All entries for Friday 03 May 2013

May 03, 2013

Organizational Support on ERP

ERP systems are information systems which provide integrated processes for an organization to share information by using a common database. The organization may receive many advantages like reduce cost on operations, reduce the time to complete business processes, as well as enhance organizational performance. The adoption of ERP systems has been considered to be a key to accomplish a competitive advantage in the fast changing business environment. Brazel and Dang (2008) reported that ERP adoption creates positive market responses and ERP implementations may improve operational performance in organizations (Hunton et al., 2003).

However, not all organizations using ERP system improved their organizational performance significantly (Olson, 2004). Thence, it is important to know the success factors of ERP implementation, but also the causes of ERP implementation failure.

 From the previous studies, we can find out that numerous of theoretical models which are successful in ERP implementation. Since the ERP system is complex, employees who are involved in ERP implementation in the workplace may gain good skills and information. However, employees who lack information and/or training may feel anxiety (Olson, 2004).

Actually, those organizations that implement ERP systems successfully usually provide a better work environment for their employees which they can work efficiently with different level of supports.

Organizational support has been argued to be a critical success factor for enhance the performance of any organization (Chung and Lee, 2005) as well as for the successful adoption of a new system (Lee et al., 2006). Organizational support theory considers factors that heighten employee satisfaction and then evaluate performance of the increased work effort through their contribution.

Organizational support has been identified as a crucial value for improving employees??business performance and job satisfaction as well as emotional power (Chung and Lee,2005). Thus, organizational support has been viewed as employees resource in a workplace of any organization (Leung et al., 2008), which can help employees to determine the fraud of stressful situations, in order to cope with stress by improving their jobs in their ability.Moreover,Organizational support can sustain employees' belief and improve the task performance.

Organizational support affects BI to use the system, especially in organizations with using a technical system.Organizational support can be divided into two categories: formal support systems and informal support systems(House, 1981).

Informational and instrumental support are included in the formal systems,and instrumental support assists the individual work directly. Informational support is complementary and supplemental to formal support systems of an organization, which includes support from peers and supervisors in the workplace.

Formal support systems can include education and training of employees for new systems, such as new technologies, improved business process, ERP systems. Informal support systems can involve methods to provide a better communication with co-workers or a better work environment where learning from peers can take place.

If the organization offers sufficient support to employees for their tasks, employees are more likely to improve their performance through usage of the new system in an ERP system environment.

Also, stress of using the system would be reduced when employees who used the ERP system felt that sufficient support and information were received from the organization.

Organizational support leads to the emotional reaction of employees, and consequently reduces stress about using the system. Therefore,organizational support refers to the support-providedfor employees work in an ERP system environment.

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