bhargav 44

walcome .
Business environment
Creat by:-
(1) chovatiya prathana
(2) gadhiya rency
(3) thummar mansi
Professor name :- dipika mem

Reasons for the introduction of new
technology
 To reduce coststs;
 To increase productivity;
 To increase quality;
 To reduse dependence on skilled labour;
 Because it always seems a good idea to be up to date;
 Because competitor organisations are also introducing new
technology is interesting;
 In order to change the relations between various groups in
the organization.
What is technology?
 The oxford English dictionary defines “technology” as the
application of scientific knowledge for practical
purposes.the word has origins from the greek word
 tekhnologia’ meaning ‘systematic treatment’.in terms of

its modern usage,technology is a broad term referring to
the use and knowlwdge of humanity’s tools and crafts .
Impact of technplogy to organization
 Performance and productivity
 Usadility
 Manpower levels and organizational size
 Job enrichment vs deskilling
Optimists and prssimists theory
1.Technican system as control- technology is seen as

deskilling,taking work form people and reducing the
remainder to tedious and repetitive work.
2.Technical system as tool- this view sees technology as
enriching, whereby the routine and boring jobs are
allocated to computers,which also provide tools to allow
people to be creative and handle information in diverse
and powerful ways.
How information systems impact
organizations and business firms
Economic impacts
 IT changes relative costs of capital and the costs of
information
 Information systems technology is a factor of
production,like capital and labor
 IT affects the coost and quality of information and changes
economics of information
 IT flatters organization
Decision-making pushed to lower levels.
Fewer managers neened ( IT enables faster
decision-making and increases span of
control.)
 Postindustril organizations
Organization flatten because in postindustril
Organizationl and behavioral ipmacts

societies , authority increasingly relies on
knowledge and competence rather than formal
positions.
 Increasing flexibility of organization
information systems give both large and small organization additional flexibility to overcome the limitation posed by their size
 The internet and organizations

 The intermet increases the accessibility, storage,distribution of information
and knowelege for business firms.
 The internet lowers the transation and agency costs of firms.
 Businesses are rapidly rebuilding their key business processes based on
internet technology. Example:online order entry, customer service,and
fulfillment of orders.
Point to ponder
 Employees must stop thinking that computerization projects

can in themselves transform the organization. Improvement
of productivity is due not only to technology,but also to the
Way by which it is intergrated into the organization.

Technology has considerable influence on
organizational structure as discussed below
 1. technology and organization structure

 2. resistance to change
 3. total qulity management (TQM)
 4. e-commerce and e-business
 5. transportion technology
 6. marketing
Technology and organization structure
technology may be classified into three
categories : small batch technology, mass production
technology and continuous – process technology - each of
which has its own impact on level of hierarchy, span and
control, ratio of managers to workers , shape o organization,
type of structure and cost operation.
.
low technical complexity high
Structural Small batch Mass production Continous process

characterististics technology technology technology
Level in the hierarch 3 4 6
Span of control of CEO 4 7 10
Span of control of first line 23 48 15

supervisor
Ratio of managers to non- 1 to 23 1 to 16 1 to 8

managers
Approximate shape of
organization
Relatively flat, with narrow Relatively tall, with wide span Very tall, with very narrow
span of control of control span of control
Type of structure Organic mechanistic Organic
Cost of operation high Modium Low

2.Resistance to change
The manager or innovator of a given business is most
likely to face resistance to change. The existing personnel may not
like new problems that arise due to introduction of new technology,
purely due to psychology reasons. Also ,a typical businessman is also
averse to new technology and so does not encourage its use. Apart
from psychnology reasons, other important reasons may be that new
technology is expensive and risky . His logic is that when he is
earning so much with existing technology, why should he take risk in
using new technology? Examples arwe : telco’s outdated by bajaj of
trucks ,non self – starting models of scooters produced by bajaj auto,
indian telephone industries till recently using ‘crossed switching
equipment’ instead of electronic switching system.
.
 1. businessman are psychnologycally and socially committed to

existing products, processes and organization.
 2. they might have made sizeable investments in the production
processes having long –life and single use.
 3businessman might be earning low profits and the rate of
growth of the organization may have reduced.
 4. production unit might be of small size and /or may have
fragmented activities.
 5. the top management of the organization may be complacent.
 6. there may not exist examples of successful enterprenurs haat
can be replicated.
3. Total quality management
(TQM)
 The following are the traditional beliefs that are discarded
now.
 High quality costs more .
 Quality can be improved by inspection .
 Defects can not be completely removed.
 Quality is the job of the quality control personnel.
These are replaced by the following new
principle of TQM
 Meet the customer’s requirement always on time.
 Strive to do error – free work .
 Manage by prevention ,not by correction.
 Measure the cost of quality.
E-commerece and e-business
e-commerce may be differentiated from e-
business,in thar e-commerce fouss on maketing and
sales ,while e-business puts emphasis on integration of
systems,processes organization, value chains and markets.
This is achieved through internet and this helps in creating
new relationship between businesses and customers.
The advantages of e-commerce and e-
business are listed below
1. Conducting business all over the world becomes simpler
and more convenient;communication across borders bring
the nations closer.
2. Efficiency in business delings increases due to an
electronic meeting.
3. Conumers are provided innumerable options and price
diffrentials, which result it increasing power of consumers.
4. Efficiency in distribution.
5. Transporation technology
since the second world war, several major
innovation in the transport sector have taken place and the
most noteworthy among them are : development of
commercial jet aircraft and super freighters and introduction
of containersation i.e. a method in which goods are
transported in containers, which makes change from one
mode of transport to another very easy.
6.marketing
the mode of marketing has been drasticall
changed due to technological innovation. Firstly, the
operations of a firm are not limited to particular country i.e.
the entire world has become a huge ,arket and movement of
goods over long distances have become easier and
cheaper.so is the case with movement of people .

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walcome .

Professor name :- dipika mem

 tekhnologia’ meaning ‘systematic treatment’.in terms of

1.Technican system as control- technology is seen as

Organizationl and behavioral ipmacts

 The internet and organizations

 Employees must stop thinking that computerization projects

Way by which it is intergrated into the organization.

 1. technology and organization structure

low technical complexity high

Structural Small batch Mass production Continous process

Span of control of CEO 4 7 10

Span of control of first line 23 48 15

Ratio of managers to non- 1 to 23 1 to 16 1 to 8

Type of structure Organic mechanistic Organic

Cost of operation high Modium Low

 1. businessman are psychnologycally and socially committed to

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