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THE IMPACT OF INFORMATION TECHNOLOGY ON DECISION MAKING IN ORGANIZATIONS (A STUDY OF NIGERIAN BREWERIES PLC)

BY

OKEKE EBELE FELICITAS PG/MBA/08/47569

DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION UNIVERSITY OF NIGERIA, ENUGU CAMPUS

APRIL, 2010.

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TITLE PAGE

THE IMPACT OF INFORMATION TECHNOLOGY ON DECISION MAKING IN ORGANIZATIONS

(A STUDY OF NIGERIAN BREWERIES PLC)

BY

OKEKE EBELE FELICITAS

PG/MBA/08/47569

A PROJECT PRESENTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF

BACHELOR OF ARTS (MBA) IN MANAGEMENT

TO THE

DEPARTMENT OF MANAGMENT FACULTY OF BUSINESS ADMINISTRATION UNIVERSITY OF NIGERIA, ENUGU CAMPUS

APRIL, 2010

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CERTIFICATION

This is to certify that this project was carried out by OKEKE

EBELE .F. with registration number PG/MBA/08/47569 in

the Department of Management, faculty of Business

Administration, (MBA).The work covered in this project is

original and has not been submitted in partial or full for any

other degree of this or any other University.

__________________ _____________ CHUKWU C.O DATE (Project Supervisor) _________________ _____________ CHUKWU C.O DATE (Head of Department)

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DEDICATION

I dedicate this study to God almighty for His infinite

mercies and to my beloved husband, parents and Siblings.

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ACKNOWLEDGEMENT

I wish to express my profound gratitude and appreciation

to my project supervisor, Mr C.O Chukwu for his

assistance, patience, understanding, meticulous

corrections, invaluable observations and guidance.

I also declare my profound gratitude to my parents Chief &

Lolo S.N.C Okeke and my siblings (Uche, Nonso and

Ikenna) for their unending support. I pray that Almighty

God will reward them immensely.

My sincere appreciation also goes to my lovely husband Dr.

Ifeanyichukwu Nwankwor, who encouraged and supported

me throughout this study. Sweetheart, I appreciate your

great concern, caring and sacrifice to see to the success of

this work. May God bless you all the days of your life.

I also want to appreciate my colleagues: Chioma Uzondu,

Cynthia Adibe, Mrs Ogochukwu Amalu, Gloria Eluwa and

Ejike Okoli, who were my study partners throughout the

study.

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I am indebted to all my lectures under whose tutelage I

was nurtured. I also appreciate the authors whose work I

consulted in the course of this research work.

Finally, I give glory to Almighty God who guided and

protected me throughout this study. LORD, YOU MADE

EVERYTHING POSSIBLE FOR ME

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ABSTRACT

This study is to examine the impact of information technology on decision making in organizations. The major objective of the study is to determine the contribution of information technology on decision making in organization. The research method is descriptive. The study approach is based on research questionnaire which have influenced the data generated and the pattern of descriptive analysis presented. The researcher analysed the data collected based on the response from the questionnaires distributed to the Staff and Management of Nigerian Breweries Plc. The research work was divided into five chapters. Chapter one dealt with background information such as purpose of the study, the research questions and the historical background of the Nigeria Breweries Plc. Relevant texts were used to review related literature in chapter two. Chapter three dealt with methods of data collection for the study, population size and method of data analysis. Chapter four dealt with the presentation and analysis of research findings, while chapter five is conclusion and recommendations. In presentation and analysis of data, chi-square was used. The major findings of the study are as follows;

1. The extent of application of information technology in organizations is high.

2. The use of information technology has given the organization (Nigerian Breweries Plc) a competitive edge over other competitors in the industry. On the basis of the above findings, the study has concluded that information technology has greatly influenced the idea and practice of organizations. There is no doubt that advances in information technology has helped streamline the back office operations of most organizations, improving both efficiency and heading to saving cost.

Based on the finding, it was recommended that: 1. Organizations should adopt information technology in

their operations to enable them enhance the speed and accuracy of data processing, respond effectively and efficiently to changing customers need to improve

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customers satisfaction, employees efficiency and gain competitive advantage over other competitors in the industry.

It will be necessary to provide an electronic mail system, which would largely eliminate the need for telex and fax communication between office locations. It is also necessary for all organization staffs to know how to use the office automation, tools like word processors, electronic spread sheets and communication tools like e-mail, data messaging and voice messaging.

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TABLE OF CONTENTS

Title Page - - - - - - - - i

Dedication - - - - - - - ii

Acknowledgment - - - - - - iii

Abstract - - - - - - - - v

Table of Contents - - - - - - - viii

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study - - - - 1

1.2 Statement of the Problem - - - - 4

1.3 Objective of the Study - - - - 5

1.4 Research Questions - - - - - 6

1.5 Research Hypotheses - - - - 7

1.6 Significance of the Study - - - - 8

1.7 Scope of the Study - - - - - 8

1.8 Definition of Terms - - - - - 10

References - - - - - - - 13

Profile of the Case Organization (Nigerian

Breweries Plc) - - - - - - - 14

CHAPTER TWO: LITERATURE REVIEW

Introduction - - - - - - 18

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The Concept of Information Technology (IT) 18

Some Aspects of Information Technology - 20

Computer and Computer Networks - 20

Telecommunication Systems - - 22

Broadcast and Entertainment Systems - 24

Document Reproduction System. - - 25

Satellite communication System - - 27

The Computer as a tool for Information

Technology - - - - - - 29

Telecommunication Systems as a tool for

Information Technology. - - - - 32

Document Reproduction Systems as a Tool

for Information Technology - - - 33

Satellite Communication Systems as a Tool for

Information Technology - - - - 35

Contribution of Information Technology in

Information - - - - - - 35

The Contribution of Information Technology on

Decision making in Organizations - - - 39

Problems Associated with the use of Information

Technology in Organization - - - 44

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Constraints to the Development of Information

Technology in Nigeria - - - - 46

References - - - - - - 49

CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Introduction - - - - - - 52

3.1 Sources of Data - - - - - 52

3.1.1 Sources of Primary Data - - - - 52

3.1.2 Sources of Secondary Data - - - 53

3.2 Population and Sample Size - - - 53

3.3 Instrument used for Data Collection - - 55

3.4 Data Analysis Techniques - - - - 56

3.5 Validity and Reliability of Data - - - 56

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.0 Introduction - - - - - - 57

4.1 Data Presentation - - - - - - 58

4.2 Demographic Characteristics - - - - 58

4.3 Test of Hypotheses - - - - - 75

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CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

Summary of the Findings - - - - 87

Recommendations - - - - - - 88

Conclusions - - - - - - 90

Bibliography - - - - - - 92

Appendix - - - - - - - 95

Questionnaire - - - - - - - 96

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY Information technology covers any form of technology, that

is, any equipment or technique used by a company,

institution or any other organization which handles

information.

The handling of information has an ancient history going

back to the invention of “abacus” and subsequently

“adding machines” and more recently the development of

electronic computers with stored programme concept. The

past few decades since the development of electronic

computers have been characterized by major development

in information technology.

Information is required in any organization for planning,

controlling, decision making, communication, organizing,

and directing. This can be achieved through the use of the

computer and the application of Management Information

System (MIS), electronic data processing (EDP), office

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support system, data processing system, and decision

support system and package.

The role technology plays in enhancing economic and

business activities of both the private and public

institution cannot be overemphasized. While it has opened

up opportunities that would have gone undiscovered or

neglected, it has saved many organizations millions of

perpetrated fraud through its applications. The use of

technology now makes such technical jobs such as

accounting, data processing, modelling, construction,

forecasting and other services more interesting, attractive

and less cumbersome

The term information technology was coined in the late

1970’s, to refer to the connection of computer based

technology for handling information.

Information technology is the technology related to the

computerized or electronic gathering, recording, processing,

retrieval, and communication of information which involves

the use of digital electronic especially the internet, cable

and satellite televisions, and telephone links. It is taken to

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include a complex network of computers and

telecommunication technologies with their associated

software and operating system. In addition to these,

information technology also includes the knowledge to

operate the computerized systems.

Information technology could also be seen as a broad

category of communication that is rapidly changing how

organizations and individuals communicate. For example,

video-tapes, recorders, telephone answering devices,

facsimile machines, computer and internet etc, all provide

new communication flexibility and opportunities for

organizations. Information technology reflects the

convergence of several technological developments

including microelectronics, telecommunications, and

software engineering. Applications that use these systems

include computer-based information system for data

storage, processing and retrieval. Major application areas

of information technology in organizations include industry,

commerce, administration etc.

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Hence, information technology is important to the

operations of all organizations (both social and commercial),

since it provides the means to efficiently achieved

objectives. It is a broad multidisciplinary subject. It

includes the range of strategic, tactical, \and operational

activities involved with all those technologies that gather,

handle, distribute and use information. Information

technology involves a considerable human activity, and it

is this aspect that defines IT as distinct from computing.

1.2 STATEMENT OF THE PROBLEM

This study is put forward because of some of the problems

found in organizations that neglect the use of information

technology. Prior to the advent of information technology,

most organizations operate manually given rise to

operational inefficiencies such as;

i. Waste of time.

ii. Duplication of efforts.

iii. High cost of operations.

iv. Heavy work load on the employee.

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v. Low customer satisfaction and high process time per

customer.

vi. Information gathered can easily be lost because of filing

system.

vii. Fraudulent practices were difficult to dictate.

viii. There are problem of interconnectivity i.e. no connection

and transfer of information from one department to

another.

If the organizations aspire to compete in the global

environment (to be world class) without taking full

advantage of information technology, then their aspiration

can never be met.

Thus, this research work is focused on the impact of

information technology on decision making in

organizations.

1.3 OBJECTIVES OF THE STUDY

The overall objective of the study is to reveal the impact

that information technology has on the decision making of

organizations. But in the course of this study, there are

other objectives which can be achieved. They are;

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i. To determine the extent of application of information

technology in organizations.

ii. To identify the problems associated with the application

of information technology in organizations.

iii. The study intends to identify whether the working hours

of staffs in organizations have reduced as a result of

information technology.

iv. To compare the amount of fraudulent practices dictated

in manual and information technology.

v. The study tends to find out whether there is connection

of information and transfer of information from one

department to another.

vi. To determine whether some jobs has been eliminated

due to introduction of information technology.

1.4 RESEARCH QUESTIONS

Some of the questions addressed by this study include;

i. Has the application of information technology enabled

your organization to achieve customer satisfaction?

ii. Are there problems associated with the use of

information technology in your organization?

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iii. Are there problems associated with the failure to use


1.5 RESEARCH HYPOTHESES

The following hypotheses form the bases for this study;

H0: The application of information technology has not

enabled your organization to achieve customer

satisfaction

H1: The application of information technology has enabled

your organization achieve customer satisfaction

H0: There are no problems associated with the use of

information technology in your organization

H2: There are problems associated with the use of


H0: There are no problems associated with the failure to

use information technology in your organization

H3: There are problems associated with the failure to use


H0: There is no evidence that the use of information

technology reduces organization staffs

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H4: There is evidence that the use of information technology

reduces organization staffs

1.6 SIGNIFICANCE OF THE STUDY

This study is significant because it will determine the

extent of application of information technology in

organizations and will also facilitate the application of

information technology in organizations.

Also, the study will highlight on the problems associated

with application of information technology on decision

making in organizations and will enable organizations to

provide necessary measures to control such problems.

Finally, it will serve as a source of information for further

researches in the same field.

1.7 SCOPE OF THE STUDY

The study is on the impact of information technology on

decision making in organizations, a case of Nigerian

Breweries PLC. The major constraints of the study include

the following;

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i. Time constraints: Due to the limited time that was

given for the study, the researcher could not get all the

required information necessary for the study. As a

student researcher, time was a great constraint in trying

to keep my lectures up to date and running around for

the collection of necessary materials for the research.

ii. Finance/Cost: The researcher has not got enough

money to embark on the study. Thus, he could not visit

various places where relevant information necessary for

this could have gotten.

iii. Attitude of Respondents: Some of the respondents

were unwilling to co-operate with the researcher because

they felt they have nothing to gain from the study. It

weren’t easy for the researcher to gather enough

information from the case organization-Nigerian

Breweries PLC, as the management felt they are highly

confidential.

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1.8 DEFINITION OF TERMS

Data

Data are raw figures or facts that represent some type of

transactions or activities within an organization which are

inputs in data processing. Asika, N (1991)

Information

Information refers to the result of data processing which is

useful and can be used as an aid to decision making.

Technology

This is the science of technical processes in a wide though

related field of knowledge. It is the practice of any or all the

applied sciences that have practical value.

Computer

A computer is an electronic device that transforms or

processes data and provides the results or output as

information that can be used for decision making.

Internet

An internet is an inter-connected global network of

computers based upon the TCP/IP (Transmission Control

Protocol/Internet Protocol) Protocol suite.

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Network

A network is a group of inter-connected systems sharing

services and interacting by means of a share

communication link. It is also an inter-connection of

computers, peripherals and communication lines.

Output

This is information sent from a computer to an external

location such as printer, screen or disk drive.

Program

A list of processor instructions designed to perform a

certain function. A running program is called a Process. A

package of one or more programs and attendant data

designed to meet an application is called Software.

Management Information System (MIS)

Management Information System is an integrated system of

information flow designed to enhance decision making

effectiveness.

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Information technology (IT)

Information technology includes all an organization’s

hardware and software for storing, retrieving, transmitting

and managing electronic information.

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REFERENCES

Adebayo, E.A (2000), The Strategic need for information

Technology aided competitive intelligence in a

corporate environment.

Asika, N (1991), Research Methodology in the Behavioural

sciences, Longman Nigeria, Lagos

Chartered Institute of the Cambridge Seminar (1986)

Kraft, A and Jarret, J (1989), Statistical Analysis for

Decision-Making, Massachusetts, Allyn and Bacon

Lewis, P.S, Goodman, S.H and Fandt, P.M (1998),

Management Challenges in the 21st Century, 2nd

Edition, South Western college publishing Co, Ohio.

Ovia, J (2002), Internet Banking, Practices and Potentials

in Nigeria, A paper

Presentation made at a Forum Organized by ICAN, Lagos.

Popoola, S.O (2002), Nigeria Management Review. A

Journal of the Centre For Management Development.

Nigerian Breweries PLC Annual Report and Accounts,

(2007).

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PROFILE OF THE CASE ORGANIZATION-NIGERIAN

BREWERIES PLC

Nigerian Breweries PLC, the pioneer and largest brewing

company in Nigeria, was incorporated on 16th November

1946, under the Companies Ordinance, Cap. 38, as

Nigerian Brewery Limited. On the 7th January 1957, the

name of the company was changed to Nigerian Breweries

Limited. In 1990, when the Companies and Allied Matters

Act of that year came into force, the name of the company

was changed to Nigerian Breweries PLC.

Nigerian Breweries PLC is a subsidiary of Heineken

International B.V, which has 54.10% Interest in the equity

of Nigerian Breweries PLC, a public quoted company.

Nigerian Breweries PLC recorded a landmark when the first

bottle of STAR lager beer rolled off the bottling lines in its

Lagos Brewery in June 1949. This was followed by Aba

Brewery which was commissioned in 1957, Kaduna

Brewery in 1963 and Ibadan Brewery in 1982. In

September 1993, the company acquired its fifth Brewery at

Enugu.

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Thus, from its humble beginning in 1946, the company

now has five Breweries from which its high quality

products are distributed to all parts of this great country.

The company consolidated its principle activities of brewing

and marketing of Larger, Stout and non-alcoholic malt

drinks.

COMPANY EQUITY

With about 66,469 Shareholders, the authorized share

capital of Nigerian Breweries PLC as at 31st December 2006

was N2billion. The issued and fully paid up capital were

3,781,203,924 ordinary shares of 50k each. Of the

registered members, only the Heineken Group have

2,045,630,426 share (representing 54. 10%) held more

than 10% of the issued share capital as at 31st December

2006. The remaining 1,735,573,498 shares were held by

Nigerian citizens (representing 45. 9%) amongst who are

company employees of various categories.

The company’s turnover in 2006 was N39. 41billion. The

operating profit before interest, taxation and exceptional

items were N14. Billion out of which the sum of N2.

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8billion was paid to the Federal and State Government as

taxes and levies. Also, in 2006, the company’s profit before

tax Was N11. 9bilion and it paid a dividend of N7.9billion i.

e N2. 10 per 50k share.

Nigerian Breweries PLC is a model of success in the private

sector. The company’s successful operations can be traced

to good product quality, efficient management of operations

and strategic penetration into the market environment.

Others are proper understanding of consumer attitudes

and habits and high social responsibility profile at national

zonal levels.

BRAND PORTFOLIO

Nigerian Breweries PLC has a rich portfolio of high quality

brands: Star Lager Beer (1949), Gulder Larger Beer (1970),

Maltina (1976), Legend Extra Stout (1992), Amstel Malta

(1994) and the Schweppes range of carbonated soft drinks

(Schweppes Bitter Lemon, Schweppes Tonic Water and

Schweppes Soda Water) launched in December 1996. This

was followed in November 1997 with the introduction of

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Crush Orange. In June 1998, the company launched

Heineken Lager into the Nigerian market.

EXPORT

Nigerian Breweries PLC has an increased export business

that date back to 1986.

Presently, they export to the U.K, U.S.A, Italy, Netherlands,

Germany and Kenya.

RESEARCH AND DEVELOPMENT

Nigerian Breweries PLC keeps pace with international

developments, thereby ensuring that its systems, processes

and operational procedures are always in conformity with

proven best practices in most parts of the world. It is in

line with this policy that the company established a

Research and Development Centre in 1987, to improve its

research activities on all aspects of the brewing operations.

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CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION The primary motive of this chapter is to review the works of

past scholars that are relevant to the study. The chapter

will discuss the following topics;

2.1 THE CONCEPT OF INFORMATION TECHNOLOGY

The most significant development of the 20th century,

which has significantly influenced business operations, is

the emergence of the information age. The progress

achieved in information technology has made it possible for

information to be digitalized and could be processed and

managed faster, cheaper and in mega or terabytes (Ovia,

2003)

Walsham in international Encyclopaedia of Business and

Management (1996), information technology is taken to

include both computers and telecommunication

technologies and their associated software and operating

systems. Applications that use these systems include

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computer based information system for data storage,

processing and retrieval.

Hellriegel, et al (1999), see information technology as

comprising complex networks of computers,

telecommunication systems and controlled devices. In

addition to his views that information technology includes

all mechanical and electronic devices capable of producing,

manipulating, transmitting, storing and retrieving words,

numbers, pictures and sounds, Kreitner (1995) goes

further to include the knowledge to operate these

technology as information technology. Among today’s

important information technologies are computer and

computer networks, telecommunication systems, broadcast

and entertainment systems, document reproduction

systems and satellite communication systems.

Ezigbo (2003) information technology are the computer

based electronic systems that help individuals,

organizations assemble, store, transmit, process and

retrieve data and information.

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Information technology provides the tools that enable us to

operate in a borderless and shrinking world. Advances in

information technology provide the means by which to

communicate electronically and access information more

efficiently across national borders. Information technology

is not only a major force behind the market place, but also

an important strategic resource to the corporation.

Organizations that cannot compete technologically in this

information age will be at a competitive disadvantage.

2.2 SOME ASPECTS OF INFORMATION TECHNOLOGY

2.2.1 COMPUTER AND COMPUTER NETWORKS

COMPUTER

A computer is an electronic machine which is capable of

accepting data as input, preserving this data for later use,

or immediately performing logical operation on it to

produce result termed output because the computer

operates at electronic speed and logic. It can perform large

repetitive and complex calculation with accuracy and

speed.

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With the growth and predominance of microcomputer in

the eighties, personal computer (PCs) became the virtual

standard for home and office use. This improved

technology and production techniques resulted in their

manufacture becoming an all corners market. This made

the companies in Asia rapidly entered the market with

their traditionally low production costs, the competition

that was to drive down costs, while the essential

components of the PC still remain the microprocessor.

Microsoft now controls 85 percent of the global operating

system today, which are a set of program instructions that

co-ordinate the internal operations of a PC, having become

completely graphical in operation.

COMPUTER NETWORKING

Networking according to Zahedi in the international

encyclopaedia of Business and Management (1996),

involved connecting a number of computers,

telecommunication and other devices together so that

information and equipment can be shared.

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According to Bartol et al (1998) Networking could be of

these forms;

Local Area Network (LAN) According to Turban (2000)

Local Area Network connects information systems and

users within a much smaller area such as building, an

office or a manufacturing plant.

Wide Area Network (WAN) According to Turban (2000)

Wide Area Network is a network that stretches over a wide

geographical area such as a city, a region, a country or

even globally.

2.2.2 TELECOMMUNICATION SYSTEM

According to Bartol, et al (1998), telecommunication is the

electronic communication of information over a distance.

Telecommunication technology comprises the physical

devices and the software necessary to connect various

pieces of computer hardware and enable the transfer of

information from one location to another.

Telecommunication has vastly increased the potential for

sharing information within and across organizations.

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According to Appleby (1994), telephone lines are used to

transmit data across countries and continents while space

satellites are used to transmit data across oceans.

The introduction of sophisticated communication devices

such as very small Aperture Terminal (V/SAT), clinks-

modern, radio modern and network data transmission

systems has facilitated the transmission of data from

different locations to a host computer (central server)

located in a place.

The availability of various types of hardware, software and

telecommunication technology in organizations has

provided numerous options for configuring the use of

information technology.

Therefore, organizations need to develop information

architecture, which is a long range plan for investing in

and organizing information technology so as to facilitate

reaching organization goals.

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2.2.3 BROADCAST AND ENTERTAINMENT SYSTEMS

Typical example of broadcast and entertainment systems is

television and radio stations. Radio and Television

broadcasting are the primary means by which information

and entertainment scenes are delivered to the public in

virtually every nation around the world. The term

broadcasting refers to the airborne transmission of

electromagnetic audio signals (radio) or audiovisual signals

(television) that are accessible to a wide population via

standard, readily available receivers.

The term has its origins in the medieval agricultural

practice of ‘broadcasting’, which refers to planting seeds of

scattering them across a field.

Broadcasting is a crucial instrument of modern social and

political organization. As its peak of influence in the mid-

20th century, radio and television broadcasting was

employed by political leaders to address entire nations.

Because of radio and television’s capacity to reach and

influence large numbers of people, and owing to the limited

spectrum of frequencies available, governments have

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commonly regulated broadcasting wherever it has been

practiced.

In the early 1980s, new technologies-such as cable

television and videocassette players-began eroding the

dominance of broadcasting in mass communication,

splitting audiences into smaller & culturally distinct

segments. Previously, the only means of delivering radio

and television to home receivers, broadcasting is not just

one of several delivery systems available to listeners and

viewers. Sometimes, broadcasting is used in a broader

sense to include delivery method such as wire-borne (cable)

transmission, but these are more accurately called

‘narrowcasting’ because they are generally limited to

paying subscribers.

2.2.4 DOCUMENT REPRODUCTION SYSTEMS

Document reproduction systems are means by which

documents can be reproduced or re-printed into many

numbers as the individual may want. Typical examples of

document reproduction system are photocopiers, fax

machine etc.

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The Photocopiers commonly found in offices and

classrooms use electric charges to transfer the image of an

original document to a plain piece of paper. The document

to be photocopied is placed face down on the platen and

illuminated by a lamp. Its image is directed to a negatively

charged metal drum (the electrostatic drum) by a series of

mirrors.

Where light strikes the drum, the charge disappears, so

that dark areas remain charge. Next, positively charged

particles of toner powder are brushed onto the drum.

These stick only to the charged areas (The first-and

second-erase lamps remove the charge on the drum

between different copying tasks). The image on the drum is

then transferred to a piece of paper that has been given a

negative charge by the transfer charger. A heater is used to

seal the toner to the paper, which is why copies are warm

when they emerge.

Fax machine-facsimile (Fax) transmission involves

machines designed to transmit graphical information via

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normal telephone lines. After a special fax number is

dialled and the phone connection established, documents

are fed through the machine, which takes approximately

one to six minutes to scan and convert the information into

electrical impulses. The impulses are carried across phone

lines and a receiving machine changes the impulse back to

text, making a copy, or facsimile, of the document in the

sending machine. Particularly in time-sensitive business

transactions, fax communication has become a popular

alternative to express mail because it is faster and

generally less expensive.

2.2.5 SATELLITE COMMUNICATION SYSTEM

Satellite is any object purposely placed into orbit around

earth, other planets, or the sun. Since the launching of the

first artificial satellite in 1957, thousands of these ‘man-

made moons’ have been rocketed into earth orbit. Today,

satellite plays key roles in the communication industry, in

military intelligence and in the scientific study of both

earth and outer space. Types of satellite are;

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Communication satellite: Almost all of the earliest

satellite included some communications equipment. Over

300 communications satellites have been launched since

1957. Today satellite in geostationary orbit provides voice,

data, and television communications, including the direct

broadcast of television to homes around the world.

Navigation Satellite: A Navigation satellite sends signals

continuous radio signals to earth. These signals contain

data that a special radio receiver on earth translates into

information about the satellite’s position. The receiver

further analyzed the signal to find out how fast and in

what direction the satellite is moving and how long the

signal took to reach the receiver.

Weather Satellite: This carry camera and other

instruments pointed towards earth’s atmosphere. They can

provide advance warning of severe weather and a great aid

to weather forecasting.

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2.3 THE COMPUTER AS A TOOL FOR INFORMATION

TECHNOLOGY

The computer plays important roles in information

technology in these areas;

i. The Telephone System: Making a call no longer should

conjure up visions of operators connecting cables by

hand or even of electrical signals causing delays to click

into place and effect connections during dialling. The

telephone system now is just a multilevel computer

networks with software switches in the network nodes to

route calls to their destinations. The main advantage is

that calls get through much more quickly and reliably

than they aid in the past. If one node through which a

cross-country call would normally be routed is very busy,

an alternative routing can be substituted.

ii. Electronic banking: The banking business has been

revolutionized by computer technology. Deposits and

withdrawals are instantly logged into a customer’s

account, which is perhaps stored on a remote computer.

Computer generated monthly statements are unlikely to

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contain any errors unless they arise during manual

entry of check amounts. The technology of electronic

funds transfer, supported by computer networking,

allows the amount of a generated bill to be immediately

deducted from the grocery store. Similarly, networking

allows individuals to obtain cash instantly and almost

worldwide by simply stepping up to an automated teller

machine (ATM) and providing the proper card and

personal identification number (popularly known as a

PIN)

iii. Retail: Computer technology has had a significant

impact on retail stores. All but the smallest shops have

replaced the old-fashioned cash register with a terminal

linked to a computer system. Some terminal require that

the clerk type in the code for the item, but most

checkout counters include a bar-code scanner, a device

that directly reads into the computer, the universal

product code(UPC) printed on each package. Cash

register receipts can then include brief descriptions of

the items purchased, and the purchase information is

43

also relayed back to the computer to cause an

immediate adjustment in the inventory data. The

inventory system can easily alert the manager when the

supply of some item drops below a specified threshold.

Cash register receipts contain much more information

than a simple list of item prices; many receipts now

include discount coupons based on the specific items

purchased by the shopper.

iv. The automotive industry: Computer technology has

been incorporated into automobiles. Computers are

involved (as CAD systems) not only in the design of cars

but also in the manufacturing and testing process,

perhaps making use of CIM technology. Today’s

automobiles include numerous computer ships that

analyze sensor data and alert the driver to actual and

potential malfunctions. For example, the antilock

braking system (ABS) is computer controlled.

Automobile manufacturers are developing safer, ‘smart’

airbags and remote tier-pressure monitors.

44

2.4 TELECOMMUNICATION SYSTEMS AS A TOOL

FOR INFORMATION TECHNOLOGY

Telecommunication is the transmission of signals over a

distance for the purpose of communication. This is the

easiest way for organizations that contract business

internationally. In modern times, telecommunication

typically involves the use of electronic devices such as

telephone, television and teletype.

Telephone is a communications device that transmits and

receives sound, most commonly the human voice. It has

long been considered indispensable to business, industry

and government. It allows both parties to respond to each

other immediately. If a worker and a co-worker have

several questions for each other, asking them in a single

phone is usually less tome-consuming than exchanging a

long series of e-mail messages.

Television is primarily a public broadcasting medium using

point-to-multipoint technology that broadcast to any user

within range of the transmitter. Television transmits news

and information, as well as entertainments.

45

Teleconferencing, in which a television picture links two

physically separated parties, is a convenient way for

business people to meet and communicate without the

expense or inconvenience of travel.

Teletype converts the same pulses used by telegraphs into

letters and numbers, and then prints out readable text. It

was often used by news media organizations to provide

newspaper stories and stock market data to subscribers.

2.5 DOCUMENT REPRODUCTION SYSTEMS AS A TOL

FOR INFORMATION TECHNOLOGY Some organizations still store paper documents in the file

cabinet of various types, but many documents today are

stored electronically or on film.

Printers and Copiers-Offset printing, using small presses,

is the printing process most often used in modern business

office, usually in large organizations that have a central

printing department with trained personnel. Other once-

common copying and duplicating processes retain a very

limited role in the contemporary business office, but may

still be found in some schools and other institutions.

46

Computer printers-A considerable volume of office

computer is via the printer. Among the earliest printers

used with PCs in business offices were daisy-wheel and

thimble printers. They were slow and could accommodate

only text, not graphic materials. As a result, they have

been supplemented in most offices by dot-matrix, ink-jet,

and laser printers. The laser printer represents an even

greater advance. Similar in technology to a photocopier, it

offers speed, high resolution of 300 dots or more per inch,

ability to reproduce complex graphics, and silent

operation-all of which make it virtually essential for

desktop publishing.

Microfilm/Microfiche - Although computer-generated

documents are usually stored as files [n magnetic tape or

disks, both computer documents and paper documents

may also be stored on Microfilm or Microfiche. The space

needed for document storage in organizations are reduced,

and handling and retrieval are simplified by use of

Microfilm equipment, which photographically reduces

47

images, producing miniature transparencies that can be

magnified for viewing or printing.

2.6 SATELLITE COMMUNICATION SYSTEMS AS A

TOOL FOR INFORMATION TECHNOLOGY

A satellite communications service connects users directly

to the telephone network from almost anywhere in the

world. Special telephones are available to consumers that

communicate directly with communication satellite orbiting

Earth. The satellite transmits these signals to ground

stations that are connected to the telephone system.

These satellites services, while more expensive than

cellular or other wireless services, give organizations that

use it access to the telephone service exists. Satellite

phones are also to deliver video images through

videophones that use tiny cameras and transmit their

images via the satellite phone.

2.7 CONTRIBUTIONS OF INFORMATION TECHNOLOGY

IN INFORMATION DISSEMINATION

Very often, information is only as good as its timeliness.

Information that is very valuable this minute might not be

48

worth the paper on which it is written ten minutes

afterwards. The current trend in information transfer has

made electronic transfer of information not the best but the

only way more so in the constantly changing and rightly

erratic financial world where total quality has become the

norm.

According to Evans & Wurster, (1999), ‘Top tier financial

establishments know that they can leverage their power

through advanced technology cutting costs while improving

the support they provide to their clients’. They added that

to serve the purpose of in-house information dissemination,

local area networks, and wide area networks are

established. A financial establishment’s network exists for

the benefit of large class of client companies (not to

mention its own organization) for which timely, error free

and leading edge information is vital.

In a total quality environment, there can be no allowance

for error or delay. To assist in achieving this end, new

technologies are constantly being developed to cater for

49

different established and recognized needs of information

technology in the financial industry.

Cronin & Crawford, (1999) suggest that nowadays,

customers with large and growing real time information

needs want to deal with a financial establishment

possessing a highly efficient network, able to ensure

quality of service, security network, able to ensure

bandwidth as well as offering reliable networked financial

services. Examples of clients that need sophisticated

support include national and multinational manufacturing

companies, merchandising and distribution companies,

brokers, insurance companies and correspondent financial

institutions.

Information technology has clearly revolutionized the way

businesses are conducted. Johnson (2000) stated that it

has brought global markets to a local level, decreased time

delays for communication, payments and information

gathering, and streamlined diverse internal business

functions. All of these elements help businesses gain a

competitive advantage.

50

Ogwuma (1997) further agreed that all the technology in

the world will not replace skilled people in the right

positions, but integrating these two critical elements in a

competitive intelligence infrastructure will enhance a

business strategic decision making capabilities.

Walle (1999) held that information technology is one of the

critical factors that brought competitive intelligence to a

wider corporate audience. Business intelligence software,

data mining and data warehousing software have lessened

the burden of statistical analysis and data storage and

retrieval. The internet has put more information at the

fingertips of business people than they could possibly

know. What to do with company internets, e-mail, cell

phones and faxes have made information

exchange effortless, yet all the computers, networks and

software in the world are wasted as strategic tools if an

organization does not take the time to examine its

competitive intelligence need in relation to information

technology.

51

Chofaras (1998) opined that organizations which depend

on communications for their business need to be

guaranteed efficient and secure payments system while

also wanting to control expenditure, in effect demanding a

high grade of service at a reasonable cost.

Finally, information networks have become synonymous

with the very concept of provision of financial services.

Cook & Cook (2000) agreed to this, saying further that this

is not true today; it has always been a fact. What is new in

our age is that important factors which often act as

financial establishment affect a financial establishment’s

strategy and its supporting technology are rapidly

changing.

2.8 THE CONTRIBUTION OF INFORMATION TECHNOLOGY

ON DECISION MAKING IN ORGANIZATIONS

Decision making is a crucial part of good business. The

question then is ‘how is a good decision made? One part of

the answer is good information and experience in

interpreting information.

52

All these aspects of information technology cannot make

decisions for any manager of an organization rather they

aid the manager in making the decisions themselves.

They help the managers to have quick and reliable

quantitative information about the business as it is and

the business as it might be in different sets of

circumstances. Examples, organizations use internet in

many ways. They use the internet for electronic commerce,

also called e-commerce, including advertising, selling,

buying, distributing products, and providing customers

service. Organizations use the internet for business-to-

business transactions, such as exchanging financial

information and accessing complex databases. Businesses

and institutions use internet for voice and video

conferencing and other forms of communication that

enable people to telecommute.

It speeds communication between organizations, among

co-workers and among other individuals.

Spread-sheets are widely used for ‘what if’ simulations. A

very large spread-sheet can be used to hold all the known

53

information about, say, pricing and the effect of pricing on

products. The different pricing assumptions can be fed into

the spread-sheet ‘modelling’ different pricing strategies.

This is a lot quicker and an awful lot cheaper than actually

changing prices to see what happens.

Organizations use Photocopiers to transfer the image of an

original document to a plain piece of paper

Telegraph systems are useful for organizations that needed

to transmit messages quickly over long distances such as

newspapers and railroads. The telegraph made it possible

for many organizations to conduct their business globally

for the first time. Telephone helps organizations for

distance communication that sent electrical signals

through wires.

Security personnel in an organization can use television to

monitor buildings, manufacturing plants and numerous

public facilities. Public utility employees use television to

monitor the condition of an underground sewer line, using

a camera attached to a robot arm or remote-control vehicle.

Doctors can probe the interior of a human body with a

54

microscopic television camera without having to conduct

major surgery on the patient. Educators use television to

reach students throughout the world.

An e-mail message, because of its speed and informality, is

ideal for routine communication between co-workers. For

instance, an e-mail message is usually the best means of

announcing a new policy in an organization, introducing a

recent hire, informing colleagues of a meeting, and

reminding an employee of an approaching deadline.

With the information technology inventions, organizations

can be aided on the best business decision to take. This

business decision can be;

i. Programmed decisions: These are standard decisions

which always follow the same routine. As such, they can

be written down into a series of fixed steps which

anyone can follow. They could even be written as

computer programme.

55

ii. Non-programmed decisions: These are non-standard

and non-routine. Each decision is not quite the same as

any previous decision.

iii. Strategic decisions: These affect the long-term

direction on the business e.g. whether to take over

company A or company B.

iv. Tactical decisions: These are medium-term decisions

about how to implement strategy e.g. what kind of

marketing to have, or how many extra staff to recruit.

v. Operational decisions: These are short-term decisions

(also called administrative decisions) about how to

implement the tactics e.g. which firm to use to make

deliveries.

Information technology will go a long way to help

organizations to embark on any of these business

decisions they want to take. So it practically plays a very

big role for organizations in decision making. Hence, it

is important to the operations of all organizations.

56

2.9 PROBLEMS ASSOCIATED WITH THE USE OF

INFORMATION TECHNOLOGY IN ORGANIZATIONS

Everything that has advantage has disadvantage too. The

problems encountered by organizations that make use of

information technology are;

i. COMPUTER CRIMES

According to Appleby (1994) new technology brings new

opportunities for crimes, which ranges from computer theft,

forgery, electronic mail terrorism, electronic data inter-

change fraud, including making and destruction of

electronic data by introducing viruses with a view to

committing crimes.

ii. UNEMPLOYMENT

Dologite in international encyclopaedia of Business and

Management (1996) identified loss of jobs as another

problem associated with the use of information technology

at least in the short run. Computers now perform multiple

tasks that would have needed the payment of more labour,

thereby streamlining corporate workforce.

57

iii. Access to computer is inequitably distributed among

races, social class and gender. So while many envision

the possibility of a global package with the connection of

people through telecommunication, for many individuals,

the gulf between the haves and the have- nots in the

society is widening not narrowing due to widespread

literacy.

iv. Another problem associated with the use of information

technology is the increase repetitive strain injury,

computer vision syndrome (eye-strain), technology stress

(i.e. computer induced stress) and possible problems

during pregnancy.

v. COMPUTER HACKER

People who illegally gain access to computer systems- often

violate privacy and can tamper with or destroy records.

Programs called viruses or worms can replicate and spread

from computer to computer, erasing information or causing

malfunctions. Other individuals have used computers to

electronically embezzle funds and alter credit histories.

58

2.10 CONSTRAINTS TO THE DEVELOPMENT OF

INFORMATION TECHNOLOGY IN NIGERIA

According to Ovia (2000) while developed countries are

already reaping the gains of information technology,

developing countries are sill struggling at the rudimentary

stage. Several factors are responsible for the low pace of

information technology in Nigeria. They are;

i. INADEQUATE INFORMATION AND COMMUNICATION

TECHNOLOGY INFRASTRUCTURE

Lack of reliable infrastructure is one of the factors

responsible for the growth of information technology in

Nigeria. It is practically impossible for organizations that

are into production of goods to order for raw materials

internationally without adequate and reliable

telecommunication infrastructure.

According to Ovia (2000) before Nigeria organizations can

fully participate in the digital and internet age, the epileptic

telecommunication system must be addressed. This

explains why there are only about 200,000 internet users

59

in Nigeria. This figure is in sympathy with the ridiculously

low Nigeria’s teledensity of 250 people to one telephone line.

ii. ABSENCE OF LEGAL FRAMEWORK AND POLICY

An enabling legal framework to guide the operations of e-

business and information technology driven activities is

currently backing in Nigeria. Such a guideline should

define relationships, rights, and obligations.

iii. DEARTH OF E-WORKFORCE

Without effective e-workforce knowledge, managers that

can maintain information technology infrastructure, the

development and growth of information technology will be

hampered.

iv. LACK OF AWARENESS AND SOCIAL ACCEPTANCE

Illiteracy, lack of awareness and social acceptance remains

a dominant issue that will for a long time confront

information technology in Nigeria. There is hope however

that if the enabling environment is put in place as the

Nigerian government is currently doing, information

technology and its wide possibilities will flourish in Nigeria.

60

v. INADEQUATE INFRASTRUCTURES IN NIGERIA

The erratic power supply experienced in Nigeria has almost

crippled economic activities. The government should direct

effort towards providing uninterrupted power supply so as

to facilitate the growth of information technology in Nigeria.

61

REFERENCES

Appleby, R. C. (1994) Modern Business Administration 6th

Edition, Singapore, Pitman Publishing. Co pp. 448-

477.

Bartol, M. K. and Martin, D.C. (1998) Management, 3rd

Edition, Boston McGraw- Hill. Pp. 605-629

Computer science ‘Encyclopaedia Britannica Ultimate’.

Reference Suite. Encyclopaedia Britannica, 2010.

Conningham, W. Aldy, R and Swift, C. (1984) Introduction

to

Business Ohio, South western Publishing Co. pp. 429-438

Dologite, D.G ‘Information Technology and the Society’ in

International Encyclopaedia of Business and

Management, 1996. Pp.2125-2130

Eke, A (1991) Welcome to Computer Science with Basic

Programming Language, Lagos, Acena Publisher.

Pp.21-28

62

Ezigbo, C.A (2003) Advanced Management Theory, Enugu,

Immaculate Publications Ltd, pp.117-142

Fitzsimons, A. J (2001) Service Management, Strategy and

Information Technology, 3rd Edition, London,

McGraw-Hill Inc. pp.241-243

Grauer, M. ‘Information Technology’ in Encyclopaedia

of Business and Management, 1996 pp. 2103-2112

Hellriegel, D. Jackson, S. C. and Slocum J.W. (1999)

Management, 8th Edition, Ohio, South western College

Publishing. Co. pp. 682-702

Kruczynski, Leonard. R, ‘Artificial Satellite’. Microsoft

Student 2008 (DVD). and Redmond, WA: Microsoft

Corporation 2007

Lewis, P.S. Goodman S.II and Fandt, P.M (1998)


Edition Ohio, South western College Publishing pp.

620-629

63

Malonis, J.A ‘Information Technology’ in Encyclopaedia of

Business, 2nd Edition Detroit, Gale Group Inc, 2000.

Pp.774-777

Owolabi, K.S (2001) A Handbook of Computer, Lagos

Divine Rain Foundation. Pp.1-10

Ovia, J. (2000) ‘From Banking Hall to E-Platform, the

Guardian, Jan. 8, 2001, p.47

Stoner, J.A and Freeman, E.R (1992) Management. 5th

Edition, New Jersey, Prentice Hall Inc. pp. 665-692

64

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 INTRODUCTION

The aim of this chapter is to discuss the

methods/procedures adopted by the researcher in carrying

out this research work. The chapter also contain sources of

data, instrument used for data collection and techniques

for data analysis, the study is therefore descriptive in

nature.

3.1 SOURCES OF DATA

To ensure the collection of relevant data for this study,

both primary and secondary data were used.

3.1.1 SOURCES OF PRIMARY DATA

Primary sources of data are first hand information. The

data was generated by the researcher for the purpose of

this study. Primary data for this study were collected

through observations, questionnaires and interview. But it

was mainly through questionnaires. The questionnaires

65

were given to staffs and management of Nigerian Breweries

PLC.

3.1.2 SOURCES OF SECONDARY DATA

In addition to the data collected from primary source,

extractions were also made from the records and

publications of the Nigerian Breweries PLC including their

annual report. Extractions were also made from textbooks,

magazines, internet, business journals, newspaper,

University of Nigeria, Enugu campus library, Enugu state

library, National library, Enugu.

3.2 POPULATION AND SAMPLE SIZE

The staff strength of Nigerian Breweries PLC nation wide

stands at five hundred and twenty-two (522) out of which

the Enugu branch of Nigerian Breweries PLC chosen as the

researcher base has a total of seventy two (72) workers

representing 0.6261 percent of the total population.

Based on the population of the Enugu branch, the

researcher used a normal confidence level of 95% and an

error tolerance of 5%. Therefore, the sample size was

determined using Yamen’s formula.

66

Where

N = Population of workers

n =Sample size (?)

e=Margin of error (5% or 0.05)

n = N 1 + N (e)2 N = N 1+ 72 (0.05)2 n = 72 1 + 72 (0.05)2 n = 72 1 + 72 (0.0025) n = 72 110.18 n = 72 110.11.188

n = 61.02

n = 61

Sample size is 61.

67

3.3 INSTRUMENT USED FOR DATA COLLECTION

The instruments used for data collection were as follows:

i. Questionnaires

ii. Interview

iii. Observation

Questionnaire

A total of 61 questionnaires were distributed to the staffs

and management of Nigerian Breweries PLC. It comprises a

total of 22 questions, which are made up of multi-choice

questions.

Interview

The interview gives the researcher an on the spot response

from the respondents which provided a complementary

data on the questionnaire.

Observation

Observations were made on the physical environment of

Nigeria Breweries PLC.

68

3.4 DATA ANALYSIS TECHNIQUES

The data collected were analyzed using simple percentages,

tables and the Chi-Square ( X2)

3.5 VALIDITY AND RELIABILITY OF DATA

Questionnaires distributed for the purpose of this study

were answered by the respondents. Interpretation and

analysis of data were conducted based on the response

from the questionnaires.

69

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.0 INTRODUCTION

This chapter is aimed at presenting and analysing the data

collected. For the purpose of this work, a total of sixty-one

(61) questionnaires were distributed to the staffs and

management of Nigerian Breweries PLC. Fifty-five (55)

which is approximately 90% of the sample size were

completed and returned while six, which is approximately

10% of the sample size, were not returned.

The table 4:1 shows the number of questionnaires collected

and various research questions addressed by the

researcher. The questions in the questionnaire

will be analysed by the use of percentage and table.

70

TABLE 4.1: DISTRIBUTION OF RESPONDENTS BY RESPONSE RATE

Cat

egor

y

Que

stio

nnai

res

give

n

Perc

enta

ge

retu

rned

Que

stio

nnai

res

retu

rned

Perc

enta

ge

retu

rned

Que

stio

nnai

res

not

retu

rned

Perc

enta

ge

not

retu

rned

Top Manager 11 18% 11 18% - -

Senior Manager 21 34% 18 30% 3 5%

Junior Manager 29 48% 26 42% 3 5%

Total 61 100% 55 90% 6 10%

Source: Field Survey, 2009.

4.2: DEMOGRAPHIC CHARACTERISTICS

Table 4.2: DISTRIBUTION OF RESPONDENTS BY SEX

Options No of Responses Percentage

Male 30 55%

Female 25 45%

Total 55 100%


From the table above, 55% of the respondents are male,

while 45% are females.

71

Table 4.3: DISTRIBUTION OF RESPONDENTS BY

MARITAL STATUS

Options No of Responses Percentage

Singles 18 33%

Married 37 67%

Total 55 100%


From the responses above, 33% of the respondents are

single, while 67% are married

Table 4.4: DISTRIBUTION OF RESPONDENTS BY AGE

Options No of responses Percentage

Below 20 years 2 4%

21-30 years 8 15%

31-40 years 20 36%

41-50 years 15 27%

51 and above 10 18%

Total 55 100%


72

While 4% are below 20years, 15% are less than 30years,

36% are less than 40years, 27% are less than 50years and

18% are above 51years.


INCOME GRADE/LEVEL


01-04 8 15%

05-08 12 22%

09-12 15 27%

13 and above 20 36%

Total 55 100%

Source: Field Survey, 2009..

From the table above, 15% of the respondents are between

the levels of 01-04, 22% are between 05-08 levels, 27% are

between 09-12 levels while 36% are between 13 and above.

73

Table 4.6: DISTRIBUTION OF RESPONDENTS BY QUALIFICATION


FSLC 3 5%

WASC/GCE 10 18%

OND 21 38%

B.SC/HND 15 27%

OTHERS 6 11%

Total 55 100%


The table above shows that 5% of the respondents have

FSLC, 18% have WASC/GCE, 38% have OND, and 27%

have B.SC/HND. However, 11% have other related

qualifications.

74


DURATION OF STAY IN THE ORGANIZATION.


5-15years 9 16%

16-25years 18 33%

26-35years 12 22%

36-45years 11 20%

46years and above 5 9%

Total 55 100%


The responses from the table above, shows that 16% of the

respondents have stayed for 5-15years, 33% have stayed

for 16-25years, 22% for 26-35years, 20% for 36-45years,

and 9% of the respondents have stayed for more than

45years.

75

Table 4.8: DISTRIBUTION OF THE RESPONDENTS BY STATUS


Top Management 10 18%

Senior Staff 15 27%

Junior Staff 30 55%

Total 55 100%


From the table above, 18% are in the top management

category, 27% are senior staffs, while 55% are junior staffs.

Table 4.9: DISTRIBUTION OF RESPONDENTS ON

AWARENESS OF INFORMATION TECHNOLOGY IN THE

ORGANIZATION


Yes 53 96%

No 2 4%

Total 55 100%


76

From the table above, 53 representing 96% of the

respondents indicated ‘Yes’, while 2 representing 4% of the

respondents indicated ‘No’.

This shows that the organization has information

technology.

Table 4.10: DISTRIBUTION OF RESPONDENTS ON THE

COMPONENTS THAT MAKE UP THE INFORMATION

TECHNOLOGY


Hardware 8 15%

Software 7 13%

Data 11 20%

Telecommunication

link

12 22%

All of the above 17 31%

Total 55 100%



respondents indicated ‘Hardware’, 7 representing 13% of

77

the respondents indicated ‘Software’, 11 representing 20%

of the respondents indicated ‘Data’, 12 representing 22% of

the respondents indicated ‘Telecommunication link’, while

17 representing 31% of the respondents indicated ‘All of

the above’.

This shows that the components that make up the

information ethnology include: Hardware, Software, Data

and Telecommunication link.

Table 4.11: DISTRIBUTION OF THE RESPONDENTS BASED

ON WHETHER THE APPLICATION OF INFORMATION

TECHNOLOGY ENHANCES EMPLOYEES PERFORMANCE


Yes 45 82%

No 10 18%

No idea - -

Total 55 100%



respondents indicated ‘Yes’, 10 representing 18% of the

78

respondents indicated ‘No’, while none of the staffs

indicated ‘No idea’.

This shows that the application of information technology

enhances employee’s performance.

Table 4.12: DISTRIBUTION OF RESPONDENTS BASED ON

WHETHER THE APPLICATION OF INFORMATION

TECHNOLOGY HAS PROVIDED A CONVENIENT, RELIABLE,

ACCURATE AND FASTER MEANS OF PROCESSING DATA IN

THE ORGANIZATION.


Strongly Agree 30 55%

Agree 20 36%

Strongly Disagree 2 4%

Disagree 3 5%

Total 55 100%



respondents strongly agree that the application of

information technology has provided a convenient, reliable,

accurate and faster means of processing data in the

79

organization, 20 representing 36% of the respondents

indicated ‘Agree’, 2 representing 4% of the respondents

indicated ‘Strongly Disagree’, while 3 representing 5% of

the respondents indicated ‘Disagree’.


has provided a convenient, reliable, accurate and faster

means of processing data in the organization.


THEIR ASSESSMENT AS TO WHETHER INFORMATION

TECHNOLOGY HAS ENABLED THE ORGANIZATION TO

ADOPT AND RESPOND TO THE EVER CHANGING

CUSTOMER NEEDS/DEMANDS.



Agree 19 35%


Disagree 4 7%

Total 55 100%


80


respondents indicated ‘Strongly Agree’, 19 representing

35% of the respondents indicated ‘Agree’, 2 representing

4% of the respondents indicated ‘Strongly Disagree’, while

4 representing 7% of the respondents indicated ‘Disagree’.

This shows that information technology has enabled the

organization to adopt the ever changing customer needs.

Table 4.14: DISTRIBUTION OF THE RESPONDENTS ON

WHETHER THE USE OF INFORMATION TECHNOLOGY

HAS GIVEN THE ORGANIZATION A COMPETITIVE

EDGE OVER OTHER COMPTITORS IN THE INDUSTRY.


Yes 50 91%

No 5 9%

Total 55 100%


With regard to ascertain whether the use of information

technology has given the organization a competitive edge

over other competitors in the industry, 50 representing

81

91% of the respondents indicated ‘Yes’, while 5

representing 9% of the respondents indicated ‘No’.

This shows that the use of information technology has

given the organization a competitive edge over other

competitors in the industry.

Table 4.15: DISTRIBUTION OF RESPONDENTS ON IF

THERE ARE PROBLEMS ASSOCIATED WITH THE

APPLICATION OF INFORMATION TECHNOLOGY IN THE

ORGANIZATION


Computer related fraud 8 14%

Job losses 5 9%

Techno-stress (computer indicated stress)

13 24%


Total 55 100%



respondents indicated ‘Computer related fraud’, 5

representing 9% of the respondents indicated ‘Job losses’,

82

13 representing 24% of the respondents indicated ‘Techno-

stress while 29 representing 53% of the respondents

indicated ‘all of the above’.

This shows that the problems associated with the

application of information technology in organization are

Computer related fraud, job losses, and Techno-stress.


WHETHER THE APPLICATION OF INFORMATION

TECHNOLOGY HAS ENABLED THE ORGANIZATION TO

ACHIEVE CUSTOMER SATISFACTION.



Agree 19 32%


Disagree 1 2%

Total 55 100%


With regard as to whether the application of information

technology has enabled the organization to achieve

83

customer satisfaction, 34 representing 62% of the

respondents indicated ‘Strongly Agree’, 18 representing

325 of the respondents indicated ‘Agree’, 2 representing 4%

of the respondents indicated ‘Strongly Disagree’, while 1

representing 2% of the respondents indicated ‘Disagree’.


enabled the organization to achieve customer satisfaction.


WHETHER THE USE OF INFORMATION TECHNOLOGY HAS

REDUCED THE ORGANIZATION’S STAFFS.


Yes 10 18%

No 45 82%

Total 55 100%



respondents indicated ‘Yes’, while 45 representing 82% of

the respondents indicated ‘No’.

This shows that the use of information technology has not

reduced the organization’s staffs.

84


WHETHER THE INTRODUCTION OF INFORMATION

TECHNOLOGY IN THE ORGANIZATION HAS REDUCED THE

WORKING HOURS OF STAFFS.


Yes 50 91%

No 5 9%

Total 55 100%





This shows that the introduction of information technology

in the organization reduces the working hours of staffs.

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WHETHER THE USE OF INFORMATION TECHNOLOGY LEADS TO BETTER MANAGEMENT OF RESOURCES AND TIME.


Yes 50 91%

No 5 9%

Total 55 100%


The table above means that 50 representing 91% of the



This means that the use of information technology leads to

better management of resources and time.

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WHETHER THE EXPOSURE TO INFORMATION TECHNOLOGY WILL LEAD TO ADVANCEMENT AND BETTER OUTPUT IN THE WORK PLACE.


Yes 52 95%

No 3 5%

Total 55 100%


This table shows that 52 representing 95% of the



This shows that exposure to information technology will

lead to advancement and better output in the work place.

Table 4.21: DISTRIBUTION OF RESPONDENTS REGARDING

IF A FUTURE WITHOUT INFORMATION TECHNOLOGY KNOWLEDGE WILL AFFECT JOB EFFICIENCY AND OUTPUT IN THE ORGANIZATION.


Yes 50 91%

No 5 9%

Total 55 100%


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With regard to the table above, 50 representing 91% of the

respondents agreed that a future without IT knowledge will

affect job efficiency and output while 5 representing 9% of

the respondents indicated that it will not affect job

efficiency and output.

This shows that a future without IT knowledge will affect

job efficiency and output in the organization.

4.3 TEST OF HYPOTHESES

Based on the collected analysis of data, the following

hypotheses can be tested using the chi-square (x22)

statistical tool. But before proceeding, the null hypotheses

should be stated first, while the alternative hypotheses will

be stated next.

DECISION RULE

The alternative hypotheses (H1) is accepted if the critical

value of chi-square is less than the calculated value of the

chi-square while the null hypotheses (H0) is rejected.

On the other hand, the alternative hypotheses (H1) is

rejected and the null hypotheses (H0) accepted if the

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critical value of the chi-square is greater than the

calculated value of the chi-square.

Therefore, accept H1 and reject H0 if:

Critical X2 ≤ calculated X2 0 but reject H1 and accept H0 if

critical X2 ≥ calculated X2 0.

HYPOTHESIS ONE


WHETHER THE APPLICATION OF INFORMATION TECHNOLOGY HAS ENABLED THE ORGANIZATION TO ACHIEVE CUSTOMER SATISFACTION.



Agree 19 32%


Disagree 1 2%

Total 55 100%

STEP 1 H0: The application of information technology has

not enabled the organization to achieve

customer satisfaction.

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H1: The application of information technology

has enabled the organization to achieve

customer satisfaction.

STEP 2 Statistical tool used is given as:

X2 = ∑ (F0- Fe)2 Fe Where ∑ = Summation

F0 = Observed frequency

Fe = Expected frequency

STEP 3 Significance level is given as:

X2 = 5% or 0.005

STEP 4 The degree of freedom given is ( R-1 ) ( C-1 )

i.e. D.f where (R-1) (C-1) is rows or columns

(R-1) ( C-1) = 4-1=3

STEP 5 The critical value of X2 is given as:

X2 = 7.815

(This can be ascertained from the chi-square (X2)

table using both the level of Significance and

degree of freedom)

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STEP 6 Computation of test statistic using the table

above

RESPONSE RATE OF EMPLOYEES AS TO WHETHER THE APPLICATION OF INFORMATION TECHNOLOGY HAS ENABLED THE ORGANIZATION TO ACHIEVE CUSTOMER SATISFACTION.

Alternative Response O E

Strongly Agree 34 13.75

Agree 18 13.75

Strongly Disagree 2 13.75

Disagree 1 13.75

Total 55 55

Where E = Expected frequency

O = Observed frequency

E = 55 4 = 13.75

X2 = ∑( O-E )2 E

= ( 34-13.75)2 + ( 18-13.75)2 + (2-13.75)2 + (1-13.75)2 13.75 13.75 13.75 13.75

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410.06 18.06 138.06 162.57 13.75 13.75 13.75 13.75

= 29.84 + 1.31 + 10.04 + 11.82 = 53.01

STEP 7 Comparing the test statistics with the critical value of

X2

X2 = 53.01 > 7.815

STEP 8 DECISION: Since the calculated value of X2 is

greater than the critical value of X2, we reject the

null hypothesis and accept the alternative

hypothesis. We therefore conclude that the

application of information technology has

enabled the organization to achieve customer

satisfaction.

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HYPOTHESIS TWO

Table 4.15: DISTRIBUTION OF RESPONDENTS ON IF

THERE ARE PROBLEMS ASSOCIATED WITH THE APPLICATION OF INFORMATION TECHNOLOGY IN THE ORGANIZATION


Computer related fraud 8 14%

Job losses 5 9%

Techno-stress (computer indicated stress)

13 24%


Total 55 100%

STEP 1 H0: There are no problems associated with the

of information technology in the organization.

H2: There are problems associated with the use

of information technology in the organization.




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X2 = 5% or 0.005



(R-1) ( C-1) = 4-1=3


X2 = 7.815

(This can be ascertained from the chi-square

(X2) table using both the level of Significance

and degree of freedom)


above

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RESPONSE RATE OF WORKERS AS TO WHETHER THERE ARE PROBLEMS ASSOCIATED WITH THE USE OF INFORMATION TECHNOLOGY IN THE ORGANIZATION.


Computer related fraud 8 13.75

Job losses 5 13.75

Techno-stress 13 13.75

All of the above 29 13.75

Total 55 55



E = 55 4 = 13.75

X2 = ∑( O-E )2 E

= (8-13.75)2 + (5-13.75)2 + (13-13.75)2 + (29-13.75)2 ________ ________ _________ _________ 13.75 13.75 13.75 13.75 (-5.75)2 + (-8.75)2 + (-0.75)2 + (15.25)2 _______ ________ ________ _________ 13.75 13.75 13.75 13.75 33.1 + 76.6 + 0.6 + 232.6 _______ ________ _______ ________ 13.75 13.75 13.75 13.75 2.4 + 5.6 + 0.04 + 16.9 = 24.9

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STEP 7 Comparing the test statistics with the critical

value of X2

X2 = 24.9 > 7.815


greater than the critical value of X2, we reject

the null hypothesis and accept the alternative

hypothesis. We therefore conclude by stating

that there are problems associated with the use

of information technology.

HYPOTHESIS THREE


WHETHER THE USE OF INFORMATION TECHNOLOGY HAS REDUCED THE ORGANIZATION’S STAFFS.


Yes 10 18%

No 45 82%

Total 55 100%

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STEP 1 H0: There is no evidence that the use of

information technology has reduced the

organization staffs.

H4: There is evidence that the use of information

technology has reduced the organization staffs.






X2 = 5% or 0.005



(R-1) (C-1) = 2-1=1


X2 = 3.841

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above

RESPONSE OF WORKERS AS TO WHETHER THE USE OF INFORMATION TECHNOLOGY HAS REDUCED THE ORGANIZATION STAFFS.


Yes 10 27.5

No 45 27.5

Total 55 55



E = 55

2 = 27.5 X2 = ∑( O-E )2 E = (10-27.5)2 + (45-27.5)2 27.5 27.5

(-17.5)2 + (17.5)2 _______ ________ 27.5 27.5

306.25 + 306.25 _______ _________ 27.5 27.5 11.1 + 11.1

X2 = 22.2

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STEP 7 Comparing the test statistics with the critical

value of X2

X2 = 22.2 > 3.841


greater than the critical value of X2, we reject

the null hypothesis and accept the alternative

hypothesis. We therefore, conclude that the use

of information technology reduces organization’s

staffs.

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CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATION. 5.1 SUMMARY OF FINDINGS

At the end of the research, the researcher found out that;

2. The extent of application of information in organizations,

have greatly influenced the idea and practice of

organizations. There is no doubt that advances in

information have helped streamlined the back office

operations of most organizations, improving both

efficiency and heading to saving costs. It is now possible

for one staff of an organization to check the accuracy of

the day-to-day transactions of his/her organization

within a short period of time. The implication of this is

that time consumption is low. Operations in the

organization become more efficient and can increase

productivity with respect to the processing and

balancing of organizations account.

100

3. The components of the information technology includes;

Hardware, software, Data and Communication link.

Technology has created the digital or internet age.

Digital revolution has radically changed the way

financial services and products are offered.

4. The use of information technology has given the

organization (Nigerian Breweries PLC) a competitive edge

over other competitors in the industry.

5. The problems associated with the application of

information technology in organizations are Computer

related fraud, Job losses, and Techno-stress.

6. Respondents were not very familiar with internet, e-

mailing, voice messaging and data messaging. This is

because the use of the internet and one of its tools like

e-mail is still restricted to a few staff (mostly executive

staffs)

5.2 RECOMMENDATIONS

Based on the findings, the following recommendations were

made;

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1. Organizations should adopt information technology in

their operations to enable them enhance the speed

and accuracy of data processing, respond effectively

and efficiently to changing customers need to improve

customers satisfaction, employees efficiency and gain

competitive advantage over other competitors in the

industry.

2. Organizations should also develop effective security

measures to protect their information system from

fraudulent attackers. This could be done through the

use of passwords, firewalls, encryption and

decryption keys, digital signatures, anti-virus

programs etc.

3. There is need for interconnectivity of branches for

easy communication.

4. It will be necessary to provide an electronic mail

system, which would largely eliminate the need for

telex and fax communication between office locations.

It is also necessary for all organization staffs to know

how to use the office automation, tools like word

processors, electronic spread sheets and

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communication tools like e-mail, data messaging and

voice messaging.

5. There is need for the computer service to be re-

organized into what is called information technology

(IT) departments. There should be computer

Engineers that will be servicing the system when

there is fault.

The importance of information technology in

organizations cannot be over emphasized because if the

staffs get the right training, it will increase their output

and customers will be satisfied.

5.3 CONCLUSION

If the above recommendations are implemented, one can

expect to see rapid changes for the better in the way

organizations businesses are carried on. This could lead to

dramatic re-engineering of some management process.

The focus would be on user-oriented service leverage by

appropriate state of the art information technology. Since

IT is continually changing, frequent Workshops/Seminars

103

should be held to keep workers/staffs abreast of latest

development.

Advances in information technology have greatly influenced

the idea and practice of organizations. For organizations,

the implication is that they become more efficient and can

increase their productivity with respect to the satisfaction

of customer’s needs. There is no doubt that advances in

information technology has helped streamlined the back

office operations of most organizations, improving both

efficiency and leading to savings in cost. It is now possible

for one staff in one department to ascertain and gather

information he/she needs from another department of an

organization because of interconnectivity in the

organization.

104

BIBLIOGRAPHY

Adebayo, E.A (2000), The Strategic need for information

Technology aided competitive intelligence in a

corporate environment.

Appleby, R. C. (1994) Modern Business Administration 6th

Edition, Singapore, Pitman Publishing. Co

Asika, N (1991), Research Methodology in the Behavioural

sciences, Longman Nigeria, Lagos

Bartol, M. K. and Martin, D.C. (1998) Management, 3rd

Edition, Boston McGraw- Hill.

Chartered Institute of the Cambridge Seminar (1986)

Computer science ‘Encyclopaedia Britannica Ultimate’.

Reference Suite. Encyclopaedia Britannica, 2010.

Conningham, W. Aldy, R and Swift, C. (1984) Introduction

to Business Ohio, South western Publishing Co.

Dologite, D.G ‘Information Technology and the Society’

International Encyclopaedia of Business and

Management, 1996.

105

Eke, A (1991) Welcome to Computer Science with Basic

Programming Language, Lagos, Acena Publisher.

Ezigbo, C.A (2003) Advanced Management Theory, Enugu,

Immaculate Publications Ltd.

Fitzsimons, A. J (2001) Service Management, Strategy

Information Technology, 3rd Edition, London,

McGraw-Hill Inc.

Grauer, M. ‘Information Technology’ in Encyclopaedia of

Business and Management, 1996.

Hellriegel, D. Jackson, S. C. and Slocum J.W. (1999)

Management, Edition, Ohio, South western College

Publishing. Co.

Kraft, A and Jarret, J (1989), Statistical Analysis for

Decision-Making, Massachusetts, Allyn and Bacon

Kruczynski, Leonard. R, ‘Artificial Satellite’. Microsoft

Student 2008 (DVD). and Redmond, WA: Microsoft

Corporation 2007

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Lewis, P.S. Goodman S.II and Fandt, P.M (1998)


Edition Ohio, South western College Publishing.

Malonis, J.A ‘Information Technology’ in Encyclopaedia of

Business, 2nd Edition Detroit, Gale Group Inc, 2000.

Nigerian Breweries PLC Annual Report and Accounts,

(2007).

Ovia, J (2002), Internet Banking, Practices and Potentials

in Nigeria, A paper Presentation made at a Forum

Organized by ICAN, Lagos.

Owolabi, K.S (2001) A Handbook of Computer, Lagos

Divine Rain Foundation.

Popoola, S.O (2002), Nigeria Management Review. A

Journal of the Centre For Management Development.

Stoner, J.A and Freeman, E.R (1992) Management. 5th

Edition, New Jersey, Prentice Hall Inc.

107

APPENDIX

Faculty of Business Administration Department of Management University of Nigeria, Enugu Campus. Dear Sir/Madam,

I am a post graduate student of the above mentioned

institution. This attached field survey questionnaire is basically

post-graduate academic research work and a part requirement for

the award of an MBA degree.

The study is aimed at establishing ‘The impact of information

technology on decision making in organizations.

You have been selected as one of the respondents because of your

vital role in the organization.

It will be appreciated if you will truthfully and completely answer

all the questions in the questionnaire. This will make our efforts

more rewarding. Please note that all information provided shall be

treated in strictest confidence and used for this research work only.

Thank you for your anticipated co-operation.

Okeke Ebele Felicitas

Research Student

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QUESTIONNAIRE

Please follow the instructions carefully and tick (√) in the correct box

SECTION A

1. Sex (a) Male ( ) (b) Female ( )

2. Marital Status (a) Single ( ) (b) Married ( )

3. Age (a) Below 20years ( ) (b) 21-30years ( )

(c) 31-40years ( ) (d) 41-50years ( )

(e) 51years and above ( )

4. What is your income grade/level? (a) 01-04 ( )

(b) 05-08 ( ) (c) 09-12 ( ) (d) 13 and above ( )

5. What is your educational qualification? (a) FSLC ( )

(b) WASC/GCE ( ) (c) OND ( ) (d) B.SC/HND ( )

(e) OTHERS ( )

6. How long have you been in the organization?

(a) 5-15years ( ) (b) 16-25years ( ) (c) 26-35years( )

(d) 36-45years ( ) (e) 46 and above ( )

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7. What category do you belong in the organization?

(a) Top management ( ) (b) Senior Staff ( )

(c) Junior Staff ( )

8. Do you have information technology in your organization?

(a) Yes ( ) (b) No ( )

9. In your own opinion, what component makes up the

information technology?

(a) Hardware ( )

(b) Software ( )

(c) Data ( )

(d) Telecommunication link ( )

(e) All of the above ( )

10. In your own opinion, do you think the application of

information technology enhances employee’s

performance?

(a) Yes ( )

(b) No ( )

(c) No idea ( )

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11. The application of information technology has provided

a convenient, accurate, and faster means of processing

data in the organization.

(a) Strongly Agree ( )

(b) Agree ( )

(c) Strongly Disagree ( )

(d) Disagree ( )

12. Information technology has enabled the organization

to adopt and respond to the ever changing customer

needs/demands.


(b) Agree ( )


(d) Disagree ( )

13. Do you think the use of information technology has

given your organization a competitive edge over other

competitors in the industry?

(a) Yes ( )

(b) No ( )

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14. Are there problems associated with the application of


(a) Computer related fraud ( )

(b) Job losses ( )

(c) Techno-stress ( )

(d) All of the above ( )

15. The application of information technology has enabled

your organization to achieve customer satisfaction.


(b) Agree ( )


(d) Disagree ( )

16. Has the use of information technology reduced your

organization’s staffs?

(a) Yes ( )

(b) No ( )

17. Will the introduction of information technology reduce

the working hours of staffs in your organization?

(a) Yes ( )

(b) No ( )

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18. Does the use of information technology lead to better

management of resources and time?

(a) Yes ( )

(b) No ( )

19. Will the exposure to information technology lead to

advancement and better output in the work place?

(a) Yes ( )

(b) No ( )

20. Will a future without information technology

knowledge affect job efficiency and output?

(a) Yes ( )

(b) No ( )

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THE IMPACT OF INFORMATION TECHNOLOGY ON DECISION MAKING IN ORGANIZATIONS (A STUDY OF NIGERIAN BREWERIES PLC)

BY

OKEKE EBELE FELICITAS PG/MBA/08/47569

DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION UNIVERSITY OF NIGERIA, ENUGU CAMPUS

APRIL, 2010.

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