Journal of Management
(IJM), ISSN 0976
6502(Print), ISSN 0976(IJM)
- 6510(Online),
INTERNATIONAL
JOURNAL
OF MANAGEMENT
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME
IJM
IAEME
INTRODUCTION
To achieve faster growth, profit and revenue organizations are adopting various tools and
techniques. One such concept which organizations are adopting is ERP. Similar to as one wants to
reach at his destiny and that can be done by driving at a normal speed of 50 km/h and the chances
of arriving is in your favor with less risk but it will take sufficient time. On the other side it can be
done by driving at a speed of 150 km/h but the chances of arriving safely are very less. It means risk
is involved and for that you require immaculate driving skills, good vehicle and protection etc.
So if any organization opts for ERP then hasty changes can take place for higher growth;
profit and revenue by implementing ERP and now almost all organization want to use ERP. But for
that you also need high skilled people, right choice of ERP package etc .If right ERP package is
selected and implemented correctly it can increase the revenue and productivity of the organization.
Thus selection, implementation and well-organized utilization of right ERP package for the benefit
and satisfaction of the employee is very important. Otherwise rather than providing benefit to
organization the effects will be negative. So this paper is a little effort to identify the employee
satisfaction for ERP and after effects of ERP in the organization.
Keywords: ERP, Satisfaction.
RESEARCH METHODOLOGY
Since the effect of an ERP package for an organization cannot be done theoretically therefore
survey has been done in an IT organization. The research has been conducted on primary data
through questionnaire filled by professional who are currently using the ERP Package in the
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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME
organization. Techniques have been used to find the results from the primary data are as follows: A
sample of 34 professionals have been taken.
The corresponding IT organization transformed from normal way of operating to adopt an
ERP system and subsequently selected and implemented an ERP System for better result. But
unfortunately this change was not effective and efficient and employees were not satisfied with that
ERP system. So the change which has been done by adopting the ERP system for the better result
ultimately failed and this was the wastes of time, resources, and money and of course employee faith.
Thus organization updated the old ERP system to a new one to resolve the issues.
Thus with the help of a comparison between old and upgraded or new ERP system a effort is
made to discuss and find the relevant issues, satisfaction level and after effects.
Techniques have been used to find the results from the primary data are as follows:
Demographic analysis.
Analysis of each question
Hypothesis
Correlation.
Since it is difficult to survey more organization so research will be based on only one
organization.
Survey result may suffer from human error in nature and this may not provide the true
picture of peoples perception and understanding.
DATA ANALYSIS
HYPOTHESIS
RULE FOR HYPOTHESIS
Null hypothesis is accepted.
Test value< likelihood
Pearsons value> significance level
Null hypothesis is rejected.
Test value> likelihood
Pearsons value< significance level
1.) Hypothesis between
a. Qualification of the employees
b. Satisfaction level with the ERP system
H0 (Null hypothesis): Satisfaction with the present ERP system is independent of qualification
of the employees.
H1 (Alternative hypothesis): Satisfaction with the present ERP system is dependent of
qualification of the employees.
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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME
Chi-Square Tests
Monte Carlo Sig. (2-sided)
95% Confidence Interval
Pearson ChiSquare
Likelihood Ratio
Fisher's Exact Test
Value
Df
Asymp. Sig.
(2-sided)
9.458a
.305
.235b
.093
.378
11.076
.197
.206b
.070
.342
.070
.342
9.638
N of Valid Cases
Sig.
Lower
Bound
Upper Bound
.206
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Table 1
INTERPRETATION
In the above chi square table test value=9.458, likelihood value=11.076, Pearsons
value=.235, level of significance=0.05.Now as per the rule, in the above hypothesis test value<
likelihood & Pearsons value > level of significance, thus null hypothesis is accepted. Therefore it
represent that satisfaction with the ERP system is not dependent on qualification of the employee.
2. Hypothesis between
a. Difficulty level of the ERP system
b. Weakness of the ERP system
H0 (Null Hypothesis) - Difficulty to work with the ERP system is independent of key
weakness of ERP system.
H1 (Alternative Hypothesis) - Difficulty to work in the present ERP system is dependent the
key weakness of ERP system.
Chi-Square Tests
Monte Carlo Sig. (2sided)
Asymp.
Sig. (2Value df sided) Sig.
Pearson ChiSquare
Likelihood Ratio
Fisher's Exact
Test
Linear-by-Linear
Association
N of Valid Cases
95% Confidence
Interval
95% Confidence
Interval
Lower
Bound
Upper
Bound
Lower
Bound
Upper
Bound
Sig.
.141
.447
.294
5.713
.456
.382
.219
.546
6.799
.340
.265
.116
.413
.471
.303
.638
.559
.392
.726
5.975
.304
.581
34
Table 2
27
International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME
INTERPRETATION
In the above chi-square table test value=5.713, likelihood value=6.799, Pearsons value=.456,
level of significance=0.05.Now as per the rule, in the above hypothesis test value<likelihood &
Pearsons value> level of significance, thus null hypothesis is accepted. Therefore it represent
difficulty to work in the present ERP system is independent of key weakness of ERP system.
3. Hypothesis Between
a. Benefits derived from using ERP software.
b. Effective changes to work load by using ERP system.
HO (Null Hypothesis)-Effective changes to workload by using ERP system is independent of
benefits derived from the ERP system.
H1 (Alternative Hypothesis)-Effective changes to workload by using ERP system is
dependent of the Benefits derived from the ERP system.
Chi-Square Tests
Monte Carlo Sig. (2-sided)
Asymp.
95% Confidence Interval
Sig. (2sided) Sig. Lower Bound Upper Bound
Value
df
Pearson Chi-Square
3.721a
.293
.382
.219
.546
Likelihood Ratio
5.179
.159
.265
.116
.413
3.570
.382
.219
.546
Linear-by-Linear
Association
1.035c
.294
.141
.447
N of Valid Cases
33
.309
Table 3
INTERPRETATION
In the above chi-square table test value= 3.721, likelihood value= 5.179, pearsons
value=.293, Level of significance= 0.05. Now as per the rule, in the above hypothesis, test value<
likelihood & Pearsons value> level of significance, thus alternate hypothesis is accepted. therefore it
represents that Effective changes by using ERP system is dependent of the benefits derived from the
ERP system
CORRELATION
1.)
CORRELATION BETWEEN
A)
B)
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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME
Correlations
DESIGNATION OF
THE EMPLOYEE
DESIGNATION
OF
THE
EMPLOYEE
SATISFACTIO
N LEVEL WITH
THE PRESENT
ERP SYSTEM
Pearson
Correlation
Sig(2-tailed)
SATISFACTION
LEVEL WITH THE
PRESENT ERP
SYSTEM
.187
.289
N
Pearson
Correlation
Sig(2-tailed)
N
Table 4
34
34
.187
.289
34
34
INTERPRETATION
The correlation between satisfaction level with the ERP system and designation of the
employee is 0.187 which lies between 0 to 0.25 which shows that correlation between the above
parameters is positively very low perfectly correlated. This represent that satisfaction level of the
ERP system is dependent on designation of employee but to a very small extent.
CONCLUSION
To grow in the competitive market change in an organization is the need of the time, and this
can be done by using various tools and techniques. But while doing a change on a large scale one
should visualize all the factors related to performance of the organization as a whole. As survey has
shown that how wrong selection, implementation and messy utilization of ERP system can put the
organization under threat; therefore this paper would help the organization to get information about
the satisfaction level of employees while working on ERP system and effect of ERP system in the
organization. Like in this case more than 50% of the employees are completely satisfied and 27% are
more or less satisfied with the upgraded ERP system and approximate 47 % says it is more efficient
and 29% somewhat more efficient as compare to old ERP system. This means that the change that
had been done earlier was not effective and required an up gradation.
The biggest reason to shift from old ERP System to new one was to improve the accuracy
supported by 70 % and reduction of work load supported by approx. 50% employee. 60% agree that
it has benefited the organization. Difficulty faced by employee to work with ERP system is
independent of its key weakness. so this difficulty may be because of some other reason like lack of
training etc. The satisfaction level of the ERP system is dependent on designation of employee but a
low extent. Effective changes in work load by using ERP system is dependent of the benefits derived
from the ERP system.
So for better result the company should be careful in selection, implementation and
utilization of ERP system and proper training should be giving to the employees.
Since research has been done by analyzing the survey by direct dealing with a IT
organization which are using ERP system, this would help the companies in understanding issues
faced by employees and the reason for their unsatisfactions and what can be done to improve it.
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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME
QUESTIONNAIRE
INTRODUCTION: This survey is to study the efficacy of the current ERP system. All information
provided by you will be used only for compilation and will be kept confidential. This exercise is
expected to take 10-15 minutes of your time. Thank you for your cooperation.
BACKGROUND QUESTIONS
NAME: ________________________
CONTACT NO.:________________________
DESIGNATION IN THE ORGANISATION: _________
PREVIOUS DESIGNATI0N: ________________
QUALIFICATION: ____________________
NO. OF YEARS IN THE ORGANISATION:______
OPINION POLL
1. Are you satisfied with the ERP system?
Not satisfied
partly satisfied
more or less satisfied
completely satisfied
2. To what degree is the ERP system efficient?
Inefficient
equally efficient
more efficient
International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME
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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 - 6510(Online),
Volume 5, Issue 10, October (2014), pp. 25-32 IAEME
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