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State if you agree or disagree with the statement made and why? Lesson #1 - Disc

ID: 410215 • Letter: S

Question

State if you agree or disagree with the statement made and why?

Lesson #1 - Discussion Forum – Linkage between Public Administration and Information Technology

   The article “Computing and Public Organizations” by Kraemer and King is an interesting look back at the prevailing questions and concerns thirty years ago about the potential impact of the use of computers in public organizations. The main point of the authors' discussion is whether a wide-spread organizational use of computers would affect the centralized or decentralized nature of an organization. While the authors conclude that any move, either way, would involve more factors than just the use of computers, they do seem to come down on the side of computer use increasing the centralization of organizational decision making. When considering the impact of computer use on the centralization of decision making in public organizations as it stands today, thirty years after the article was written, it is still difficult to make a definitive statement on whether organizations have become more or less centralized due to the use of information technology. In some cases, data gathering both with and without IT is so decentralized throughout an agency that a desired level of centralization is never achieved. A case in point is the Veterans Administration, where data from field offices were either inefficiently or never sent to regional offices that could make service-related decisions, an outcome of decentralization that had very negative consequences for the veterans that are supposed to be the focus of the agency. Other government agencies also suffer from having so many points of entry to a centralized system that the public is uncertain how to access the information they need. An example would be the military’s health insurance program, which has three or four portals that each accomplish a different task within the overall program.

      A strong and well-organized linkage between public agencies and information technology is a deciding factor in how beneficial the use of technology is to public organizations.

Explanation / Answer

I disagree with the fact the IT helps in the centralization of decision making as well as with the point that it is difficult to determine whether IT helps in decentralization or centralization. I believe IT has helped in the decentralization of decision making especially in public administration. The banking sector is a very good example.

Centralization is where the distance- between where the problems arise and where the solution is decided- is greater. In decentralization, this distance is smaller and decisions are solved closer to the place where the problems arise.

Decision making depends upon many factors- like access to information, knowledge, experience, skills, abilities, talent etc. With the inflow of technology into the hands of everyone, data collection, gathering, assortment and analysis has become easier. Data is converted into meaningful information and then into useful knowledge. This knowledge is customised for use by employees according to their needs in terms of decision making.

Now decisions which are made at higher levels are shifted and distributed at different levels where they should have been actually taken. Previously data analysis and access to knowledge were restricted to the higher level and middle managers. IT has helped in easy access to knowledge for all employees and end users resulting in decentralization. It has helped in reduction of middle managers especially.

Centralization of IT facilities need not lead to centralization of decision making. Though the pendulum is shifting in favor of centralization of IT facilities and storage – as this helps in better security and costs, the power structure and decision making have shifted more towards decentralization.

The veteran’s example given is a case of poor IT management, rather than shift in decision making. The data collected are not gathered, sorted, co-ordinated and converted to information and then knowledge. If the data management had been correct, the decision making could have been distributed better.

Every organization has an optimal mix of Centralization to decentralization.IT helps the organization to reach the optimal mix. It helps in allocation of decision making among individuals, employees and end users. Database management systems help in knowledge sharing across lower levels and technical staffs and non-administrative staffs across a huge geography offering a decision support system cutting down the number of problem escalations to higher levels as well as time and effort required for problem-solving and decision making by higher level managers

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