Information technology and human resources in Kenya:the banking sector
Abstract
This study investigated the impact of information technology
(IT) on work organization, productivity change and employment using
a hybrid of descriptive and analytic methodology. In particular,
a labour demand function and a flexible cost functional' form was
specified for a single-product, three-inputs commercial banking
firm. Pooled time-series and cross-section secondary data obtained
from the firms' balance sheets and other records for the period
1980-1989 was analyzed using seemingly unrelated regression method
(SUR) . Both work organization and employment were found to have
been affected. The technology was found to be labour-saving and
capital-using without compromising competitiveness of the
innovating firms. Decreases in costs due to computerization were,
however, found to be small in magnitude and not statistically
different from zero at the 5% level of significance. This was
explained by the under utilization of the technology and/or
inappropriate information management systems in use. The policy
issues arising from these findings are threefold. To protect
employment opportunities from IT, an export-oriented production of
computer peripherals, especially software housing, is necessary.
Secondly, 'innovating firms stand to gain most from the technology
if they rely on decentralized, front office type of information
systems management. Lastly, people working in highly-information
based professions should invest in information technology skills