Discuss how organizations have been affected by computerization problems

 How computers contribute to efficient operations and management of an organization.
• Computers have improved the level of efficiency and accuracy of information.
• It has increased the volume of information that can be processed.
• The speed at which information becomes available to more people.
• The use of computers have eliminated cumbersome manual operations e.g. in accounting department where clerks have to deal with so many records.
• Computers can reduce the cost of operations to the management in terms of space and the number of record clerks to be employed.
• Complete computerization of organizational activities have made operations more efficient by making for it easier not only for users but also for managers to access virtually all information pertaining to activities of other departments and other sections of the organization. Hence there is improved communication between the various functional units.
• IT results in better customer service especially since staff can handle customer queries by accessing the organization data files.
• The planning and control of the production department is enhanced with systems such as ‘Just-in-Time’ (JIT), ‘Materials Requirements Planning’ (MRP), ‘Computer Aided Design’ (CAD) and ‘Flexible Manufacturing System’ (FMS). Stock control is likely to be easier as well.

Effects of computerization problems in an organization
• High displacement rates of employees at clerical and worker level.
• Loss of data due to e.g. black outs delay operations and affect decision making.
• Rapid changes in the use of computer languages and programmes make the cost of training and acquiring new packages expensive.
• Security problems with data e.g. viruses or intruders. These may cause huge losses to the organization.
• Computer virus and computer bugs may affect the use of computers resulting to distortion and disappearance of data.
• Resistance to change.
• IT leads to changes in organizational structure as it encourages a tendency towards decentralization of authority with its associated problem.
• Health problems may result from over use or poor use of the computer.
• Easy access of information by lower level workers may lead to potential loss of status and power by managers. Computers may therefore trigger emotional problems and stress to both managers and their subordinates.

Leave a Reply

Your email address will not be published. Required fields are marked *