Managing Computers in Large Organizations
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<strong>Manag<strong>in</strong>g</strong> Microcomputers <strong>in</strong> <strong>Large</strong> <strong>Organizations</strong><br />
http://www.nap.edu/catalog/167.html<br />
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PRODUCTIVITY THROUGH AUTOMATION 113<br />
management response would be to allow turnover or reduction <strong>in</strong> the work<br />
force. However, if a market<strong>in</strong>g manager or an eng<strong>in</strong>eer<strong>in</strong>g manager is given a<br />
device that doubles productivity, it is much more difficult to decide how to take<br />
advantage of it. Do you give the market<strong>in</strong>g manager two markets to manage?<br />
Do you give the eng<strong>in</strong>eer<strong>in</strong>g manager both eng<strong>in</strong>eer<strong>in</strong>g and market<strong>in</strong>g to<br />
manage?<br />
It will be a major challenge for the management of Reynolds and other<br />
companies to f<strong>in</strong>d ways to restructure jobs to take advantage of the<br />
improvements <strong>in</strong> productivity made possible by automation. Inevitably, some<br />
people will be displaced. Managers <strong>in</strong> our company and the country at large are<br />
go<strong>in</strong>g to have to address the issue of retra<strong>in</strong><strong>in</strong>g these people.<br />
A second management issue we are now fac<strong>in</strong>g <strong>in</strong> the course of <strong>in</strong>creas<strong>in</strong>g<br />
security for corporate data is the question of who owns what data. Reynolds has<br />
bought a sophisticated computer program that requires identify<strong>in</strong>g who owns<br />
each piece of data, who can access it, who can change it, and who can delete it.<br />
This raises some <strong>in</strong>terest<strong>in</strong>g questions. For example, does a piece of tax<br />
<strong>in</strong>formation <strong>in</strong> a division system belong to the tax department or to the division?<br />
A third issue <strong>in</strong>volves measur<strong>in</strong>g productivity. Economic feasibility has<br />
been blithely assumed, but it needs to be tested at every po<strong>in</strong>t. On the one hand,<br />
Reynolds has established a goal to double the productivity of its salaried work<br />
force. On the other, we don't even measure the productivity of our salaried work<br />
force today. We can measure the ratio of the total number of salaried employees<br />
to pounds of alum<strong>in</strong>um or dollars of sales. On an <strong>in</strong>dividual basis, however, we<br />
don't know what productivity is and we don't know how to measure it. I believe<br />
this question of how to measure <strong>in</strong>dividual productivity is an issue we will<br />
wrestle with at least for the rest of the decade.<br />
A f<strong>in</strong>al management issue <strong>in</strong>volves multiple functions and responsibilities.<br />
In the past auditors have taken a lot of comfort <strong>in</strong> the careful separation of<br />
responsibility. One person requisitions a purchase, a second approves, a third<br />
receives, and a fourth pays the <strong>in</strong>voice. Automation makes it possible for a<br />
s<strong>in</strong>gle <strong>in</strong>dividual to perform more than one function. Reynold's management, as<br />
well as its auditors, must consider what k<strong>in</strong>ds of controls to build <strong>in</strong>to<br />
automated <strong>in</strong>formation process<strong>in</strong>g systems. These controls<br />
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