Lecture notes
Communication and Technology
- Institution
- CCEA
The benefit and disadvantages of using ICT within a company.
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Communication and TechnologyVarious technologies business use: Email, videoconferencing, a network, the internet, laptops, smart
phones and tablet PCs.
Uses of ICT:
The applications of ICT in business can have positive effects on the operations of any organisation.
Decision-making: ICT aids decision making in that an often quoted saying is ‘knowledge is power’ so by having
key information in the hands of managers and decision makers they can make informed decisions and
ambiguity is lessened.
Provides information for staff: ICT helps employees and managers have information at the fingertips via
business letters, reports and memos, or sales figure spreadsheets or customer databases.
Maintains business records: ICT can help keep updated records on employees, competitors and customers.
Provides effective communication: ICT and all the communication devices it offers allows people all over the
world to keep in touch no matter location or time zone. This is the essence of the global market and the 24/7
world we live in.
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.
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