Previous Studies
Discuss about the Information Technology for Performance of Employees.
The investment of the IT constitute most of the organizations budget, since it has been widely regarded as a source of the competitive advantage (Alagaraja & Shuck, 2015). Further, the effectiveness of the information technology investments is not vacillated, and the main concern for most of the managers in the organization is to measure its payoff in regards to the performance of the workers (Alibraheem & Abdul-Jabbar, 2016). Early researcher in 80s and 90s had further investigated the direct relationship between the information technology investment and the performance of the workers and this incidentally obtained contradictory results that has been regarded as the ‘IT productivity paradox’ (Alagaraja & Shuck, 2015). It is only recently has the researcher adopted on better and broader insights on how and why IT affects the performance of the workers and exploring on this aspect has become a trivial aspect for improving on the performance of the organizations’.
The resource-based view of employee is an important perspective in evaluating the overall performance of the organization value in relation to the information technology (Asrar-ul-Haq & Kuchinke, 2016). Based on this theoretical perspective, only those resources are the one which leads to sustainable competitive advantage which are valuable (Asrar-ul-Haq & Kuchinke, 2016). The concept of the IT capability that is the employee’s capability to effectively deploy on the information based resource which are emphasized in the dynamic capability perspective that has evolved from the RBV (Chae, Koh & Prybutok, 2014). Therefore, the information technology capability hence stands between the performances of the workers and then convert these organizational investment to resources which are sustainable competitive advantage (García-Morales, Bolívar-Ramos & Martín-Rojas, 2014). Additionally, there has been studies which suggest information technology capability is the moderator rather the mediator variable towards the performance of the employees. This study focus on examining and exploring the impact of the information technology on the performance of the employees.
According to Alibraheem & Abdul-Jabbar, 2016) highlights the performance of employees criteria should be pegged on how they market effectively, and how they impact on the satisfaction of the customers (Gërguri?Rashiti, Ramadani, Abazi?Alili, Dana & Ratten, 2017). In order to organize an organization effectively, the companies should rethink on how they hire, train as well as reward their employees, thus, all the employees are encouraged to be competitive. Many individual have worked efficiently on the role of the information technology in the organization. According to Alibraheem & Abdul-Jabbar, (2016) Highlighted that the investment in the technology could result in a better facilitation of the customer as well as time saving to both the customers and the employees. Accordingly to Chae, Koh & Prybutok (2014) said that the quality of the services is the major point for the operations of the organization. This could be enhanced through minimization of the variations in the services that are being offered. Efficiency as well as the speed of the network needs to be consistent, to enable the employees to deliver on the quality service more consistently (Kastalli & Van, 2013). The instant access of the information with timely and more accurate reporting is crucial important to many organizations. Organizations that have not invested in the IT makes their workers to keep on struggling for the information. Accessing of the information is crucial for the employees in any sector such as inventory and raw material for the manufacturing companies and data for the customer for the banking sector (Kuegler, Smolnik & Kane, 2015). The information technology has influenced on the efficiency as well as productivity of the organization both on a local and global prospective. When it comes to the local perspective, it result in the saving of the time, control of the errors, helps in the decision making, reduction of the paper work as well as the quick access of the information (Laudon, 2016). When it comes to the global perspective, it has helped in the development of the business as well as increase of the market share.
Problem Statement
According to Kuegler, Smolnik & Kane (2015), they highlighted in their studies that the advancement in the technology along with the global as well as local competition, could change in the knowledge and the attitude of the customer which has made many organization such as the banking industry to restructure (Laudon, 2016). The aspects of the information technology have made the financial organization to provide offer 24/7 services to the customers. According to Lee & Grewal (2013), highlighted that the advancement of the information technology could explore more opportunities for the enterprises. The use of the information technology especially in the accounting could result in paperless banking which will reduced on the manual working burden on the part of the employees. The technology can enable the employees prepare on their duties assigned more easily and accurately Lee, R. P., & Grewal, R. (2013. This will in turn result to the increase in the functionality and improve the overall accuracy of the workers. According to the study by Legris, Ingham & Collerette (2003), he concluded by saying that there is a direct relationship which exists between the technology and the service quality in the organization. In case the organization utilizes IT in their working, it would result to better quality of the service and enhance on the productivity of the workers. Moreover, Martin (2017) highlighted that the organization investment in the information technology results in the increased motivation as well as morale of the workers (Lee, Hsieh & Chen, 2013). Additionally, it will decrease with the turnover level and this will motivate the workers towards innovations. The technology enables the organization to make organizational changes and this produces flexibility through shortening of the product cycle. When organization invest in the IT and employees are likely to produce perform better since the new technology enables them to perform various task together. An example of this application is a worker who is working on the electronic fund transfer could simultaneously work on the clearing or on the opening of the account (Lee, Hsieh & Chen, 2013). The employee is not required to stop or even close one transaction in order to complete the second one. Moreover, the built-in security checks which are in the system enables them to perform their functions without any error (Legris, Ingham & Collerette, 2003). The use of IT results in the increase of the productivity of the employees and the market share of the organization if they perform well.
On the studies done by Oldham & Da Silva (2015), examined on the impact of the information technology on the organizational effectiveness. The results showed that employment of the information technology increased on the effectiveness of the organization (Legris, Ingham & Collerette, 2003). Moreover, the employees who used the information technology tools in providing of the services to the clients believed that the pace of undertaking their duties, such as timely data recovery as well as the speed of accessing of the information has improved more drastically as compared to the period prior to the deployment of the information technology (Liang, Peng, Xue, Guo & Wang, 2015). This is to the extent that this improvement has impacted on the effectiveness of the organization, as a result of providing quality services to the customers. The human capital together with the investment of the information technology has a positive significant impact when it comes to the labor productivity.
Ortiz de Guinea & Webster (2013), highlighted that approximately that seventy percent increase in an organization production has been attributed to the technological changes. There is heavy amount of the capital which is invested to be able to achieve on the technological change. Information technology ranges from impacting on the employees as well as the consumer to the output of the organization (Liang, Peng, Xue, Guo & Wang, 2015). Investment in the Information technology has increased globally over the recent past. Many of the organization they have realized that that reliable as well as effective IT systems could help in achieving as well as realizing of their goals much easily. The organization they have allocated a much bigger budget to the information technology (Mazidi, Amini & Latifi, 2014). The contribution which has been made by the IT in the organization have made many business to be more competitive towards their rival firms and easy differentiate on their products in the markets (Martin, 2017). The changed on the way the employees are performing in totality, from the way they capture on the data, process it and even the output of the results on the various activities they perform in the organization.
Nonetheless, the adoption of the information technology in the business today it has had numerous objectives, the observations have highlighted that not all the objective has been met and felt by the users on its benefits (Martin, 2017). It is highly disheartening for one to observe that some among the many undertaken are not working to the standard hence causing more harm than the good to the business.
The impact of the IT on the performance of the employees is subject to debate since not all the studies have highlighted clear payoffs from the IT investments (Martin, 2017). There are some of the researchers who have highlighted that there is minimal impact of the IT to the processes and the output of the organization, while others highlights that IT has been viewed as an hindrance by the employees when doing their duties; and consequently, the result could vary depending on the performance and IT payoffs which are measured as well as analyzed (Martin, 2017). Nonetheless, there is research done by researcher such as Oldham & Da Silva (2015), on the impact of the IT on performance of employee and the result highlighted that IT contributed to the output of the employee positively which translate to higher productivity and profit in the organization (Mazidi, Amini & Latifi, 2014).
The organizations which have efficient as well as effective IT system are able to realize the significant performance from the employees and hence improve on their competitiveness. Oldham & Da Silva (2015), pressed that importance of the IT is pegged on the continuous improvement of the organization which is achieved by the improved individual employee performance (Melián-González & Bulchand-Gidumal, 2017). Thus, improving on the employee performance by utilizing the information technology is a way of improving the organizational performance. Hence, this study will draw light on the impact of the information technology on the performance of the employee in organization. Further, it will determine the relationship between the performance of employee and IT empirically. The research will answer this research question; what is the impact of IT on the performance of employees.
This subject is important because it shows how the information technology has become the key elements towards the economic development of any given country in the globe (Naser & Al Shobaki, 2016). Over the years, there have been many innovations which have taken place in the world, and the most striking of them all is the information technology. The organizations today they are confronted with the rapid change to the conditions in the market which has caused the emergence of strong competitors (Naser & Al Shobaki, 2016). In this subject it explore on various ways in which the information technology impacts the dynamic environment of the organization. The information technology has a major effect to the driving force of the development of the technology that impacts positively on the employee’s performance (Nguyen, Newby & Macaulay, 2015). In this subject, it also examines how IT improves on the customer knowledge through which they are able to access the information of the organization. The subject shows how IT enhance on the work through the viable reliable infrastructure, as well as the essential issues of the capability building and development of the IT capabilities to every aspect of the businesses (Oldham & Da Silva, 2015).
This study will be significant to the various parties as outlines below.
The owners as well as the managers of various organization will gain new information as to how they could adapt effectively information technology in their business main aspects to increase on the performance of the employees which will increase the overall productivity of the enterprise (Ortiz de Guinea & Webster, 2013). The study might also give the managers of various organization insights on the impacts of the IT to the performance of the organization thus, they would be in a position to make more strategic decision in regards to the use of the IT within their business (Ortiz de Guinea & Webster, 2013). Further, this study will attempt to identify the degree of the availability of the information technology and the impact on the performance of the employees. The finding of this research could help identify on the problems which are faced by the employees to get the knowledge of the information technology and examine on the alternations or even improvement of the availability of IT sources (Peppard & Ward, 2016). It will also identify on the technological sources which are needed in the improvement of their work performance.
To the academicians it will be the basis for further study on how IT impact on the performance of employees (Ray, Xue & Barney, 2013). For the purposes of the academics, this study serves to increase on the knowledge in relation to the IT and the performance of the employees to the already existing body of the knowledge.
The study might be useful to the government in regards to revealing the benefits of the information technology usage in improving of the performance of the employees as well as the improving on the delivery of the services (Romdhane, 2013). Therefore, the government will be in a position of making strategic decisions in regards to the IT infrastructure within a given country and take the initiative of attracting the investors in a given country. This could thus, boost on the economic growth in terms of the information technology investment within a country.
H1: The use of the information technology has a significant impact on the performance of the employees.
H2: The information technology devices have helped the staff effectively in performance of their duties.
There is a relationship between IT and performance of employees. The individuals who are within the organizations usually perform to their best ability and develop their potential for the improvement (Romdhane, 2013). The technological innovation is linked to the performance of the employees in the workplace. The individuals are able to achieve innovation and achieve technological breakthrough but the complexities of the modern technology entails effective combination of various innovations which are based on different aspect of the technology (Sykes, Venkatesh & Johnson, 2014). It is critical for the organizations to understand as well as improve on the quality of the services they deliver and this is achieved through investing in information technology. From the services delivery perspective, the superior delivery of the services usually have a positive impact on the performance of the organization which is in relation to the performance of the workers. Additionally, the workers could improve on their performance much effectively through customization practices as well as minimizing on the customer waiting time and this is possible more when they utilize information technology (Sykes, Venkatesh & Johnson, 2014). Many studies they have focused on the relationship of the employee performance on the productivity of the organization. In this research other aspect such as involvement of the IT need to be also considered. When the employees provide services and the customers are satisfied they become loyal and they would more likely come back to the organization in the near future as well as recommend their acquaintances to seek similar services (Sykes, Venkatesh & Johnson, 2014). Moreover, they are the causes of the organization revenue to grow along with the improvement of the profitability through repurchase and referral.
There is a relationship between the information technology devices and the staff effectively in performance (Tarafdar, DArcy, Turel & Gupta, 2015). IT has helped employees in the workplace improve on their performance since it encourages innovation as well as creativity. The workers use various business technologies in order to create innovative business ideas that could be used in the growth of the business as well its expansion (Tarut? & Gatautis, 2014). Most of the organization usually create technological challenges as well as reward the workers who come up with the creative ideas through use of the technology. The workers may use the IT devices such as the internet technology to innovate various ways to which to promote on the organization online (Tarut? & Gatautis, 2014). Moreover, the use of the IT has enhanced ways in which they could interact with the other creative workers from various organizations, this interaction could result into the exchange of the information and at the same time encourage brain storming on the various work which are related to the organizations issues.
In the context of the organizational, the performance can be defined as the extent to which an organizational member might contribute towards achieving the goals of the organization (Abbas, Muzaffar, Mahmood, Ramzan & Rizvi, 2014). The organization are essentially the primary source for the competitive advantage especially on the perspective of the organizations which are service oriented (Tarut? & Gatautis, 2014). Additionally, the commitment performance approach usually views the workers as the resources as well as the values for their voice. Nguyen, Newby & Macaulay (2015), highlighted that the information technology is helps the employees to deliver more accurate output with much lesser input (Trainor, Andzulis, Rapp & Agnihotri, 2014). The clients are always focusing on the convenience as well as quality of the delivery. To be able to meet on these requirements, consistency in regards to the quality performance is required (Vlachos, 2014). The productivity of the organizations in increasing due to the aspect of information technology, and the chances of the mistakes are much low because of the built in checks which are in the information technologies. The quality services is the major aspect to any operations of a business. This could be enhanced through the minimization of the variations in the services that are being provided (Vlachos, 2014). There should be efficiency in regards to the network speed and at the same time consistent to enable the employees to deliver quality services consistently. Further, based Mazidi, Amini & Latifi (2014), in his result found out that there is a positive relationship between the IT investment and the performance of the organization which has been attributed by the workers. In his research the main objective was to determine as to whether the IT investments could improve on the productivity and profitability of the organization (Vlachos, 2014). The empirical result of this research showed that it was negative on the short term profitability as it was measured by ROA and the ROE ratios. Nonetheless, IT had a positive contribution towards the performance of the workers in the long term and this helped in the reduction of the costs especially in the annual cost of production (Vlachos, 2014). Moreover, it also showed that the impact of the technological changes on the cost also reduced significantly when increased over the studied period (Wagner, Beimborn & Weitzel, 2014). The final result of the study showed that the impact of the various types of IT on the performance of the workers was heterogeneous.
According to Martin (2017), the change is the greatest challenge when it comes to implementing of IT system in a given organization. The workers all over are hard to shift from their normal routine duties to the new ways of doing the same thing (Wagner, Beimborn & Weitzel, 2014). According to this scholar he argues that there is need to have a change agent within the organization to be able to sensitize the workers of the significance of changing from one system to another. The workers need to be given the relevant access rights as well as roles to the information technology system to enable them carry out their activities much more effectively (Wang, Chen & Benitez-Amado, 2015). The limited access to the same information technology system is a challenge towards achieving employee’s performance. Adequate training on the employees in regards to the Information technology system is significant to equip them with all round skills on the capabilities of the system (Wang, Chen & Benitez-Amado, 2015). The lack of the sufficient training on the information technology system could lead to low usage of the system which leads to low performance which is exhibited from the employees.
In some organizations the employees might have inadequate training on the information technology system which is in place (Wang, Chen & Benitez-Amado, 2015). The users who have an access to the system can handily utilize it fully since they are not equipped with the necessary skills as well as training on how to go about their duties. The user attitude as well as the resistance has also contributed to having a poor usage of the system.
Most of the organization such as those in the banking institutions have invested in the IT infrastructure and system, however, when it comes to the cost of the components such as the software and the hardware it might be huge (Zhang, 2012). This entails a large budget to completely acquire such systems at once. This is a difficult since there is much needed system could delay to be bought and at the same time installed due to the huge funds which are required to acquire them.
Based on the study, it has contributed to the various issue which organization could utilize to make them more productive and hence more profitable. One is that investment of the IT has vital significance in every business field (Zhang, 2012). For an organization to compete efficiently, they need to adopt and implement the technology at every level of the business. The workers are the internal customer and the most significant resources to any enterprise. The organization need to make such arrangement and acquire the technology since it make them easily perform on their job, which will result to much better quality service and increase in the productivity. The investment of the organizations in the new technology has good impact to the performance of the employees (Zhang, 2012). Further, it also increase their efficiency and productivity. Moreover, based on the research it has found that IT make an organization to be more competitive in regards to the customer services offered by the staff- the organization become more client focused as well as service oriented (Tarut? & Gatautis, 2014). The investment in the information technology result in the reduction of the cost and make the workers to be more comfortable to their duties, since it reduces a lot of the manual work that could have consumed their extra energy and time (Tarut? & Gatautis, 2014). The research has further highlighted that IT helps in the sharing of the knowledge as well as building on each other ideas in the real time, as well as enabling the organization to empower the employees in making them to pursue their life learning skills.
Conclusion
Information technology is important to any organization in every field. The organization should implement IT so that it could enhance the performance of the workers. The employees contribute greatly towards the productivity of the organizations in various ways and through the use of the technology it will make their work much easier. This consequently will help in better delivery of quality service and increase the overall productivity within the organization. This research has revealed also there is a positive relationship between the IT and the performance of the employees.
This study recommendations is that the management of the organizations need to ensure that the organizations needs to incorporate information technology in their business and provide enough access rights to the employees on the system (Trainor, Andzulis, Rapp & Agnihotri, 2014). This enables them work comfortably, the management need also to facilitate the training to the employees on the IT system so that they will enable them to enhance their performance as the IT has been associated to this aspect.
Due to the limitations in the scope as well as the time constraint, it has not been possible to address all the key areas which are related to the focal points of the study. The study focused on the impact of the information technology on the performance of the employees (Sykes, Venkatesh & Johnson, 2014). There is need for a further study which need to be done on the impact of the IT on the performance of the employee especially at the departmental or the sectional levels within the organization. Additionally from the recommendation, it is very clear that the integration of the IT enhance the performance of the employees in regards to the service delivery (Sykes, Venkatesh & Johnson, 2014). The research suggest the following areas for further of the research. One is the absorptive capacity and the IT adoption strategies for organization, and the impact of adopting IT to the service performance of the employees.
References
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