TECHNOLOGICAL

ENVIRONMENT
Meaning- Technology is a systematic application of
scientific or other organized knowledge to practical
tasks….J.K.Galbrith.
Technology includes the tools –both machines and ways of
thinking – available to solve problems and promote progress
between, among and between societies.
Technology includes not only knowledge or methods that are
necessary to carry on or to improve the existing production
and distribution of goods and services, but also
entrepreneurial expertise and professional know-how.
 FEATURES OF
TECHNOLOGY
1) Technology relates to change- technology forces
change on people. In modern society ,it has brought quite fast and
furiously changes, it is called FUTURE SHOCK.

2) Effects of technology are widespread-technology ripples

through society until every community is affected by it.

3) Technology feeds on itself- technology makes more

technology possible. Technology acts as a multiplier to encourage its
own faster development.

4) Technology is a complex set of knowledge, ideas, and methods

and is likely to the result of a variety of activities, both internal and
external.
 IMPACT OF TECHNOLOGY

It can de headed under three heads :

a) Technology and social change

b) Economic effects of technology

c) Technology and plant level changes

 TECHNOLOGY AND SOCIETY
1)Technology reaches people through business- managers of
business organizations pool the necessary resources and use new
discoveries to convert them into usefulproducts.societ depends
on business to benefit from new discoveries flowing into useful
goods and services for all mankind.
2) High expectations of consumers- technology has contributed to
the emergence of affluent societies. New varieties of products,
superior in quality, more safe n more comfortable , are to be
supplied to the consumers. This calls for substantial investment
in R& D.
3) System complexity- technology creates complexity. As a result
living becomes more complex.
 TECHNOLOGY AND SOCIETY
4) Social change - a) there is change in social change due to
technological change. An invention may destroy the economic basis
of a city, displace thousands of workers, yet same invention may
result in the creation of new city somewhere.
b)Technology changes the pattern of their social life. A invention
may open new employment opportunities to women, change in
working hours, increase in leisure hours, open jobs to youth.
c)Technology helps iron out social differences but has created status
differences instead.
5) Technological phases and social system they create-
Technology has brought , along with it, new words, new food, new
dress and habits.
 TECHNOLOGY AND
1)
ECONOMY
Increased Productivity -Technology results in increased
productivity in terms of both quality and quantity. Like, in
hospitals, it is qualitative and in factories, it is quantitative in
nature. Improved productivity , results in increased wages and
fall in prices.
2) Jobs tend to become more intellectual- advanced technology
needs employees who are knowledgeable and skilled.

3) Problem of techno structure (scientific and professional

workers) - an organization with new technology have pool of
scientists, engineers, college graduates, highly skilled workers. It
creates problem like- retention of employee, difficulty in placing
people in a pattern.
 TECHNOLOGY AND
ECONOMY
4) Need for bioprofessinal and multiprofessional managers have
increased.

5) Increased demand for capital- today’s technology necessitates

massive investment of money on acquiring or discovering new ideas
and their adoption, educating, training and maintaining of the
managers.

6)Rise and decline of products and organizations- a product have its

own life cycle. So new technology may destroy an existing product,
like TV. replaced radio, xerography hurt the carbon paper business
or i-pod replaced the walk- man etc.
 TECHNOLOGY AND ECONOMY
7) Expenditure on R&D - a) A company must make the required resources
available for effective R&D.
b) Technology transfers, the process of taking new technology from the lab to the
market is equally important. This transfer takes larger time as org. grow in size.
c) As new technology comes in, old technology needs to be abandoned. The R&D
manager must determine this technological discontinuity.
d) Technology can be either outsourced or developed through in- house R&D.apart
from in- house R &D, firms can also tap the R&D capabilities of competitors,
suppliers, and from others through licensing, R&D agreements and joint ventures.
e) Next issue relates to decision on product innovation or process innovation. In
early stages product innovation are imp. as products physical attributes and
capabilities will affect financial performance. later , process innovation such as
improved manufacturing facilities, improved quality and faster distribution becomes
important in maintaining product economic returns.
 TECHNOLOGY AND PLANT
IMPLICATIONS

Any technological advancement will result in expanded range of products,

substitution of capital for labour,intiation of changes in behaviour of
customers, suppliers, employees or society.
 TECHNOLOGY AND PLANT
IMPLICATIONS
2) Fear of risk - adoption of new technology comes with the fear of risk.

3) Total quality management- It refers to the deep commitment of an

organization to quality. new principles of TQM are- meet consumer
requirement on time, to do error free work, manage by prevention , not by
correction, measure the cost of quality. it have implications for both
employees and manager to improve their working.

4) E- COMMERCE AND E- BUSINESS- E- commerce focuses on

distribution. marketing and sales process , e- business emphasizes integration
of systems, processes, organization, markets. E –commerce through is made
possible through technology. It provides several benefits to business like ,
convenience in conducting business, an electronic meeting and trading place
adds efficiency to business, benefits to consumers in form of increased
options, efficiency in distribution.
 TECHNOLOGY AND PLANT
IMPLICATIONS
5) FLEXIBLE MANUFACTURING SYSTEM- under FMS,
machines are designed to produce batches of different
products.
•It is integrated computer aided design, engineering and
manufacturing, can produce a large volume products.
•With fms, when management want to produce new part , it
does not need to change mavhines,it needs to change only
computer programming.
•Under fms, workers need training and higher skills.
 MANAGEMENT OF
TECHNOLOGY
•TECHNOLOGY is a high risk, costly and uncertain activity. To
cover the cost ,consumers are charged prices excessively higher than
cost of production.ex , pharmaceuticals co.

•There is a risk of a product being duplicated or closely imitated.

•Developed nations do not easily lend technology to others. Also,

basic infrastructural facilities like training of technicians and
supervisors, testing facilities, replacement parts are not easily
available.

•Even when a company is willing to transfer technology, finding a

collaborator and obtaining clearance from the government is a
problem.
 MANAGEMENT OF
TECHNOLOGY
•Three factors which impede technological growth are