IMPACT OF COMPUTER BASED INFORMATION SYSTEMS ON ORGANISATION PERFORMANCE IN ONIDA LTD.
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ISSN : 0973-7391
IJCSC Volume 4 • Number 1 • January-June 2013 pp. 31-35
IMPACT OF COMPUTER BASED INFORMATION SYSTEMS ON ORGANISATION
PERFORMANCE IN ONIDA LTD.
Dr. Dinesh Gupta
Department of Computer Sciences, University of Jammu.
ABSTRACT
In this era of internationalisation of the business, managers and researchers around the world agree that the business
competitions and management practices are undergoing profound transformations due to the greater use of Information
Technology, which enable and support communication and coordination across organisational boundaries. Computer
Based Information System (CBIS) is enabling the organisations to leverage their capability by creating information
partnerships and electronic integration. This is enabling the creation of electronic markets and electronic hierarchy.
This paper explores the impact of CBIS on Organisational Performance by collecting data from the employees of
Onida Ltd. through a specifically designed questionnaire based upon five Likert scale. The findings indicate low
impact of CBIS on OP.
Keywords: Information, Technology, Organisation Performance.
1. INTRODUCTION as well as for control purposes and thus the managers
In this era of internationalization of the business, are dependent upon the Information Systems. Hence,
managers and researchers around the world agree that there is a need for management’s involvement in the
the business competitions and management practices design and development of the Information Systems..
are undergoing profound transformations due to the During the last few decades, organizations have made
greater use of Information Technology, which enable immense investments in Computer Based Information
and support communication and coordination across Systems (CBIS). The implications of these investments
organizational boundaries. Numerous information for performance have been widely discussed in business
technology concepts such as electronic data interchange and academic communities. From the organizational
application services and value-added networks are point of view the relationship between the organizational
supporting communication and coordination in the performances and organizational effectiveness is
organizations unprecedently. Computer Based important because these terms are often used
Information System (CBIS) is enabling the organizations interchangeably (Rojas, 2000; Herman and Renz, 1998).
to leverage their capability by creating information A definition of organizational effectiveness is provided
partnerships and electronic integration. This is enabling by Robbins (1998) “the degree to which an organization
the creation of electronic markets and electronic attains its short-term (ends) and long-term (means) goals,
hierarchy (Malone, Yates, Banjamin, 1987). In the the selection of which reflects strategic constituencies,
changing paradigms it has become imperative to the self-interest of the evaluator, and the life stage of the
increase the effectiveness of an organization, to get the organization”. Effectiveness by that definition is therefore
best out of its resources and meet the goals for which rating of performance.
the organization has been created, so that the
organization can live up to the expectations in this era 2. REVIEW OF LITERATURE
of competition. Competition has increased among In the extant literature there are numerous studies which
organizations because of the changes developing across have focused on CBIS and OP. Slack (1997) indicated that
the world due to globalization and liberalization of the advantage of strategic constituents approach is the
economies. Computer Based Information Systems (CBIS) recognition of the complexity of multiple dimensions of
are the backbone of an organization. In other words, we an organization. The problems associated with this
can say that an organization's Information System can approach include the difficulty in identifying the
be viewed as a federation of Information Systems- one constituents, the difficulty in establishing their
information system for each major organizational expectations, the importance of constituents changing
function. These Information Systems provide most of over time, and the measurement of constituent criteria.
the information necessary for management's planning Robbins (1998) suggested that the goal attainment theory32 IJCSC
approach is intuitively sound and is the most commonly discussions with the experts on the related subject. It
used approach for measuring performance and comprised demographics and 38 items based on 5 point
effectiveness. Some assumptions are necessary to Likert scale (5 < ----- > 1) ranging from (strongly agree)
validate the goal attainment approach as a measure; to (strongly disagree). The respondent were asked to give
goals must be identifiable, understandable, have general their perceived and actual openion regarding the
agreement or consensus, and progress must be implementation of CBIS on OP
measurable. Rojas (2000) proposed the Competing
Values Framework (CVF) and described the model in Analysis
terms of quadrants: human relations; open systems; Age wise perceptions about the impact of Information
rational goal; and internal processes. Systems on actual performance in Onida.
Thus, the existing literature has been showing Shared Vision: The table and the Fig. 1 depict the
increasing interest towards understanding the impact mean scores of Age wise perceptions about the impact
of Computer based Information Systems on organizations of Information Systems on actual performance in
performance. Although this theme has been widely ONIDA. The table reveals that the mean score of the
investigated, as a result different views have emerged. factor Shared Vision is maximum in case of Age > 30 &
Some assert a positive impact (Bama, 1995; Stratopoulos, < = 50 (4.07), and lowest in case of Age < = 30 (4.01).
2000), while others hold the contradictory views Strategic Development: The table and the Fig. 1 depict
(Brynjolfsson, 1995; Holland, 1997; Setzekorn, 1998). the mean scores of Age wise perceptions about the
Nonetheless, it is crucial to discover how to relate the impact of Information Systems on the actual performance
significance of Information Systems to organizations. in ONIDA. Also it has been seen that the factor Strategic
Several researchers opine productivity as a measure of Development has maximum mean score in case of
results achieved through investment in Information Age < = 30 (4.10), and lowest in case of Age > 50 (3.88).
System. Strassmann (1990 and 1997) have highlighted
the so called “Productivity Paradox”, and observed that
the productivity and competitive advantage of
information and communication systems emerges from
strategic use of ICT and not from the investment in ICT
as such.
3. DATA COLLECTION
The data for the present research paper have been
collected from both secondary and primary sources. The Figure 1: (Age Wise Performance in ONIDA)
secondary data were extracted from several Journals,
Cooperative Effectiveness: The table and the fig 1
books and website of the organization. The primary data
depict the mean score of Age wise perception about the
have been collected from 110 employees of the
impact of Information Systems on the actual performance
organisation through questionnaire. The primary data
were collected through a specifically developed in ONIDA. In case of the factor Cooperative Effectiveness,
questionnaire on the basis of the available literature the maximum mean score has been found in the Age30&Impact of Computer Based Information Systems on Organisation Performance in ONIDA Ltd. 33
ONIDA. In case of the factor Best practices, the maximum Table 2
mean score is in case of the Age50 (3.30). Factors Exp Act Impact
Thus, it can be concluded from the given table 1 that Shared Vision 3.86 4.11 (+)0.5
the factor Shared Vision has maximum contribution in
Strategic Development 3.86 4.03 (+)0.15
the Age>30&34 IJCSC
of Inbound Logistic department the impact has been has been maximum in the Technology Management
found to be minimal (3.50). In all other departments the department and Infrastructure Activity department
impact has been satisfactory (mean score ranging from (4.47), followed by Marketing & Sales department and
3.63 to 4.04). Research & Development department (4.33), followed
Co-operative Effectiveness (CE): The Table & Fig. 3 by Inbound Logistic department (4.17) and followed by
depicts the department wise responses for the Impact of Operation department (4.06). Whereas in case of Service
Information System on Co-operative Effectiveness. It can department and Finance/Account department the
be seen from the table that the perceived impact on CE impact has been found to be minimal (3.67).
Table 3
Department Wise Perceptions in ONIDA (Mean Scores)
Departments Shared Strategic Co-operative Business Best
Vision Development Effectiveness Ownership Practices
Exp Act Exp Act Exp Act Exp Act Exp Act
Technology management 3.88 4.32 3.88 4.35 4.10 4.47 3.97 3.82 3.32 3.65
Department
HRM Department 3.83 4.03 4.00 4.03 3.92 4.42 3.88 3.94 3.00 3.06
Infrastructure Activity 4.05 4.38 4.13 4.17 4.03 4.47 3.75 4.29 4.00 4.04
Department
Outbound Logistic 4.18 4.33 4.00 4.27 4.33 4.42 3.77 3.82 3.64 3.64
Department
Inbound Logistic 3.43 3.47 3.46 3.50 3.56 4.17 3.08 3.83 3.50 3.75
Department
Operations Department 3.55 3.60 3.75 3.84 3.50 4.06 3.50 3.52 3.50 3.52
Marketing and Sales 4.03 4.22 3.96 4.04 4.06 4.33 3.75 3.79 3.13 3.21
Department
Service Department 3.87 4.04 3.59 3.63 3.69 3.76 3.82 3.96 3.54 3.61
Research and Development 3.97 4.33 4.13 4.63 4.22 4.33 3.83 4.50 3.83 4.42
Department
Finance/Accounts 3.12 3.52 3.60 3.70 3.60 3.67 3.30 3.70 3.40 3.70
Department
Any other 3.52 3.76 3.60 3.65 4.13 4.27 3.10 3.50 3.30 3.70
Business Ownership (BO): The Table and the Fig. 3 5. CONCLUSIONS
depicts the department wise responses for the Impact of Although Computer Based Information Systems makes
Information System on Business Ownership. It can be a positive contribution towards the overall performance
seen from the table that the perceived impact on BO has of the select organization, combining the complementary
been maximum in the Research & Development investments in work practices with Computer Based
department, Infrastructure Activity department Information Systems investment is essential to stabilize
(4.50 and 4.29). Whereas in of case Operation department and support the positive contribution in future.
the impact has been found to be minimal (3.52). In all Therefore, the performance factors have been evaluated
other departments the impact has been more or less by the employees of the organizations under study. After
satisfactory (mean score ranging from 3.70 to 3.96). detailed analysis, a significant difference between the
Best Practices (BP): the Table and the Fig. 3 depicts perceived and the actual impact on various performance
the department wise responses for the Impact of factors has been seen. According to the employees of
Information System on Best Practices. It can be seen from the organizations under study, there has been an
the table that the perceived impact on BP has been improvement with the use of Computer Based
maximum in the Research & Development department Information Systems.
and Infrastructure Activity department (4.42 and 4.04).
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