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Effect of Information Technology on Organizational Productivity

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Description

– Effect of Information Technology on Organizational Productivity –

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Abstract

Information technology is generally believed to be the only tool that has brought the world together as a global neighborhood. It is an unprecedented revolutionary tool that cannot be jettisoned or ignored by any forward looking manager of resources, whose objective is to succeed and have an edge over competitors.

It is in the light of this that this study attempts to examine some of the attendant effects of information technology on the marketing of consumer goods.

Data for the study was generated mainly from reliable secondary sources and the study makes use of both descriptive and analytical tools in analyzing the data collected.

The descriptive tool consists of the use of tables and ratios, while the analytical tool consists of the use of Ordinary Least Square (OLS) regression. The findings of the study reveal that there is linear relationship between Information Technology and Turnover and that they are positively related.

The magnitude of their relationship is also very high. Thus, growth in information technology has meaningful impact on growth in sales.

Introduction

1.1 Background of the Study

The chief goal of any business organization is to make profit. Following the goal of profit making, is to keeps being in business and gaining more and more share of the market – growth. Every activity of a business organization is geared towards the success of the organization.

Mullins (2002) opined that “in order to be successful, the primary objectives of the business organization may be seen as: to continue in existence – that is, to survive; (Going on Concept), to maintain growth and development; and To make profit.

All these three objectives are inextricably linked and it is a matter of debate whether the organization survives and develops in order to provide a profit, or makes a profit by which it can survive and develop.

If we accept survival as the ultimate objective of the business organization, then this involves the need for a steady and continuous profit.”

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