Verizon

The Impact of Technology in Organizational Communication

The relationship between technology and communication in today's organizations is significant. Technology can even change the way organizations are structured when a new system is introduced. Moreover, in many organizations, new IT systems have complicated the way people communicate by adding complexity to the organization structure. This could be the case for financial systems such as SAP, which are designed to meet requirements of one exclusive part of the organization.

However, new IT systems can also reduce organizational complexity. Technology can be designed to fit any requirement of a particular organization. A new technology could be flexible enough to simplify power relationships and processes. When information is well organized and access is easy, communication improves between and within areas.

IT systems are imperative in present organizations and it is not mandatory to invest in sophisticate technologies. Small systems can also be used to manage internal information within areas. Local structured databases such as MS Access and common files in the shared server can play a crucial role in the organization processes.

The implementation of a new technology involves the creation of networks and communication systems between different areas and individuals among with the system mechanism by itself. When SAP was implemented in Bellsouth Colombia, it had a significant impact in the existing organization structure. In order to introduce the new system, the company experienced structural, technological and cultural changes. (1)

The structural changes are always the most visible among employees. "Its effect is to alter the configuration of relationships, the distribution of resources and the operation of command and control procedures. One largely unplanned and incremental structural change is the emergence of new functions." (2) In the case of BellSouth, structural changes were different in size and impact. Policies and procedures were re-defined. Organizational arrangements were required along with new functions and positions. In every area of the company, it was required that at least one employee be involved in the project and therefore be responsible for the SAP management in his or her area. Even a new area emerged as a need for the project's development and it last two more years after the project was finished in order to support the new system practices. The existing communication system was re-evaluated. However, the political structure of the organization was not altered.

According to Information Technology and Organization published by Oxford University Press in 2000, "IT systems are political in nature." The development and implementation of IT systems is mediated by the political relationships and exercises of power within organizations." (insert footnote) SAP was implemented at Bellsouth following the political structure of the organization. Its architecture was defined according to the hierarchy of relationships within and between areas. There was an established chain of command in every process and only a few people were able to access the information in the system. A simple process for purchasing started with a solicitude that needed to be electronically approved by every person in the line of command starting with the manager of the soliciting area, following by the purchases director and ending with the financial vice-president. The electronic process of input information was fast and effective. But, communication within and between areas was not possible without a parallel communication system. Through the company Intranet, official communication between areas was increased in order to obtain approvals and access to the system.

Technological changes were crucial during the implementation stage of the project. In addition, the new financial system required that every area of the company had to assign at least one employee to be trained, in most cases more than two where necessary. For six months, vice-presidents, directors, managers and secretaries were trained following the new chain of command. Communication was established only between those involved with the SAP management.

Cultural changes are inherent in the implementation of a new technology that has an organizational impact. It takes time for people to accept the new system and get used to the new practices, especially when drastic changes have been implemented. People usually perceive change as a threat to their established routines. Managers tend to reject the implementation of a new technology that implies a significant investment of money, time and resources. This is because the new system usually replaces an old system that has required a considerable effort to establish. "Much money and human effort, emotional and practical has been invested in building organizational structures the way they are..." "Careers have been built, power established, influential relationships. There is too much at stake for those in the established order of things..."(3). During the first stage of implementation SAP users at Bell South were reluctant to follow the new practices. The new process had more steps and appeared to be more hierarchical. In their eyes it just complicated the way they managed their internal systems and their communication with other areas involved in the financial process.

In most organizations, when a new technology is introduced people expect that it will magically simplify existing process and facilitate the way they work and communicate within the organization. When the new IT system is implemented new steps and procedures emerge adding complexity to the existing structures. However, what appears to be an addition in existing processes would be a reduction in terms of human