CHAPTER VIII

TECHNOLOGY,
ORGANIZATION
AND MANAGEMENT
 CONCEPT OF TECHNOLOGY

Technology is the application of science (the combination of

the scientific method and material) to solve problems

Technology is the making, usage and knowledge of tools,

machines, techniques, crafts and system of organization to
solve problems
Concept of ICT in Business
We can not assume a modern organization
without the use of information and
communication technology (ICT). It is used
and found in all types of organizations with
different degrees. The pace of ICT is very
high in the last few decades as compared to
other areas. Managers need to be aware of
nature of technological process for the four
following reasons among others.
ICT Components
Components of ICT system little vary among
books. The five major components of ICT
system are discussed below.
 1. Data: Data are the raw facts collected from
environment. Simply, it is input to the ICT
system. It is not useful to users and other
without processing.
 2. Hardware: Physical components of ICT
system are called hardware. It includes
processor, storage, I/O devices, networking
devices, transmission media etc.
3. Software: It refers to the set of programs.
It is the intangible part of ICT system. There
are two major categories of software: System
software and Application software. System
software is used to control and coordinate
that working of hardware. Operating system
is an example of system software. On the
other hand, application software is used to
perform the specific task. MS word, MS
Excel, Library Management system etc. are
examples of Application software.
 4. Information: Information is the processed data. It is useful
and meaningful to the users of ICT system. Simply, we can
say that information is output of ICT system. Data processing
is done by performing arithmetic/logical operation on data or
by simply making rearrangement of data.
 5. Human Resources: It is associated with the manpower
required to run and manage the system. People are the end
user of the information system, end-user use information
produced for their own purpose, the main purpose of the
information system is to benefit the end user. The end user
can be accountants, engineers, salespersons, customers,
clerks, or managers etc. People are also responsible to
develop ICT systems. They include systems analysts,
programmers, and other clerical IS personnel.
Features of ICT Technology
1. Compactness
2. Increased portability
3. Connectivity
4. Low cost and energy saving
5. Flexible software
6. Modularity
Positive Impacts of ICT
Access to Information:
Possibly the greatest effect of ICT on individuals
is increased access to information. This is
accompanied by the growth of the internet. Some
of the positive aspects of this increased access are
better and often cheaper. For example,
communications such as voice over internet
protocol (VoIP) and Instant Messaging. In
addition, the use of ICT has brought new
opportunities for entertainment and the ability to
obtain goods and services from a wider range of
suppliers.
Improved access to education:
Distance learning and online tutorials are
opportunities created by ICT. In addition, new
ways of learning like interactive multi-media,
virtual reality, ability to perform experiments
by using simulations became possible due to
ICT.
New tools, new opportunities:
Another big effect of ICT is that it gives
access to new tools that did not previously
exist. For example, digital cameras, photo
editing software, and high quality printers
enabled people to produce results that would
previously require a photographic studio. ICT
can also be used to help people overcome
disabilities. For example, screen
magnification or screen reading software
enables partially sighted or blind people to
work with ordinary text rather than Braille.
Information management:
Organizations can benefit from using ICT for
information management. For example, data
mining of customer information to produce
lists for targeted advertising. Improved stock
control, resulting in less wastage, better cash
flow, etc. Mangers are better informed and
will have more reliable and up-to-date
information on which to base their decisions.
Security:
Although the use of ICT can bring its own
security issues, it can also solve or reduce
some security problems, e.g. Encryption
methods can keep data safe from
unauthorized people, both while it is being
stored or while it is being sent electronically.
ICT also enables security systems such as
fingerprint, iris or facial recognition.
Communication:
ICT has brought a number of benefits, such as: Cost
savings by using VoIP instead of normal telephone,
email instead of traditional mail, video conferencing
instead of traveling to meetings. Access to larger,
even worldwide, markets. Web sites can be seen from
all parts of the world and orders can be taken
wherever there is a compatible banking system to
process payments. Organizations with good
communications can respond to changes quickly. This
may mean better customer relations, an improved
supply chain for goods and services, faster
development of new products to meet a new
opportunity, etc.
Negative Impacts of ICT
Job loss:
Reduced personal interaction:
Reduced physical activity:
Digital Divide:
Cost:
Security:
 TYPES OF TECHNOLOGY

Technology may be classified as:

1. Simple Technology: has two or less simple machine. For

example: Knife, Brush etc

2. Advanced Technology: has several simple machines. For

example: microwave, oven, electric iron etc.
 ADVANTAGES OF TECHNOLOGY

 Reduces the time it takes to perform a task

 Removes drudgery from a task (amount of energy used up to
perform a task)
 Allows you to perform more than one task at the same time
 Improves the quality of the finished products
 Increases the performance rate of tasks
 DISADVANTAGES OF TECHNOLOGY

 May negatively impact the environment

 Technology cause unemployment as machine replaces human
labor
 Technology can cause individuals to become inactive because
the use of the devices does not require much energy to be
expended.
 APPROACHES OF TECHNOLOGY
 Michael Porter recognizes that

 Technology is the determinant of the industry structure and

therefore affects the profitability within the industry

 Technology affects a firm’s potential to generate competitive

advantages and can be at the basis of the firm’s positioning
within the business area.
 APPROACHES TO TECHNOLOGY
It was developed by Michael Porter. It provides a
structure of an industry. The five forces are also
called Porter’s diamond. The five forces are:

1. Threats of New Entrants

2. Threats to Substitute
3. Buyer’s Power
4. Bargaining Power Of Supplier
5. Competitive Rivalry
 APPROACHES TO TECHNOLOGY
1. Threats of New Entrants: There are two factors that
determine the likelihood that firms will enter an
industry-
a) Barriers to entry: Firms competing in an industry
normally try to develop entry barriers to prevent
potential competitors. Following are some of the
factors that create barriers for the competitors
 Economies of Scale
 Capital requirement
 Product differentiation
 Government Policy
b) Expected Retaliation(Violent): The high level of
retaliation by the existing firms creates entry barrier to
the new firms. This is likely when the existing firms have
a major stake in the industry with substantial resources.
 APPROACHES TO TECHNOLOGY
2. Threats to substitutes: Product substitutes pose
a strong threat to a firm. The following are the
factors that determine the threats for substitution
 Relative Price performance of substitutes
 Switching cost
 Buyers propensity to substitute

3. Buyer’s Power: Customers are buyers are

powerful in the following situations
 Large buyer
 Large number of suppliers
 Lack of product differentiation
 APPROACHES TO TECHNOLOGY
4. Bargaining Power of Supplier:
 Large and monopoly supplier
 Few substitutes
 Powerful Brand

5. Competitive Rivalry:
 Large number of competitors
 Balance among the competitors
 Lack of product differentiation
Applications of ICT in Organization
Information Communication Technology (ICT)
is the application of computers and
telecommunications equipment to store,
retrieve, transmit and manipulate data. In the
context of an Organization and data analysis,
ICT plays vital role. Some of the major uses of
ICT in organization are discussed below:
Easy Access to Information: Information
Technology has made access to information
easy, which was difficult previously. Internet
and World Wide Web (WWW) makes our
reach to huge volume of information.
 Data Collection: ICT has made data
collection task easy. With the help of IT we
can easily collect data using web based
survey forms. For example, we can easily
create survey forms using Google docs.
Data Analysis: ICT tools enables us to
perform data analysis easily, accurately, and
in fast way. Tools like Spreadsheet, SPSS, R-
Statics, etc. can be used for performing
statistical analysis of the data.
Data Visualization: ICT tools helps us to draw
different types of graphs and hence enables
us to visualize data quickly and accurately.
We can also use Spreadsheet, SPSS, R-
Statics, etc. to draw graphs and charts.
Collaboration: We can collaborate with group
members, readers, and evaluators using
various ICT tools. Wikis, Virtual meeting
systems, Google docs, etc. are tools that
supports collaboration.
Data Storage and Backup: ICT allows us to
store the collected data and analysis reports
for future use. We can also create backup of
the data to minimize the risk of data loss. We
can keep backup in separate storage device
or cloud storage. For example, we can keep
backup in Google drive.
Document Preparation: We can prepare
different reports using ICT tools like word
processor. Besides this, ICT tools helps us to
correct spellings and grammars in our
document.
 TECHNOLOGY IN HUMAN RESOURCE
MANAGEMENT
 Companies use all types of technology in human resource
management
 Companies can either use an external software package or
create their own, depending on their needs
 Companies now use internet based employee application or
other technology in human resource management for finding
new employees
 Employee paperwork for new and existing hires is often a
time-consuming process
 Use of an online enrollment system is common and beneficial
 ROLE OF TECHNOLOGY IN CHANGING HRM
PRACTICE

 Recruiting
 Training
 Data Storage and Retrieval
 Performance Management
 Ethics and Employee Right
 Motivating knowledge workers
 CONCLUSION

 It is clear that technology has had a positive effect on internal

operations of organizations. But it has also changed the human
resource manger’s work.

 Decision can be made faster, jobs may be more clearly defined

and communications with both the external community and
employees can be enhanced.
Social Networking
Concept
Human are social being, they live in societies.
Organizations need people to run the business. As
they join the organization they also form the social
system in the organization. They do it to satisfy
social need as advocated by Abhram Maslow in his
“Need Hierarchy Theory” of motivation. To satisfy
the human and organizational requirements
organizations design the social network or
networkings both inside and the outside the
organization. It has both positive and negative
sides.
MCQ
1. It is the application of organized knowledge
to practical tasks.
a. Motivation b. Planning
c. Technology d. Organization
2. Which of the following is not a feature of
ICT technology?
a. Compactness b. Increased portability
c. Costly d. Modularity
3. This approach assumes that an organization is
formed as the people of different competences.
a. Technological determinism
b. Socio-technological system
c. Radical/Marxist approach
d. Design and use of technology
4. ASP stands for which of the following?
a. All service provider b. Application service
provider
c. Area service provider d. Altitude service
provider
5. Who is the main user of technology to
manage people in an organization?
a. General manager b. Line manager
c. HR manager d. Functional manager
1. C
2. C
3. B
4. B
5. C