The Importance of Computers in Business Administration

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Business administration refers to the duty of managing an organization and implementing important decisions. The concept existed before the introduction of computers in running a company, but computers literally revolutionized the way a manager could do his job. Computers are an integral part of 21st century businesses and for this reason, it is imperative for current and prospective managers to use them like pencil and paper.

Communication with Organization Members

  • Before computers were available, business administrators either had to meet face to face with other organization members (employees or department managers) or talk via phone, which in cases of mass messages (toward employees or shareholders for example) was impossible. Traditional mail is a costly and slow option, but email is a faster, safer and more accurate alternative. Furthermore, teleconferencing can make a business meeting happen, no matter where each board member is located.

Organizing Data

  • Business administrators deal with a large quantity of data, from financial documents to production efficiency reports and information on competing firms. Therefore, it is mandatory for a manager to spot any information he wants instantly and traditional storage drawers don't offer search engines. Computers also give the ability to keep backups of important files, so in case something goes wrong, the manager has a safety cushion.

Avoiding Tedious Tasks

  • Apart from the adrenaline business management can provide, administrators also have to do tedious or repetitive tasks. For example, composing financial reports needing only changes in the figures or spotting certain parts of business contracts. Computers help streamline the information, which allows administrators to focus on more important management tasks (deal with departments' expenditure or trading partners' satisfaction for instance) and raise their -- and the business' -- productivity.

Cost Effectiveness

  • Electronic mail does not consume paper, electronic files don't need maintenance and teleconferences don't require a room for guests and beverages or food. With computers, managers can cut small costs which in everyday practice account for a considerable percentage of the total administration costs. This allows administration to place additional funds in more important issues, such as a new market research or an improved network of communication between members of the company.

References

  • Photo Credit Ablestock.com/AbleStock.com/Getty Images
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