AHAM NZENWATA
ABSTRACT
This paper was aimed investigating
computer based information system as a tool organizational effectiveness. In
order to achieve the purpose of the study, data was collected from 25
respondents through the issue of questionnaires. The collected data was analyzed
using Pearson Correlation Coefficient. The
results of our data analyses showed that: the use of computer based accounting
information system was positively and significantly correlated to
organizational effectiveness. Thus, as organizations implemented computer based
accounting systems, their ability to effectively deliver on the objectives of
the firm is predicted to also increase. This finding is an indication that
computer accounting information in the organization stimulates growth by
infusing effectiveness and efficiency in service delivery. Given the finding,
we recommend that organizations continue to implementing and upgrading the
computer based accounting information systems. We also recommend that
organizations provide adequate training and retraining in order to ensure that
maximum benefits are derived from the implementation of the accounting
information system. Finally, we
recommend that organizations constantly monitor the the system to ensure that
it is not vulnerable to security breaches.
1
INTRODUCTION
Business organizations are constantly
searching for new ways to achieve higher levels of efficiency and effectiveness
in service delivery. Naturally and quite rightly too, organizations quite often
focus their attention on the computer in this regard. The reason for this is
not farfetched as the computer has proven itself to be an excellent tool for
boosting productivity in the work place. There is hardly any activity in the
business organization today that can be performed from end to end without the
use/input of computers.
Nowhere in the organization is the
use of computers more pronounced than in accounting and record keeping. The use
of computers in accounting have developed to such an extent that the entire
process of Accounting Information System has been totally reviewed and modified
in order to make room for the use of computers. In fact, one can safely say
that the computer is now the basis for designing or implementing a workable
accounting information system in the work place today.
According to Wikipedia (2010), an
accounting information system is generally a computer-based method for tracking
accounting activity in conjunction with information technology resources. The
resulting financial reports can be used internally by management or externally
by other interested parties including investors, creditors and tax authorities.
Accounting information systems are designed to support all accounting functions
and activities including auditing, financial accounting & reporting, managerial/
management accounting and tax.
Dindi and Ryan (2013) state that computerized
accounting systems have replaced manual-based accounting in virtually all
businesses and organizations, providing accountants, managers, employees and
stockholder’s access to vital accounting information at the touch of a button.
Computerized accounting systems automate the accounting process--improving
efficiency and cutting down costs. And it tends to be more accurate, faster to
use, and less subject to error than its manual counterpart.
Therefore, we can infer from the
above that in today's computerized, interconnected, global business
environment, Computer based Accounting Systems are expected to be the drivers
of growth and efficiency. Hence, organisations spend huge amounts of money
annually in the acquisition and upgrade of their computer accounting
information systems.
But is the costs incurred in this
process justifiable? Can we confidently assert that computer based accounting
information systems has lived up to expectations as a tool for organizational effectiveness?
Providing answers to the above questions forms the basis of embarking on this
research. Thus, in the following sections, we shall highlight the meaning of organizational
effectiveness and how computer based accounting information systems can
contribute to this.
2
REVIEW OF RELATED LITERATURE
2.1
CONCEPTS AND THEORIES
Organizational effectiveness is the
concept of how effective an organization is in achieving the goals and
objectives the organization has set for itself. Organizational effectiveness is
the concept of how effective an organization is in achieving the outcomes the
organization intends to produce. According to Richard et al. (2009)
organizational effectiveness captures organizational performance plus the
myriad internal performance outcomes normally associated with more efficient or
effective operations and other external measures that relate to considerations
that are broader than those simply associated with economic valuation (either
by shareholders, managers, or customers), such as corporate social
responsibility.
Organizational effectiveness is an
abstract concept and is basically impossible to measure. Instead of measuring
organizational effectiveness, the organization determines proxy measures which
will be used to represent effectiveness. For example, an organization may
determine that its measures of effectiveness of the computer based accounting
information system to include (1) How fast they can process payments for
clients (2) The accuracy of the records and (3) the speed of retrieving stored
information.
Accounting Information Systems are
considered important organizational mechanisms that are critical for
effectiveness in decision management and control in organizations. (Galbraith,
1983; Zimmerman, 1995). Accounting Information Systems will be useful when
information provided by them is used effectively in decision making process by
the users.
Accounting Information Systems are
considered important organizational mechanisms that are critical for
effectiveness in decision management and control in organizations. (Galbraith,
1983; Zimmerman, 1995). Accounting Information Systems will be useful when
information provided by them is used effectively in decision making process by
the users. Accounting Information Systems are considered important
organizational mechanisms that are critical for effectiveness in decision
management and control in organizations. (Galbraith, 1983; Zimmerman, 1995).
Accounting Information Systems will be useful when information provided by them
is used effectively in decision making process by the users.
Accounting information systems are
said to be effective when the information provided by them serves widely the
requirements of the system users. Effective systems should systematically
provide information which has a potential positive effect on decision making
process (Ivest et.al, 1983). The effectiveness of computer based accounting
information systems has long been a subject of many research, (Chong, 1996,
Chenhall and Moriss, 1986, Kim, 19988, Mia and Chenhall 1994).
Otley (1980) argues that accounting
systems are an important part of the fabric of organizational life and the need
to be evaluated in their wider managerial, organizational and environmental
context. Therefore the effectiveness of accounting information systems not only
depends on the purposes of such systems but also depends on contingency factors
of each organization.
The main function of Accounting
Information System (AIS) is to assign quantitative value of the past, present
and future economics events. AIS through its computerized accounting systems
produces the financial statements namely income statements, balance sheets and
cash flow statement. The system will process the data and transform them into
accounting information during input, processing and output stages that will be
used by a wide variety of users such as internal and external users (Wilkinson,
2000).
Wilkinson et al, (2000) noted that an
effective Accounting Information System (AIS) performs several key functions
throughout these three stages such as data collection, data maintenance, data
Accounting Information Systems (AIS) and Knowledge Management; data control
(including security) and information generation. Accounting Information Systems
are considered important organizational mechanisms that are critical for
effectiveness in decision management and control in organizations. (Galbraith,
1983; Zimmerman, 1995). Accounting Information Systems will be useful when
information provided by them is used effectively in decision making process by
the users.
Accounting information systems are
said to be effective when the information provided by them serves widely the
requirements of the system users. Effective systems should systematically provide
information which has a potential positive effect on decision making process
(Ivest et.al, 1983). The effectiveness of computer based accounting information
systems has long been a subject of many research, (Chong, 1996, Chenhall and
Moriss, 1986, Kim, 19988, Mia and Chenhall 1994).
Otley (1980) argues that accounting
systems are an important part of the fabric of organizational life and the need
to be evaluated in their wider managerial, organizational and environmental
context. Therefore the effectiveness of accounting information systems not only
depends on the purposes of such systems but also depends on contingency factors
of each organization.
The main function of Accounting
Information System (AIS) is to assign quantitative value of the past, present
and future economics events. AIS through its computerized accounting systems
produce the financial statements namely income statements, balance sheets and
cash flow statement. The system will process the data and transform them into
accounting information during input, processing and output stages that will be
used by a wide variety of users such as internal and external users (Wilkinson,
2000).
Wilkinson et al, (2000) noted that an
effective Accounting Information System (AIS) performs several key functions
throughout these three stages such as data collection, data maintenance, data
Accounting Information Systems (AIS) and Knowledge Management; data control
(including security) and information generation.
Accounting information systems are
said to be effective when the information provided by them serves widely the
requirements of the system users. Effective systems should systematically
provide information which has a potential positive effect on decision making
process (Ivest et.al, 1983). The effectiveness of computer based accounting
information systems has long been a subject of many research, (Chenhall and
Moriss 1986, Kim, 1998, Mia and Chenhall 1994).
Otley (1980) argues that accounting
systems are an important part of the fabric of organizational life and the need
to be evaluated in their wider managerial, organizational and environmental
context. Therefore the effectiveness of accounting information systems not only
depends on the purposes of such systems but also depends on contingency factors
of each organization.
The main function of Accounting
Information System (AIS) is to assign quantitative value of the past, present
and future economics events. AIS through its computerized accounting systems
produce the financial statements namely income statements, balance sheets and
cash flow statement. The system will process the data and transform them into
accounting information during input, processing and output stages that will be
used by a wide variety of users such as internal and external users (Wilkinson,
2000).
Wilkinson
et al, (2000) noted that an effective Accounting Information System (AIS)
performs several key functions throughout these three stages such as data
collection, data maintenance, data Accounting Information Systems (AIS) and
Knowledge Management; data control (including security) and information
generation.
2.2
REVIEW OF EMPIRICAL LITERATURE
Hunton, (2002) study, which
investigated the relationship between automated accounting information system
and organizational effectiveness; showed that there was strong relationship
between accounting information system and organizational effectiveness, which
means access to accounting information will lead to organizational
effectiveness.
Huber, (1990) agrees that automated
accounting information system aids decision making for management of
organizations. Benefits of accounting information system can be evaluated by
its impacts on improvement of decision making process, quality of accounting
information, performance evaluation, internal controls and facilitating
company’s transactions. Regarding the above five characteristics, the
effectiveness of AIS is highly important for all the firms.
Ahmad et al (2013) examined the
factors that affect accounting information system implementation and accounting
information quality, a survey in university Utara Malaysia, which he found out
that the relationship between management commitment and data quality are not
significantly related to accounting information quality but significantly
related accounting information systems and human resources.
Onaolapo and Odetayo (2012) in their
study on the effect of accounting
information system on organizational effectiveness specifically on quality of
financial report and decision making of selected construction companies in
Ibadan Nigeria. The study which utilized descriptive statistics showed that
accounting information system has a significant effect on organizational
effectiveness.
In a similar, study, Ogah (2012)
reveal found that the use of computer based information systems does not
necessarily lead to increased profitability. The study indicates that the low
explained variability implies that other variables other than from AIS
positively impact on the bank’s profitability.
3
METHODOLOGY
This paper adopted the use of a
questionnaire as the primary source of data. The sample of the study was
determined based on convenience and accessibility of the individual respondents.
The questionnaires were issued specifically to individuals who were identified
as accountants in different organizations and their choice being as a result of
the fact that they are users of computer based accounting information systems
in their various organizations. The questions were designed to elicit
information on how effective they find the computer based accounting information
system that they routinely used. Four questions (shown in the appendix) were
used to elicit information on organizational effectiveness as a result of the
use of computer based accounting information system.
Pearson’s
Product Moment Correlation of Co-efficient is the statistical technique used
for analyses of the collected data. This method of data analyses was found to
be appropriated as it measures relationship between the chosen variables. The
Pearson product moment co-efficient of correlation is given as:
r = 
Where
N = numbers
of data variables
y = the
dependent variable(s)
X = the
independent variable(s)
Given that:
Y = Organisational
Effectiveness
X = Computer
Based Accounting Information System.
4
DATA ANALYSES, RESEARCH RESULTS AND
INTERPRETATION
Correlation
|
Correlations
|
|||
|
|
CBAIS
|
orgEffectiveness
|
|
|
CBAIS
|
Pearson Correlation
|
1
|
.582**
|
|
Sig. (2-tailed)
|
|
.002
|
|
|
N
|
25
|
25
|
|
|
orgEffectiveness
|
Pearson Correlation
|
.582**
|
1
|
|
Sig. (2-tailed)
|
.002
|
|
|
|
N
|
25
|
25
|
|
|
**. Correlation is significant at the 0.01 level (2-tailed).
|
|||
The SPSS result output above indicates that there is a
positive and significant correlation between the use of Computer Based
Accounting Information Systems (CBAIS) and Organizational Effectiveness. This
can be seen from the Pearson Correlation value of 0.582 which indicate a
positive relationship between the variables of about 58.2%. This result implies
that as organizations scale up their use computer based accounting information
systems, the accuracy, consistency and reliability of accounting records, speed
of retrieval of stored client information will also be expected to increase.
This will in effect drive up the effectiveness of the organization in terms of
service delivery. This is in line with the findings of Hunton (2002) and Huber
(1990).
5
CONCLUSIONS AND RECOMMENDATION
This study investigated
the use of computer based accounting information systems as a tool for
organizational effectiveness. The results of the data collected for the purpose
of the study showed that the use of computer based accounting information
system was positively and significantly correlated to organizational
effectiveness. Thus, as organizations implemented computer based accounting systems,
their ability to effectively deliver on the objectives of the firm is predicted
to also increase. This finding is an indication that computer accounting
information in the organization stimulates growth by infusing effectiveness and
efficiency in service delivery.
Given the finding, we
recommend that organizations continue to implementing and upgrading the
computer based accounting information systems. We also recommend that
organizations provide adequate training and retraining in order to ensure that
maximum benefits are derived from the implementation of the accounting
information system. Finally, we
recommend that organizations constantly monitor the the system to ensure that
it is not vulnerable to security breaches.
REFERENCES
Dindi G. and Ryan, V (2013) The
Impact Of Using Computerized Accounting Systems (Cas) In Financial Reporting
Among Small And Medium Enterprises In Lipa City”, University of Batangas, South
Africa.
Chenall, R. H., and Morris, D.
(1986). The impact of structure, environment, and Interdependence on the
perceived usefulness of Management Accounting Review, 16-35.
Huber, G. P. (1990). A theory of the
effects of advanced information technologies on organizational design,
intelligence, and decision making, Academy of Management Review, 15(1), 47-71.
IBIMA Business Review 12.
Hunton, J. E. (2002). Blending
information and communication technology with accounting research, Accounting
Horizons, 16(1), 55-67.
Kim, K. (1989). Uses Satisfaction: A
synthesis of Three Different Perspectives. International Journalof Accounting
Information Systems, 6, 85-99.
Ogah, I.J. (2012). An evaluation of
the relevance of accounting system as a management decision tool in Union bank
of Nigeria PLC. Uyo branch of Akwa Ibom Greener .journal of business and
management studies ISSN:2276-7827 VOL 3 (1), PP.38-45 , JANUARY 2013
Onaolapo, A. A., & Odetayo, T. A.
(2012). Effect of Accounting Information System on Organizational
Effectiveness: A Case Study of Selected Construction Companies in Ibadan,
Nigeria. American Journal of Business and Management, 1(4), 183-189.
Otley, D. (1980). The Contingency
Theory of Management Accounting, Achievement and Prognosis, Accounting
Organisation and Society, 194-208.
Richard et al. (2009): Measuring
Organizational Performance: Towards Methodological Best Practice. Journal of
Management. https://en.wikipedia.org/wiki/Organizational_effectiveness
Wilkinson, J. W., Cerullo, M. J.,
Raval, V. & Wong-On-Wing, B. (2000). Accounting information systems:
Essential concepts and applications. New York: John Wiley and Sons.
APPENDIX
QUESTIONNAIRE
SECTION A: GENERAL
INFORMATION
Please Tick your
appropriate Choice
1. Age (Yrs):
21-30 
31
– 40 41 – 50 Above
50
2.
Level
of Education
Professional 
Masters Degree Bachelor Degree
Diploma Certificate
3. Length of service
at your current organization
1
– 5 years 
6
– 10 years 
15
years and above
SECTION B: RESEARCH QUESTIONS
Please tick ( ) the most appropriate option
SA = Strongly Agree, A = Agree, NS = Not Sure, D = Disagree,
S =Strongly Disagree
|
ITEM
|
QUESTION
|
RESPONSES
|
||||
|
SA
|
A
|
NS
|
D
|
SD
|
||
|
1
|
The
organisation has implanted a computer based accounting information system
|
|
|
|
|
|
|
2
|
The
organisation has experienced increased speed in service delivery since the
implementation of the computer based accounting information system
|
|
|
|
|
|
|
3
|
The
organisation’s record are now more accurate with the new system in place
|
|
|
|
|
|
|
4
|
The
organisation’s record are now more reliable than in the past
|
|
|
|
|
|
|
5
|
The Organisation
has experienced higher consistency in record since the implementation of the
new system
|
|
|
|
|
|
For comments,
observation or other feedback or if you need assistance with your research
projects/papers, you can contact the author via E-mail: researchmidas@gmail.com
or call/Whatsapp (+234)0803-544-6622
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