Academic journal article Journal of Management Research

The Impact of Change Management on the Application Enterprise Resource Planning System (ERP) Effectiveness: Field Study in Jordan Bromine Company

Academic journal article Journal of Management Research

The Impact of Change Management on the Application Enterprise Resource Planning System (ERP) Effectiveness: Field Study in Jordan Bromine Company

Article excerpt

Abstract

This study aimed to identify the impact of change management on the application of Enterprise resource planning system (ERP) effectiveness in the Jordan Bromine company, to achieve the objective of the study a questionnaire that consisted of (28) paragraph was built, and its validity and consistency were verified, the study was applied on a sample of (125) employees in the company, and after analyzing data the results of the study have indicated that the degree of rehabilitation and efficiency of staffwere high with (4.69) arithmetic mean and (42%) standard deviation. This may be attributed to staffmembers' awareness of the importance of training as it helps to accept the new regulations and their application. The degree of personnel awareness of the importance of the application of Enterprise resource planning system (ERP) was high with (4.57) arithmetic mean, (45%) standard deviation, whereas the degree of consensus expectations of staffwith the practical application of the Enterprise resource planning system (ERP) was high with (4.38) arithmetic mean, (54%) standard deviation. The results indicated the effective application of the Enterprise resource planning system (ERP) is significantly affected by stafftraining and spreading knowledge between staff.

Keywords: Management, Application, Enterprise, Resource, Planning system, Effectiveness, Company

Introduction

Understanding the importance of the process of change is a prerequisite and a necessity to community, where change is a feature of the times and is no longer a luxury or some kind of urbanization but became inevitable in the age of economic openness and information explosion and marginalization of change means to melt and fade (Scott and Jeff, 2005).

Change management can be a solution to mitigate and reduce the risks faced by the company and to increase its effectiveness and success and to reduce resistance of positive change by communicating with employees and increase their knowledge about the project. So, organizations need a new management capable of leadership, creativity and innovation and to deal with variables more efficiently.

Enterprise resource planning system (ERP) is an integrated set of software that provides regulatory activities such as manufacturing, finance ,accounting, sales and marketing, and human resources, and that this system helps various parts of the Organization to share data and knowledge, reduce costs, improve management process. This system faces many difficulties during its application because of personnel resistance.

The study problem

Revolutions in the field of knowledge, communication and technology moreover the complications in the business environment, growing volume of business, and growing interdependence with many political, economic and cultural change of concepts, tools and methods used, entailed new standards for efficiency and effectiveness in the development of information systems (Al-taie, 1995).

The problem of the study is to identify the extent of change management effect on the effectiveness of Enterprise resource planning system (ERP) in Jordan Bromine company, so the problem of the study questions may by presented by the following three questions:-

1. What is the extent of rehabilitation and efficiency of the staffon using Enterprise resource planning system (ERP) in Jordan Bromine Company?

2. What is the extent of employee understanding and awareness of the importance of the application of Enterprise resource planning system (ERP) in the Jordan Bromine Company?

3. What is the extent of compatibility predictions with the actual application of the Enterprise resource planning system (ERP) in the Jordan Bromine Company?

The importance of the study

The importance of this study emerges from the lack of studies in the area of internal capacity-building for staffin the industrial sector in Jordan and in particular. Such studies contribute actively to the dissemination of knowledge among the staffof the target companies as a positive impact on the transition process of the change process, as is the case in the Jordan Bromine Company. …

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