Effects of ICT

Introducing ICT into modern businesses can have both a positive and negative impact on workers and the organisation itself.

For employees

Redundancy: ICT and machines can do many tasks or activities that employees can do, and they can work 24/7 without needing a break.

Retraining: New ICT that is introduced into an organisation will mean training for employees in how to use the new technology.

Flexible working: New technology offers the potential of homeworking or teleworking. This means employees may be able to work outwith their normal workplace but maintaining an ICT link with their supervisors.

For employers

Delayering: Departments may merge or be reduced, this added to a reduction in workers and promoted posts may end up restructuring the organisation and the removal of levels of management.

Decentralisation: Improved technology offers firms the opportunity to move decision making from headquarters to local branches, which normally results in being more responsive and being able to cater for local needs. This is especially important for multinationals operating in different countries with different customs, traditions and cultures:

Narrowing of span of control: With fewer employees, and therefore fewer subordinates, the span of control (the number of people who report to a manager) may narrow.