Electronic computer and its associated information technology present a tremendous opportunity to the organisation that is prepared to use them intelligently. On the other hand, it is apparent that the use of an electronic computer is not a panacea for poor management. As a matter of fact, excellent management is required to utilize an electronic computer successfully, and the management attributes emphasised by the computer are already of great importance to management success.
Thus, the use of a computer is likely to make poor management more apparent, and good management even better.
The introduction of a computer system is an illustration of widespread and drastic changes, and presents all of the management problems associated with such a change.
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Top management support and participation is required to accomplish such a revolutionary change, for basic objectives and policies are involved and, problems are involved at all levels of the organisation. Although the neglect of these problems does not automatically doom an installation to complete failure, solutions must be found if the installation is to be no more than mediocre.
The position of the data processing function within the organisation is of fundamental importance. In the first place, this position reflects the attitude of management towards the data processing function. If viewed as a necessary evil or a burdensome overhead it is almost impossible for data processing to make any positive contribution.
On the other hand, data processing may be a creative force if viewed according to feedback concept, as a necessary and important contribution to the management control process.
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Data processing may be conceived as a fragmented, every-man-for-himself operation, or as an overall system designed to serve the needs of the entire organisation. These various viewpoints are reflected in the organisational location of data processing and in the quality of the personnel assigned to the management of the function.
It is often necessary to make widespread organisational changes to use the new machines effectively. The work of certain sections of the organisation maybe completely taken over by the machine, while other sections should perhaps be reorganized to parallel the changed functions of the group.
One of the most common complaints against electronic data-processing machines is that management has been unable to replace the number of people it had expected to replace.
This condition is partially attributable to the difficulties associated with modifying an organisational structure which evolved through the years, and which, in the process, became so entrenched as to be almost unassailable. Sometimes these changes provoke a serious power struggle within the management.
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Typically, the old guard tends to defend the status quo, while the Young Turks see attractive advantages that may result from such changes. It is not unheard of for the computer to become a pawn in an out-and-out power struggle between opposing factions within the organisation.
A combination of inadequate administration and organisational problems associated with the data processing function has been responsible for many of the difficulties that have arisen in the use of electronic data processing machines.
The importance of placing the right man in the position of manager of data processing cannot be overemphasized for the success or failure of the entire mechanization effort is as dependent upon his managerial ability as upon any other single factor.