The Impacts of Technology on Businesses

Subject: Management
Pages: 5
Words: 1386
Reading time:
6 min
Study level: Master

There is no doubt that technology has radically changed the way businesses operate. In a changing world where automation has become the standard, technology has aided in making things more efficient and reliable (Orhan et al., 2021). However, technology is not devoid of challenges for employees and contemporary organizations. Technological advancements have accelerated the displacement of workers by machines that can undertake tasks more effectively and accurately and operate 24/7 a day (Orhan et al., 2021). For example, machines perform tasks that were previously done by human beings. In addition, it has reduced productivity in some organizations because employees spend more time on social media during working time (Mark, 2022). Therefore, despite the benefits of technology, it has adverse effects such as increased employee turnover, low productivity, less retention, low engagement, and more distraction.

Technology is among the factors contributing to high employee turnover in contemporary organizations. Semuels (2020) states that “one study estimates that about 400,000 jobs were lost to automation in US factories from 1990 to 2007.” Accenture reports also show that more than half of the world’s population is worried about losing employment to automation. Businesses across the globe are adopting technology to improve operations efficiency and reduce costs. For example, machines have over data entry jobs from human beings. Now, software programs and tools can carry out data entry tasks for organizations. Machines are replacing human beings in the workforce because they are viewed as efficient. As a result, employees leave jobs that are prone to machine invasion.

Technology is among the reasons for low productivity experienced in most modern organizations. The existence of social media platforms such as Facebook, Twitter, and many others takes away the time that could have been used to perform tasks in the workplace (Duke & Montag, 2017). Distraction is a problem experienced with the use of technology in organizations. For instance, regular notifications and responding to each beep or call are among the distractions caused by technology. This keeps the employees hooked on the phone and websites. As a result, the employees are more likely to spend more time on their phones and other platforms than performing assigned tasks (Mark, 2022). Thus, with increased distraction, employees may fail to achieve the set tasks or end up performing poorly.

Contemporary organizations are facing reduced engagement between employers and employees in the workplace. Technology is associated with poor engagement because it takes away the focus on users (Orhan et al., 2021). With the increased use of technological devices, especially when communicating within an organization, employees may feel they are being talked at but not engaged. When employers interact with employees through technology, the absence of questioning and body language leads to a shallow exchange. Employee engagement suffers from reduced physical interaction even in the same organization (Orhan et al., 2021). In addition, the uncontrollable use of technological devices in the workplace takes away the time that employees and employers would have taken to know each other. As a result, most organizations are experiencing low engagement due to excessive technology consumption.

Technology is associated with less retention of employees in contemporary organizations. A satisfied employee is more likely to remain in the workplace than an unsatisfied employee. With the advancement of technology enhancing automation, some employees across the globe are worried about job security (Acemoglu & Restrepo, 2019). They are not sure whether machines will take their tasks or not. In addition, with the advent of technology, some employers in organizations do not have the time to engage with the employees to understand their problems and come up with solutions. For example, instead of actively engaging with the staff, the managers and leaders spend most of their time on phones, either calling, replying to messages, or writing emails. Therefore, the employees are likely to feel less valued and dissatisfied and may decide to look for a conducive work environment.

The overuse of technology may negatively impact the health and well-being of individuals. Uncontrollable use of social media and mobile devices may contribute to psychological and physical issues, such as challenges in focusing on assigned tasks (Orhan et al., 2021). Technologies such as tablets, smartphones, and personal computers, can hold an individual’s attention for long periods. Based on this, rather than resting and sleeping, individuals may spend most of their free time browsing the internet and charting with friends on Facebook and other platforms. This indicates that they are more likely to feel tired at work because they slept late at night and woke up early. As a result, technology also increases an individual’s susceptibility to blurred vision, dry eyes, musculoskeletal issues, depression, and many more.

Technology is one of the rationales for employee absenteeism. Some of the health problems caused by the overuse of digital devices are sleeping disorders. The cumulative effects of sleep loss and sleep disorders have been linked with instances of uncontrolled sleeping behavior (Orhan et al., 2021). Moreover, excessive use of technology depletes employees’ physical and mental health by impairing their motor capabilities and capacity to make rational decisions. This problem makes it challenging for employees to wake up early and prepare for work. Additionally, increased fatigue resulting from sleeping late in the night may lead to extended sleep and, eventually fail to go to work. Finally, an employee may lack the motivation for work because technology provides the required comfort.

Despite the negative impacts, technology has some benefits in the workplace. One of the benefits is the increased efficiency of employees (Cijan et al., 2019). Time management is critical in the contemporary workplace because poor time management can lead to production delays and disgruntled customers. New technological solutions have also made time management easier for information employees. These technologies have aided in improving the daily task routine and allowing staff to concentrate on the most critical tasks (Cijan et al., 2019). This boosts employee productivity, allowing them to fulfill their objectives and, as a result, increase customer satisfaction. In addition, since technological advances have lowered the amount of time and effort required for routine work, employees may now allocate more time to innovation and developing ideas.

Most organizations are automating their operations to increase their performance. The use of technology aids in the resolution of challenges such as file management, report preparation, and progress monitoring, which frequently impede staff productivity (Ra et al., 2019). Modern businesses rely significantly on computer-assisted technologies to increase efficiency. Employees that have access to modern equipment in the workplace are more innovative and effective. Furthermore, having a real-time system for providing extensive feedback on their work could assist employees in achieving the intended result. Therefore, the effective use of technology in the workplace is more likely to increase the productivity of employees and organizations.

The effective use of technology promotes the retention of employees due to a flexible workplace. Nowadays, many organizations advocate workplace flexibility to promote work-life balance, assist employees in managing stress, and boost employee happiness (Acemoglu & Restrepo, 2019). As a result, firms support telecommuting, which allows employees to utilize the Internet and work from home or another place of their choosing. Remote workers are more likely to work more hours per week than those who must report to the office every day. Technology is taking away the boredom and dissatisfaction experienced in the workplace. In addition, technological advancement enables employees to communicate more often, regardless of their physical location. Thus, technology is an important aspect of keeping employees in the workplace.

To summarize, to understand the influence of technology on contemporary organizations, it is important to examine the advantages and disadvantages. Technology seems to cause a lot of interruption in the workplace, especially among information employees. People in the interrupted work environment had a greater burden, more stress, frustration, time pressure, and effort. Technology is the reason for high turnover among employees working in factories. Due to increased automation, employees are becoming more worried about losing their tasks to machines. However, when used effectively, it can lead to increased productivity, less stress, and low turnover. As a result, employers in an organization should adopt the right policies to guide the use and adoption of technology in the workplace. They should also ensure that employees are effectively engaged in the adoption of technology. Technology is more likely to reduce employee engagement with employers in the workplace.


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