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IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON ORGANIZATION PERFORMANCE.

(A CASE STUDY OF ZENITH BANK PLC)

CHAPTER ONE

1.0 BACKGROUND TO THE STUDY

The world today is shaped by the advancement in the field of information and communication technology (ICT). The relevance of ICT to the development of corporate organization and the entire would can not be over emphasized. For instance, Nigeria has come to realize the fact that no modern economy can be sustained without integral ICT and has adopted the technology towards the growth of its economy.

The introduction of new technologies has led to higher level of production, improved communication and more effective and efficient process management. It is also been able to improve decision making, increase citizen participation in economic development, support a modern workforce, enhance social well  being and narrow the digital devices.

However, information is the output element of data processing activity. It is the conversion of data processing operation into a useful form for its purpose. Information is therefore a processed data that has been transformed from its raw state into finished product for people to make use of it. Database is the heart of every information services. The use of database make it possible to provide access to the same information using different channel, not only via internet, but also via online database, call centers  or in print version. The most familiar example is telephone. A large number of call centre can be reached by telephone, professional organization provide their information and services in this way. Another well known example is personal computer (PC). The PC allows people to use internet services, online database and so on.

Communication on the other hand is the process of exchanging information and meaning between or among individual through a common system of symbols, single and behaviour. There are various forms of communication  services and application that are relevant to organization.  An important distinction that can be drawn in this respect is between synchronous and asynchronous application. Synchronous communication involves the simultaneous presence of the participant in the communication process. Examples of these are chatting and computer conferences. Chat is an application that enables two person connected to the same network to exchange information. Computer conferencing can  be compare to a teleconference: a situation where person can communicate simultaneously with the aid of personal computer (PC) and network infrastructure.

In the case of asynchronous communication, there is a certain time interval between the messages and a reaction to that message i.e delayed communication: such as exchange of letters. Example of asynchronous communication application is email or electronic mail.

Technology according to encyclopedia America (1988), is a way of  making or doing things, it is derived from Greek word “technique” meaning “art or craft”. There information and communication technology (ICT) play an important role when people try to overcome the limitation of time and distance to communicate, exchange information and work together. There are various technology that play a role in the process, technology that are used to established communication over a distance (telecommunication) and technology that are used to store, process, and provide data (information technology). The convergence of telecommunication and computer has resulted in what called information and communication technology (ICT), ICT is a general term used to describe a large number of different technologies and application.

1.1      STATEMENT OF PROBLEM

The adoption of ICT in Nigeria banking sector are to develop certain  skills, knowledge and retraining of employee on and off the job, increase in productivity and profitability of the organization in the course of attaining  organization  efficiency and effectiveness.

However, ICT to an extent have not been able to  relief the complexity   to manual aspect of organization activities. This is due to the fact that some stored data on the system can be lost if not manually documented. Despite the fact that introduction of ICT has made the organization to be simple and faster, it has not been bale to eradiate fraud and irregularities that occur in the organization. The application of ICT has also lead to fear of equipment by workers, information overload, increase work pressure etc. The fear of equipment by workers a times displace them form work, this is because the adoption of new technology will usually reduce the labour force trend in any organization. For instance, organizations with a high level of technology make use of ROBBOT instead of people to perform certain task. The application of ICT enables organization to displace workers with inappropriate skills and experience.                   

Another major problem posed by ICT is information overload, this occurs when an employee receive more information than what he or she can process, for instance, the more people make use of email, the stronger the feelings that they can’t process it. Therefore, this research work tends to look indeptly to this aforementioned problem in order to add more knowledge on existing one.

1.2      OBJECTIVE OF THE STUDY

The main objective of this study is to examine whether the application of information and communication technology ((ICT) has either positive or negative impact on organization performance. Other specific objectives includes:

(1)      To examine whether ICT will contribute to employee job satisfaction

(2)      To examine how productivity can be enhanced through the application of information and communication technology.

(3)      To investigate whether the adoption of information and communication technology will reduce organization cost and save time.               

(4)      To determine if the use of ICT will curb the rate of fraud and irregularities in the organization.

(5)      To analyze  the area of improvement in the information and communication  technology  as it concern organization performance.

(6)      To also examine, how information and communication  technology could help in improving knowledge and skills.

1.3    RESEARCH QUESTIONS

(1)      How can information and communication technology be more effective and efficient in determining employee job satisfaction?

(2)      Of what significant is the impact of information andcommunication technology on organization performance?

(3)      How can cost of associated with training and development of employee on how to make use of ICT be reduced?

(4)      How can information and communication technology be best managed to eradicate fraud and irregularities in some organization area?

(5)      Is there an increase in productivity as a result of the use of ICT or on effect at all or even a decrease?        

(6)      What influence does ICT have on the relationship between organization and its environment as well as the relationship within the organization, the boarder economic and social  context within which the organization operate?

1.4      RESEARCH HYPOTHESIS 

There are (2) types of hypothesis, the “Null” hypothesis which is denoted by (Ho), and “alternative” hypothesis which is denoted by (Hi)

HYPOTHESIS ONE

Ho: There is no significant relationship between ICT and employee performance      

H1: There is significant relationship between ICT and employee performance  

HYPOTHESIS TWO

Ho: There is no significant relationship between ICT and employee  job satisfaction 

H1: There is significant relationship between ICT and employee  job satisfaction

HYPOTHESIS THREE

Ho: There is no significant relationship between the use of  ICT  and  time reduction

H1: There is significant relationship between the use of  ICT  and  time reduction

HYPOTHESIS FOUR

Ho: There is no significant relationship between the use of  ICT   employee skills

H1: There is significant relationship between the use of  ICT   employee skills

1.5      SIGNIFICANCE OF THE STUDY  

The result of this study will provide basis of revealing the importance of ICT on the organization performance and to also develop a skilled labour. Another major factor that needs to be considered is the identification and appraisal of the factors that contribute to how effect and efficient workforce will yield productivity by the way of managing ICT innovation. It is also believed that the findings of this study will enable workers to know that the advent of ICT will make them have access to easy and accurate information which will undoubtedly increased the level of the productivity.  

1.6      SCOPE OF THE STUDY

This study will focus mainly on the impact of information and communication technology (ICT) on organization performance and the benefit  to banking density as experienced by Zenith Bank Plc situated in Lagos State, Nigeria.

1.7      LIMITATION OF THE STUDY 

Carrying out a research work may be tasking and could also involve spending so much on acquisition of materials and also time constraints. In Nigeria today, majority of the companies area always reluctant to give out information about their operation for the fear of intrusion, insecurity and negative impact of competition of their product and services. The major limitations of this study are time and cost constraints in terms of transportation browsing in internet, photocopying of materials, and these could hinder the research 100% accuracy.            

1.8      DEFINITION OF TERMS

Computer: Is an electronic device that is used for sorting and retrieving data, and processes it through central processing unit (CPU) and sends it our as information through the output devices.

Information: This is knwodleg about something especially fact that news. 

Information and Communication Technology: This is the use of computer and other electronic devices such as telephone to process and distribute information.

Database: This provides access to information by using different channels.

Diffusion: Is the process by which an innovation is communicated through certain channels over time among the members of social system.

Innovation: This is an idea, practice or object that is perceived as new by an individual or by another unit of adoption.

Productivity: This is sued to measure the quantity and quality of work done, considering the cost of the resources used.

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