CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

Information Technology is a powerful force in today’s global society. The advent of computers and Information Technology (IT) has been perhaps the single massive drive impacting organizations during past few decades. Information Technology or IT is revolutionizing all the living ways. No doubt, it has given a new meaning to the word “Convenience”. Information Technology has drastically changed the business landscapes and word “IT” has become the “Catchword” of the modern life today. Information Technology has become, within a very short time, one of the basic building blocks of modern industrial society. The effective use of IT is an essential element of competing in a fast-paced, knowledge based economy. Information Technology is the major contributor to the progress of the developed countries(Drucker, 1992; Lang,2002; Vasudevan,2003).

The developing countries are increasingly deploying IT to solve their developmental problems by investing in it from their own sources as well as by borrowing from different institutions(Odedra & Kluzer, 1998). Lending for IT by the World Bank has also been quite pervasive and growing at six times growth rate of total banks’ lending. A study has shown that the significant IT components were present in over 90% of all world bank’s lending in developing countries(Harris & Davision, 1999). It is also estimated that total annual worldwide expenditure on Information Technology (IT) probably exceeds 1.5 trillion US dollars per year and is growing at about 10% compounded annually (Anandarjan et al., 2002). The study in this regard wishes to examine the impact of information technology on organization performance using auchi polytechnic, Auchi as the case study.

1.2 STATEMENT OF PROBLEM

What really instigated the study on the impact of information technology on organization performance was due to continuous lapses in auchi polytechnic in terms of staff performance and organizational policy as a result of lack of effective dissemination of information; most organization especially tertiary institutions have poor ICT section. Secondly, information Technology also creates a serious dilemma for management today. IT innovations have the potential for changing the competitive game for any organization. On the other hand, the size of IT investments put increasing pressure on managers to assess its business value. One key to this dilemma is to improve the ability to measure and track the impact of IT on productivity. Alongside, the seemingly inexorable rise in IT investment during the last 20 years, there have been considerable uncertainty and concern about the productivity and efficiency impact of IT being experienced in work organization. However, in quest of improving efficiency and effectiveness the companies are making heavy investments in Information Technology. These enduring magnitudes of investment in Information Technology so has drawn attention of many researchers, managers and policy makers to the impacts of IT on growth and productivity. The expectation was that increased investment in IT would naturally lead to increase performance of organization. But despite the massive investments in IT both in the developed and developing economies, the impact of IT on productivity and business performance continued to be questioned (Wilcock, et. al, 1998). Despite hundreds of studies carried out, scholars remained deeply divided into two groups which can be identified as “Productivity Paradox-IT has no impacts on productivity”(Turner, 1985, Loveman,  1988,1994; Roach, 1988; Mitra & Cyaya, 1996; Strassman(1997); Dasgupta & Sarkis(1999) etc.), and “Productivity Payoff-IT does improve productivity” (Bender, 1986, Mody & Dahlman, 1992); Raheim & Pennings, 1987; Harris & Katz, 1991, Brynjolfsson, 1993, 1996, Brynjolfsson, & Hitt, 1994, 1997, 1998; Attewel, 1991; Karemer, et. al, 1994; Dewan & Kraemer, 1998, Quinn, et. al, 1994 ; Ng, 1996, Weill, 1992, Mehmood & Mann, 1993).

1.3 AIMS AND OBJECTIVES OF STUDY

The main aim of the research work is to examine the impact of information communication technology on organization performance. Other specific objectives of study include:

1. to determine the relationship between information communication technology and organizational productivity
2. to investigate on the factors affecting the implementation of information communication technology in auchi polytechnic
3. to determine the effect of IT on employees in Auchi, polytechnic
4. to proffer solution to the above stated problems

1.4 RESEARCH QUESTIONS

The study came up with research questions so as to be able to ascertain the above stated objectives of study. The research questions for the study are stated below as follows:

1. What is the relationship between information communication technology and organizational productivity?
2. What are the factors affecting the implementation of information communication technology in auchi polytechnic?
3. What is the effect of IT on employees in Auchi, polytechnic?

1.5 STATEMENT OF RESEARCH HYPOTHESIS

H0: there is no significant impact of improved information communication technology on organizational performance

H1: there is significant impact of improved information communication technology on organizational performance

1.6 SIGNIFICANCE OF STUDY

1.     Organization: The study will help treat and improve some existing theories on Information as they apply to organizations as well as the office professionals   in the areas of human resources management. It has also become a vital and integral part of every business plan .It will also help organization to improve the way they design and manage customer relationships.

2.     Further Research: It is also hoped that the findings of this study will contribute to the existing knowledge and information in the area of research.

3.     Office Practitioners: The significance of this research work is immeasurable both to the practitioners, office professionals, chief executives, personnel managers, the management of the organizations and the public at large. It is expected that the findings and recommendations of the study will guide the area of study to consider introducing information technology for their office professional efficiency and other human resources departments for effective administration of personnel matters.

4.     Students: The study will be useful to student who may wish to write or make some research on a similar topic using this as a point of reference and to reorient them towards their profession, future research or practical endeavors

1.7 SCOPE OF STUDY

The study covers some aspects of information Technology on the performance of the organization, which include the need for the contribution of IT, factors affecting the adaptation of Information Technology, implication of non adaptation and strategies necessary to address Information Technology issues in auchi polytechnic, Auchi

1.8 LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9 DEFINITION OF TERMS

1.7.1        Information­:   Is a data that has been processed and can be used per decision-making.

1.7.2        Technology:  The purposeful application of information in the design, production, and utilization of goods and services, and in the organization of human activities.

1.7.3        Equipment:   tools or machinery used for specific purposes.

1.7.4        Information Technology:          Is the useful desired form into which data is finally transformed, after undergoing series of processes and can be used for decision making. Technologies of computing and communication both merge together and used by people for information needs of an organization.

1.7.5        Personnel:  The body of persons employed by or activities in an organization, business, or service.

1.7.6        Office:   Can be a place where information are on paper converges and information is documented, preserved and used for current and future operations or business.

1.7.7        Administrator/Office Manager: Is a person or somebody who is tasked with the responsibility or directing and controlling the work and staff of a business or department within it