International

Journal of Management
(IJM), ISSN 0976
6502(Print), ISSN 0976(IJM)
- 6510(Online),
INTERNATIONAL
JOURNAL
OF MANAGEMENT
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME

ISSN 0976-6502 (Print)

ISSN 0976-6510 (Online)
Volume 5, Issue 10, October (2014), pp. 25-32
IAEME: http://www.iaeme.com/IJM.asp
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IJM
IAEME

A STUDY OF ERP SYSTEM FOR EMPLOYEE

SATISFACTION IN AN IT ORGANIZATION
GAURAV GUPTA
Asst. Professor, Indus Business Academy, Plot No. 44, Knowledge Park III, Greater Noida &
Research Scholar, University of Petroleum and Energy Studies Dehradun
URVASHI SINGH
Analyst Executive, Devesh Foods & Agro Products

INTRODUCTION
To achieve faster growth, profit and revenue organizations are adopting various tools and
techniques. One such concept which organizations are adopting is ERP. Similar to as one wants to
reach at his destiny and that can be done by driving at a normal speed of 50 km/h and the chances
of arriving is in your favor with less risk but it will take sufficient time. On the other side it can be
done by driving at a speed of 150 km/h but the chances of arriving safely are very less. It means risk
is involved and for that you require immaculate driving skills, good vehicle and protection etc.
So if any organization opts for ERP then hasty changes can take place for higher growth;
profit and revenue by implementing ERP and now almost all organization want to use ERP. But for
that you also need high skilled people, right choice of ERP package etc .If right ERP package is
selected and implemented correctly it can increase the revenue and productivity of the organization.
Thus selection, implementation and well-organized utilization of right ERP package for the benefit
and satisfaction of the employee is very important. Otherwise rather than providing benefit to
organization the effects will be negative. So this paper is a little effort to identify the employee
satisfaction for ERP and after effects of ERP in the organization.
Keywords: ERP, Satisfaction.
RESEARCH METHODOLOGY
Since the effect of an ERP package for an organization cannot be done theoretically therefore
survey has been done in an IT organization. The research has been conducted on primary data
through questionnaire filled by professional who are currently using the ERP Package in the

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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME

organization. Techniques have been used to find the results from the primary data are as follows: A
sample of 34 professionals have been taken.
The corresponding IT organization transformed from normal way of operating to adopt an
ERP system and subsequently selected and implemented an ERP System for better result. But
unfortunately this change was not effective and efficient and employees were not satisfied with that
ERP system. So the change which has been done by adopting the ERP system for the better result
ultimately failed and this was the wastes of time, resources, and money and of course employee faith.
Thus organization updated the old ERP system to a new one to resolve the issues.
Thus with the help of a comparison between old and upgraded or new ERP system a effort is
made to discuss and find the relevant issues, satisfaction level and after effects.
Techniques have been used to find the results from the primary data are as follows:
Demographic analysis.
Analysis of each question
Hypothesis
Correlation.

LIMITATION OF THE STUDY

The main limitation of the paper would be as follows:i)
ii)

Since it is difficult to survey more organization so research will be based on only one
organization.
Survey result may suffer from human error in nature and this may not provide the true
picture of peoples perception and understanding.

DATA ANALYSIS
HYPOTHESIS
RULE FOR HYPOTHESIS

Null hypothesis is accepted.
Test value< likelihood
Pearsons value> significance level

Null hypothesis is rejected.
Test value> likelihood
Pearsons value< significance level
1.) Hypothesis between
a. Qualification of the employees
b. Satisfaction level with the ERP system
H0 (Null hypothesis): Satisfaction with the present ERP system is independent of qualification
of the employees.
H1 (Alternative hypothesis): Satisfaction with the present ERP system is dependent of
qualification of the employees.
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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME

Chi-Square Tests
Monte Carlo Sig. (2-sided)
95% Confidence Interval

Pearson ChiSquare
Likelihood Ratio
Fisher's Exact Test

Value

Df

Asymp. Sig.
(2-sided)

9.458a

.305

.235b

.093

.378

11.076

.197

.206b

.070

.342

.070

.342

9.638

N of Valid Cases

Sig.

Lower
Bound

Upper Bound

.206

34
Table 1

INTERPRETATION
In the above chi square table test value=9.458, likelihood value=11.076, Pearsons
value=.235, level of significance=0.05.Now as per the rule, in the above hypothesis test value<
likelihood & Pearsons value > level of significance, thus null hypothesis is accepted. Therefore it
represent that satisfaction with the ERP system is not dependent on qualification of the employee.
2. Hypothesis between
a. Difficulty level of the ERP system
b. Weakness of the ERP system
H0 (Null Hypothesis) - Difficulty to work with the ERP system is independent of key
weakness of ERP system.
H1 (Alternative Hypothesis) - Difficulty to work in the present ERP system is dependent the
key weakness of ERP system.
Chi-Square Tests
Monte Carlo Sig. (2sided)
Asymp.
Sig. (2Value df sided) Sig.
Pearson ChiSquare
Likelihood Ratio
Fisher's Exact
Test
Linear-by-Linear
Association
N of Valid Cases

95% Confidence
Interval

95% Confidence
Interval

Lower
Bound

Upper
Bound

Lower
Bound

Upper
Bound

Sig.

.141

.447

.294

5.713

.456

.382

.219

.546

6.799

.340

.265

.116

.413

.471

.303

.638

.559

.392

.726

5.975
.304

.581

Monte Carlo Sig. (1-sided)

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Table 2
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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME

INTERPRETATION
In the above chi-square table test value=5.713, likelihood value=6.799, Pearsons value=.456,
level of significance=0.05.Now as per the rule, in the above hypothesis test value<likelihood &
Pearsons value> level of significance, thus null hypothesis is accepted. Therefore it represent
difficulty to work in the present ERP system is independent of key weakness of ERP system.
3. Hypothesis Between
a. Benefits derived from using ERP software.
b. Effective changes to work load by using ERP system.

HO (Null Hypothesis)-Effective changes to workload by using ERP system is independent of
benefits derived from the ERP system.

H1 (Alternative Hypothesis)-Effective changes to workload by using ERP system is
dependent of the Benefits derived from the ERP system.
Chi-Square Tests
Monte Carlo Sig. (2-sided)
Asymp.
95% Confidence Interval
Sig. (2sided) Sig. Lower Bound Upper Bound

Value

df

Pearson Chi-Square

3.721a

.293

.382

.219

.546

Likelihood Ratio

5.179

.159

.265

.116

.413

Fisher's Exact Test

3.570

.382

.219

.546

Linear-by-Linear
Association

1.035c

.294

.141

.447

N of Valid Cases

33

.309

Table 3

INTERPRETATION
In the above chi-square table test value= 3.721, likelihood value= 5.179, pearsons
value=.293, Level of significance= 0.05. Now as per the rule, in the above hypothesis, test value<
likelihood & Pearsons value> level of significance, thus alternate hypothesis is accepted. therefore it
represents that Effective changes by using ERP system is dependent of the benefits derived from the
ERP system
CORRELATION
1.)

CORRELATION BETWEEN

A)
B)

Satisfaction with the present ERP system

Designation in the organization.

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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME

Correlations

DESIGNATION OF
THE EMPLOYEE
DESIGNATION
OF
THE
EMPLOYEE

SATISFACTIO
N LEVEL WITH
THE PRESENT
ERP SYSTEM

Pearson
Correlation

Sig(2-tailed)

SATISFACTION
LEVEL WITH THE
PRESENT ERP
SYSTEM
.187
.289

N
Pearson
Correlation
Sig(2-tailed)
N
Table 4

34

34

.187

.289
34

34

INTERPRETATION
The correlation between satisfaction level with the ERP system and designation of the
employee is 0.187 which lies between 0 to 0.25 which shows that correlation between the above
parameters is positively very low perfectly correlated. This represent that satisfaction level of the
ERP system is dependent on designation of employee but to a very small extent.
CONCLUSION
To grow in the competitive market change in an organization is the need of the time, and this
can be done by using various tools and techniques. But while doing a change on a large scale one
should visualize all the factors related to performance of the organization as a whole. As survey has
shown that how wrong selection, implementation and messy utilization of ERP system can put the
organization under threat; therefore this paper would help the organization to get information about
the satisfaction level of employees while working on ERP system and effect of ERP system in the
organization. Like in this case more than 50% of the employees are completely satisfied and 27% are
more or less satisfied with the upgraded ERP system and approximate 47 % says it is more efficient
and 29% somewhat more efficient as compare to old ERP system. This means that the change that
had been done earlier was not effective and required an up gradation.
The biggest reason to shift from old ERP System to new one was to improve the accuracy
supported by 70 % and reduction of work load supported by approx. 50% employee. 60% agree that
it has benefited the organization. Difficulty faced by employee to work with ERP system is
independent of its key weakness. so this difficulty may be because of some other reason like lack of
training etc. The satisfaction level of the ERP system is dependent on designation of employee but a
low extent. Effective changes in work load by using ERP system is dependent of the benefits derived
from the ERP system.
So for better result the company should be careful in selection, implementation and
utilization of ERP system and proper training should be giving to the employees.
Since research has been done by analyzing the survey by direct dealing with a IT
organization which are using ERP system, this would help the companies in understanding issues
faced by employees and the reason for their unsatisfactions and what can be done to improve it.

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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME

QUESTIONNAIRE
INTRODUCTION: This survey is to study the efficacy of the current ERP system. All information
provided by you will be used only for compilation and will be kept confidential. This exercise is
expected to take 10-15 minutes of your time. Thank you for your cooperation.
BACKGROUND QUESTIONS
NAME: ________________________
CONTACT NO.:________________________
DESIGNATION IN THE ORGANISATION: _________
PREVIOUS DESIGNATI0N: ________________
QUALIFICATION: ____________________
NO. OF YEARS IN THE ORGANISATION:______

OPINION POLL
1. Are you satisfied with the ERP system?

Not satisfied

partly satisfied

more or less satisfied

completely satisfied
2. To what degree is the ERP system efficient?

Inefficient

somewhat less efficient

equally efficient

somewhat more efficient

more efficient

3. What do you think, why organization shifted to the ERP system?

To cut out on the cost

To save time

To improve accuracy

To reduce the human labor involved
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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME

4. What effective changes it has done to your work load?

Reduced to a great extent

Reduced it but by a insignificant

Has made no change

Increased it but not a great deal

Increased to a great extent
5. To what degree ERP system has benefited the organization?

No

Partly

more or less

Completely
6. What according to you is the key strength of the ERP system?

Online updating of data

Reports functionally

Gives accurate data.
7. What according to you are the key weaknesses of ERP system?

It is very lengthy process.

Lack of control on document no. generated.

Anyone can change data that have access.

Limited customization.
8. Some changes that you would like to suggest for the ERP system.

Flexibility should be there.

Increase the band-witch

Use extra server at stand by.

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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME

9. The most resulting area of the ERP system.

Manageability

Productivity

BR Collection

Saler call
10. The benefits derived from the ERP system are.

Greater than the cost of implementing and maintaining the system

Equal to the cost of implementing and maintaining the system

Less than the cost of implementing and maintaining the system
11. Do you find it difficult to work in the ERP system?

No

Partly

To a certain degree

Yes
12. Give reason for your last selected option in the last question.
_______________________________________________________
REFERENCE
[1] N. Venkateswaran and Dr. V. Mahalakshmi, CSFS of ERP Implementations in Large Scale
Indian Organizations: A Multiple Case Study, International Journal of Management (IJM),
Volume 3, Issue 1, 2012, pp. 46 - 56, ISSN Print: 0976-6502, ISSN Online: 0976-6510.
[2] Dr. K. Nirmala, Rupal Choudhary and Jai Ram Choudhary, ERP Implementation Issues in
Higher Educational Institutes with Specific Reference to Pune Region, International Journal
of Information Technology and Management Information Systems (IJITMIS), Volume 4,
Issue 2, 2013, pp. 31 - 39, ISSN Print: 0976 6405, ISSN Online: 0976 6413.
[3] Dr. C. Swarnalatha and G. SureshKrishna, Job Satisfaction and Work Locus of Control: an
Empirical Study among Employees of Automotive Industries in India, International Journal of
Management (IJM), Volume 3, Issue 3, 2012, pp. 92 - 99, ISSN Print: 0976-6502,
ISSN Online: 0976-6510.
[4] T.Suganthalakshmi and Dr.C.Muthuvelautham, Grouping of Critical Success Factors for ERP
Implementations, International Journal of Management (IJM), Volume 2, Issue 2, 2011,
pp. 125 - 133, ISSN Print: 0976-6502, ISSN Online: 0976-6510.

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