THE IMPACT OF INFORMATION TECHNOLOGY ON DECISION MAKING IN ORGANIZATIONS(A STUDY OF NIGERIAN BREWERIES PLC)

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ABSTRACT

This study is to examine the impact of information technology on decision making in organizations. The major objective of the study is to determine the contribution of information technology on decision making in organization. The research method is descriptive. The study approach is based on research questionnaire which have influenced the data generated and the pattern of descriptive analysis presented.  The  researcher  analysed  the  data  collected based on the response from the questionnaires distributed to the Staff and Management of Nigerian Breweries Plc.

The research work was divided into five chapters. Chapter one dealt with background information such as purpose of the study, the research questions and the historical background  of  the  Nigeria Breweries  Plc. Relevant  texts were used to review related literature in chapter two. Chapter three dealt with methods of data collection for the study,  population  size  and  method  of  data  analysis. Chapter four dealt with the presentation and analysis of research findings, while chapter five is conclusion and recommendations.  In presentation  and  analysis of data, chi-square was used.

The major findings of the study are as follows;

1. The extent of application of information technology in organizations is high.

2. The  use  of  information  technology  has  given  the

organization  (Nigerian  Breweries  Plc)  a  competitive edge over other competitors in the industry. On the basis of the above findings, the study has concluded that  information  technology  has  greatly  influenced the idea and practice of organizations. There is no doubt that advances in information technology has helped streamline the back office operations of most organizations, improving both efficiency and heading to saving cost.

Based on the finding, it was recommended that:

1.     Organizations should adopt information technology in their operations to enable them enhance the speed and accuracy of data processing, respond effectively and efficiently to changing customers need to improve

customers satisfaction, employees efficiency and gain competitive advantage over other competitors in the industry.

It will be necessary to provide an electronic mail system,

which would largely eliminate the need for telex and fax communication   between   office   locations.   It   is   also necessary for all organization staffs to know how to use the office automation,  tools  like  word  processors,  electronic spread sheets and communication tools like e-mail, data messaging and voice messaging.

CHAPTER ONE INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Information technology covers any form of technology, that is, any equipment or technique used by a company, institution or any other organization which handles information.

The handling of information has an ancient history going back  to  the  invention  of  “abacus”  and  subsequently “adding machines” and more recently the development of electronic computers with stored programme concept. The past few decades since the development of electronic computers have been characterized by major development in information technology.

Information is required in any organization for planning, controlling, decision making, communication, organizing, and directing. This can be achieved through the use of the computer and the application of Management Information System  (MIS),  electronic  data  processing  (EDP),  office

support  system,  data  processing  system,  and  decision support system and package.

The role technology plays in enhancing economic and business   activities   of   both   the   private   and   public institution cannot be overemphasized. While it has opened up opportunities  that would have gone undiscovered or neglected, it has saved many organizations millions of perpetrated fraud through its applications. The use of technology now makes such technical jobs such as accounting, data processing, modelling, construction, forecasting and other services more interesting, attractive and less cumbersome

The term information technology was coined in the late

1970’s,  to  refer  to  the  connection  of  computer  based technology for handling information.

Information  technology  is  the  technology  related  to  the computerized or electronic gathering, recording, processing, retrieval, and communication of information which involves the use of digital electronic especially the internet, cable and satellite televisions, and telephone links. It is taken to

include a complex network of computers and telecommunication technologies with their associated software and operating system. In addition to these, information technology also includes the knowledge to operate the computerized systems.

Information  technology  could  also  be  seen  as  a  broad category of communication that is rapidly changing how organizations and individuals communicate. For example, video-tapes,   recorders,   telephone   answering   devices, facsimile machines, computer and internet etc, all provide new   communication   flexibility   and   opportunities   for organizations.    Information    technology     reflects    the convergence    of    several    technological    developments including    microelectronics,    telecommunications,    and software engineering. Applications that use these systems include   computer-based   information   system   for   data storage, processing and retrieval. Major application areas of information technology in organizations include industry, commerce, administration etc.

Hence,   information   technology   is   important   to   the operations of all organizations (both social and commercial), since   it   provides   the   means   to   efficiently   achieved objectives.  It  is  a  broad  multidisciplinary  subject.  It includes the range of strategic, tactical, \and operational activities involved with all those technologies that gather, handle,   distribute   and   use   information.   Information technology involves a considerable human activity, and it is this aspect that defines IT as distinct from computing.

1.2  STATEMENT OF THE PROBLEM

This study is put forward because of some of the problems found in organizations that neglect the use of information technology. Prior to the advent of information technology, most organizations operate manually given rise to operational inefficiencies such as;

i.    Waste of time.

ii.    Duplication of efforts. iii.    High cost of operations.

iv.    Heavy work load on the employee.

v.    Low customer satisfaction and high process time per customer.

vi.    Information gathered can easily be lost because of filing system.

vii.    Fraudulent practices were difficult to dictate.

viii.    There are problem of interconnectivity i.e. no connection and transfer of information from one department to another.

If the organizations aspire to compete in the global environment (to be world class) without taking full advantage of information technology, then their aspiration can never be met.

Thus, this research work is focused on the impact of information  technology  on  decision  making  in organizations.

1.3   OBJECTIVES OF THE STUDY

The overall objective of the study is to reveal the impact that information technology has on the decision making of organizations. But in the course of this study, there are other objectives which can be achieved. They are;

i.    To  determine the extent of application of information technology in organizations.

ii.    To identify the problems associated with the application of information technology in organizations.

iii.    The study intends to identify whether the working hours of staffs in organizations have reduced as a result of information technology.

iv.    To compare the amount of fraudulent practices dictated in manual and information technology.

v.    The study tends to find out whether there is connection of information and transfer of information from one department to another.

vi.    To determine whether some jobs has been eliminated due to introduction of information technology.

1.4   RESEARCH QUESTIONS

Some of the questions addressed by this study include;

i.    Has the application of information technology enabled your organization to achieve customer satisfaction?

ii.    Are   there   problems   associated   with   the   use   of information technology in your organization?

iii.    Are there problems associated with the failure to use information technology in your organization?

1.5  RESEARCH HYPOTHESES

The following hypotheses form the bases for this study;

H0:  The application of information technology has not enabled    your organization      to      achieve      customer satisfaction

H1:   The application of information technology has enabled your organization achieve customer satisfaction

H0:   There  are  no  problems  associated  with  the  use  of information technology in your organization

H2:   There  are  problems  associated  with  the  use  of information technology in your organization

H0:   There are no problems associated with the failure to use  information technology in your organization

H3:   There are problems associated with the failure to use information technology in your organization

H0:   There  is  no  evidence  that  the  use  of  information technology reduces organization staffs

H4:   There is evidence that the use of information technology reduces organization staffs

1.6   SIGNIFICANCE OF THE STUDY

This  study  is  significant  because  it  will  determine  the extent of application of information technology in organizations and will also facilitate the application of information technology in organizations.

Also, the study will highlight on the problems associated with application of information technology on decision making in organizations and will enable organizations to provide necessary measures to control such problems.

Finally, it will serve as a source of information for further researches in the same field.

1.7   SCOPE OF THE STUDY

The study is on the impact of information technology on decision making in organizations, a case of Nigerian Breweries PLC. The major constraints of the study include the following;

i.    Time  constraints: Due to  the  limited  time that was given for the study, the researcher could not get all the required information necessary for the study. As a student researcher, time was a great constraint in trying to keep my lectures up to date and running around for the collection of necessary materials for the research.

ii.    Finance/Cost:  The  researcher  has  not  got  enough money to embark on the study. Thus, he could not visit various places where relevant information necessary for this could have gotten.

iii.    Attitude  of  Respondents:  Some  of  the  respondents were unwilling to co-operate with the researcher because they felt they have nothing to gain from the study. It weren’t easy for the researcher to gather enough information from the case organization-Nigerian Breweries PLC, as the management felt they are highly confidential.

1.8  DEFINITION OF TERMS

Data

Data are raw figures or facts that represent some type of transactions or activities within an organization which are inputs in data processing. Asika, N (1991)

Information

Information refers to the result of data processing which is useful and can be used as an aid to decision making.

Technology

This is the science of technical processes in a wide though related field of knowledge. It is the practice of any or all the applied sciences that have practical value.

Computer

A computer is an electronic device that transforms or processes data and provides the results or output as information that can be used for decision making.

Internet

An internet is an inter-connected global network of computers based upon the TCP/IP (Transmission Control Protocol/Internet Protocol) Protocol suite.

Network

A network is a group of inter-connected systems sharing services  and  interacting  by  means  of  a  share communication link. It is also an inter-connection of computers, peripherals and communication lines.

Output

This is information sent from a computer to an external location such as printer, screen or disk drive.

Program

A  list  of  processor  instructions  designed  to  perform  a certain function. A running program is called a Process. A package of one or more programs and attendant data designed to meet an application is called Software.

Management Information System (MIS)

Management Information System is an integrated system of information flow designed to enhance decision making effectiveness.

Information technology (IT)

Information technology includes all an organization’s hardware and software for storing, retrieving, transmitting and managing electronic information.



This material content is developed to serve as a GUIDE for students to conduct academic research


THE IMPACT OF INFORMATION TECHNOLOGY ON DECISION MAKING IN ORGANIZATIONS(A STUDY OF NIGERIAN BREWERIES PLC)

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