Summary
Enterprise resource planning
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Extract
ERP implementation and its effect on a few variables of organization structure and manager's job.
ABSTRACT
ERP (Enterprise Resource Planning) systems are used in the organizations for information integration and aligning & streamlining their processes for delivering high value to the customers. Through its very use, it influences manager's jobs and the organization structure as well. This paper seeks to evaluate the impact of ERP on organizations, and examines the ways manager's job and organization structures have changed. We have investigated effect of ERP implementation on five dimensions of Manager's job (autonomy, use of power, delegation, people skills and privileged information), five dimensions of organizational structure (specialization, formalization, centralization, standardization and complexity of work flow) and on the flexibility of organization. A study was carried out in the three plants of a leading motor company in India. It was found that use of power significantly increased in all the three plants. This was thought to be related to the 'change management' associated with ERP implementation in the firm. This could also be due to strategic shift in the firm's position (firm had now become a 'prospector" from its earlier state of 'defender' (in the framework of Miles and Snow et. al. (1978))) which led to increased 'decentralization' and 'delegation' which increased 'autonomy' of the managers. Managers at t...See the full content of this document
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