350
8.9 Information Technology Application in Management Information technology is concerned with the use of computer and communication- based technologies to solve varieties of human, organisation, countrywide or global problems. It is technology-based systems that enhance efficiency and effectiveness in the generation and use of information
in a variety of strategic, tactical and operational situations. Information Technology has become a veritable tool to achieve efficiency and effectiveness in all areas of management.
Table 8.3: Managerial Role of ICT
Managerial Functions Role of IT Planning
▪ It aids scenario planning
▪ Wealth of information helps decision-making
▪ Consumer access to product and service information allows comparisons with implications for marketing.
▪ Strategies thus focus on consumer needs and
service required Organising ▪ Organisations become change agent
▪ New organisational forms (e.g. Outsourcing, online operations.
▪ Knowledge of work promotes non-hierarchical structures Staffing
▪ Specialised
technical knowledge needed ▪ Greater mobility of workers in changing jobs
▪ Information enhances workers upward mobility
▪ Specialised knowledge workers function as consultants or contractors in temporary or part-time employment.
▪ Outsourcing of human resources management to specialised firms at home and abroad
▪
Use of older, semiretired professionals as consultants.
▪ Continued training and retraining to keep abreast of new technologies
▪ Development of new measurements for evaluation and rewarding workers Leading
▪ Information availability gives power to knowledge workers and consumers
▪ Knowledge workers demand higher-order needs satisfaction such as
recognition self-actualisation, responsibility, participation etc)
▪ Electronic communication technology aids framework
▪ Lower communication cost Controlling
▪
Ease of control ▪ Detection of deviation from plan
▪ Facilitates productivity measurement at low costs
▪ Internet enables worldwide selling. Scanning of the external environment made easier and faster.