The Impact of Technology on Organizational Performance

Technology affects organizational performance in multiple ways. First, it improves project management efficiency, resulting in assignments being completed within the stipulated deadline. Project management is a cost-intensive and time-consuming process as it involves applying skills, methods, and knowledge. However, technology, including software applications, cut the time required to finish a project by providing solutions to problems that may arise. Project teams exploit technology resources to plan, organize, and direct tasks and ensure the project is on budget, on time, and within scope.

Second, technology fosters communication and collaboration, improving organizational performance. Information technology allows employees to share information, ensuring that each individual executes job functions efficiently and independently, helping a business achieve its goals. Moreover, information sharing improves performance by fostering collaboration in the workforce. Teamwork increases employee productivity. Modern technologies, including social networking, online portals, and virtual technology, facilitate international coordination, meaning that a team in one country or continent can link and support a team in another region. Moreover, technology streamlines concurrent workflow.

Third, technology integration in business boasts marketing, sales, and profits. Profits, revenue, and sales are economic performance indicators and help ascertain the overall organizational performance. Smartphones and social media sites allow businesses to reach a broad audience, market products to potential customers, and generate high sales. In other cases, companies benefit from third-party marketing where they are not involved directly or indirectly. For example, the Cranberry Juice Company reported high sales when a Tiktok user uploaded a video drinking the juice while skating. Online marketing tools help realize economic performance indicators, including sales, profits, and return on investment.

Furthermore, technology promotes customer satisfaction. Customer satisfaction is an operational performance indicator and contributes toward organizational performance. Technology features such as interactive touchscreens, text surveys, and receipt-based surveys improve customer satisfaction and feedback. E-mails and social media networks allow consumers to ask questions or enquire about a product and receive instant feedback. These platforms provide an opportunity for a business to engage with consumers and build loyal customers. Quick feedbacks and engagement improve performance by establishing an emotional connection between a customer and a brand.

Despite the above positive impacts, technology hurts organizational performance. Technologies, including smartphones and the internet, are a distraction in the workplace and undermine individual performances. For example, employees receive calls or chat at work, minimizing overall business output. Likewise, many people are addicted to social media, and such distractions are detrimental because they reduce employee productivity. Additionally, technology obsession might cause a business to lose customers when an employee fails to satisfy clients because they are busy on the phone.

Another negative impact of technology on performance involves confusion. Increased technology applications forces businesses to integrate digital systems in all departments, including customer service, human resources, finance and accounting, marketing, and logistics. However, this technology comes at a cost because some employees are likely to resist changes. Moreover, others take a long time to learn how to use and operate digital devices and software applications. Introducing new technology in an organization is likely to cause confusion, undermining employee productivity and organizational performance.

To support our work