The Impact of Technology Insertion on Organisations

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HFIDTC/2/12.2.1/1 Version 3 / 21 November 2007 7 <strong>The</strong>ories <strong>of</strong> <strong>Technology</strong> <strong>Impact</strong> <strong>The</strong> early theoretical work in this area assumed technology to be an objective, external force that would have (relatively) deterministic impacts on organisational properties such as structure. In contrast, a later group <strong>of</strong> researchers focused on the human aspect <strong>of</strong> technology, seeing it more as a product <strong>of</strong> the choices and intentions <strong>of</strong> implementers. Work on technology shifted to a ‘s<strong>of</strong>t’ determinism where technology is seen as an external force with impacts moderated by human actors and organisational contexts. Recently attention has begun to focus on a re-conceptualisation <strong>of</strong> the ‘impact’ <strong>of</strong> technology in a way that attempts to integrate features <strong>of</strong> both perspectives. Such integrationist models portray an impact as ‘a complex, interactive and ongoing process not as a simple linear outcome’. <strong>Technology</strong> does not ‘impact’ on its social environment or vice versa but, over time, each shapes the other [135]. <strong>The</strong>re are also alternative viewpoints emerging which focus their attention on explaining the processes that occur in complex systems. In a move away from traditional reductionist approaches, some theorists have framed technologies and organisations as complex systems in order to explain and understand the causes <strong>of</strong> unexpected and emergent behaviours. 7.1 <strong>The</strong>ories <strong>of</strong> <strong>Technology</strong> in Organisations 7.1.1 Optimists and Pessimists <strong>The</strong> question <strong>of</strong> how technology impacts humans and organisations has been the subject <strong>of</strong> considerable debate over the years and it is a subject that Eason tackled in an article written for the journal ‘Behaviour and Information <strong>Technology</strong>’ [24]. On the one hand, Eason states, there are optimists such as Englebart [136] who foresee exciting forms <strong>of</strong> ‘man computer symbiosis’ in which the power <strong>of</strong> the computer will augment human capacities to process information. In the organisational setting this was seen as empowering people and increasing job satisfaction as computers were used to enable people to realise much more <strong>of</strong> their potential. By contrast pessimistic authors in the 1970s predicted ‘the collapse <strong>of</strong> work’ [137], a nightmare world in which computers would be used to automate work and replace human labour, throwing large numbers <strong>of</strong> secretaries, clerks and even managers and pr<strong>of</strong>essionals out <strong>of</strong> work. For those who remained at work the ‘centralisation <strong>of</strong> power’ or ‘big brother’ hypothesis applied [138], the computer would be used to monitor and control the work <strong>of</strong> all employees leading to widespread dissatisfaction and alienation [139]. One <strong>of</strong> the major concerns has been the impact <strong>of</strong> technology upon jobs, and, since the 1980s there have been two prominent views [62] [140], as follows: 1. Technical System as Control - <strong>Technology</strong> is seen as deskilling, taking work from people and reducing the remainder to tedious and repetitive work. 2. Technical System as Tool - This view sees technology as enriching, whereby the routine and boring jobs are allocated to computers, which also provide tools to allow people to be creative and handle information in diverse and powerful ways. 33
HFIDTC/2/12.2.1/1 Version 3 / 21 November 2007 7.1.2 <strong>Technology</strong> Led <strong>The</strong>ories One <strong>of</strong> the most influential technology led models, the ‘technological imperative’ model examines the impact <strong>of</strong> a technology upon organisational dimensions such as structure, size, performance, degree <strong>of</strong> centralisation as well as dimensions such as job satisfaction, task complexity, skill levels and productivity. This model states that technology exerts an independent, uni-directional and causal influence over humans and organisations similar in nature to the laws <strong>of</strong> physical sciences [141]. Some technology led theories argue that society itself is entirely determined by technology: ‘new technologies transform society at every level, including institutions, social interaction and individuals. Technological determinism is a school <strong>of</strong> thought believing that technology is the single most important factor in determining the success <strong>of</strong> an organisation’ [142]. This approach has also been known, in economics and elsewhere, as ‘technology push’. It asserts that investing in the latest technology is the only way for an organisation to survive and notions such as ‘automate or liquidate’ and the fear <strong>of</strong> being ‘left behind’ are examples <strong>of</strong> this approach. In this body <strong>of</strong> work, studies <strong>of</strong> technology and information technology examine the impacts <strong>of</strong> technology on organisational dimensions such as structure, size, performance, and centralisation/decentralisation, as well as individual level dimensions such as job satisfaction, task complexity, skill levels, communication effectiveness, and productivity. <strong>The</strong> premise is that the technology as well as the organisational and individual variables can be measured and predicted [124], [143], [144], [145], [146], [147], [148], [149], [150], [151], [152], [153]. It is worth noting that much <strong>of</strong> this research is now over 25 years old. Such research treats technology as an independent influence on human behaviour or organisational properties that exerts unidirectional influence over humans and organisations, similar to those operating in nature [154]. While providing insight into the <strong>of</strong>ten determining aspects <strong>of</strong> technology, this body <strong>of</strong> research largely ignores the action <strong>of</strong> humans in developing, appropriating, and changing technology. Some <strong>of</strong> the more recent research, [155], [156], allows for the influence <strong>of</strong> technology to be moderated by contextual variables, proposing a contingency model <strong>of</strong> technology’s effects. <strong>The</strong> technological imperative model is illustrated in Figure 4. Figure 4: Technological Imperative Model (from Orlikowski 1991) Technological determinism stands in opposition to the theory <strong>of</strong> the social construction <strong>of</strong> technology, which suggests that both the path <strong>of</strong> innovation and the consequences <strong>of</strong> technology for humans are strongly if not entirely shaped by society itself, through the 34
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The Impact of Technology Insertion on Organisations

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