UNDERSTANDING THE IMPACT OF MANAGEMENT FACTORS ON TECHNOSTRESS IN ERP ADOPTION AND USE

UNDERSTANDING THE IMPACT OF MANAGEMENT FACTORS ON TECHNOSTRESS IN ERP ADOPTION AND USE Adam Hayashi B.S., University of California, Davis, 1996 PROJECT Submitted in partial satisfaction of the requirements for the degree of MASTER OF SCIENCE in BUSINESS ADMINISTRATION (Management Informational Systems) at CALIFORNIA STATE UNIVERSITY, SACRAMENTO SPRING 2011 UNDERSTANDING THE IMPACT OF MANAGEMENT FACTORS ON TECHNOSTRESS IN ERP ADOPTION AND USE A Project by Adam Hayashi Approved by: , Committee Chair Dr Beom-Jin Choi Date ii Student: Adam Hayashi I certify that this student has met the requirements for format contained in the University format manual, and that this Project is suitable for shelving in the Library and credit is to be awarded for the Project Monica Lam, Ph.D Associate Dean for Graduate and External Programs College of Business Administration iii _ Date Abstract of UNDERSTANDING THE IMPACT OF MANAGEMENT FACTORS ON TECHNOSTRESS IN ERP ADOPTION AND USE by Adam Hayashi Statement of Problem In the health care industry, enterprise resource planning system users can be affected by management influences This influence can affect management factors such as work relationship, work overload, technical support, role ambiguity, and job security which it turn could affect technostress Sources of Data A comprehensive literature review on technostress and enterprise resource planning will be performed Personal interviews with experts in the healthcare field will be conducted Conclusions Reached Based on the literature review and interviews, for users of an enterprise resource planning system in the healthcare industry, management influences the management factors of work relationships, work overload, technical support, role ambiguity, and job security which affect technostress iv _, Committee Chair Dr Beom-Jin Choi Date v ACKNOWLEDGEMENT I would like to thank Dr Beom-Jin Choi for being my thesis advisor Through the many months of writing and editing, Dr Choi has had a positive attitude and influence and has been extremely helpful in completing my thesis I would also like to thank Jessie Gan, Allan Bautista, and Roy Domingo, for keeping me sane with the late night online Xbox 360 gaming sessions Playing Ghost Recon, Rainbow Six, and Call of Duty allowed me to release my thesis-related stress Without it, I would have surely quit THANKS, SQUAD!!! I would like to thank, Li'i, for keeping me company in the wee hours of the night when I was writing and editing my thesis Without her constant snoring to keep me awake, I would have definitely fallen asleep at my computer And special thanks and appreciation goes to my loving wife, Stephanie Chun, for all the support during my time earning my MSBA/MIS She has been my motivation and driving force to keep me on track to finish my thesis Without her love and understanding through this time, I would have never been able to finish Love you, Pooh vi TABLE OF CONTENTS Page Acknowledgement vi List of Tables .x List of Figures xi Chapter INTRODUCTION .1 LITERATURE REVIEW Technostress Technostress - Industries Technostress - Organizational Effects 10 Technostress - Effectors .13 Organizational Environment and Culture 14 Management Factors 17 Work Relationship 17 Work Overload 17 Technical Support 18 Role Ambiguity 18 Job Security .18 ENTERPRISE RESOURCE PLANNING 20 Enterprise Resource Planning (ERP) 20 ERP Integration 22 vii ERP Implementation 22 ERP Post-Implementation 22 ERP - Industries 23 ERP - Life Cycle 24 RESEARCH METHODOLOGY 27 Qualitative Research Method 27 Data Analysis Steps .28 DATA ANALYSIS AND RESULTS 31 Literature Search 31 Personal Interviews 32 PROPOSITIONS .36 Management, Technostress and Productivity under ERP 36 Management Influence 38 Work Relationship and Technostress 39 Work Overload and Technostress 39 Technical Support and Technostress 40 Role Ambiguity and Technostress .41 Job Security and Technostress .42 Technostress and Productivity .42 DISCUSSION 45 Work Relationship .45 Work Overload .45 viii Technical Support 47 Role Ambiguity 48 Job Security 49 Possible Relationships 49 Limitations 52 Future Directions 52 CONCLUSION 54 Appendix A Sample Survey 55 Bibliography 58 ix LIST OF TABLES Page Table Common Qualitative Methods 27 Table Technostress Search Results 31 Table Enterprise Resource Planning - Productivity Search Results .32 Table Management Factor - Technostress Relationship 50 x 48 finance analyst cannot complete their work Without the system, their productivity for the day can decrease Having technical support readily available to solve their problems can reduce their technostress and possibly increase their productivity According to the interviewees, their organization's technical support helps them complete their job tasks When issues emerge, technical support usually solves them in a reasonable time Depending on the type of ERP issues, the resolution time can be between a few hours to a few days The faster technical support can resolve the issues, the better it is for the workers Idle time can be detrimental for an organization's effectiveness and efficiency It can also lead to an increase in technostress because of the work stoppage If the ERP system is not functioning properly, the workers cannot complete their job tasks especially if the ERP system is necessary Role Ambiguity Using an ERP system increases the effectiveness of an organization's workers It can create more efficient business processes as well as new job tasks It is necessary for management to re-define and assign this new tasks and processes to the workers If this is not done, the workers can become frustrated because they not know who is responsible for the new processes For individuals who have initiative, this is not usually an issue because they are willing to accept the new responsibility For other workers, if they are not specifically assigned to a task, they will not it Because of the unclear role definition, many workers can suffer from role ambiguity This uneasiness can affect workers by creating a sense of uncertainty that can lead to technostress Role ambiguity can lead to tasks not be completed and ultimately decreases an organization's efficiency 49 The uncertainty of not knowing who is responsible can create anxiety of the workers The job tasks can be shifted from one functional group to another which is inefficient The ERP system can create an environment where this role ambiguity can thrive unless management uses its influence to dictate the workers' specific roles Without management intervening, role ambiguity will increase amongst an organization's workforce Job Security One reason for implementing an ERP system is to reduce operational costs for an organization One consequence of this action could be a reduction in an organization's work force which can create job insecurity for the remaining workers Management influences can also affect this job security by forcing the remaining workers to learn the new system If the not, they could be replaced by management This anxiety of learning the new processes could lead to technostress Workers must be willing to embrace the new technology Possible Relationships This study has possible effects on an organization's management Based upon the interviews, management factor can have an effect on technostress which in turn can affect productivity Based on the model, the following relationships could be possible (Table 4) 50 Management Factors Level Technostress Relationship Work Relationship Work Overload Technical Support Role Ambiguity Job Security + + + + + + + - Inverse Direct Inverse Direct Inverse Table Management Factor - Technostress Relationship The work relationship, technical support, and job security management factors have an inverse relationship with technostress, while the work overload and role ambiguity management factors have a direct relationship with technostress If the above relationships are correct, the following concept would be true First, by examining the specific management factors of work relationship, work overload, technical support, role ambiguity and job security, management can implement different methods to control these factors in order to increase worker's productivity Being aware of these management factors will allow management a better understanding on how to increase productivity Second, management can alter an organization's culture in order to decrease technostress and increase productivity Altering an organization's business culture can change the worker's attitudes Having workers who can positively thrive in its organization's work culture allows management to focus its workforce towards being more effective and productive An organization that becomes more efficient reduces it operating costs Third, the idea of technostress can be brought to the attention of management Usually work-related stress is associated with job tasks and job roles 51 Technostress is not usually mentioned when it comes to stress By identifying what factors affect technostress can assist an organization in reducing job-related stress When an organization understands what factors affects technostress, it can implement processes or programs that help manage it Technostress-reduction practices such as limiting the amount of exposure to the technology can be implemented Another practice that can be introduced is having the supervisors understand the capabilities and limitations of the technology This would allow the supervisors an opportunity to understand the amount of work that can be processed and completed with the technology If an organization can minimize work-related stress such as technostress, it can become more efficient and effective in its business practices If the survey was administered to a group, the data could be used to reinforce the above relationships Factor analysis and linear regression could be applied to the data in order to suggest this correlations and relationship that were stated by the interviewees The Tarafdar et al study has shown that there is a relationship between technostress and productivity This means there is an inverse relationship with productivity As technostress increases productivity decreases If the relationships presented in Table are correct, management should be able to increase its work forces' efficiency A balance among all the management factors could be maintained in order to increase productivity to a higher level Limitations This study does have limitations First, this study only examined a specific industry and targeted specific users in this area Findings from other industries and other 52 specific areas could yield different results Second, because of limited resources, a survey was not completed If a survey is going to be administered, obtaining a large sample size will be necessary in order to validate the proposed relationships Obtaining survey data would also add a quantitative component that could strengthen relationship between management factors and technostress Third, the interviewees used in the study are both from an organization's finance group It is possible that if a different set of interviewees were used, a different viewpoint or perceptive would be observed Future Directions Because of the limitations of this study, it allows for a large range of future directions First, it is possible to examine external influence that affects management factors Some external factors could be government regulations, changes in the market, and competition Studying these external influences could provide a better understanding on how to manage and control the amount of technostress in an organization Second, examining different industries might prove to be useful in controlling technostress Existing fields as well as newly developed fields could benefit from this type of study Third, examining how management style affects these different types of management factors could also be insightful This would allow users to understand how management style affects the different management factors Fourth, examining how the different effectors influence each other can help us develop a new framework that can be used to control and manage technostress An organization could use the newly developed framework to reduce work-related stress which in turn could increase productivity 53 Chapter CONCLUSION With technology being so readily available to organizations, understanding how it affects an organization's workers is important Determining different factors that affect the workers can be instrumental in increasing productivity One area that can affect this is management Because of management's influence, management factors can affect technostress Based on the literature review and the interviews, the management factors of work relationships, work overload, technical support, role ambiguity, and job security could affect technostress which in turn can affect an organization's productivity By understanding how management and management factors can affect workrelated stress such as technostress, an organization can learn how to minimize and control it When an organization can control work-related stress, it can affect its productivity This productivity can leaded to being more profitable and efficient This efficiency can lead to reducing an organization's operating cost and increase an organization's effectiveness 54 APPENDIX A Sample Survey Survey on Management Factors, Technology Stress, and Productivity Thank you for participating in the following survey that addresses how management factors affect technology stress and productivity in the context of an organization’s Enterprise Resource Planning (ERP) system An ERP system is an integrated computer-based application that is used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources The following survey consists of twenty-three questions that ask your opinion about management, technology, and organizational roles The survey should take about to 10 minutes to complete Please choose your answers from the following scale: – Strongly disagree – Disagree – Neither agrees nor disagrees – Agree – Strongly agree Do you use an ERP system at your workplace? (For example, SAP or SAS, but does not have to be limited to these two) If yes, what type of system you use? If the above answer is yes, please continue taking the survey If no, you can stop taking this survey Thank you for your time Work Overload I feel my supervisor expects me to process large amount of data in a short period of time I feel my supervisor assigns more tasks to me than I am capable of completing I feel overwhelmed with the work tasks I need to complete Role Ambiguity I feel my supervisor does not explain my role in my organization 55 I feel my supervisor assigns tasks that extend past my job duties I feel I perform tasks that are supposed to be completed by another person or group Technical Support I feel my organization has the proper technical support to complete my tasks I feel my supervisor allows me access to the proper technical support 10 I feel technical support helps me complete my job tasks Technostress 11 I am forced to work much faster because of management’s higher expectation and my organization’s ERP system 12 I am forced to more work than I can handle because of management’s higher expectation and my organization’s ERP system 13 I am forced to work with very tight time schedules because of management’s higher expectation and my organization’s ERP system 14 I am forced to change my work habits to adapt to my organization’s ERP system Productivity 15 My organization’s ERP system helps to improve the quality of my work 16 My organization’s ERP system helps to improve my productivity 17 My organization’s ERP system helps to perform my job more accurately 18 My organization’s ERP system helps to complete my task more quickly Information about you 19 What is your gender? a Male b Female 20 What is your highest educational degree earned? a High school b Two-year college 56 c d e f Bachelor’s degree Master’s degree Doctoral degree (PhD, MD, or JD) Other 21 What department or functional group you work in? a Medical Practitioner (Doctor, Nurse, etc) b Corporate Management c Finance d Operations e Informational Technology f Other 22 How many years have you been at your current organization? a – years b – 10 years c 10 – 15 years d 15 or more years 23 How many years have you been working in the Management Informational System (MIS) Field? a – years b – 10 years c 10 – 15 years d 15 or more years 57 BIBLIOGRAPHY Abdul-Gader, Abdulla and Kenneth Kozar "The Impact of Computer Alienation on Information Technology Investment Decisions: An Exploratory Cross-National Analysis." 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