Dysfunctional Effects of ERP Systems"

Dr. Kerem Kseolu

Dysfunctional Effects of ERP Systems

An Executive Summary
Dr. Kerem Kseolu http://kerem.koseoglu.info The purpose of this research was to investigate potential dysfunctional effects of ERP systems on white collar employees. In times of industrialization; Friedrich Taylor lay the foundations of scientic management over blue collar workers, which would later be called as Taylorism. His approach involved worker specialization, standardization of working methods, managerial supervision & decision making and corporate power imbalance; but had some dysfunctional consequences such as task oversimplication, decreased creativity & self-esteem, alienation and dehumanization. In the information age, ERP systems provide electronic tools to implement the same Tayloristic principles. Do they also have the same similar dysfunctional effects on employees? To nd an answer, a questionnaire has been distributed among 310 SAP users from various countries, and the results have been analyzed.

Sweden %0 Czech %1 Turkmenistan %1 England %1 Belgium %2 USA %3 Germany %15

Project Manager %3 Programming %6 Data Entry %6 Technical %10 Consultant %10 Operative %37

Turkey %76

Decision %12 Reporting %16

http://kerem.koseoglu.info

Dysfunctional Effects of ERP Systems"

Dr. Kerem Kseolu

The conclusion can be summarized on the following gure:

Implementation of an ERP system relates to an increased level of standardization within the organization, as well as potential power imbalance problems between management and employers due to increased transparency and tools of control & supervision. Due to high standardization, users can experience a lack of creativity because new improvement ideas may be rejected due to costs and risks of change. They also get to perform oversimplied tasks, which may get boring over time. Increased control and transparency can potentially lead to a power imbalance between management and employees; which relates to employee alienation, dehumanization and lack of self esteem. To deal with lack of creativity, users should be encouraged for new suggestions, and signicant ones should be implemented. To prevent task oversimplication, people working on repetitive tasks can be empowered with additional responsibilities. To preserve the general job satisfaction, power balance between managers and employees should be preserved at all levels.

http://kerem.koseoglu.info