THE IMPACT OF INFORMATION SYSTEM (IS) ON ORGANIZATIONAL PRODUCTIVITY

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Introduction

1.1 Background To The Study

An organization is a social entity that has a collective goal and is linked to an external environment. The word is derived from the Greek word “organo”, which means “organ” a compartment for a particular task.

There are a variety of legal types of organization including corporations, government, non government organization, international organization etc. A hybrid organization is a body that operates in both the public sector and the private sector simultaneously, fulfilling public duties and developing commercial market activities.

In the social sciences, organizations are the object of analysis for a number of disciplines, such as sociology, economics, political science, psychology, management and organizational communication. The broader analysis of organizations is commonly referred to as organizational structure, organizational studies, organizational behaviour, and organization analysis.

Productivity: is a measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it (Inputs). The measure of productivity is defined as a total output per one unit of a total input.

A production model is a numerical expression of the production process that is based on production data, i.e, measured data in the form of prices and quantities of inputs and outputs. It is advisable to examine any phenomenon whatsoever only after defining the entity the phenomenon under review forms parts of. Hence, productivity cannot be examined as a phenomenon independently built is necessary to identify the entities it belongs to such as an entity is defined as production process.

Productivity growth is important to the firm because more real income means that the firm can meet it perhaps growth obligations to customers, suppliers, workers, shareholders and governments (taxes and regulation) and still remain competitive or even improve its competitiveness in the market place.

An information system (IS): is basically concerned with the process of collecting, processing, storing and transmitting relevant information to support the management operations in any organization. According to Drucker “The life of manner is a perpetual decision making activities”. Shergill et al (2012), the success of decision − making, which is the heart of administrative process, is highly dependent on available information.

According to Todd (2001) and Harizonova (2003), managers have to assimilate mass of data, convert that data into information, form conclusions about that information and make decisions leading to the achievement of business objectives. For an organization, information is as important resource as money, machinery and manpower. It is essential for the survival of the enterprise (Tripathi, 2011). To fulfill the needs of information, the management of information system is critical for the prosperity of every business organization (Davies, 2009).

Organizational efficient operation is more than ever linked to effective information system. Today it is widely recognized that a “business information system (BIS)” is essential for most organizations to survive and compete with organizations. BIS assist companies to extend their business, offer services, reshape Jobs redesign work flows and modify the ways of controlling business (Lucas, 1993). Proper handling and processing of information is necessary because it can decide in the overall fate of the organization. If organizations use information system in their operation properly they will be on the position to achieve their goals whereas reverse is true. One of the policies and strategies of the government of Nigeria is to transform railway infrastructure and service to world class standard, considering this sector as a key lever to the development of the country.

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1.2 Statement Of The Problem

Nowadays information system is vital to any organization (porter and Miller 2002). Irani (2001) argues that a successful and quality (IS) can bring enhanced efficiency and effectiveness in operation, possible better business performance and stronger organizational culture. The emergency of management information system in the operations of the organization in Nigeria and other sectors has brought about several noticeable developments but at the same time, it brings about its attendant problem.

The machine age has brought about the development of methods. Organizational executive administrators, managers and staff need to go beyond their natural endowment to be able to operate these machines themselves. This makes training a sine − qua-non but only very few organization and individuals can afford the high cost of training required in operating those machine and it bestows impossible when it involves an oversees training course.

Another problem associated with information system is servicing and maintenance of machine. All these machines are manufactured in highly technological, France America, Japan, etc. When they are imported into Nigeria and other third World countries, the user’s nations lack the expertise and technical know-how to maintain and service the machines. This is because the qualified service personnel required to service machines are not brought along with the machine.

Thirdly, from the business point of view, there have been growing critisms of the poor alignment of IS and business needs. While an increasing part of organization’s resources are spent on recordings searching, finding and analyzing information; the link between IS and organizational performance and strategies have been shown to be dubious. For example, in a big organization like Nigerian Railway corporation, and integrated IS required to achieve the organizational goals and growth and transformation plan has been challenged by the prevalent dare of Nigerian Railway corporation were negative organization information ethos, Underestimate the role of IS, lack of latest technologies, and lack of top management commitment and support etc.

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1.3 Objectives Of The Study

The general and prime purpose of this study is to assess the impact of information system on organization productivity with special reference to Nigerian Railway Corporation, South-Eastern head quarters, Enugu. In addition to the aforementioned core objectives, this study also stressed specifically on the following objective:

1. Find how information system in the enhancement of organizational productivity in Nigerian Raiway Corporation Enugu.
2. To explore the ethos of the employees toward information as critical resource in the organization. To recommend measures to improve on the positive impact of (IS) in Nigerian Railway Corporation, Enugu.

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1.4 Research Questions

1. In what ways has information system negatively affect organization of Nigerian Railway Corporation, Enugu?
2. To what extent has information system enhance the organization productivity?
3. What are the various management information system equipment used by Nigerian Railway Corporation, Enugu?

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1.5 Significance Of The Study

An information system (IS) in an organization is like the nervous system in the human body: It is the link that connects all the organization’s components (human resource, marketing, accounting and finance, operations, i.e production and service etc), together and provides for better operation and survival in a competitive environment. Indeed, today’s organizations run on information (Dandago, 2012).

Moreover, mangers need rapid access to information to make decisions about strategic, financial, marketing and operational issues and they are successfully handle information and applied it when making decisions.

The IS satisfies the diverse needs through a variety of systems such as query systems, analysis systems, modeling systems and decision support systems, IS helps in strategic planning management control, operational control and transaction processing.

Higher productivity, speed and accuracy, permit high and decentralized firm to use the information which is scattered in many places and integrate it into meaningful perspective.

Timely availability of relevant information is vital for effective performance of manager’s functions such as planning, organizing, leading and control. An information system in an organization is like the heart in human body.

Creates and maintain competitive advantage through new IT based work and business process often. Information technologies allow reorganization of work to completely new ways and creation of totally new business

Increase connectivity: Basically, the purpose of network is to get from one place to another, the concept of connectivity refers to the extent to which devices can access each other.

Reduce unnecessary complexity of information processing systems: Protect against information overload. Improve and speed up business, work and consumption processes through information use and efficient information processing.

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1.6 Scope Of The Study

The research work covers the impact of information system in Nigerian Railway Corporation, South-Eastern head Quarters, Enugu; which was used as a case study.

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1.7 Limitation Of The Study

The researcher was faced with numerous limitations on the study, especially in the collection of data for the study.

Also, there was a financial constraint on the part of the researcher while executing the project. The researcher limited his study due to lack of fund.

Finally, time constraint; time is very important in every human life because time determines whether or not one will succeed. When time is enough and kept well, success is its reward but when time is not kept, failure could be expected.