Post on 01-Dec-2014
Ashish Kumar Mishra 1270394
Impact of enterprise resource planning on employee work
efficiencyBy
Ashish Kumar Mishra
(1270394)
This report is produced to fulfil assessment criteria of Edexcel Level 7 BTEC PG DMS
in
Research Methods for Strategic Managers (Unit 16)
2011/2012
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CONTENTSContents...................................................................................................................................2
1. TITLE.................................................................................................................................2
2. INTRODUCTION................................................................................................................2
3. RESEARCH PROPOSAL.......................................................................................................2
3.1 Research Question.....................................................................................................2
3.2 Hypothesis.................................................................................................................2
3.3 Background Theory....................................................................................................2
3.4 Factors for Successful Research Question Selection..................................................2
3.5 Brief Summary of Stovec Industries...........................................................................2
3.6 Context and Rational.................................................................................................2
3.6.1Problems Faced by Stovec Ltd..................................................................................2
3.6.2Reasons for the Research.........................................................................................2
3.7 Aim.............................................................................................................................2
3.8 Objectives..................................................................................................................2
4. Literature Review.............................................................................................................2
5. METHODOLOGIES.............................................................................................................2
5.1 Evaluation of Methodologies.....................................................................................2
5.2 Chosen Methodology.................................................................................................2
5.3 Justification of Chosen Methodology.........................................................................2
5.4 Limitations of Chosen Methodology..........................................................................2
6. EVALUATION OF DATA COLLECTION TECHNIQUES...........................................................2
6.1 Primary Data Collection.............................................................................................2
6.1.1 Experimental......................................................................................................2
6.1.2Survey - Questionnaire.............................................................................................2
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6.1.3 Survey – Interview..............................................................................................2
6.1.4Field Research – Observations.................................................................................2
6.2 Secondary Data Collection.........................................................................................2
6.2.1Unobtrusive Research..............................................................................................2
6.3 Sampling.........................................................................................................................2
6.3.1Probability Sampling................................................................................................2
6.3.2Non-probability Sampling........................................................................................2
7. EVALUATION OF DATA ANALYSIS TECHNIQUES................................................................2
7.1 Quantitative....................................................................................................................2
7.1.1Univariate Analysis...................................................................................................2
7.1.2Bivariate Analysis.....................................................................................................2
7.1.3. Multivariate Analysis..............................................................................................2
7.2 Qualitative.................................................................................................................2
7.2.1. Thematic Analysis...................................................................................................2
7.2.2. Comparative Analysis.............................................................................................2
7.2.3. Content Analysis.....................................................................................................2
7.2.4. Discourse Analysis..................................................................................................2
8. RESEARCH DESIGN............................................................................................................2
8.1 Data Collection...........................................................................................................2
8.2 Sources of Data..........................................................................................................2
8.3 Data Analysis..............................................................................................................2
8.4 Gantt Chart....................................................................................................................2
9. PRESENTATION AND EVALAUTION OF PRELIMINARY RESEARCH.....................................2
9.1 Analysis of Secondary Data Findings..........................................................................2
9.2 Analysis of Primary Data Findings..............................................................................2
9.2.1Are you aware of enterprise resource planning system?.........................................2
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9.2.2Have you ever worked on ERP system in your professional career?........................2
9.2.3Do you think, ERP has affected your work?.............................................................2
9.2.4 What is the impact of ERP system on your work?.................................................2
9.2.5What is your opinion on impact of ERP and timesaving in performing operational tasks?................................................................................................................................2
9.2.6What is your opinion of relation between ERP system and productivity of your company?.........................................................................................................................2
9.2.7What is your opinion on impact of ERP on your work pressure?.............................2
9.2.8Has ERP impacted on prioritising your work task?...................................................2
9.2.9What is your opinion on the impact of ERP on your work performance?................2
9.2.10 What is your suggestion to other professionals on experience of ERP with respect to work efficiency?..............................................................................................2
10. EVALUATION OF PRELIMINARY RESEARCH....................................................................2
11. CONCLUSIONS...............................................................................................................2
12. RECOMMENDATIONS....................................................................................................2
13. REFERENCES..................................................................................................................2
15. APPENDIX...................................................................................................................... 2
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1. TITLE
The impact of the Enterprise resource planning on employee work efficiency at
Stovec Limited.
2. INTRODUCTION
Stovec is expanding its business in different geographical regions. To keep the
strategic plan of growth along with maintaining the productivity of company, the
management has decided to evaluate the ERP system and its impact on the
employee’s work efficiency.
This research will help the management in taking the strategic decision of evaluation
of ERP. The two variables on which this research is based upon are ERP and
employee work efficiency. Company invests in IT infrastructure with an aim of
improving the efficiency of employee and the organisation’s overall productivity. The
employee’s work efficiency is a major factor in improving the organisation’s
productivity. In this report, the relationship between these two variables and their
impact has been analysed and evaluated using qualitative method of primary data
collection. In this report, the survey on 30 professionals has been conducted through
standard questionnaire. Furthermore, the recommendation on this report has also
been discussed.
3. RESEARCH PROPOSAL
3.1 Research Question
What is the impact Enterprise resource planning implementation on employee work
efficiency of Stovec Ltd.?
3.2 Hypothesis
If enterprise resource planning is related with the employee work efficiency then
implementation of enterprise resource planning will improve the employee efficiency
of Stovec industries ltd.
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3.3 Background Theory
The two variables in this research are ERP and employee work efficiency. In this
research, a relationship between the two variables will be researched upon and
along with the impact of former on latter. An Enterprise Resource Planning software
solution streamlines and integrates operations, processes and information flows in
an organisation. The ERP system automates operations from supply chain
management, Inventory control, Manufacturing, scheduling and production, Human
resources, Procurement and Sales, Customer relationship, Budgeting and planning,
Financial and cost accounting and almost any other data oriented operations,
(TopBits, 2011)
The employee work efficiency is important with respect to the overall company’s
growth and productivity. The factor which influences the work efficiency of an
employee should be well researched upon. By improving the IT system, the work of
employee is made easier and hence, staffs are able to focus more on quality of work.
3.4 Factors for Successful Research Question Selection
Saunders, Lewis and Thornhill (2009) define research as “something that people
undertake in order to find out things in a systematic way, thereby increasing their
knowledge”.
Deciding a research question and preparing a report on it requires systematic
approach. One might refer to the points discussed in previous steps and still may not
be clear and henceforth it becomes very important to formulate a proper planning
process before undertaking a research process. Saunders, Lewis and Thornhill
(2009) tells that “It is very important for a researcher to spend time in formulating and
clarifying the research topic through answering one or more research questions
accompanied by a set of objectives that the research must have”.
The availability of data and information available with respect to the research topic
has a major significance while selecting the research question. The research
question bears no value if the information required to carry out the research is not
easily accessible and available.
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The other major factor while selecting a research question is the relation between
the research topic selected and the interest of the researcher. The success of
research and its validity depends upon the amount of efforts being put it into and it
only happens when researcher finds interest in carrying out the research.
3.5 Brief Summary of Stovec Industries
Stovec Industries was formed in 1975 by the A.T.E. Group in partnership with
renowned Stork Group of the Netherlands to cater to the ever-growing needs of
textile printing and graphic printing industries. Over the past 27 years Stovec has
maintained technological and market leadership for the supply of rotary screen
printing machines and rotary screens for the textile printing industry, and has also
established itself in the market for pre-sensitized offset plates and all related
consumables for the graphic printing industry, (Stovec Industries, 2011)
3.6 Context and Rational
3.6.1 Problems Faced by Stovec Ltd.
Stovec Ltd. is currently using standalone systems to carry out their operations. Each
department is having a separate system with a separate database. Due to this, there
is no uniformity in the information/data being repeated and it becomes a tedious job
for the accounting department to complete the month end process on time and
accurately.
The current system does not support multi currency functionality, which company
requires maintaining the transactions of the local and foreign suppliers. Also, the
current system does not have workflow functionality, which purchase and sales
department require to set up the approval chain.
The current system used by warehouse department does not support transaction
entry of damaged goods or returned goods.
The company is having five different regional offices, which management wants to
be connected with the head office. This facility is not available in the current system.
The current system does not support subcontracting of stocks and the stock
reconciliation.
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3.6.2 Reasons for the Research
The reason for this research is to help the management in analysing the impact of
ERP on the employee work efficiency, henceforth helping them to take relevant
decision on the ERP implementation. Also, the company wants to use this research
as a basis of evaluating and deciding their future plan on IT upgradation. Once,
proved that there is a relationship between the two variables, company will be able to
take the strategic decision. Implementing ERP involves high capital and a
considerable time of key staff. Considering, the different stakes involved this
research is of high importance to the senior management of the Stovec Industries.
3.7 Aim
To investigate the impact of enterprise resource planning on the employee work
efficiency.
3.8 Objectives
1. To determine the features of enterprise resources planning that are being offered.
2. To collect the data on enterprise resource planning and employee work efficiency.
3. To determine how does enterprise resource planning impacts employee’s work
efficiency.
4. LITERATURE REVIEW
A company invests high capital in the implementation of an ERP and so it becomes
of utmost importance for the companies to find out the actual ROIs. Though there
are enough literature and case studies available on the relationship between ERP
implementation and improvement in the company’s overall performance and
productivity level but this argument has still not been accepted globally. Moreover,
A. Shtub (2003) explains ERP systems as a medium which provides information and
decision support to the management. Similarly, Eresource (2011) has mentioned in
its webpage that ERP implementation is not done only keeping financial gain in mind
but growth in productivity, efficiency and overall improvement in performance of the
company and also keeping better transparency in the operations. This shows that
one of the major factors which management looks after is improving the overall
productivity and efficiency of an organisation.
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As discussed in the case study of Eaton by TCS(2010), the implementation of ERP
benefited Eaton in greater cross leverage of product offerings and resources
between businesses, increased automation leading to operational efficiencies for
inter-unit/business processes, IT maintenance cost reduction to name a few. Also if
we look into the case study of Lee Kum Kee by SAP, the LKK organisation has
benefited heavily by implementing SAP solution and has improved its productivity
and information transparency. Nigel S. , Stuart C. and Robert J. (2010) has also
discussed and stressed upon the benefits which company draws after implementing
ERP.
However, the methods he used to justify his views are no different than referring to
the case studies, which should not be taken as the only reference to determine the
impact of ERP implementation on the company’s performance. Mehdi Khosrowpour
(2001), writes that ERP system are being implemented by large and medium sized
companies and also by government and related organisations with an aim of
increasing the operational efficiency and support the business growth.
But, it needs to be found out that, has ERP implementation improved productivity in
every business sector? After analysing the information it has also been seen that
there are various views and scenarios where ERP implementation has not been as
effective as it had been expected. Before reaching to a conclusion, it is suggested
that a better approach for research should be followed which will focus on different
business sectors and sources where ERP has been implemented.
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5. METHODOLOGIES
5.1 Evaluation of Methodologies
Research
Methodolo
gy
Description Advantage Disadvantage
Qualitative Paurav Shukla (2008)
explain that ‘’ the major aim
of qualitative research
technique is to understand
the preliminary insights into
problems and
oppurtunities.’’ Adding to
this, QSR international
(2011) states that
qualitative research is more
about exploring issues,
understanding the
phenomena and answering
questions. It is not
concerned with the
statistics or numbers but
deals with humanistic
approach. In this type of
research methodology, the
quality of data and
information had more value
than the quantity. There are
various type of qualitative
research methodologies
which includes personal
interviews, surveys,
This approach is very
useful in creating and
evolving theories. Since
this approach considers
the behaviours, attitudes
and feelings of the
subject, it provides in
depth knowledge. In this
approach subject is
encouraged to express
their views and personal
opinions, (Learn higher,
2008).
This
approach is
one of the
most time
consuming
methodology.
It’s hard to
generalise
the findings
through this
approach as
only few
people are
taken in
account so it
may not
relate to the
whole
population.
High skills
are required
to carry out
such
methodology.
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experimental, etc.
Quantitativ
e
Paurav Shukla (2011)
states ‘’ Quantitative
research method, seeks to
quantify the data and
typically apply some
statistical analysis. They
put heavy emphasize on
using formalised standard
questions and
predetermined response
options in questionnaires or
surveys administered to
large number of
respondents.’’ This method
generally forecasts future
events and trends. The
various quantitative
research methods are
Questionnaire, case study,
biographical, ethnological,
etc.
In this methodology, the
results are more
accurate and are not
person biased. In this,
there are various
procedures involve to
check the validity and
reliability of the data. In
this the result is
generalised, (Colorado
State University, 2011)
Sometimes
the data
provided in
this approach
are
superficial.
The results
are without
any
explanation
and hence
they are they
are very
limited.
Mixed Mixed Methodology
involves both quantitative
and qualitative approaches.
In this the qualitative and
the quantitative data is
being analysed and mixed
in single study. This
approach is generally
chosen because its result
involves the advantages of
This approach gives a
complete view of the
topic because it does not
limit the data being
collected. In this
methodology we can use
the strengths of both the
approaches,
(Commonwealth of
learning, 2004).
The biggest
disadvantage
of this
approach is
that it
requires lots
of research
and great
amount of
collection of
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both qualitative and
quantitative methodologies,
(Commonwealth of
Learning, 2004)
data. Here an
expert is
required for
both the
methods
which finally
lead to
increase in
cost,
( Commonwe
alth of
Learning,
2004)
5.2 Chosen Methodology
To carry out this research, qualitative methodology has been used. The method
applied in this research is survey questionnaire, where a set of standard
questionnaire has been given to different professionals having work experience on
ERP.
5.3 Justification of Chosen Methodology
To carry out the research on relationship between ERP implementation and
employee productivity, personal opinion of people is considered as key factor. Since
the research involves the work efficiency as a variable, therefore becomes
necessary to take humanistic approach towards the research and this is not possible
in other methodologies. Meanwhile in qualitative methodology, the respondents
could give extra information, which can assist in exploring any other hidden factors.
5.4 Limitations of Chosen Methodology
The process of collecting data in qualitative methodology becomes time consuming
and if less data is collected then it could lead to false conclusion (Colorado State
University, 2011)
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Also, since a small group of people are involved in the survey, the primary data will
only show association and explanation of chosen variables. It is difficult to make
systematic comparisons, as people involved give widely differing responses which
are highly subjective in nature, (Learning higher, 2008)
6. EVALUATION OF DATA COLLECTION TECHNIQUES
6.1 Primary Data Collection
6.1.1 Experimental
Experimental method of data collection is one where independent variable is
manipulated to study the effect on dependent variable. The experimental method is
only valid if the change observed on the dependent variable is only due to the
change effects of independent variables,( UPX SUCCESS, 2011).
In this method only the cause and effect relationship can be established accurately.
In this method, if the output is coming same then one can say that theory is valid. It
can be used to determine what is best for the population.
The major drawback of this method is that it is always conducted in superficial or an
assumed environment. Moreover, in this method a standard procedure needs to be
followed so it becomes a tedious and time taking process. In this method the
experimenter may even not be aware of the actual variables and scenarios of the
workplace, (Revisionworld, 2011).
6.1.2 Survey - Questionnaire
Paurav Shukla (2008) says ‘’ In simple terms, survey involves questioning the
respondents regarding the issue at hand and asking their opinion about it.’’ In this
method, a group of people are being asked to fill a form containing set of questions.
A level of literacy is required in this method as the respondents are supposed to fill
the form. To maximise the outputs, the questions should be simple, clear and short.
This method of data collection is very popular, particularly when large enquiries are
required.
Some of the advantages of this method are:
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1. This method is easiest and quickest way to get the information.
2. Respondents have enough time to give well thought of answers.
3. It’s easier to cover large population through this method.
The disadvantages are as given below:
1. Respondents may give superficial information, if the questions are taking
more time to answer.
2. The answers given by respondents may be biased.
3. In this method, the questions are standard so the respondent might
misinterpret as there is no explanation provided with the questions.
6.1.3 Survey – Interview
Interview is a powerful conversation in which the interviewer asks set of standard
questions to the respondents, (Frey and Oishi, 1995). The interview method of
collecting data involves the information collected and analysed through oral verbal
responses of person being interviewed. This method could be personal interview as
well as telephonic interview. In this method interviewer chose set of people based on
the research and then asks the personal opinion and belief of the person face to
face. The interview is conducted in a very structured way, where a set of structured
questions are asked and the answers and their explanations are recorded unbiased.
As per C. R. Kothari (2006), the advantages of this method are:
1. More information and that too in greater depth can be obtained.
2. This method is very effective for complex research topics.
3. Response is generally higher in interview survey.
Few of the disadvantages of this method are:
1. Method could be quite expensive, when large geographical area and people
are involved.
2. Time consuming method.
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3. Here, interviewer can be biased and so can be respondents, hence actual
information cannot be determined, (Colorado State University, 1993)
6.1.4 Field Research – Observations
Lake (2011) states that ‘’ a method of data collection in which the situation of interest
is watched and the relevant facts, actions and behaviours are recorder’’. Similarly,
C. R. Kothari (2006) explains observation method of primary data collection, where
the respondents are not aware that he is being observed and so the information
obtained in this research is more natural from the interview and questionnaire.
This method provides context for behaviours and it reveals qualities of group
experience in such a way those other forms of research cannot. This also accounts
for the complexity of group behaviours.
The design of research study can be biased if researcher is biased and so the
analysis of observations can be biased. In this method the group being studied may
not be the actual representative of the larger population. And the major limitation of
this method is that the sources or the subjects may not be credible.
6.2 Secondary Data Collection
6.2.1 Unobtrusive Research
In this method, research is being carried out without interference from the
researcher. And hence in this report the biases and the control of the researcher are
reduced over the results of the research. This method can quantitative or qualitative.
Trochim (2006) states that ‘’measures that do not require the researcher to intrude in
the research context’’ .
The biggest advantage of this method is that the data obtained here is unbiased.
This method is both cost and time effective. This method is generally used to test
parallel theories and applying them on same. In this method, certain objects and
relations might be more likely is recorded by the researcher with different interests,
biases and backgrounds. One of the major drawbacks of this method is that it has a
very limited application range. Here the interpretation of observations is from the
point of view of the outsider, who is not well aware of the scenario and therefore the
results obtained may not be that meaningful.
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6.3 Sampling
6.3.1 Probability Sampling
As per the Psychology department of University of California (2011) ‘’ In probability
sampling, all elements (e.g., persons, households) in the population have some
opportunity of being included in the sample, and the mathematical probability that
any one of them will be selected can be calculated.’’
In addition to this, Statistics Canada (2011) further adds that probability sampling
method is one where every member of the population has equal chance of getting
selected and this is achieved by using random selection. The biggest advantage of
using this method is the absence of both systematic and sampling bias. This
sampling method is used generally to understand the phenomenon, forecast the
future trends and also used for statistical analyses. This method is quite useful in
improving the business performances. It is also widely used in risk assessment and
in the trade commodity markets. This method is very good for prediction and is used
to evaluate financial and decision making risk.
6.3.2 Non-probability Sampling
The non probability sampling method does not involve random selection. And so in
this method, the population may or may not be represented uniformly. Though this
method is quite cost effective but then the result obtained are of less value,
(Experiment Resources, 2011). The population elements are selected on the basis of
their availability or due to researcher’s individual judgement that they are
representing, (University of California, 2011)
This method is used generally when a vast population is involved and it’s practically
very difficult to involve everyone in the research. Non probability sampling is used to
demonstrate that a specific characteristic exist in the population.
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7. EVALUATION OF DATA ANALYSIS TECHNIQUES
7.1 Quantitative
7.1.1 Univariate Analysis
Univariate analysis deals with analysing one variable at a time,(Sociology & Political
Science Quantitative Research Laboratory, 2011) . This is related with the
quantitative analysis of data. This analysis technique is much easier to understand
as here only one variable is involved and so the results are more accurate. This
technique is considered to be more reliable. This method only takes one variable in
account and henceforth it is generally treated as incomplete analysis because in
practise more than one factor are involved. Since only one factor is involved so in
this technique the relationship between different factors cannot be established.
Univariate presents the information in a much more organised manner, it focuses at
the range of the values along with focusing on the actual tendency of the values,
(Sociology Index ,2009).
7.1.2 Bivariate Analysis
Bernard defines “Bivariate Analysis involves looking at associations between pairs of
variables and trying to understand how those association works.” In this technique
the relationship between two variables are studied and the effects are being
monitored on one variable when another variable changes. ‘’Bivariate analysis is a
technique to analyse the concept of association between two variables’’ (Sociology
index, 2009). This analysis helps researcher to compare and control two or more
related variables in a situation where the quality is dependent on the combined effect
of these variables. This is very useful when two different variables are interrelated.
7.1.3. Multivariate Analysis
This analysis is carried out when more than two variables are involved in the
research. This analysis technique is pretty complex in comparison to Univariate and
Bivariate analysis.
‘’ Multivariate analysis is a form of quantitative analysis which examines three or
more variables at the same time, in order to understand the relationships among
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them.‘’ (Sociology index, 2009). This analysis focuses basically focuses on the
relationship between a dependent variable and independent variable.
7.2 Qualitative
7.2.1. Thematic Analysis
In thematic analysis method, the data is generally analysed with respect to theme
(Free article tutorial, 2011). It is one of the most commonly used methods of
qualitative analysis. The characteristic of this analysis is that the data collection and
the data analysis take place simultaneously.
7.2.2. Comparative Analysis
Tere (2006) says when information from different people are compared and
contrasted then it is known as comparative analysis. This analysis technique is
generally used by using comparisons between two variables or processes, etc
depending upon the research.
7.2.3. Content Analysis
As per Tere (2006), the analysis method in which the qualitative data has been
taken, becomes more tedious until unless the whole data has not been collected. To
save time, the best method of doing the above is to code the content and this is
method is known as Content analysis.
Content analysis technique is basically an analysis of communication. In this
technique, the researcher is able to convert qualitative data into a quantitative data
by categorizing and counting what appears in the data source.
7.2.4. Discourse Analysis
Discourse analysis generally analyses the data by focusing on the patterns of
speech, their linguistic behavior, patterns of pronunciation, etc. This analysis helps in
providing a way on approaching and thinking about a problem, (Ischool, 2011).
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Dawson (2009) says, “most of the analysis are either intuitive or reflective” but it can
involve some form of counting as well.
Discourse analysts consider speech as a performance; this analysis does not
describe any specific state of mind or specific state of affairs but it performs action,
(Free article tutorial, 2011).
8. RESEARCH DESIGN
8.1 Data Collection
To carry out the research, the primary data is be collected by taking feedback of
professionals on standard set of questionnaire while secondary data has been
collected by comparing case studies, online journals and magazines. The
respondents are employees who are currently working in the company and have
experience on ERP.
In addition, published material related to enterprise resource planning product has
been compared with primary data.
Since, the employees are facing the IT system and the employee’s productivity is
being researched so their opinion and views are highly valuable and reliable. The
case studies present the actual picture of the after effects of the implementation on
the company’s performance and overall productivity.
8.2 Sources of Data
The primary data has been collected from the survey questionnaire given to 30
professionals who are working within the companies. In this research probability
sampling has been used as the professionals have been picked randomly.
Whereas, the secondary source of data will be collected from online resource and
local libraries.
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8.3 Data Analysis
Primary data has been analysed by applying univariate analysis technique, so as to
determine the response of respondents on each variable. The analysis is further
presented in the form of graphs prepared in Microsoft excel.
Similarly, the secondary data obtained from different sources are compared and
contrasted and the results are shown using different graphs.
Finally to approve or disapprove, both primary and secondary data has been
compared.
8.4 GANTT CHART
9. PRESENTATION AND EVALAUTION OF PRELIMINARY RESEARCH
9.1 Analysis of Secondary Data Findings
Panorma Consulting Group published a document on 12 March 2009, which
discussed the different reasons of implementing the ERP at organisation level.
Improving the business performance, to make employee jobs easier, to standardize
global business operations and to replace an old ERP or legacy system are some of
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the major reasons. As shown in the below diagram, ERP is implemented having one
of the major aim of making the jobs of employees easier which in turn means to
improve the employee work efficiency, (Search Manufacturing ERP, 2010).
Figure 1: Reasons for ERP implementation
Source: search manufacturing, 2011
Similarly, according to the results of the ‘’US Worker Deficit’’ poll conducted by Poll
Stream (2008), 328 communication and HR professionals were questioned on the
initiatives need to be implemented to improve the employee productivity and a
whopping 40.6% respondents favoured initiatives in IT (see figure 2 below).
Figure 2:
Source: internal comms. hub, 2011
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Enterprise resource planning implementation is a part of IT infrastructure. The
changes in IT system impact the employee productivity heavily. Service Assurance
Daily, published an article (Jan 19, 2011) determining the relationship between IT
system and the employee productivity by deriving the impact of IT downtime on
employee productivity. His paper contains the survey, sponsored by CA
Technologies and conducted by Coleman Parkes across different European
countries, showed that business loses are significant due when IT services are
down. As per the survey, the employees working in bad IT system work at less than
two thirds of their normal productivity. The below figure shows the percentage of
companies affected by bad IT infrastructure (Service Assurance Daily, 2011).
Figure: 3
Source: Service Assurance Daily, 2011
Based on the secondary data analysis, it could be concluded that employee’s work
efficiency improves with improved IT infrastructure system. The work efficiency of
staff is highly influenced by the IT system of the organisation.
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9.2 Analysis of Primary Data Findings
9.2.1 Are you aware of enterprise resource planning system?
Reason: The above question will help to determine the right target of the employees
needs to be surveyed. This question helps in filtering the respondents and to focus
on the relevant professionals.
Majority answer: To carry out this research, we targeted professionals working in
different industries and companies. The respondents are chosen from India. Based
on the preliminary question of filtering out those people whose opinions should not
be considered, the result tells that whopping 73% professional when contacted,
responded positive towards the knowledge of enterprise resource planning, while still
27% of the total professionals interviews are unaware of ERP.
Conclusion: Out of the total professionals chosen for the survey questionnaire,
majority of the respondents are aware of the ERP, this means that the target
employees opinion can be considered for further research.
9.2.2 Have you ever worked on ERP system in your professional career?
Reason: It’s important to find out the actual experience of professionals with respect
to enterprise resource planning. Professionals only having knowledge of ERP cannot
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contribute to this research, as working experience are more important. This question
further segregates the actual respondents who need to be considered for the
research.
Majority answers: 60% of the total professionals chosen for the survey said that they
work experience on ERP, while 40% said that they have never used ERP.
Conclusion: This shows that still a considerable percentage (40%) of the people
have no work experience on ERP and henceforth, the opinion obtained from them
will not be relevant to research.
9.2.3 Do you think, ERP has affected your work?
Using the above mentioned two questions, finally 30 professionals were selected for
the final survey.
Reason: To understand the relationship between the two variables of the research
topic, i.e. ERP and employee work efficiency, it is necessary to take the personal
opinion of the professionals who are having work experience on ERP. This question
helps to establish the relationship between two variables.
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Majority answers: 15 out of 30 respondents agreed that ERP has affected their work,
while 10 professionals said that ERP did not impact their work and around 5 people
said that they don’t know about this impact and so have no opinion.
Conclusion: This question helped us to determine, that there is a relationship
between ERP and the employee’s work.
9.2.4 What is the impact of ERP system on your work?
Reason: To understand the relationship between ERP and employee work efficiency,
it’s important to further evaluate the impact of ERP the professional’s work in
organisation. It’s becomes necessary to examine whether the ERP has negative or
positive impact on the individual’s work.
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Majority answers: When interviewed, majority of the respondents i.e. 13 out of 30
professionals said, their work was decreased while 12 people said that the work has
increased by including ERP system as now they have to follow lengthier process in
completing the same job. Whereas, 5 out of 30 people were not sure how their work
has been affected.
Conclusion: The feedbacks on this question helps to conclude that there is a strong
relationship between ERP and the employee’s work efficiency as their work does get
affected with ERP system.
9.2.5 What is your opinion on impact of ERP and timesaving in performing
operational tasks?
Reason: To understand, whether ERP has helped professionals in saving time in
performing their regular tasks, it’s important to determine the effect of ERP system
on the time factor in completing the job. To understand this, the above question
holds high relevance.
Majority answer: After concluding the survey interviews, it was observed that 13 out
of 30 people agreed that they are now taking less time in completing the same job,
while 12 people said that they are spending more time in completing their job.
However, 5 people were still not sure of any answer.
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Conclusion: This question helped to analyse the impact of ERP with respect to time
factor, which in turn has validated the relationship between two variables. The result
obtained from this question was very mixed, equal number of people agreed and
disagreed on the point that ERP helps in saving time in performing the work task.
9.2.6 What is your opinion of relation between ERP system and productivity
of your company?
Reason: The question further adds support to the relationship between tow variables
at a broader level.
Majority answer: When asked about the relationship between ERP system and
productivity of their company, majority of the respondents agreed with the fact that
ERP is related with the company’s overall productivity level. With 13 of 30 people,
who were interviewed said that they believe ERP has direct relation with productivity
of company, while 12 of them pointed out the indirect relationship between same.
However, 8 people said that they see no relation between both the variables and 2
people had no opinion on same.
Conclusion: This question helped to examine the personal opinion of the
professionals working on ERP system with respect to the relationship between two
variables of research. And it was successfully concluded that productivity bears
relationship with ERP.
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9.2.7 What is your opinion on impact of ERP on your work pressure?
Reason: Employee’s work efficiency cannot be improved if an individual is under
high work pressure. If a system is able to reduce the work pressure by simplifying
the work task, then employee will be able to utilise the time in a better manner and
hence improving the work efficiency. To examine the same cause, the above
question has been asked from the respondents.
Majority answer: The survey says that majority of professionals (12 of 30 people)
agrees, their work pressure has decreased after the implementation of ERP. While,
12 respondents said that their work pressure has increased due to ERP
implementation and 5 people say that they see no effect of ERP on their work
pressure.
Conclusion: The above statistics confirms that ERP has impact of the work pressure.
To validate this relationship, more research and a larger domain of people are
required to complete this survey.
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9.2.8 Has ERP impacted on prioritising your work task?
Reason: Work becomes easier once task is completed as per the priorities. The
employees productivity and work efficiency gets a boost, once the work task is
prioritised properly. This question will help further in establishing relationship
between two variables of research, as prioritising work task is directly related with
the employees work efficiency. And if this factor is affected by ERP then the
employees performance will also be affected.
Majority: As per the survey conducted through questionnaires, the majority of people,
with 16 out of 30 employees agreed that, ERP system has impacted in prioritising
their work task.While 11 people said it has no affect and 3 people said they don’t
know about the impact.
Conclusion: The above feedback of employee’s shows that ERP has been helpful to
employees in prioritising their work task and henceforth helping them to improve their
work efficiency.
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9.2.9 What is your opinion on the impact of ERP on your work performance?
Reason: This question is to find out ERP’s impact on employee’s individual work
performance. This is a direct question which relates both the variables of research.
This question is more of a personal opinion.
Majority answer: When asked about the personal opinion on the impact of ERP on
individuals’ work performance, a majority of the employees with 15 out of 30
respondents agreed that their individual’s performance has improved. Though, 10
out of 30 had opinion that their performance got decreased due to following the
processes in ERP, and 5 people said they experienced no effect on their
performance due to ERP.
Conclusion: This question has finally strengthened the basic link of relationship
between two variables. The ERP impacts the employee performance, which could be
either negative or positive. This could be a further researched upon.
This question helped to determine the personal belief of the employees and how
they have been impacted overall due to ERP. Since qualitative methodology gives
an opportunity and helps to analyse the humanistic approach as well, so this
question bears value in fulfilling that criteria.
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9.2.10 What is your suggestion to other professionals on experience of ERP
with respect to work efficiency?
Reason: If an individual’s needs are fulfilled and they are happy with the system and
process they will definitely suggest their peers and friends about their good
experience. This human aspect was surveyed to focus on the individual’s experience
as far as their overall satisfaction is concerned with respect to work efficiency.
Majority answer: 12 out of 13 rated very satisfied, while 13 people said they were
satisfied with the system as far as work efficiency is concerned. Though, 3 people
said they are dissatisfied and 2 people said they have no opinion on same. This tells,
that majority of the interviewed people are satisfied when ERP is talked with respect
to work efficiency.
Conclusion: Above question helps in concluding that, respondents agree with the
relationship between ERP and work efficiency and majority of them are satisfied with
ERP with respect to work efficiency. This means that research topic has professional
relevance.
10. EVALUATION OF PRELIMINARY RESEARCH
To complete this research qualitative methodology was used. Here surveys were
conducted using survey questionnaire method. The methodology chosen was
appropriate, as it focussed on the personal experience and belief of the employees
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who are experiencing the ERP system. The opinions and feedbacks of the
employees are more relevant than methodologies involving statistics as; the selected
method is more humanistic, it tells about the expectations and the problems at the
employee level, who will be actually working on system.
Completing this research was a major task, since it involved people of different
industries and companies. Setting up time to get feedback on the survey
questionnaire was a major issue as the respondents involved are working. But by
following proper time management and with the help of Gantt chart, it became easier
to prioritise the task one by one. The questionnaire was send through Email and they
were asked to give their feedback through Email itself, meanwhile some of the
respondents were able to fill the questionnaire on the sheet itself.
11. CONCLUSIONS
The research undertaken is a success with the fact that it establishes link between
the ERP and employee work efficiency. The research supports the hypothesis, as
the majority of the respondents interviewed were of the opinion that ERP has had
impacted their work performance directly or indirectly.
The research achieved the aim and objectives. It succeeded in achieving the aim of
the research, which was to investigate the impact of ERP on employee work
efficiency. The research couldn’t involve more respondents due to time constraints in
the survey, which is a major drawback. But then this gives an opportunity to carry out
this research proposal forward involving mixed methodologies to validate the
hypothesis. As qualitative methodology of data collection will be more focussed on
humanistic approach which is the major factor, the quantitative method of data
collection will help to analyse the statistics and the numbers which will be helpful in
evaluating the factors and relationship effectively.
This research will help the Stovec Industries, to understand the impact of
implementing the ERP on the employee’s work efficiency and henceforth analysing
the impact on the company’s productivity. This research will help the management in
taking the strategic decision of implementing the ERP at organisational level, as it
involves high capital and infrastructure.
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12. RECOMMENDATIONS
After conducting the research and evaluating the data by using qualitative method of
primary data collection, it is recommended that mixed methodology should be used
for the primary data collection as by involving both qualitative and quantitative
methods, the data collected will help to provide greater insight on this topic.
Moreover, probability sampling is more suggested as more appropriate carry out this
research, where each and every employee with a work experience on ERP will have
equal and fair opportunity of being part of survey.
In the end, to get more accurate and unbiased results employees from different
industries, regions and different work level should be involved in the survey.
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15. APPENDIX
Appendix 1
Questionnaire
1. Are you aware of enterprise resource planning system?
o Yes
o No
2. Have you ever worked on erp system in your professional career?
o Yes
o No
3. Do you think, ERP has affected your work?
o Yes
o No
o Don’t Know
4. What is the impact of ERP system on your work?
o Increased the work
o Decreased the work
o Don’t Know
5. What is your opinion on impact of ERP and timesaving in performing
operational tasks?
o Takes more time
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o Saves time
o Don’t Know
6. What is your opinion of relation between ERP system and productivity of
your company?
o Direct relation
o Indirect relation
o No relation
o Don’t Know
7. What is your opinion on impact of ERP on your work pressure?
o Increased work pressure
o Decreased work pressure
o No effect
8. Has ERP impacted on prioritising your work task?
o Yes
o No
o Don’t Know
9. What is your opinion on the impact of ERP on your work performance?
o Performance has increased
o Performance has decreased
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o No effect on performance
10. What is your suggestion to other professionals on experience of ERP with
respect to work efficiency?
o Very satisfied
o Satisfied
o Dissatisfied
o No opinion
Appendix 2
Gantt chart
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