher saw the problems of H.R and Accounts. Researcher knows about the use of information technology. Managers want to take the quick decision about H.R and Accounts. Researcher thought when the managers will use the Information Technology (I.T) in H.R, Accounts and Finance Departments. They can get important reports of H.R and Accounts and then they can take good decisions in short time.
Researcher took only 40 employees & they simply fill the questionnaire.
ANALYSIS OF QUESTIONNAIRE
Then the analysis of questionnaires are done that how many are agree and how many disagree. Each number of responses are counted and then presented in a tabular form.
The dependent variable, employee efficiency depends upon independent variables which are Data processing, Record keeping, Work burden, Recruiting and training of employees. In recent years, information technology (IT) has played a critical role in the services provided by the private and public industry. However, no empirical research has evaluated the impact of IT on private and public firms. Advances in information technology (IT) have transformed many firms in professional services industries but perhaps none as much as those in the accounting industry. Once a slow paced and conservative industry, accounting underwent tremendous changes at the turn of the millennium, sparked largely by the rapid changes in it if environment (Elliott 2000). Audit software and knowledge-sharing applications are two crucial components of these changes. Automation of audit tasks and use of specialized audit software has substituted IT for labor and changed the structure of audit teams. Equally important is the use of advanced systems to share knowledge bases across different parts of the organization that has enabled professional services firms to leverage their human resources more effectively (Gogan et al. 1995). With rapid advances in IT, numerous articles have appeared in practitioner-oriented accounting journals that discuss how to invest in if to keep up with the current technology (Smith 1997). To justify if an investment, managers need to understand the potential benefits resulting from the investment. Although there is a general perception that if investments by public accounting firms can improve firms' productivity (Lee and Arentzoff 1991), the impact of I.T on firm's H.R performance is not directly observable. Accounting firms need to understand how the technology can transform their work and whether such transformation will ultimately lead to productivity gain. While the recent IT research literature documents a positive marginal contribution of incremental if expenditure using cross-sectional analysis across several firms (e.g., Brynjolfsson and Hitt 1995; Lichtenberg 1995), empirical evidence at the firm level has not been reported. Longitudinal analysis before and after I.T implementation is important to support a causality argument leading from I.T deployment to improvement in the ICI Pakistan H.R productivity. This is especially of interest in ICI Pakistan where information utilization is the core competence.
For this study, researcher has the following hypothesis: H1Information Technology is designed to make people more effective and efficient when performing daily activities. HoInformation Technology is not designed to make people more effective and efficient when performing daily activities.
The hypothesis consists of two kinds of variables.
- Dependent variable
- Independent variable
Human resources departments play a critical role in contributing to the overall productivity and strength of an organization. As HR helps to build a stronger workforce through better recruiting, training and retention, the workforce helps drive the efficiency of the business as a whole. And a more productive, efficient and agile business can better respond to competitive and market shifts, and be more profitable. But many traditional human resources organizations struggle to allocate their resources. They are often hindered by a multitude of manual, paper-based processes and transactions, such as tax, payroll and benefits information, that are costly, prone to errors and time-consuming to manage. This can make it difficult for HR organizations to focus on higher value business initiatives that help to drive profitability and efficiency. To improve their own efficiency and contribute to the organization's bottom line, many human resources organizations are transforming to an e-HR business model, moving traditional HR tasks, tools and processes onto internal intranets or the Internet via a portal. Organizations are seeking e-HR solutions that can help automate tasks and streamline workflow, and improve the efficiency of the workforce by providing self-service tools, training and information. By automating processes, HR can better align itself with the business objectives of the enterprise and focus on higher value business services and employee needs, such as training and development. Productivity software is designed to make people more effective and efficient when performing daily activities. It includes applications such as word processing, spreadsheets, databases, presentation graphics, personal information management, graphics and multimedia, communications, and other related types of software. Word-processing software is used to create documents such as letters, memos, reports, mailing labels, and newsletters. This software is used to create attractive and professional-looking documents that are stored electronically, allowing them to be retrieved and revised. The software provides tools to correct spelling and grammatical mistakes, permits copying and moving text without rekeying, and provides tools to enhance the format of documents. Electronic spreadsheet software is used in business environments to perform numeric calculations rapidly and accurately. Data are keyed into rows and columns on a worksheet, and formulas and functions are used to make fast and accurate calculations. Spreadsheets are used for "what-if" analyses and for creating charts based on information in a worksheet. A database is a collection of data organized in a manner that allows access, retrieval, and use of that data. A database management system (DBMS) is used to create a computerized database; add, change, and delete data; sort and retrieve data from the database; and create forms and reports using the data in the database. Presentation graphics software is used to create presentations, which can include clip-art images, pictures, video clips, and audio clips as well as text. A personal information manager is a software application that includes an appointment calendar, address book, and notepad to help organize personal information such as appointments and task lists. Engineers, architects, desktop publishers, and graphic artists often use graphics and multimedia software such as computer-aided design, desktop publishing, video and audio entertainment, and Web page authoring. Software for communications includes groupware, e-mail, and Web browsers.
While most readers are familiar with the general?purpose application programs for microcomputers just described, they may not be aware of the wide variety of ways in which microcomputer systems perform other business tasks.
In businesses of all sizes, computer systems are commonly used for entering, processing, and managing transactions. Among these tasks are accounts receivable, accounts payable, accounts payable, payroll, general ledger, and the other activities associated with an accounting information system.
Analysis and decision making
Such business data as consumer buying patterns, cost and profitability trends, and variances from budgeted amounts are often analyzed using application software. A wide variety of macros, functions, and templates are also commercially available to build decision support systems that help users perform financial and statistical analyses.
Retrieving and updating
An abundance of software products exists to search through data files for specific records or through correspondence files for specific capabilities are present, so too are those for updates.
Retrieved data can be sorted, classified, summarized, and ultimately printed as neatly formatted management reports. Also, ordinary reports can be significantly enhanced by using a variety of desktop publishing packages.
Microcomputers are commonly used as word processors to prepare letters, memos, manuscripts, and other documents. The support software available to writers includes on?line spelling checkers.
Packages are widely available to prepare "canned" proposals to upper management, plotter?produced presentation graphics for meetings, and typeset?quality report and presentation materials.
Computer networks are becoming more prevalent in businesses. Among these are electronic mail networks, local area networking, networking corporate mainframes, networking with suppliers or customers through data interchange (EDI) systems.
Record keeping systems are frequently one of the biggest challenges in a large business. Perhaps the problem is that the creative side of running a small business is often at odds with the "bean counting" side. Taking time to organize a good system can be tedious and time consuming, but it only takes one visit by a tax auditor or a turndown for a loan by a bank to convince any business owner that an organized system would be useful. Why are recordkeeping systems so important? Because they provide us the basis for all the reports we need to make to governmental agencies and banks, plus they provide us with an overall picture of how our business is doing and where it is headed. Financial statements are a way to track our progress towards our goals and provide us with the information needed to make decisions as we go along. Our basic recordkeeping system should be easy to use, understandable, reliable, accurate, and timely. Let's look at the basics of what such a system should include. We will want some type of business journal to record transactions (receipts, disbursements, sales, purchases) and a well-organized filing system. Additionally, we should be generating monthly reports on cash flow, accounts receivables, accounts payable, payroll, an overall income statement (balances income against expenses), and a balance sheet (which gives an overall picture of the current worth of the business). Our first step in setting up an ongoing system is to get a baseline set of information for our business. We will need to estimate our startup costs and the money we have available on hand to start the business. The usual rule-of-thumb is that we should have enough money on hand to operate our business for a year. Some of the operational expenses that might be included are:
- Down Payments on Property, Rent, Equipment
- Legal/Accounting Services
- Loan payments
- Office Space
- Professional Fees
- Remodeling/Installation of Equipment
- Salaries, including one for yourself
It is important to make as accurate an estimate as possible of our expenses in each of these areas and any other categories that we might anticipate when in doubt, error on the side of estimating too high. We can be assured that there will be unanticipated expenses at some time during that first year. If we do not have this money available, we need to plan how we will meet these expenses. Our startup costs will be the subset of these expenses that we will need to get the business operational. Once we have this information in hand we are ready to tackle setting up our operational financial management and recordkeeping systems. Everyone in business must keep records, especially those that will come in handy when it's time to think about taxes on the business. Good records will help us do the following: Monitor the progress of our business.We need good records to monitor the progress of our business. Records can show whether our business is improving, which items are selling, or what changes we need to make. Good records can increase the likelihood of business success. Prepare our financial statements. We need good records to prepare accurate financial statements. These include income (profit and loss) statements and balance sheets. These statements can help we in dealing with our bank or creditors and help we manage our business. Remember, an income statement shows the income and expenses of the business for a given period of time. A balance sheet shows the assets, liabilities, and our equity in the business on a given date. Identify the source of receipts.We will receive money or property from many sources. Our records can identify the source of our receipts. We need this information to separate business from non business receipts and taxable from nontaxable income. Keep track of deductible expenses. We may forget expenses when we prepare our tax return unless we record them when they occur. Prepare our tax returns. We need good records to prepare our tax returns. These records must support the income, expenses, and credits we report. Generally, these are the same records we use to monitor our business and prepare our financial statements. Support items reported on tax returns. Good record keeping is an important part of the accountability of organizations to those who use their services. They enable organizations to keep a summary of decisions made and the reasons for them. Any information recorded in a record relating to a child, young person or worker should be accurate and factual. Where opinions and judgments are made it should be clear who has expressed them and how and why certain conclusions were reached. ICI Pakistan should not record any comments or views which they are not able to justify.
Planning, coordinating, scheduling, and organizing
Such tasks as financial planning, budgeting, preparing expense and sales reports, preparing meeting agendas, preparing and monitoring project schedules, and managing appointments are often done with the assistance of application software.
4.Recruiting and training of employees
Computer systems are playing an increasing role in worker recruitment procedure and training of employees in an organization. For example, many commercially available software packages are accompanied by training disks or tutorial software that enables users to learn the package at their own paces.
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|Internet research || || || || || || || |
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DATA ANALYSIS, RESULTS AND DISCUSSION
A)ANALYSIS OF PRIMARY DATA (SURVEY QUESTIONNAIRE)
Analysis of questionnaires are done that how many are agree and how many disagree. Each number of responses are counted and then presented in a tabular form and graphical representation.
Age Frequency % age
Less than or 25 2 5 25-35 16 40 35-45 12 30 45-55 10 25 55 or more -- --
Total 40 100
Qualification Frequency % age
Matriculation -- -- Intermediate 4 10 Graduation 24 60 Master's 12 30 Doctorate -- -- Technical Skills -- --
Total 40 100
Level of Job
Level of Job Frequency % age
Manager 18 45 Supervisor 4 10 Clerk 10 25 Secretary 6 15 Technician 2 5 Others -- --
Total 40 100
For how many years you are working in this organization?
Frequency % age
Less than 1 4 6 1-5 10 25 6-10 16 44 11-15 6 15 16-20 2 5 21 or more 2 5
Total 40 100
Your Present job is Frequency % age
Good 26 65 Satisfactory 10 25 Boring / Routine -- -- Exiting -- -- Motivating -- -- Creative 4 10
Total 40 100
The knowledge about information technology in necessary
Frequency % age
Strongly agree 26 65 Agree 14 35 Undecided -- -- Disagree -- -- Strongly Disagree -- --
Total 40 100
The use of computers has made thework very fast and accurate
Frequency % age
Strongly agree 22 55 Agree 18 45 Undecided -- -- Disagree -- -- Strongly Disagree -- --
Total 40 100
The data is easily accessible for the use ofevery employee because of computers
Frequency % age
Strongly agree 22 55 Agree 14 35 Undecided -- -- Disagree 4 10 Strongly Disagree -- --
Total 40 100
Use of information technology is time consuming
Frequency % age
Strongly agree 2 5 Agree 8 20 Undecided -- -- Disagree 18 45 Strongly Disagree 12 30
Total 40 100
Graphical representation No. of employees has been reduced as the computers or information technology are used
Frequency % age
Strongly agree 18 45 Agree 20 50 Undecided 2 5 Disagree -- -- Strongly Disagree -- --
Total 40 100
Now when information technology is there are find your?self better able to competes future needs
Frequency % age
Strongly agree 18 45 Agree 20 50 Undecided 2 5 Disagree -- -- Strongly Disagree -- --
Total 40 100
Do you think that use of information technology has reduced the number of working hours?
Frequency % age
Strongly agree 16 40 Agree 20 50 Undecided -- -- Disagree 4 10 Strongly Disagree -- --
Total 40 100
With the use of computers andother information technology you are better able to store data
Frequency % age
Strongly agree 20 50 Agree 18 45 Undecided -- -- Disagree 2 5 Strongly Disagree -- --
Total 40 100
You can use information whenever needed
Frequency % age
Strongly agree 22 55 Agree 18 45 Undecided -- -- Disagree -- -- Strongly Disagree -- --
Total 40 100
Does the use of computers reduce the burden on you to do all work manually (files, registers)?
Frequency % age
Strongly agree 18 45 Agree 18 45 Undecided -- -- Disagree 2 5 Strongly Disagree 2 5
Total 40 100
Do you think that the implementation of information technology has provided you some mental & physical relaxation?
Frequency % age
Strongly agree 16 40 Agree 20 50 Undecided -- -- Disagree 4 10 Strongly Disagree -- --
Total 40 100
With the help of information technology, you become able toeasily communicate to your supervisors and co?workers during recruitment and training of employees
Frequency % age
Strongly agree 14 35 Agree 18 45 Undecided 8 20 Disagree -- -- Strongly Disagree -- --
Total 40 100
The storage of data has become easywith the use of Information Technology
Frequency % age
Strongly agree 16 40 Agree 20 50 Undecided 4 10 Disagree -- -- Strongly Disagree -- --
Total 40 100
Do you have must necessary knowledge about the use of computers and Information Technology
Frequency % age
Strongly agree 12 30 Agree 20 50 Undecided -- -- Disagree 8 20 Strongly Disagree -- --
Total 40 100
Can more organized, detailed information be gathered with the help of Information Technology?
Frequency % age
Strongly agree 18 45 Agree 22 55 Undecided -- -- Disagree -- -- Strongly Disagree -- --
Total 40 100
FINDINGS OF SURVEY
In my selected sample of 40 employees 16 employees (40%) are between 25-35, 12 (30%) are in the class of 35-45, 10 employees (25%) are in the category of 45-55 age and two employee is in the first category which is less than or 25 years. Majority of the employees are graduates. While 12 employees are Master's and 4 employees are intermediate. In our sample 18 employees are managers. 4 employees (10%) are supervisors, 10 employees (25%) are clerk, 6 employees (15%) are secretaries and only one is related to the category of technician. Most of the employee (65%) or employees have said that their present job is good. 10 employees (25%) have said the job is satisfactory while only 4 employees (10%) have said that their job is creative. In our sample 4 employees are less than one year job. 10 employees (25%) are in the category of 1-5 years job whereas 18 employees belong to the category of 6-10 years of job which is the highest frequency. Then 6 employees belong to 11-15 years category while in the last two categories each has one employee. Majority of the employees strongly agree that the knowledge about information technology is necessary. To meet the job requirements and to operate the computer basic knowledge is needed. It is evident from the graph and table both that 65% of the employees strongly agree and 35% of employees agree with the statement while no body disagrees with the statement. Similarly is the case 55% of employees strongly agree and 45% agreed that the use of computers has made the work very fast and accurate. It is also clear from graph that all the employees are positive about the computers. No one disagree with the statement. It is clear from the table that 55% of employees strongly agree that they have easy access to data because of computers whereas 35% agree with it. While 10% disagree with this statement. It means that some employees are still does not have easy access to data. But majority have this facility. It is evident from the table that 5% of employee (only one employee) strongly agreed with this statement that use of computers in time consuming. Out of 40 employees 8 agreed with it. Where as 45% disagree and 30% strongly disagree with this statement. So most of the employees are saying that use of computer and information technology is time saving not time consuming. Most of the employees agree with this statement that because of the use of computer technology number of employees has reduced. It is also evident from table and graph that 45% strongly agree, 50% agree and 5% say undecided. Where as nobody disagree with it. Employees feel themselves better able to meet future needs because of computer based information technology. As 45% strongly agree, 50% agree and 5% undecided and no one disagree with this quotation. It is clear from the table and graph that 40% employees strongly agree this question that number of working hours has reduced. 50% agree and 10% disagree on this question. Most of the people are in favor of the statement that they have more storage capacity. As 50% employees strongly agree and 45% agree while 5% (two) employee disagreed. So the capacity to store high data has increased. All of the employees agree with this statement that they can use computers whenever need. 55% strongly agree and 45% agree. The burden to do all work manually has reduced as 45% of employees strongly agree and 45% agree with this question while 5% of employee disagreed & 5% strongly disagree. Among all 40% of employees strongly agree that they have mental & physical relaxation 50% agree with it whereas 10% disagree with this question. 35% of employees strongly agree and 45% agree as I ask that the communication gap between co?workers has reduced because of computers. But 20% employee are neither agreed nor disagreed, they have said undecided. The storage of data has become very easy by the use of computers as 40% of employees strongly agree with this statement $ 50% agree. While 10% disagree. Majority of the employee have the basic knowledge about how to use computers. Because 30% employees strongly agree with this question and 50% agree. While 20% disagree, which means there are some employees who don't know how to operate computer. All of the employees agree with this statement that we have more organized, detailed information because of computers, as 45% of employees strongly agree and 55% agree. So the information technology has a direct effect on the efficiency of employees.
B)ANALYSIS OF SECONDARY DATA OF ICI PAKISTAN LIMITED
USES AND IMPACT OF INFORMATION TECHNOLOGY AT ICI MANUAL ACCOUNTING TO COMPUTERIZED SYSTEM Before 1987 most of the work of Accounts and other departments was done manually as ICI developed on daily, weakly and monthly, basis with the requirement of organization. Amount and area of work became large. They needed direly the use of computer. Now they have many systems to fulfill the needs of organization.
- First they prepared their accounts in months. Now they prepare this by computer in two or three days.
- First they had to prepare one report in two months. Now they require it to prepare it in two days and they do it.
CHART OF ACCOUNTS AND NOMINAL LEDGER SYSTEM The list of Accounting in polyester department consists of 835 no. of Accounting including all types of Accounting i.e., M.D, S.D, BA and P.A. ICI Pakistan Limited Polyester nominal ledger system stands for ledger master data listing. It has following headings. TYPE DESCRIPTION C.C REQ A/C NO. First of all we will explain A/C No. Accounts No. are different for different type of descriptions. The initial figure of the A/C No. shows the polyester department. The very first digit of the A/C No. is 3. This digit "3" shows polyester department, that this A/c number shows polyester. Abbreviation of the types of account is as follows: MD Main A/C SD Subsidiary BA Balance Sheet A/C PA Profit and Loss A/c. Ac No. is in laks. The very first digit or the laks digit shows polyester department. Ac No, of digit 0000 stands MD. 10,000 Stands for fixed Assets 20,000 Stands for capital expenditures. 40,000 Stands for current Assets. 30,000 Stands for Different Assets long term loan. 50,000 Stands for current liabilities. 60,000 Stands for long term liabilities. 70,000 Stands for share loan capital, and resources. 80,000 Stands for revenues. 90,000 Stands for expenses. Then thousands digits shows and explains main heads and hundreds and thousands shows the S.D (subsidiary Ac) of main heads. ICI have given code numbers for different type of Ac system on computers. For example: Reporting to NLS 023 code number is given to computer show it on computer copy shows exact date and timings of the printing with page to page.
In manual accounting system, the processing of information is accomplished by people using various kind of paper work: Paper documents, journals, ledgers, worksheets, and reports. The processing steps are laid down in set of clerical. Procedures: The flow of information is evidenced, and in fact is brought about by the movement of data from source documents to journals, to ledgers, to worksheet, to output document or reports. Output also includes the financial statements that reflect the flow of information during the accounting period.
Provision for current taxation is based on current rates of tax after taking into account tax credits available, if any. The company accounts for deferred taxation and all material timing differences using the liability method. However, deferred tax is most provided if it can be established with reasonable probability that these timing differences will not reverse in the foreseeable future.
A flowchart can be defined as a graphic representation of a process, system, or operation which demonstrated, through symbols, lines, and arrows, the sequence and interrelationship of activities and documents to complete a specific process, system, or operation.
Purpose of Flowcharts
Flowcharts can be used for a number of purposes. More common uses are:
- Serves to document in an easily used and understood format abstract thoughts, processes, or systems.
- Gives a means to present visually an accounting system, trace a check or voucher through a system, or present the logic of solving a problem.
- Allows more than one person to discuss the problems with an assurance that they are discussing the same problem.
- Provides an opportunity to analyze facts and present ideas.
The flow chart of inventory sales and receivables system of polyester Fibres area of ICI Pakistan Ltd is given below. They do not follow the proper symbols of follow chart, which we have above mentioned. Concerned authority of ICI Pakistan Limited (Polyester Fibres Division) was not willing to other flow charts like Decision flow chart, Logic flow chart etc. What they provided us, we are presenting there.
Internal controls are all measures taken by an organization for the purposes of (1) protecting its resources against waste, fraud, or inefficient use; (2) ensuring the reliability of accounting data; (3) securing compliance with management's policies; and (4) evaluating the performance of all employees, managers, and departments within the organization. Thus, all measures and procedures intended to assure management that the entire business is operating according to management's plans and policies may be described as internal controls. Collectively, the internal controls in force throughout the organization are called the internal control structure (or the system of internal control).
Relationship between the Accounting System and the Internal Control Structure
The primary objective of an accounting system is to provide useful financial information to decision makers. The objective of the internal control structure is to keep the business "on track," operating in accordance with the policies and plans of management. These two systems are closely related; in fact, each depends greatly upon the other. The accounting system depends upon internal control procedures to ensure the reliability of accounting data. Many internal control procedures, on the other hand, make use of accounting data in keeping track of assets ad monitoring the performance of departments. The need for adequate internal control explains the nature and the very existence of many accounting records, reports, documents, and procedures. Thus, the topic of internal control and the study of accounting go hand?in?hand.
Accounting and Administrative Controls ICI Pakistan Limited
Internal controls fall into two broad categories.
- Accounting controls and
- Administrative controls.
Accounting controls are measures that relate directly to the protection of assets or to the reliability of accounting information. An example is the use of cash registers to create an immediate record of cash receipts. Administrative controls are measures designed to increase operational efficiency; they have no direct bearing upon the reliability of the accounting records. An example of an administrative control is a requirement that travelling salespeople submit reports showing the names of customers called upon each day.
Steps toward Achieving Internal Control
Important internal control measures include the following:
- Internal auditing: Virtually every large organization has an internal auditioning staff. The objectives of the internal auditors are to monitor and improve the system of internal control. Internal auditors test and evaluate both accounting controls and administrative controls in all areas of the organization and prepare reports to top management on their findings and recommendations. Much of the work of internal auditors may be described as operational auditing.
- Financial forecasts: A plan of operations is prepared each year setting goals for each division of the business, as, for example, the expected volumes of sales, amounts of expenses, and future cash balances. Actual results are compared with forecast amounts month by month. This comparison strengthens controls because variations from planned results are investigated promptly.
- Competent personnel: Even the best?designed system of internal control will not work well unless the people using it are competent. Competence and integrity of employees are in part developed through training programs, but they also are related to the policies for selection of personnel and to the adequacy of supervision.
- Rotation of employees: The rotation of employees from one job assignment to another may strengthen internal control. When employees know that another person will soon be taking over their duties, they are more likely to maintain records with care and to follow established procedures. The rotation of employees also may bring to light errors or irregularities caused by the employee formerly performing a given task.
- Serially numbered documents: Documents such as cheques, purchase orders, and sales invoices are serially numbered. If a document is misplaced or concealed, the break in the sequence of numbers will can attention to the missing item.
COMPUTERIZED ACCOUNTING SYSTEM IN ICI PAINTS USED BY ACCOUNTS AND FINANCE STAFF
i)SCOPE OF I.T IN ACCOUNTING
Most are the uses of computer are in the accounting field. Computer is used in almost every department of multinational organization especially in finance department. Because every transaction is processed though computer. Then posting from general journal to ledger and subsidiary ledger is automatically done by the computer. Every type of reports like financial report, tax report, and other sales and purchases are designed from the computer. Hence every activity of accounting can be done by the computer.
ii)PROBLEMS OF MANUAL ACCOUNTING SYSTEM AND ADVANTAGES OF COMPUTERS
Computers are able to process data more effectively than humans. Not only can they perform computations with lighting speed, but they al so are extremely accurate and expansive processors. By comparison, humans are very slow, error?prone, and limited processors. Thus, a computer may process hundreds of transactions in the time that a human requires to process a single transaction. A computer can process transactions all day without making a single error; a human may make an error in processing the first transaction of the day. A computer can process, without pause, complex transactions or problems involving tens or hundreds of numbers and other symbols; a human cannot easily deal with more than nine symbols (e.g., numbers) or groups of symbols at one time. Under certain conditions, computers are able to process transactions less expensively than humans. Although a typical computer requires a large investment relative to a human, its speed allows it to process each transaction at a very small incremental cost. A human, on the other hand, is inexpensive to hire but much more costly in processing each additional transaction. Therefore, beyond a certain break?even volume the processing cost per transaction is less for a computer than for a human. Computers are more dependable processors than humans. Instead of becoming fatigued, bored, emotional, or "hung over" from late parties, computers can work tirelessly around the clock. They automatically follow sets of detailed coded instructions, called programs, in an exact and consistent manner. Moreover, they can flawlessly execute quite complex programs, involving comparisons and choices as well as computations. Computers can store data more compactly than humans. Information systems that use computers can therefore consolidate much of the stored data. In the absence of computers a firm's data are scattered in file folders and drawers throughout various departments. Consequently many of the data tend to be less accessible or to be duplicated. Computers can be more operationally efficient than humans. They can integrate transaction processing cycles and files. They can perform numerous operations in parallel, thereby minimizing peak loads. They can control complex physical processes requiring split-second timing. Together with communications networks they can tie together data and files at physically distant points. By comparison, humans are unable to handle large sequences of operations and have difficulty in dealing with complex process.
iii)DATA PROCESSING CYCLE IN ACCOUNTING
Each type of transaction undergoes a unique procedure, involving specific source documents, files, processing steps, controls, and outputs. However, embedded within each transaction procedure is a standardized set of steps known as the accounting cycle. Its structure is based on the double-entry concept, which states that each transaction can be reflected by equal debits and credits. The accounting cycle begins with the preparation of a source document that contains the amount involved in a specific transaction. In the case of a sales transaction, for instance, the source document that begins the accounting cycle is the sales invoice, since it reflects the amount of the sale. Then the source document is classified and coded to show the ledger accounts that are affected by the transaction. Next the transaction data are summarized in a journal. The debits and credits in the summarized journal. The debits and credits in the summarized journal entry are then posted to a ledger; in other words, the affected ledger account balances are updated. Periodically (e.g., at the end of each month), the balances of all ledger accounts are summarized in a trial balance, to verify that the total of debit balances equals the total of credit balances. Adjusting journal entries are then processed and an adjusted trial balance is prepared. Finally, the financial statements are prepared. This cycle is repeated each accounting period.
iv)NEEDS FOR COMPUTERIZED ACCOUNTING SYSTEM AT ICI
ICI Polyester area started computerized Accounting System in 1987 in Pakistan.
- for latest TechnologyFirst they set up EDP department in head off then they shifted feehta business area.
- for Time Saving Less Labour (Posting to Subsidiary Ledger Inventory Ledger).
- for Quick Performance.Ready reports are available.
- You can update & safe any report and get any information at any time.
- Coding & data processing in ICI Pakistan (Polyester Fibre Area).
v)COMPUTER DATA PROCESSING AND EDP DEPARTMENT IN ICI PAKISTAN LIMITED (POLYESTER DIVISION)
Data processing system in ICI is very good they have same format of vouchers like journal voucher (J.V) bank payment voucher (B.V) cash payment voucher (C.V) and other P.V., D.V., A.V., etc. The format of voucher of ICI Polyester Fibres is attached here (voucher). In making any voucher different authorities of department involve and then in computer on the basis of cost centre this voucher is feeded in respective forms mentioned above cost centre allocates the codes of different departments to which that voucher relates. Also the nature of transaction is kept in mind while feeding computer the effect of this transaction goes from general journal to ledger and subsidiary ledger account. You can get trial balance at certain times when needed. They have given special codes to above information (books). All things are done on the basis of codes. ICI Pakistan Ltd., has very strong code system this organization has a department which design the codes for ICI's different departments according to their requirement. This department is called E.D.P (Electronic Data Processing). ICI has been using codes even before its accounting system was computerized in 1987 because accurate accounting system can give accurate information only when it has accurate coding system.
Every business area of ICI Pakistan Limietd has E.D.P department which design system, keeping in view the requirements of users. Company system of ledger and sub-ledger also for sales purchases and marketing department, these all departments use systems developed by E.D.P. Its output is according to users, managements requirements. What ever and whenever a department wants change in its system, this department does immediately. Here in ICI there is nominal ledger system like inventory, purchases sales etc. This department is operate by the by system analyst having experience programmers.
vi)TYPES OF COMPUTERS IN ICI PAKISTAN LIMITED
- Report Generation
Types of Software
Software is a broad term describing all of the programs associated with a computer system. A program is defined as a series of instructions designed to accomplish some desired objectives or tasks. Computer software is usually divided into two types: (1) operating system software help to manage the computer itself, as we will describe below. The tasks of application software have varying purposes because application programs are written to solve individual problems (for instance, to give you help with your client write-up function).
Operating System Software
Operating system software (or simply "system software") is made up of one or more generalized programs that help the computer to do a more efficient job. The operating system in a modern computer has taken over many of the functions that were performed by computer operators on earlier machines, and it provides additional services as well. For example, all of the following can be functions of an operating system:
- Helping to read other programs into the computer.
- Aiding in storage and retrieval of data on disks and tapes.
- Maintaining the data and time.
- Providing a directory to help keep track of where files are kept.
- Providing utility programs to copy files from one media to another (such as from tape to disk) and to sort data easily (for example, to list your client billing information in sequence by the amount they owe you, even if your client files are usually kept in order by client number or name).
- Protecting and monitoring the use of passwords on terminals, files, and so on so that access to your client files is protected.
- Keeping track of how busy the CPU is, how many tapes and disks are available, how many terminals are connected to the system, and so on.
Application software refers to programs written to solve specific problems. Application programs have been created to process a client's general ledgers, to imitate psychiatrists, to predict presidential elections, and to do just about everything else imaginable. Choosing application software may be your most critical task in implementing an in-house computer.
In ICI Pakistan Ltd., all types of reports like financial reports managerial tax sales and purchase reports are generated through computer. At the end of the year they make adjustments. For certain accounts and feed in computer then they get trial balance and annual reports.
Audits of Financial Statements:
A Financial audit is an examination of ICI's financial statements performed by A.F. Ferguson the end of financial year of ICI Limited is 31 December. The basic purpose of this audit is to provide decision makers outside the business organization with an independent expert's opinion as to the fairness of the financial statement. Auditors use the term "fair" in describing financial statement which are complete. Unbiased, reliable, and presented in conformity with generally accepted accounting principles.
viii)DIFFERENCES BETWEEN MANUAL AND COMPUTER-BASED ACCOUNTING SYSTEM
In the following table, we summarize the differences between a simple manual accounting system and the computer-based systems in use in ICI Ltd. Pakistan. Notice that both types of systems perform the same basic functions.
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Enhancing the productivity of Human Resource after using Information Technologies The ‘intermediate' technologies are basically the inventions of the 19th century. Various authors have detailed how these ‘intermediate' technologies influenced societies, for example, (Standage, 1999); provides a description on telegraphy, and (Fischer, 1992) the telephone). On the other hand, digital technologies are recent inventions (Mindell, 2002). Production of digital technologies (products and services) involves issues of hardware and software. While hardware production can be said to be industrial, it is the production of software which is equally marvelling. This is because software is a unique product in the history of humanity. It is extremely valuable in that it is an essential working component of all Information and Communication Technologies (ICTs) and it requires more labour to produce it. It is therefore the purpose of this paper to highlight how these digital technologies are influencing productivity of human resource in different parts of the world.
Information and Communication Technologies as (ICTs) major contributor to Labor Productivity
The ICTs industry can be divided into producers of products and services and the consumers of such products and services. Therefore, human resource productivity enhancements from ICTs can be divided between producers and consumers of ICTs. While, for historical reasons the design and production of ICTs products are concentrated in a few regions of the world, the consumption is almost spread all over the world. Similarly, while it is relatively easy to get processed data and information on the productivity enhancement wrought by ICTs in some countries, it is quite difficult to access such information in many of the developing countries such as Tanzania. The following section provides an account of productivity enhancement of specific regions/countries so as to demonstrate empirically the role of ICTs in labour productivity. Labour productivity experienced in the US in the 1990s was to a good extent attributed to the growth in ICTs investment. For example, (Oliner & Sichel, 2000) concluded that slightly over 20 per cent of U.S. output growth over the 1996-99 period could be attributed to the use of ICT and approximately 10 per cent to the production of ICT components (computer hardware and semiconductors). Moreover, 37 per cent of labour-productivity growth is attributed to “capital is deepening" from the use of ICT. In the same vein, (Jorgenson & Stiroh, 2000) calculated even a higher contribution of approximately 43 per cent to total labour-productivity growth. However, as observed by (Anonymous, 2002) distribution of productivity was not even among all sectors. For example, a study by the McKinsey Global Institute examining the causes of the productivity boom in the late 1990s found only a murky relationship between IT and productivity growth. While IT did have a major impact on productivity in some sectors of the economy, it had virtually no effect in others (Anonymous, 2002). The enhanced US labour productivity was attributed to innovation (including but not limited to, IT and its applications), competition, and to a lesser extent cyclical demand factors, all contributed to productivity growth. On the other hand several other studies such as that of OECD concluded that growth in the productivity is reliant on how the ICT is applied by organisations.
How does Information and Communication Technologies (ICTs) enhance productivity of Human Resource?
One of the gurus in management, Peter Drucker, predicted that like it was the industrial revolution two centuries ago, the ICTs would transform processes that were here all along. He further argues that ICTs have the potential to be to the information revolution what the railroad was to the Industrial Revolution - a totally new, totally unprecedented, totally unexpected development that transformed both the mental and economic geography of companies and communities. Continuing with the same line of argument, Drucker proffered that workers that would be the engine of economic growth will be those who can be categorized as “knowledge technologists”, for example computer technicians and software designers. He asserted that these workers are as much manual workers as they are knowledge workers; in fact, they usually spend far more time working with their hands than with their brains. But their manual work is based on a substantial amount of theoretical knowledge which can be acquired only through formal education, not through an apprenticeship. He predicted that just as unskilled manual workers in manufacturing were the dominant social and political force in the 20th century, “knowledge technologists” are likely to become the dominant social—and perhaps also political—force over the next decades (Drucker, 2001). The impact of ICTs on the overall growth of the economy can be observed by looking at the multifactor productivity factor (MPF) measurement. In OECD countries, MPF coefficients have been found higher in economies and more specifically in sectors with higher investments in ICTs (Irene Bertschek, Fryges, & Kaiser, 2004). The productivity growth by ICTs is usually through two main channels: First, greater investment in ICT, which boosts labour productivity growth by raising the stock of capital available to each worker (capital deepening); and secondly, rapid productivity growth is occurring in the production of ICT goods (e.g. computers, mobile phones). This is because the spread of computing power has reduced radically the costs for companies of collecting, analysing, retrieving and re-using information. For example, the growth of voice and data communications means companies are increasingly able to share and spread strategic information at great speed, over long distances but at a fraction of cost. So as computers continue to becoming cheaper and more powerful, the business value of computers is limited less by computational capability and more by the ability of managers to invent new processes, procedures and organizational structures that leverage this capability. Thus, in terms of increasing effective management, just as electricity enabled development of the continuous production line processes, the decentralised availability of information through ICTs allows the reduction of hierarchical structures within firms and greater empowerment and capabilities for work teams and individual workers. ICTs can also transform a firm's relations with its customers, providing increased scope to tailor products to individual requirements. ICTs also allow more lean and timely inventory management. In other words, investment appears to have a greater beneficial impact if complemented by organisational changes, greater use of delegated decision-making and improvements in related workforce skills. Therefore, these benefits from ICTs to productivity can be categorized as tangible and intangible (Sheng, Nah, & Siau, 2005). The tangible benefits include the following:
- Reduced cost
- Improved productivity (i.e., amount of output produced per unit of input)
- Increased market share
- Savings in labor
- Increased consumer surplus (i.e., the accumulated difference between consumer demand and market price)
- Improved customer service quality
- Improved organizational efficiency
- Quicker response to customers
- Deeper knowledge and understanding of customers
On the other hand, the intangible benefits include:
- Improved decision-making ability
- Superior product quality
- Knowledge/information management and sharing
- Improved coordination/relationships with partners
- Other forms of competitive advantages
As described earlier, for most developed countries there was a definite link between productivity growth and ICTs. But impact of ICTs on growth was non-existent and even negative in some developing countries. This is true because technology does drive growth - but only after a minimum threshold is reached. ICTs penetration and usage needs to attain critical mass before it will have a positive impact on country's economy (in order to attain optimum network effect alluded to earlier). Similarly, there is a considerable time lag before ICT benefits growth and productivity. The lag represents the time it takes organisations to assimilate and adjust to new technology. Also, ICTs enablers are crucial for technology to work. For example, quality of country's business environment, as well as its attention to specific ICT enablers significantly affects its ability to harness full benefit of technology. Specifically, the ICTs enablers include appropriate education, skills training, research and development (R&D), access to venture capital, affordability of Internet access, security of Internet infrastructure, government support for ICT development, and quality of ICT supporting services (Chandra, 2007). Another equally important enabler is the recruitment as well as promotion processes and recognisition of professional skills attainment. Thus, for ICTs to effectively enhance labour productivity, nations ought to not only invest in ICT infrastructure but also in ICT enablers if benefits from ICT are to translate into higher human resource productivity on sustainable basis.
Information technology is an extremely versatile technology that is being applied in almost every area of business activities. Driven by the rapid advances of integrated circuit technology, it has extended its range of application dramatically. In my survey I draw certain conclusion about the impacts of information technology on the efficiency of employees. Researcher variables are data processing, record keeping, work burden and no. of employees. Knowledge about the use of computer technology is very necessary. If you have basic knowledge about operating computers then you can have better results. With the help of computer technology data processing has become very easy. As we can easily store, retrieve and update the data. As the changes occur organization can update its data. In ICI Paints Limited they store data for five years in their computers. They have data available all the time so that documents are easily available whenever needed. The work burden on employees to make files and prepare documents manually has reduced because now all the work is done by computers. Once we store date by opening files in computer. We can have prints out available at any time. In ICI Paints they keep data for recent five years & get rid of data older than this period. After the implementation of I.T majority of files, registers & store rooms are abolished. Only the necessary files which are also in print form for the use of managers and supervisors are being made. This will reduce the cost in turn of man power, papers, time etc. Before the use of computers all the work was done manually so number of employee are also more, more paper & stationary is needed and it also takes more time to perform a job. The more accurate, fast and easy access to data is possible in ICI because of computer technology. Before the implementation of information technology in ICI there were more chances of errors, they need more time to find needed data. Number of jobs & employees are reduced as the information technology is used. Before the use of computers more man?power is needed that's why ICI hire a great number of employees. Which gradually reduced as the computer based information system is launched. The communication between the supervisors and co?workers has increased because of computer system i.e., E?mail, Fax etc. which was not available few years before. So the information technology directly affects the efficiency of employees in ICI paints. It enhances the employee ability to work hard. It saves time, reduces the chances of error, can store data in large amount, process data fast and accurately, helps in decision making, identifies the production level on the basis of future demand forecast. These and many other advantages of information technology enhance its importance in today's life.
1.DEVELOPMENT OF COMPUTERIZED SYSTEM
From beginning (1987) to today the development is on daily, weakly or on monthly basis with request of organization. They are developing Computerized Accounting System (CAS). In the beginning they only one system but now they have developed few system (6-7)
- Firstly they prepared their accounting months but now they have done these two or three days.
- First one report they to prepare in two months how they require it to prepare in two days, they do it.
They make their audit within three or four days will other organization take months to do so.
- Management: Well organized and efficient management
- Well planning: They do every thing with planning. They do every thing with planning short term long term
- Computer efficiency they proper later by comparing it budget views, forecast budgets.
2.DATA COMMUNICATIONS NETWORKS
Data Communications Networks link the central computers of firms to terminals and/or smaller computers via communication lines. They enable data collection, processing, storage, and dissemination to be dispersed geographically. While data communications networks have been in existence for a dozen years or more, they are becoming increasingly sophisticated. Technology now enables a variety of messages (e.g., spoken conversations, business letters, financial statements) to be transmitted simultaneously over great distances with a high degree of accuracy. Networks can assume different forms to accommodate various purposes and situations. One network may consist of a central large?scale computer to which are attached a number of terminals. ICI have introduced this technology recently. They are developing their computerized accounting system in a modern way, to compete business world. After having a detailed review of Computerized Accounting System of ICI, researcher can conclude that Accounting System of ICI is very reliable and accurate. ICI Pakistan Limited has a very strong coding system. The Electronic data processing (EDP) department designs codes for every business area of ICI Pakistan Limited. This organization has very strong Nominal Ledger System (NLS). There is very good correlation between different departments. Their data processing programme is fine. They make their audit within two or three days and their Annual General Meeting is held before 21st January every year, because of their efficient Computerized Accounting System. We want to give some suggestions to ICI Pakistan Limited on Computerized Accounting System.
- ICI Pakistan should have latest computer system of IBM as other multinational organizations like Coca Cola, Nestle' and Pepsi International etc have for becoming more efficient.
- The company should have professionally qualified computer programmer. vAs most of the company's staff is not professional. So it should hire professional people, like business graduates especially.
- Company should reduce the direct selling expenses by reducing its sales staff. So it should just follow the strategy of competitors.
- The company should have proper flow charts for every system like sales, purchase and decision etc.
- Employees must be given security especially good employees so that they can work easily because in our conclusion we find out that number of employees haws been reduced because computer take their place.
- Information Technology also leads to problems of change, arising from the introduction of a powerful new technology into organizations. Before implementing new technology employees must be given training so that they can use the technology properly.
- The health and safety of an employee must be the first preference of any organization. ICI Pakistan has taken steps in this respect. But the work of computer also creates stress in an employee, effects eye?sight and problems arises like headache and back?bone problem. So company must consider these problems.
- Overall the company gives to more incentives to its employees and researcher personally feels that employees are satisfied and happy with their present job.
So now researcher has examined the positive and negative effects of information technology and telecommunication on organization and its functions. And it is clear from the above description that where I.T provides benefits, there it has some negative aspects too. In final words, H.R manager of ICI should consider all external and internal factors influencing organization:
- ICI manager should prepare themselves and their organizations for the further changes in I.T.
- HR managers should try to prepare their employees too, giving them training and continue to introduce with technology.
- They should update themselves with coming changes in I.T.
- They should also adopt new strategies and planning for their organization to save it from any uncertain happening.
- And they also should try to satisfy their employers.
- Researcher thinks all these things can be helpful in changing informational technology's era.
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I am student of an educational institution. I am going to conduct a research on "Impact of Information Technology (I.T) on Human Resource (HR) ". Please, tick the answers which you think more appropriate. This questionnaire will take only a few minutes of your time. I will appreciate your cooperation. 1. Age Group Less than or 25 _________________ 25-35 _________________ 35-45 _________________ 45-55 _________________ 55 or more _________________ 2. Qualification Matriculation _________________ Intermediate _________________ Graduation _________________ Master's _________________ - Doctorate _________________ Technical Skills _________________ 3. Level of Job Manager _________________ Supervisor _________________ Clerk _________________ Secretary _________________ Technician _________________ Others _________________ 4. For how many years you are working in this organization? Less than 1 _________________ 1-5 _________________ 6-10 _________________ 11-15 _________________ 16-20 _________________ 21 or more _________________ 5. Your Present job is Good _________________ Satisfactory _________________ Boring/Routine _________________ Exiting _________________ Motivating _________________ Creative _________________ 6. The knowledge about information technology is necessary Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 7. The use of computers has made the work very fast and accurate Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 8. The data is easily accessible for the use of every employee because of computers Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 9. Use of information technology is time consuming Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 10. No. of employees has been reduced as the information technology or computers are used Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 11. Now when information technology is there are find your?self better able to competes future needs Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 12. Do you think that use of information technology has reduced the No. of working hours? Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 13. With the use of computers and other information technology you are better able to store data Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 14. You can use information whenever needed Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 15. Does the use of computers reduce the burden on you to do all work manually (files, registers)? Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 16. Do you think that the implementation of information technology has provided you some mental & physical relaxation? Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 17. With the help of Information technology, you become able to easily communicate to your supervisors and co?workers Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 18. The storage of data has become easy with the use of information technology Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 19. Do you have necessary knowledge about the use of computer and I.T? Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________ 20. Can more organized, detailed information be gathered with the help of computer technology? Strongly agree _________________ Agree _________________ Undecided _________________ Disagreed _________________ Strongly Disagreed _________________