ABSTRACT
This project work takes a look at the effect of information technology on
corporate performance of an organization
with reference to Guaranty Trust
Bank Plc, the study is meant to find out the problems encountered by
accountants in carrying out their banking works in the course of the research
survey. employee were made to cope with the demands of Information and
Communication Technologies (ICT) dominated global banking industry but despite
these achievements Nigerian banks have witnessed severe downturn in their
profit and many of them have almost collapsed. It was discovered that some of
those problems such as shortage of skilled manpower, accelerated obsolescence,
excessive power failure, poor communication, inadequate financial resources and
low level of industrialization in the country at large are dealt with. The data
analysis used for this research was chi-square analysis, it enable us to discover that putting this
aforementioned in place, will enable us attend to those non-quantitative duties
within the banking sector such as time saving both to bank staff and customers.
It will drastically reduce waste and cost, also it leads to more accuracy and
increase speed in preparation of financial statement including staff and
customers data in the bank. Computer and telecommunication systems have become
very important delivery system and productivity tools of electronic data and
information. Nigerian financial institution such as Guaranty Trust Bank Plc,
has now realized that financial services today require prompt delivery
services, efficiency and the ability of customer to be served in any of their
braches in any part of the country. Hence the level of information technology
has a positive impact on banking operation such as Guaranty Trust Bank Plc. The
result obtained from responses shows that introduction of computer facilities
has greatly improved the services of financial institutions.
TABLE
OF CONTENT
PAGE
Title page i
Certificate ii
Dedication iii
Acknowledgement
iv
Abstract v
Table of content vi-vii
CHAPTER ONE: INTRODUCTION
1.1 Background
of the Study 1
1.2 Statement of the Problem 5
1.3 Purpose of the Study 5
1.4 Significance of the Study 5
1.5 Scope and limitation of the Study 6
1.6 Research methodology 6
1.7 Research Questions 7
1.8 Research Hypothesis 7
1.9 Data Analysis Techniques 8
1.10 Definition of Terms 8
1.11 Summary 9
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 10
2.2
Information System and Information Technology 12
2.3 History of GT Bank 14
2.4 Level of Information Technology in GT Bank 17
2.5 The
Effect of Information Technology [IT] 19
2.6
Business Activity in the Information Age 22
2.7
Business Information Technology (B.I.T) 24
2.8 Strategic Advantage Using
Information Technology (IT) 26
2.9 Competitive Advantage through
Information System
Information Technology (is/it) 27
2.10 Technology Growth in the
Information Age 29
2.12 Intangible Benefit of
Information Technology 31
2.10 Summary 34
References 35
CHAPTER
THREE: RESEARCH METHODS
3.1 Introduction 37
1.2
Research
Design 37
.3 Re-statement of Research Questions 38
3.4 Re-statement of Research Hypothesis 38
3.5 population of study 39
3.6 Sample and Sampling Procedure 39
3.7 Data Collection Instrument 40
3.8 Data Analysis 41
3.8 Validity and Reliability of the Study 42
References 43
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction 44
4.2: Data Analysis 44
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1
Introduction
60
5.2
Summary of Findings 60
5.3
Conclusion 62
5.4 Recommendations 62
5.5 Suggestion
for Further Study 63
References 64
Appendix 66
CHAPTER
ONE
INTRODUCTION
1.1 Background
of the Study
Information
Technology (IT) “is a general term that describes any technology that helps to produce,
manipulate process, store, communicate, and/or disseminate information” William
Sawyar (2005). Other researcher named Shelly et. Al (2004) say that IT includes
hardware, software, databases, networks and other related components which are
used to build information systems. As a need IT progressed along with
socio-economic development in developing countries. In a very short time IT,
with rapid growth has become the back bone in modern industrial society and the
major contributor to the progress of both developing and developed countries
(Vasudevan, 2003; Long and Long 1999).
Through
declining cost, both in hardware and software, IT has spread very rapidly into
all the industries of Pakistan.
In 1957 “Packages limited” has started the process of computerization in Pakistan and it
is considered the first company in Pakistan, which started using
computers. Though, in International Research Journal of Finance and Economics -
Issue 39 (2010)
In
the beginning Pakistani Government was reluctant to adopt IT but now in every
private and government organization computer is at fore front. In Pakistan
internet service was started in 1995 along with upgrading telephonic
infrastructure. Now IT related issues/matters are being monitored by IT
Ministry in Pakistan
(Kazmi, 2003; Rizvi, 2005). Many other departments like Electronic Government
Directorate, Pakistan Computer Bureau, Pakistan Software export board, Pakistan
Telecommunication Authority, Computer Society of Pakistan are also working side
by side IT Ministry to boost IT in the country(Ghauri, 2003, 2006a, 2006b).
Financial
sector is the major user and large investor in use of IT. It was among the
first to incorporate electronic data processing in its operations, through cheque
handling, bookkeeping credit analysis and ATMs (Bender, 1986; Martini, l999;
Vasudevan, 2003). The computers usage in banking sector first started in the
early l950s. Bank of America was the first user of computer in banking sector.
The use of Automated Teller Machine ATM. (Developed by Don Wetzel in 1973) was
greatest achievement of online and real time automation by the commercial
banks. ATM was first installed at Chemical bank in New York (Shelly and Cashman 2004). In Pakistan
banking sector is also progressing rapidly with growth of local and
multinational banks (Mabmood 2006). Many local banks are working in private
sectors and started their operations since 1992 (SBP Report, 2005). It was year
1965 when computer was introduced first time in banks in Pakistan. The
main commercial banks in private sectors i.e Habib Bank, United Bank, Muslim
Commercial Bank started acquiring computer to regulate their banking work since
that year (Hussain, 2003, Akhtar 2006a, 2006b). The most recent automated
banking systems like Misys, Sibel and Fidility etc have been installed in many
of the Pakistani Banks (Kazmi 2004, 2005; Shaukat et. al, 2009).
Like
banking, IT is the corner stone in every manufacturing industry, as well. IT
provides many manufacturing firm advantage to different organization to be the
world-class manufacturer. In 1957 “Packages Ltd” was the first manufacturing
company in Pakistan
which introduced computers. After that many other companies started using IT
and now it is very common in all manufacturing companies. Within the industrial
sector, the use of Enterprise Resources Planning (ERP) software (an integrated
IT software system comprised of several modules that share a central database,
designed to automate business process across the enterprise (Thomas and
Michael, 2001)) has increased. E.R.P software packages such as SAP, Oracle etc.
are being commonly used in many manufacturing industries (Rizvi, 2005; Shahid,
2005)
According
to Wheelen and Hunger (2000) the organization performance is an accumulated end
result of organizational process and activity. These are measured by
organization’s working and activity. The organizational management ginger the
organizational performance, control and customer value, as it impact reputation
of organization. Commonly organizational work measures include organization
effectiveness, productivity/efficiency and industry ranking (Wetherbe et.al.
1999). Efficiency is defined as “minimum utilization of resources and getting
maximum output” and effectiveness is “how well job gets done” (Robbin and Coulter,
2003).
Many
researchers like Parthasamthy and Sethi (1993), Dell and Elliot (1999) etc.
have investigated the impact of IT on quantitative performance variable i.e
incomes/profits of the ‘companies and founds positive impact. Whereas, Frankin
(1997), Zee and Han (2002) etc. have, seen the increase/decrease in different
qualitative performance indicators i.e. customer satisfaction, company image,
job interest of employees, stake holders confidence, interoffice link etc. and
also have found positive impact. This paper assesses organizational performance
with regards to increase/decrease in quantitative performance indicators i.e.
mainly income for Pakistani organizations operating in banking and
manufacturing sectors after using more IT.
1.2 Statement
of the Problem
Information
technology projects fail at a higher rate than projects in other industries.
The high rate of failed or incomplete information technology projects
negatively impacts organizational performance, costing organizations more than
$55 billion in losses. Coupled with
frequent fraudulent practice involved in the system.
1.3 Purpose of the Study
The
objective of the study is to appraise the impact of information technology in
organizational performance.
2.
To examine if there is any change in the
level of output after the adoption of information technology practice.
3.
To establish if the practice of
information technology will enhance organizational efficiency and productivity.
4.
To investigate on the factors that
inhibits the effective planning of organizations service delivery and to find
out whether the use of IT has helped to improve on the organizational
productivity.
1.4 Significance of the Study
The
study is relevant to the growth and survival of business organizations, the
research findings will help business managers and firms to understand the
relationship between information technology and organization performance.
Thereby shedding light on how quality infrastructure can enhance decision
making and all other aspect that have a bearing in an organization capacity and
ability to implement its strategies and achieve performance.
The
research finding will expand the frontiers of knowledge and broaden the
horizons of future academics, researchers business analyst, managers,
consultants and others who may be conducting research on similar or related
topic.
1.5 Scope and limitation of the Study
Information
technology and organizational performance being an important topic and couple
with the energizing interest and innovations in this area, this research study
will try as much as possible to establish a correlation between these two
phenomena. But for such limitations as finance, geographical coverage, time
constraints and problems associated with data collection and level of
development.
1.6 Research methodology
The
method used will be percentage and questionnaires and will be distributed and appropriately completed which
consequently rendered them useful for data analysis. Tables are simple
percentage and frequency distributions will be used to analysis the data
gathering while Chi- square test will be used in hypothesis testing.
1.7 Research
Questions
This
study will attempt to provide answer to some significant and pertinent
questions.
1.
Does the application of information
technology has any effect on organization efficiency and performance output
level
2.
Does information technology base application
affect output level?
3.
How can organizational efficiency be
improved with the employment of information technology tools
4.
Does proper information technology
planning aid the organizations service deliver?
1.8 Research Hypothesis
H0:
Information technology applications do not increase performance level.
H1:
Information technology applications increase performance level.
H0: Information technology does not increase the
fortune and profitability of banks or corporate performance of the organization.
Hi: Information technology increase the fortune
and profitability of banks on corporate performance of the organization.
1.9 Data
Analysis Techniques
The
techniques and method of data analysis and interpretation would be based on
analysis of variance and tabulation will be used, this is to ensure that proper
analysis at various variables are examined as exemplified in the hypothesis. It
also ensure that every problem units of analysis of the research work has equal
chance of being dually represented by the analysis. Pilot study will be
conducted to pre –test the study schedule. A non- parameter test used was
Chi-square test.
(x2)
Formula (x2) = X2 = (E-0)
E
1.10 Definition of Terms
As
A means of familiarizing the prospective of this research work, has the
following meaning of these terms:
Information System:
This is a group of interrelated and interdependent tools for processing,
storing and distributing information.
Information:
A set of processed data, which is readily available for use and decision
making.
Technology:
the scientific study and use of applied science
Performance:
The measure of the relative presentation of input needed to produce a given
output.
Infrastructure:
The basic technological structure and facilities necessary for an information
technology system to function effectively.
Application:
A special, purpose made program designed to perform a particular task.
Program:
A coded infrastructure showing the logical steps the computer follows to carry
out a function.
Organization:
This is an organized body usually a business entity.
1.11 Summary
To
test the hypothesis, Chi –square test method will was used to analysis the
variability of the management, staff and the customer’s satisfaction regarding
information technology on cooperate performance of an organization like
Guaranty Trust Bank plc.
Hence
it will have a positive effect on corporate performance of an organization such
as Guaranty Trust Bank Plc.
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