The Role of Information Technology in Organizations

Lecturer : Vicky Rosalia Gultom, SE, M.Sc

Compiled By:
GROUP 4

Cindy Meduaris Putra Teguh Manurung (190503235)

Andre Simanullang (190503239)
Bebby Putri Indri SRG (190503238)
Jenny Kristine A.Br. Ginting (190503231)

FACULTY OF ECONOMICS AND BUSINESS

ACCOUNTING MAJOR
UNIVERSITY OF NORTHERN SUMATRA
MEDAN
2020
 CHAPTER I
PRELIMINARY
A. Background
The role of technology in an organization is very important. Especially in this day
and age that demands everything is fast and practical. We can not only learn from books
alone, but also from other media that exist today, for example from the Internet, learning CDs
and others. Therefore it is appropriate to say that, learning organizations cannot be separated
from technology in helping their performance. For example, with the existence of information
technology (internet), the learning process (training) in an organization becomes more
flexible, not only fixed in one place and with a conventional face-to-face system. Training
can also be provided via internet so members in the organization can take part in the learning
or training process anytime and anywhere. This clearly proves that with technology to help
learning can reduce costs and learning becomes more flexible.

B. Problem Formulation
Based on the background, this writing problem formulation is:
1. What is the role of information technology in organizations?
2. What are the benefits of information technology in organizations?
3. What is the impact of information technology on the organization?
4. How is the application of technology in parts of the organization?

C. Purpose
The writing of this paper aims to:
1. Knowing the role of information technology in organizations.
2. Knowing the benefits of information technology in organizations.
3. Knowing the impact of information technology on the organization.
 CHAPTER II
DISCUSSION
A. The Role of Information Technology in Organizations
The use of IT (Information Technology) in an organization is very important, and to
implement IT it must be seen the characteristics of the organization beforehand. The role of
information technology for a company can be seen by using the categories introduced by
G.R. Terry. There are five basic roles of information technology in a company or
organization, namely:
1) Operational Function. Making the organizational structure more streamlined has been
taken over by the information technology function because of the nature of its use that
spreads throughout the organization's functions, units related to information technology
management will carry out their functions as supporting agencies where information
technology is considered a firm infrastructure.
2) Monitoring and Control Functions. It implies that the existence of information technology
will become an inseparable part of the activity at the managerial level embedded in every
manager's function. So that the organizational structure of the unit associated with it must be
able to have a span of control or peer relationship that allows for effective interaction with
managers in the company concerned.
3) Planning and Decision Functions. The existence of information technology is considered
as an enabler of the organization's plans and is a knowledge generator for company leaders
who are confronted with reality to take a number of important decisions every day. It is not
uncommon for organizations to ultimately choose to place information technology units as
part of the corporate planning and / or development function because of this strategic
function.
4) Communication Function. Principally included in firm infrastructure in the era of modern
organizations, where information technology is placed as a means or media for individual
companies in communicating, collaborating, cooperating, and interacting.
5) Interorganizational Functions. Is a role that is quite unique because it is triggered by the
spirit of globalization that forces companies to collaborate or establish partnerships with a
number of other companies.
Modern organization is a very complex organization because it involves complex
relationships in achieving organizational goals with multiple dimensions. Such relationships
include relations between humans and humans, humans with organizations, machines with
organizations, machines with machines, and organizations with organizations. In terms of
management there are three computer functions:
1. Computer as data (memory)
2. computer as a process.
3. computer as external information which includes:
a) the computer will increase effectiveness if the output value is smaller than the input.
b) declare a passive index (the process of recording data) with an active index (selection and
filtering of information).
c) know the analysis and systematic model in solving problems and making decisions.

B. Utilization of technology in the Organization

Utilization or implementation of technology in the organization's operational
activities will have a significant impact not only on work efficiency, but also on work culture
both personally, interunit, and overall intuition. Based on the organizational structure, the use
of information technology is classified into three categories, namely:
1) Efficiency Improvement
The use of information technology to improve efficiency is applied at the operational level of
the organization. In this category, the use of information technology is measured by a
decrease in time and process costs.
2) Effectiveness Improvement
The use of information technology to improve effectiveness is applied at the managerial level
of the organization. In this category the use of information technology is measured by the
ease and speed of achieving the status of achieving organizational targets.
3) Strategic Improvement
The use of information technology for strategic improvement is applied at the executive level
of the organization. In this category, the use of information technology is measured by the
ease and accuracy of decision making by executives.

C. Impact of Information Technology on Organizations

The use of information technology is a means of supporting or encouraging the
organization to achieve organizational goals. Romney (2006) states that the use of
information technology in organizations will affect the activities or business processes
contained in the organization. The influence of the use of information technology in
organizations can be seen from the impact of the use of information technology on the
organization's value chain. Utilization of information technology in organizations can
increase access to accurate and timely information about the status of delivery; enable
organizations to reduce the number of buffer stocks; increase the efficiency of the company's
internal operations, especially high-tech companies (for example the car assembly industry,
computers, electronics and others); can improve the efficiency and effectiveness of sales and
marketing activities, purchasing, human resources and after sales service support.
The strategic impact of the use of information technology for organizations can be seen from
whether information technology can support and assist organizations in implementing and
achieving the overall organizational strategy. This is in accordance with what was found by
Romney (2006) that the use of information technology in organizations is not a basic strategy
of the organization, the implementation of information technology is used to assist in
achieving organizational strategies. By utilizing information technology, access to the
company's business or activity processes can be done quickly so that decision making can be
done more quickly and accurately and ultimately the goals of the organization can be
achieved.
 CHAPTER III
CLOSING
A. Conclusion
1. Technology in organizations has a major role in studying the properties of an
organization's technology and the relationship of technology to the organizational structure.
Thomson classifies organizational technology into 3 types: 1) Mediating technology, 2)
Long-linked technology, 3) Intensive technology.
2. The use of information technology in an organization or company is also related to
competitive advantage to improve the quality of information, monitoring the performance of
organizations or companies using information technology both as a tool and a formidable
strategy for integrating and processing data quickly and accurately and for the creation of
new service products as a competitiveness to face competition.

B. Suggestions
1. In order for the technology used in the organization to be maximized, managers must be
able to look for human resources that are compatible with the technology both in terms of
their skills and strengths, giving clear direction on how the technology works and what must
be done by subordinates with the technology and the manager must choose the right
technology to produce their products.
2. So that goals can be achieved in accordance with expectations should: determine the
organization's vision and strategy. communicating and linking various strategic goals and
measures. plan, set goals, and align strategic initiatives. enhance feedback and strategic
learning.
 REFERENCES
Sutarman. 2009. Pengantar Teknologi Informasi. Jakarta: PT Bumi Aksara.

Murhada, Yo Ceng Giap.2011. Pengantar Teknologi informasi. Jakarta: Mitra Wacana

Media.

Fuziah, Rinda Hedwig. 2010. Pengantar Teknologi Informasi. Bandung: CV. Muara Indah.