The Impact of technology on organization efficiency


The Impact of technology on organization efficiency

Recently, various organizations have adopted different technologies in their workplaces. The organizations are also striving to incorporate new technologies into their daily duties. This is evident since, in different organizations, there exists different technology departments and sections, as well as information systems departments which are necessary for driving different organizational changes.


According to different business weekly reviews, the departments of technology in different organization are crucial to business where they are applied as they tend to educate the workforce and increase their efficiency and productivity. This essay discusses the various impacts of technology on organization efficiency and productivity. The paper will cite given examples of how IT has been implemented and used in various organizations to improve their efficiency and productivity.

The main reason for incorporating of information technology in a business is emphasized by Nadler 1992 when he states that Information technology (IT) has the greatest influence on an organization as it influences its organizational architecture as well as design.  There are different functions of IT ranging from purchasing a computer to incorporating new technologies the organizations.

Regardless of the way and magnitude of the technology employed, one factor remains constant that technologies always bring changes to an organization and in most cases, the change is positive. Technology implementation can either act as a means through which change is hastened in an organization or it can be the change itself. No matter the reason for technology incorporation, when it is integrated properly, the implementers always consider the organizational structure and its importance.

According to Gerstein 1992, technology has its position in the major component of an organization. Anderson consultants use a model whereby it ranks technologies as of similar attribute, together with workforce and other business processes. How technology and other business process are interconnected is clear and this explains why a process cannot be altered without affecting the other. As the introduction of new technology might change the organization structure, this is not true in all cases.


Transformations normally take place in the organizations affecting their operations. Precisely, the introduction of technology to an organization is essential in creating changes for instance job design, office layout, employer-employee communications and relations and even enhance cooperation among the staff members.

One other importance of technology in increasing efficiency comes from the employees. The no6tion of technology introduction is based on the idea that employees with the assistance of technology are able to work independently. According to Jenner 1994, the virtual environment created by IT allows employees to have access to information they need to perform their roles, and through IT, employees are able to access information anytime, anywhere. The workforce is not defined as a specific area to perform their roles as the case with the lack of information. This in the end results to efficient and more cooperative employees thus increasing their productivity and efficiency in the organization and their departments.

In organizations where technology has been applied, it has changed the employee-employer relationships. Through technology, employee passes information quickly regardless of the physical locations of the recipients. IT has also enabled easy sharing of ideas and communications of organizational changes and adjustment thus keeping informed employees at all times. Additionally, technology has changed or improved supervisory relationships. With the assistance of technology, organizational supervisors are able to supervise employees without them reporting directly or having the same physical locations.

Nadler and Main both concur on this and state that this is a measure to increase supervisors’ efficiency and coverage. According to Jeremey 1994, the improved relationships between employees and employers gives way to “span of communication” which leads to improved communication system and channels. Nadler emphasizes that the system is essential in empowering person and departments r groups in an organization thus increasing organizational efficiency. Gerstein 1991 furthers the arguments of Nadler and Jeremy by stating that technology enhances interdependency of departments and employees and this, in turn, empowers the workforce of an organization.

Clearly, the connections created by interdependencies is not possible under traditional settings. This means that the workforce is trained on the use and application of technology and its relations to achieving organizational goals and increasing its efficiency. The other essence of technology application is that it creates self-dependent and self-directed employees who work with minimum or no supervisions. The renowned theorist Peter Drucker and Jeremy 1998 summarize the self-sufficiency of the new technology by saying that through it, the workforce gets to know their roles with minimal supervision.

The technology use has impacts of an organization’s relationship with customer and management. The ease with which information is passed either from employer or employee makes the organization to have control over the communication process. According to Jeremey 1998, this is especially true for organizations that may have adopted a vertical integration strategy but then realizes that it is not essential when they use systems imaginatively. The ease in information sharing and designs transfer can increase outsourcing thus increasing knowledge and skills.

The roles of employees in a business are significantly affected by enhanced technology application and mechanization as a means of decreasing process of production. In given cases, the roles of employees are slowly being automated, and this changes the employee’s tasks to be more of supervisory. The roles and employees’ expectations thus change since they no longer perform repetitive tasks, but rather should be able to identify and solve problems arising. Although atomization has its advantages to an organization, others consider it as monotonous as it is performed in one line.

Although as stated above that it is not a must for a change to occur to signify a transformation, the arguments by different scholars point to the fact that a change will always be witnessed in organizations where technology is incorporated. His article, Jeremy talks about winning organizations and says that the organizations will implement structures that can be easily changed as the business undergoes transformations and change. Jeremy further states that the companies will choose to lie with computers apart from their assistance and they will be responsible for shaping strategy and structuring new technology fits.

When comparing architecture an organization, Nadler notes that in business terms, the function of order is to coordinate, control and facilitate communications and this is affected by technology in that given business or company. Technology brings efficiency that reduces the number of employees in an organization.  Jeremy further states that the introduction of technologies may lead to the disappearance of the workforce. In this regard, Jeremy, in other words, points out that the main reason for technology implementation is to simplify organizational structures.

Even the technologies serve different functions, the advantage that it improves the coordination and supervisions and this reduces the hierarchical structures in organizations. As a matter of fact, companies which employ technology tend to move to flat structures, with the absence of hierarchical structures. However, companies should be cautious as flat structure might not be applicable to any organizations (Jeremy, 1998).

The implementation of technology can be a boon to the organization and also be part of the transformation in improving the performance of the organizations. However, there also exists other disadvantages and limitations of various technological processes and systems. Thorough consideration and testing out to be taken prior to the implementation of such technologies and this helps reduce such pitfalls.

Taking a specific example, in the Union Pacific Railroad, information technology was the main score element. The main purpose was to do away with unwanted middle management to increase competence and thus improve customer service. Union Pacific Railroad would not have achieved this suppose they had not implemented new technologies to centralize their operations. This resulted in the consolidation of major customer services in the company into the National Customer Service Center in St Louis. This, as a result, improved the company’s customer relations and resulted in increased sales.


Various organization are discovering that technology can stimulate improvements in different departments and in the company as a whole. Technology, as argued by different scholars is responsible for creating self-directed employees. For example, West Coast Energy Company realized that the former support provided by the employees was not in line with the way the company carried out its businesses. The company after trying and failing implemented technology and it worked. This highly increased efficiency and further reduced the cost of employing other staff to do the work.

From the arguments and discussions, it is clear that technology is essential in any organization and in its transformations and performance. While technology is considered a progressive and way of enhancing the company’s productivity and efficiency, it can be disastrous to a company when proper precautions are not taken. Organizations that successfully implement technology in their operations improve in their performances. Jenner 1994 emphasizes that as a result of technology improvement and implementation in different companies, technology leads to the highly flexible, dynamic and better-formed workforce.




Gerstein, Marc S., David A. Nadler, and Robert B. Shaw, Organizational Architecture, Jossey- Bass Publishers, San Francisco, 1992.

Goff, Leslie, “Smart Staffing” Computerworld, Vol 28, October 31, 1994, pp. 99-100.

Greene, John F., and Garfield D. Rees, “Work Teams Help Independents Make Best Use Of Technology” The Oil And Gas Journal, Vol 90, Oct 19, 1992, pp. 49-53.

Jenner, Lisa, “Are You Ready For The Virtual Workplace?” HR Focus, Vol 71, July 1994, pp. 15-16.

Main, Jeremy, “The Winning Organization” Fortune, Vol 118, Sep 26, 1988, pp. 50-55.

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