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Explain the reasons why a department of an organisation might continue to use manual records rather than a new, recently installed and fully operational computer system.
Several reasons might help explain why a department may be continue to use manual records rather than a new computer system. Some are listed below:
Resistance to change
There may be individual, group or cultural resistance to the alter brought about by the new computer system. The reasons for such resistance may be because of individuals' lack confidence to cope with the latest system or a feeling that jobs are threatened by the latest technology, etc.
Reliability of the new systems
The department might lack confidence in the new system and may continue to use manual records believing that these are more efficient or reliable. Fears of computer faults, internet failures and insufficient controls can undermine confidence in the new system.
Ineffective management
There may have been failings of management either in the department itself or in terms of project management that has led to inadequate, incomplete, or a total absence of communication of system advantages, training in the new system and support, etc.
Explain why the composition of the working capital of a business is as important as the value of that working capital.
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