1. Chapter 161 Information Technology For Management 4 th Edition Turban, McLean, Wetherbe Lecture Slides by A. Lekacos, Stony Brook University John Wiley & Sons, Inc. Impacts of IT On Organizations, Individuals, and Society

2. Chapter 162 Chapter Objectives  Understand the major impacts of information technology on organizations, individuals, and  society.  Consider some negative impacts of people by computers, and other potential negative impacts  of information technology.  Identify the major impacts of information technology on the manager’s job and on organizational structure, power, jobs, supervision, and decision making.  Discuss the impacts of IT and individuals at work.  Identify some of the major societal impacts of the Web including the digital divide and  computer crime.  Describe the impacts of IT on social issues as a result of 9/11.  Understand the role and impact of virtual communities.

3. Chapter 163 IT Positive Effects Only?  Will society have any control over the deployment of technology?  Where will technology critics be able to make their voices heard?  Who will investigate the costs and risks of technologies?  What about health and safety issues?  What impact will IT have on employment levels?  What impact will IT have on the quality of life? We assume that organizations will reap the fruits of new technology and that computers have no major negative impact. But is this really true?

4. Chapter 164 Impacts On Organizations  The manager’s job  Organizational structure, authority and power  Job content (Value and Supply Chain)  Employee career paths  Supervision The use of computers and information technology has brought many changes to organizations.

5. Chapter 165 The Manager’s Job  Automation of routine decisions  Less expertise required for many decisions.  More rapid identification of problems and opportunities  Less reliance on experts to provide support to top executives.  Empowerment of lower and middle levels of management.  Decision making undertaken by non-managerial employees.  Power redistribution among managers  Thinner organizations.  Organizational intelligence that is more timely, comprehensive, accurate, and available The most important task of managers is making decisions. IT changes the manner in which many decisions are made.

6. Chapter 166 The IT revolution has resulted in many changes in structure, authority, power and job content. Authority, Power, Job Content

7. Chapter 167 Impact On Personnel Issues Many personnel-related questions arise as a result of using IT.

8. Chapter 168 Impact On Individuals  Dehumanization and other psychological impacts  Information anxiety  Job stress  Video display  Radiation exposure  Repetitive strain (stress) injuries  Lack of proper Ergonomics  Other Impacts … Information systems affect individuals in various ways. What is a benefit to one individual may be a constraint to another.

9. Chapter 169 Other Impact On Individuals Interactions between individuals and computers are numerous.

10. Chapter 1610 Impact Society  Opportunities for people with disabilities  Quality of Life improvements  Improvements in health care  Crime fighting IT has already had many direct beneficial effects on society, being used for complicated human and social problems such as medical diagnosis, computer assisted instruction, government- program planning, environmental quality control, and law enforcement. Benefits

11. Chapter 1611 Impact Society  Scanning crowds for criminals  Cookies and individual privacy  Digital millennium copyright act  Providing Social services  Possible massive unemployment resulting from the increased use of IT  The “digital divide” or gap between those who have technology and those who do not.  Impact of globalization on culture Use of IT has raised the issues of invasion of privacy. Issues

12. Chapter 1612 Virtual Communities A virtual (Internet) community is one in which the interaction among group members that share a common interest takes place via the Internet rather than face-to-face. Interaction and collaboration methods

13. Chapter 1613 Virtual Communities Virtual communities can be classified in several ways. Types of Communities

14. Chapter 1614 Virtual Communities Virtual communities have commercial as well as social aspects. Financial Viability of Communities

15. Chapter 1615 MANAGERIAL ISSUES  Supporting people with disabilities. Lawsuits against employers for repetitive strain injuries are on the increase under the U.S. Federal Disabilities Act. Because this law is relatively new, court cases may be very costly.  Culture is important. Multinational corporations face different cultures in the different countries in which they are doing business. What might be ethical in country A may be unethical in country B—even if it is technically legal in both. Therefore, it is essential to develop a country-specific ethics code in addition to a corporate-wide one. Also, managers should realize that in some countries there is no legislation specifically concerned with computers and data.  The impact of the Web. The impacts of e-commerce and the Internet can be so strong that the entire manner in which companies do business will be changed. Impacts on procedures, people, organizational structure, management, and business processes may be significant.  IT can cause layoffs. The spread of IT may result in massive layoffs in some companies. Management should be aware of this possibility and have a contingency plan regarding appropriate reaction.

16. Chapter 1616 MANAGERIAL ISSUES Continued  Making money from electronic communities. Electronic communities are not just a social phenomena. Many of these communities provide an opportunity for a business to generate sales and profits.  Information anxiety may create problems. Make sure that your employees do not suffer from information anxiety. Companies provide considerable onsite recreational facilities to ease stress and anxiety.

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