IMPACT OF COMPUTER TECHNOLOGY ON EMPLOYMENT AND ITS EFFECT IN INDUSTRIES
By
Author
Presented To
Department of Computer Science
ABSTRACT
The world over continues to grow in population, size and sophistication Technology. It becomes sector on which the teeming population depends in for knowledge also grows.
Be it as it may, the Nigerian situation is such that we, for the state of advantages associated with technological growth have started computerizing most industries and educational operation in our higher institutions of learning and business organizations big and small. Two of such organizations are Banks and Guinness Nigeria Brewery, which were understudied for the impact of computer technology on employment and its effect in industries.
The problem, purpose and significance of the study to Banks and Guinness Nigeria Brewery were considered. Review of existing literature will then follow. The research method made use of diverse research tools were equally employed to analyse data collected. A careful analysis of generated data revealed to the researcher that the use of computer in Banks and Guinness Nigeria Brewery was set up. CHAPTER ONE
The world over continues to grow in population, size and sophistication Technology. It becomes sector on which the teeming population depends in for knowledge also grows.
Be it as it may, the Nigerian situation is such that we, for the state of advantages associated with technological growth have started computerizing most industries and educational operation in our higher institutions of learning and business organizations big and small. Two of such organizations are Banks and Guinness Nigeria Brewery, which were understudied for the impact of computer technology on employment and its effect in industries.
The problem, purpose and significance of the study to Banks and Guinness Nigeria Brewery were considered. Review of existing literature will then follow. The research method made use of diverse research tools were equally employed to analyse data collected. A careful analysis of generated data revealed to the researcher that the use of computer in Banks and Guinness Nigeria Brewery was set up. CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Days are when most computer technology operations and decisions that have to be made on or from them are on first hand basis. People are generally fearful and distrustful of change. Change that involve new and complex technologies are especially stressful, particularly to older and less educated workers. They are fearful of losing their jobs, of losing control to machines, and of becoming
Useless. Systems analysts, software engineers, and system designers need to be aware of these fears and need to directly address these fears in an honest and forthright manner, both to enhance the probability that the new system will contain the accumulated knowledge of these workers and will be used and to
acknowledged their individual worth.
In addition, a major reason that management support the use of technology is to improve productivity, which in many instances mean the elimination (or radical redesign) of jobs.
In such a project, the designer of the new system can feel torn between their obligation to their employer to meet the specifications of the project and their
Obligations to fellow co-workers (and possibly friends) and to the needs of society. Problems can arise from projects that either will result in reduced employment or will result in the need for workers with vastly different skill
sets than that possessed by the present work force.
Today, as company and educational operations expand in size and complexity, company executives grow further removed from first hand contact with business scenes. They are to rely increasingly on second hand information about what is happening at the various stages of business operations, vis-à-vis research and development, production, marketing and consumption of goods and services. Since decisions that have to be made by executives are of profound consequences and have to be based on highly fragmented and typically tenuous information, then it is of great importance that such second-hand information is from very accurate and reliable sources.
According to A.S. Fapohunda (1963), to remedy these accurate information difficulties in, sears began establishing their twenty " two regional computer centres covering the entire United States of America. Initially, the regional computer systems processed customers’ credit accounts and general accounting data.
Later, merchandising and inventory information from system were established to provide information that the business accounting world and business operations are also busy expanding their technological and industrial bases by breaking into new grounds and improving in existing ones through the use of computers.
With the introduction of computer to many business applications, those business areas that involve repeated tasks which are often monotonous and fallible to human errors (cash, inventory control, payroll and etc.) are increasingly being simplified accurately by combining the cost, effectiveness, simplicity of use, efficiency, reliability and accuracy of the computer to obtain, analyse and interpret data information for efficient business decisions. Nigerian business organizations begin to grow in size, business operations and processes become increasingly complex, and hence computers are being rapidly introduced to cope with the overwhelming demands of business and growth. Though the introduction of computer too many facets of business operations is a welcome idea, its use is further implicated on accounting system and as such organizations need to strike a balance between accounting areas to be manually operated so as to control or limit the menace associated with unemployment.
Some of the business operations to which computer has been successfully introduced;-
Printing graphic designs of complicated nature.
Payroll system.
Billing system.
Predict election result.
Mark examination results such as JAMB and WAEC.
Control inventories.
Predict performance of an aircraft or missile still.
On drawing boards.
To calculate the critical path of most efficient assignment of troops or problems and so on.
It therefore becomes important that technological changes such as the introduction of computers in organizations be carefully evaluated so that the gains in technical efficiency are not made at the expense of the well-being and integration of employees.
In the circumstances, then a study of the implication of computer introduction to accounting system of business operations is not only timely but mandatory so as to avoid some of the problems associated with technological changes in organizations.
This research is however, limited to the implication of computer introduction to accounting system of business operations using Banks and Guinness Nigeria Brewery as computerized model organizations.
1.1 HISTORICAL BACKGROUND OF BANKS AND GUINNESS NIGERIA BREWERY IN NIGERIA.
The Nigeria banking industry which is regulated by the Central Bank of Nigeria, is made up of; deposit money bank referred to as commercial banks, development finance institutions, and other financial institutions which includes; Micro finance banks, finance companies, bureau de changes discount houses and primary mortgage institutions.
Essentially, the industry consist of 24 commercial banks, 5 discount houses, 5 development finance institutions, 50 class A bureau de change, 98 primary mortgaged institutions, 84 finance companies and 914 micro finance institutions.
In 1892 Nigeria’s first bank, the African Banking Corporation was established. No banking legislation existing until 1952, at which point Nigeria had three foreign banks (the Bank of British West Africa, Barclays Bank, and the British and French Bank) and two indigenous banks (the National Bank of Nigeria and the African Continental Bank) with a collective total of forty branches. A 1952 ordinance set standards, required reserve funds, established bank examinations, and provided for assistance to indigenous banks. Yet for decades after 1952, the growth of the demand deposits was slowed by the Nigeria propensity to prefer cash and to distrust cheques for debts settlements.
In 1952 several Nigerian members of the Federal House of Assembly called for the establishment of a Central Bank to facilitate the economic development. Although the motion was defeated, the colonial administration appointed a bank of England official to study the issue. He advised against a Central bank, questioning such a bank’s effectiveness in an undeveloped capital market.
The Central Bank of Nigeria, which was statutorily independent of the federal government until 1968, began operations on July 1, 1959. Following a decade of struggle over the relationship between the government and the Central Bank, a 1968military decree granted authority over banking and monetary policy to the Federal Executive Council. The role of Central Bank, similar to that of Central Banks in North America and Western Europe, was to establish the Nigerian currency, control and regulate the banking system, serve as banker to other banks in Nigeria, and carry out the government economic policy in the monetary field.
The Guinness Nigeria Brewery is a leading alcoholic and non " alcoholic drinks in the country and has been in existence for 40 years. It was a subsidiary of Diago Plc. of the United Kingdom, was incorporated in 1962 with the building of a brewery in Ikeja, the heart of Lagos. The brewery was the first outside the Ireland and Great Britain.
Guinness stout was first exported to Sierra Leone in 1827, and soon became popular across West Africa. In 1963, Ikeja in Lagos Nigeria was chosen as the first location outside the British Isles to brew the iconic " dark beer. Two years later, in 1965, Guinness Nigeria was listed on the Guinness Stock Exchange.
Steady growth in markets for Guinness stout and Harp Lager during the next 30 years prompted the building of three major breweries in Nigeria.
In 1974, the company built a second brewery in Benin, where it produced Harp lager beer. This facility was later expanded to accommodate a second stout brewery, commissioned in 1978.
In 1982, a fourth Guinness Brewery was built in Ogba, Lagos to brew Harp Premium lager beer.
This site too, was expanded to include Guinness stout. Several years later in 2004, Guinness Nigeria commissioned a new brewery in Aba, Abia State.
In 20011, the Benin and Ogba breweries were expanded to further increase capacity and meet growing demand for Guinness Nigeria Products.
1.2 STATEMENT OF THE PROBLEM
The importance of personnel in the accounting section of an organization cannot be over emphasized especially when one remembers the facts that these personnel support the organization from its small scale to the large scale stage when it begins to introduce computers to many of its hitherto manual operations.
However, an organization has the obligation of profit making and as such promptness of information, accuracy, speed, cost effectiveness, becomes prime factors to the organizations.
The problem of this study is therefore to find out whether or not the introduction of computer technology to accounting systems of business operations has reduced the output of the accounting sections at Banks and Guinness Nigeria Brewery.
1.3 OBJECTIVES OF THE STUDY
The purpose of this research work is to find out and evaluate the implication of computer technology on employment and its effect in industries sections of business operation with particular reference Banks and Guinness Nigeria Brewery as some of the largest organizations in Nigeria today.
The study will also attempt to find out the efficiency and effectiveness of such application to overall management capabilities in decision making.
1.4 SIGNIFICANCE OF THE STUDY
This research work provides a clear understanding of one of the social implications of impact in computer technology on employment and its effect in industries. The information obtained will be useful to management, consultants, unions, professional, students, shareholders, investors, institute of higher learning, training managers, economist, and the government and so on.
The study will also be significant to other organizations willing to computerize their technological operations as well as to Banks and Guinness Nigeria Brewery.
1.5 SCOPE AND LIMITATION OF STUDY
For the purpose of this study, the impact of computer technology on employment and its effect in industries system will in scope be limited to Banks and Guinness Nigeria Brewery. Both of them are of Benin Branch. This is because of its many computerized application areas and therefore makes for better study.
I encountered some problems which stood as limitations to this study. Such problems include, time available for this study, time to generate primary data from such large organizations. Other limitations include the rigor of having to move around Benin - City and also problem of combining course work, research work and a full time job among other things.
1.6 RESEARCH QUESTIONS
The following research questions form the basic postulate of the study:-
Has computer introduction had any impact on the industries?
Has computer introduction made the employee’s job easier?
Has computer introduction provided more industrial information with same staff?
Has computer introduction made the storing and retrieval of information faster?
Has computer introduction made the industrial employment more efficient?
Has the use of computers reduced the need of employees?
Has the use of computers created new jobs?
What are the new skills that these new jobs require and how are the workers displaced to acquire these new skills?
What impact has the use of computers had on the work environment? (Has the computer made the job more interesting and easier to do, or has the computer made the job more repetitive and less interesting?)
What are the legal and ethical obligations of an employer to workers displaced by technology?
What impact has the use of computers had on the service provided to the public?
Do you agree that computer introduction brings about employment and unemployment?
Do you agree that the use of computer has both positive and negative effect on employment and industries?
Do you agree that there is equal relationship and accessibility of programmed data between the computerized system and manual system by employee?
Does computer increase output [productivity] and brings profitability as well as cost effectiveness in Business industries?
1.7 METHODOLOGY
The following techniques shall be used in evaluating the impact of computer technology on accounting system and its effect on employment for analysis.
Well-constructed questionnaire
Use of chi square method
Use of Yemane formula
BACKGROUND OF THE STUDY
Days are when most computer technology operations and decisions that have to be made on or from them are on first hand basis. People are generally fearful and distrustful of change. Change that involve new and complex technologies are especially stressful, particularly to older and less educated workers. They are fearful of losing their jobs, of losing control to machines, and of becoming
Useless. Systems analysts, software engineers, and system designers need to be aware of these fears and need to directly address these fears in an honest and forthright manner, both to enhance the probability that the new system will contain the accumulated knowledge of these workers and will be used and to
acknowledged their individual worth.
In addition, a major reason that management support the use of technology is to improve productivity, which in many instances mean the elimination (or radical redesign) of jobs.
In such a project, the designer of the new system can feel torn between their obligation to their employer to meet the specifications of the project and their
Obligations to fellow co-workers (and possibly friends) and to the needs of society. Problems can arise from projects that either will result in reduced employment or will result in the need for workers with vastly different skill
sets than that possessed by the present work force.
Today, as company and educational operations expand in size and complexity, company executives grow further removed from first hand contact with business scenes. They are to rely increasingly on second hand information about what is happening at the various stages of business operations, vis-à-vis research and development, production, marketing and consumption of goods and services. Since decisions that have to be made by executives are of profound consequences and have to be based on highly fragmented and typically tenuous information, then it is of great importance that such second-hand information is from very accurate and reliable sources.
According to A.S. Fapohunda (1963), to remedy these accurate information difficulties in, sears began establishing their twenty " two regional computer centres covering the entire United States of America. Initially, the regional computer systems processed customers’ credit accounts and general accounting data.
Later, merchandising and inventory information from system were established to provide information that the business accounting world and business operations are also busy expanding their technological and industrial bases by breaking into new grounds and improving in existing ones through the use of computers.
With the introduction of computer to many business applications, those business areas that involve repeated tasks which are often monotonous and fallible to human errors (cash, inventory control, payroll and etc.) are increasingly being simplified accurately by combining the cost, effectiveness, simplicity of use, efficiency, reliability and accuracy of the computer to obtain, analyse and interpret data information for efficient business decisions. Nigerian business organizations begin to grow in size, business operations and processes become increasingly complex, and hence computers are being rapidly introduced to cope with the overwhelming demands of business and growth. Though the introduction of computer too many facets of business operations is a welcome idea, its use is further implicated on accounting system and as such organizations need to strike a balance between accounting areas to be manually operated so as to control or limit the menace associated with unemployment.
Some of the business operations to which computer has been successfully introduced;-
Printing graphic designs of complicated nature.
Payroll system.
Billing system.
Predict election result.
Mark examination results such as JAMB and WAEC.
Control inventories.
Predict performance of an aircraft or missile still.
On drawing boards.
To calculate the critical path of most efficient assignment of troops or problems and so on.
It therefore becomes important that technological changes such as the introduction of computers in organizations be carefully evaluated so that the gains in technical efficiency are not made at the expense of the well-being and integration of employees.
In the circumstances, then a study of the implication of computer introduction to accounting system of business operations is not only timely but mandatory so as to avoid some of the problems associated with technological changes in organizations.
This research is however, limited to the implication of computer introduction to accounting system of business operations using Banks and Guinness Nigeria Brewery as computerized model organizations.
1.1 HISTORICAL BACKGROUND OF BANKS AND GUINNESS NIGERIA BREWERY IN NIGERIA.
The Nigeria banking industry which is regulated by the Central Bank of Nigeria, is made up of; deposit money bank referred to as commercial banks, development finance institutions, and other financial institutions which includes; Micro finance banks, finance companies, bureau de changes discount houses and primary mortgage institutions.
Essentially, the industry consist of 24 commercial banks, 5 discount houses, 5 development finance institutions, 50 class A bureau de change, 98 primary mortgaged institutions, 84 finance companies and 914 micro finance institutions.
In 1892 Nigeria’s first bank, the African Banking Corporation was established. No banking legislation existing until 1952, at which point Nigeria had three foreign banks (the Bank of British West Africa, Barclays Bank, and the British and French Bank) and two indigenous banks (the National Bank of Nigeria and the African Continental Bank) with a collective total of forty branches. A 1952 ordinance set standards, required reserve funds, established bank examinations, and provided for assistance to indigenous banks. Yet for decades after 1952, the growth of the demand deposits was slowed by the Nigeria propensity to prefer cash and to distrust cheques for debts settlements.
In 1952 several Nigerian members of the Federal House of Assembly called for the establishment of a Central Bank to facilitate the economic development. Although the motion was defeated, the colonial administration appointed a bank of England official to study the issue. He advised against a Central bank, questioning such a bank’s effectiveness in an undeveloped capital market.
The Central Bank of Nigeria, which was statutorily independent of the federal government until 1968, began operations on July 1, 1959. Following a decade of struggle over the relationship between the government and the Central Bank, a 1968military decree granted authority over banking and monetary policy to the Federal Executive Council. The role of Central Bank, similar to that of Central Banks in North America and Western Europe, was to establish the Nigerian currency, control and regulate the banking system, serve as banker to other banks in Nigeria, and carry out the government economic policy in the monetary field.
The Guinness Nigeria Brewery is a leading alcoholic and non " alcoholic drinks in the country and has been in existence for 40 years. It was a subsidiary of Diago Plc. of the United Kingdom, was incorporated in 1962 with the building of a brewery in Ikeja, the heart of Lagos. The brewery was the first outside the Ireland and Great Britain.
Guinness stout was first exported to Sierra Leone in 1827, and soon became popular across West Africa. In 1963, Ikeja in Lagos Nigeria was chosen as the first location outside the British Isles to brew the iconic " dark beer. Two years later, in 1965, Guinness Nigeria was listed on the Guinness Stock Exchange.
Steady growth in markets for Guinness stout and Harp Lager during the next 30 years prompted the building of three major breweries in Nigeria.
In 1974, the company built a second brewery in Benin, where it produced Harp lager beer. This facility was later expanded to accommodate a second stout brewery, commissioned in 1978.
In 1982, a fourth Guinness Brewery was built in Ogba, Lagos to brew Harp Premium lager beer.
This site too, was expanded to include Guinness stout. Several years later in 2004, Guinness Nigeria commissioned a new brewery in Aba, Abia State.
In 20011, the Benin and Ogba breweries were expanded to further increase capacity and meet growing demand for Guinness Nigeria Products.
1.2 STATEMENT OF THE PROBLEM
The importance of personnel in the accounting section of an organization cannot be over emphasized especially when one remembers the facts that these personnel support the organization from its small scale to the large scale stage when it begins to introduce computers to many of its hitherto manual operations.
However, an organization has the obligation of profit making and as such promptness of information, accuracy, speed, cost effectiveness, becomes prime factors to the organizations.
The problem of this study is therefore to find out whether or not the introduction of computer technology to accounting systems of business operations has reduced the output of the accounting sections at Banks and Guinness Nigeria Brewery.
1.3 OBJECTIVES OF THE STUDY
The purpose of this research work is to find out and evaluate the implication of computer technology on employment and its effect in industries sections of business operation with particular reference Banks and Guinness Nigeria Brewery as some of the largest organizations in Nigeria today.
The study will also attempt to find out the efficiency and effectiveness of such application to overall management capabilities in decision making.
1.4 SIGNIFICANCE OF THE STUDY
This research work provides a clear understanding of one of the social implications of impact in computer technology on employment and its effect in industries. The information obtained will be useful to management, consultants, unions, professional, students, shareholders, investors, institute of higher learning, training managers, economist, and the government and so on.
The study will also be significant to other organizations willing to computerize their technological operations as well as to Banks and Guinness Nigeria Brewery.
1.5 SCOPE AND LIMITATION OF STUDY
For the purpose of this study, the impact of computer technology on employment and its effect in industries system will in scope be limited to Banks and Guinness Nigeria Brewery. Both of them are of Benin Branch. This is because of its many computerized application areas and therefore makes for better study.
I encountered some problems which stood as limitations to this study. Such problems include, time available for this study, time to generate primary data from such large organizations. Other limitations include the rigor of having to move around Benin - City and also problem of combining course work, research work and a full time job among other things.
1.6 RESEARCH QUESTIONS
The following research questions form the basic postulate of the study:-
Has computer introduction had any impact on the industries?
Has computer introduction made the employee’s job easier?
Has computer introduction provided more industrial information with same staff?
Has computer introduction made the storing and retrieval of information faster?
Has computer introduction made the industrial employment more efficient?
Has the use of computers reduced the need of employees?
Has the use of computers created new jobs?
What are the new skills that these new jobs require and how are the workers displaced to acquire these new skills?
What impact has the use of computers had on the work environment? (Has the computer made the job more interesting and easier to do, or has the computer made the job more repetitive and less interesting?)
What are the legal and ethical obligations of an employer to workers displaced by technology?
What impact has the use of computers had on the service provided to the public?
Do you agree that computer introduction brings about employment and unemployment?
Do you agree that the use of computer has both positive and negative effect on employment and industries?
Do you agree that there is equal relationship and accessibility of programmed data between the computerized system and manual system by employee?
Does computer increase output [productivity] and brings profitability as well as cost effectiveness in Business industries?
1.7 METHODOLOGY
The following techniques shall be used in evaluating the impact of computer technology on accounting system and its effect on employment for analysis.
Well-constructed questionnaire
Use of chi square method
Use of Yemane formula
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