Management information systems revision question and answer

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

Without proper consideration of the behaviour of people in the business organisation setting even the best technically designed system is likely to fail.

Required:
a) Analyse the most common reasons that may lead to resistance to the introduction of Management Information Systems and how an organisation can overcome it.
b) ―Change is inevitable‖. Change occurs in many ways and adapting to change is a primary management responsibility. Identify the factors, which bring about change in an organisation.
ANSWER
a) Reasons that may lead to resistance to the introduction of management information systems and how an organisation can overcome it.

User resistance refers to the reluctance of some people to move to the new system or to give information or accept new ways of doing things. It arises due to the following reason:
1) Fear of unknown consequences of adopting new ways users.
2) Fear of loss of status or power users especially senior managers who feel that their duties will be overtaken use of computers.
3) Fear of loss of jobs or job security where new ways automate clerical and manual procedures.
4) Attention to interpersonal relationships wherehuman beings are required to interact with the system instead of other people.
5) Fear of acquiring new training based on technology or technophobia.
6) Changes in job content since most procedures will be automated.
7) Mode in which the change from old procedures to new procedures is implemented. Poor changeover methods can lead even to system failure.
8) Assigning change responsibility to somebody within the organisation who possesses the organisation‘s power to legitimise change.

b) Factors which bring about change in an organisation
Change refers t to the alteration of relationship and roles people play in the organisation. It is any shift in status quo of an organisation to enable it to be better aligned with its environment.

Factors which bring about change in an organisation are:
1. Change in technology which would push the organisation into the need to remain technologically advanced thus competitive edge.
2. Changes in the market situation such as new entrants into the market which could bring about new competitors.
3. Social and political changes which could result from change sin tastes of consumers or change sin government legislation affecting the business.
4. Changes in managerial personnel wherenew managers can bring about new ideas, policies and systems.
5. Deficiency or inadequacy of the existing systems leading to the need for new improved methods.
6. Employees desire to share in decision making thus need to accommodate their ideas.
7. Rapid growth of small companies thus the need to extend the capacity.
8. If the company is about to join ranks of very large companies, this will necessitate change so as to harmonise operations with those of the acquirer.
9. Demands employees for higher pays, better job satisfaction etc.

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