Analysis of institutional and business stress under new technologies implementation

• Author: Drumea C.
• Pages: 115-122

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 9 (58) No. 1 - 2016

Analysis of institutional and business stress under

new technologies implementation

Cristina DRUMEA1

Abstract: The paper explores the business cycle changes, costs and impact of a new

software ERP (Enterprise Resource Planning) usage onto the work flows, employees’

performance and professional behaviour, time line processes and overall performance of the

activity in a public organization. The research is empirical, but lead by factual observations

and data on institutional stress prompted by change in a large public organization. It stays

mainly onto the HR input as both promoter and dissuader of the process, while wider

organizational implications are being brought out as part of the equation.

Key-words: institutional change, ERP, performance, organizational stress

1. Introduction to an ERP solution

What is ERP and how does it work? We hear about it, we see that more and more of

the large organizations in particular decide to implement it, lately even the public

entities; it must be more than a fashion to it and it really is when we look at the

functions it integrates and the advantages it is bringing to the organization’s work

flow. The Enterprise Resource Planning (ERP) is basically a software tool that

facilitates the integration of all data in a unique platform that maintains in a common

database the information needed for a variety of business functions such as: financial

processes, Manufacturing, Supply Chain Management, Projects, Human Resources

or Customer Relationship Management. It is well known that all the processes and

functions belonging to the value chain of a company contribute to the company’s

success or failure. These processes and functions do not act in an isolate way: no

process or function alone can ensure the success of the chain (Şeitan Bărbulescu,

2008). We extract from this simple certainty the need of harmonization between

sources of organization’s performance.

Moreover, the ERP solutions have as well an impact on measuring

organization’s performance overall. Such expectations and assessments are

commonly coming from leaders of an organization, these tools are designed to help

their daily providing high level, executive information systems with dashboards

1 Transilvania University of Braşov, cristina.drumea@unitbv.ro