THE IMPACT OF COMPUTER TECHNOLOGY ON ACCOUNTING SYSTEM AND ITS EFFECT ON EMPLOYMENT

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ABSTRACT

The world over continues to grow in population, size and sophistication Technology. It becomes sector on which the teeming population depends in for knowledge also grows.

 

Be it as it may, the Nigerian situation is such that we, for the state of advantages associated with technological growth have started computerizing most business and educational operation in our higher institutions of learning and business organizations big and small. Two of such organizations are A.G Leventis and Pak – Micro Computer Ltd, which were understudied for the impact of computer technology on accounting system and its effect in employment.

 

The problem, purpose and significance of the study to A.G Leventis and Pak – Micro Computer were considered. Review of existing literature will then follow. The research method made use of diverse research tools were equally employed to analyze data collected. A careful analysis of generated data revealed to the researcher that the use of computer in A.G. Leventis and Pak – Microcomputer was set up ten years ago. Areas of computer application include:

• General accounts
• Inventory and
• Payroll

 

In testing the problem, respondents agreed that computerization led to mass retrenchment of workers. However research revealed otherwise.

 

TABLE OF CONTENT

Chapter one

• Introduction
  • Background of the study
  • State of the problem
  • Objectives of the study
  • Significance of the study
  • Scope and limitations of the study
  • Research Questions
  • Definition of terms

 

Chapter two

• Literature review

2.1     Some applications of computer technology in Nigeria

• Union Response to the technological changes
• Implications of technological changes on employees
• Specific implication of computer application to employment.

 

Chapter three

• Research methodology

3.1     Research methodology used

• Description of Respondents
• Determination of sample size
• Sources of Data
• Methods of investigation

 

Chapter four

• Presentation, analysis and interpretation of data

4.1     Data analysis

 

Chapter five

• Summary of findings, conclusion and recommendation

5.1     Summary of findings

• Conclusion
• Recommendation

Bibliography

Appendix

1. Survey questionnaire
2. Interview questionnaire
3. Chi-square distribution table

CHAPTER ONE

• INTRODUCTION

1.1     BACKGROUND OF THE STUDY

 

Days are when most accounting operations and decisions that have to be made on or from them are on first hand basis. This is because accounting operators and decision makers are in close contact with such accounting operations and as such, collected, analysed and interpreted data from such operations for decision making.

 

Today, as company and educational operations expand in size and complexity, company executives grow further removed from first hand contact with business scenes. They are to rely increasingly on second hand information about what is happening at the various stages of business operations², vis-à-vis research and development, production, marketing and consumption of goods and services. Since decisions that have to be made by executives are of profound consequences and have to be based on highly fragmented and typically tenous information, then it is of great importance that such second-hand information is from a very accurate and reliable sources³.

 

According to A.$. fapohunda, to remedy these accurate information difficulties in 1963, sears began establishing their twenty – two regional computer centers covering the entire unites states of America⁴. initially, the regional computer systems processed customers credit accounts and general accounting data.

 

Later, merchandising and inventory information from system were established to provide information that the business accounting world and business operations are also busy expanding their technological and industrial bases 6 by breaking into new grounds and improving in existing ones through the use of computers.

 

With the introduction of computer to many business applications, those business areas that involve repeated tasks which are often monotonous and fallible to human errors (cash, inventory control, payroll and etc) are increasingly being simplified accurately by combining the cost, effectiveness, simplicity of use, efficiency, reliability and accuracy of the computer to obtain, analyze and interpret data information for efficient business decisions. Nigerian business organizations being to grow in size, business operations and processes become increasingly complex, hence computers are being rapidly introduced to cope with the overwhelming demands of business and growth. Though the introduction of computer to many facets of business operations is a welcome idea, its use is further implicated on accounting system and as such organizations need to strike a balance between accounting areas to be manually operated so as to control or limit the menance associated with unemployment.

 

Some of the business operations to which computer has been successfully introduced;-7

• Printing graphic designs of complicated nature.
• Payroll system.
• Billing system.
• Predict election result.
• Mark examination results such as JAMB and WAEC.
• Control inventories.
• Predict performance of an aircraft or missile still.
• On drawing boards.
• To calculate the critical path of most efficient assignment of troops or problems and so on.

It therefore becomes important that technological changes such as the introduction of computers in organizations be carefully evaluated so that the gains in technical efficiency are not made at the expense of the well-being and integration of employees.8. In the circumstances, then a study of the implication of computer introduction to accounting system of business operations is not only timely but mandatory so as to avoid some of the problems associated with technological changes in organizations.

 

This research is however, limited to the implication of computer introduction to accounting system of business operations using A.G. Leventis and Pak – Micro Computer Centre as computerized model organizations.

 

1.1(a)          HISTORICAL BACKGROUND OF A.G. LEVENTIS PLC AND PAK-MICRO COMPUTERS INTERNATIONAL LTD.

A.G. Leventis (Nigeria) PLC was incorporated in 1958. This company went public in 1978, and is quoted on the Nigeria Stock Exchange.

 

It provides properties, company secretarial and share registration services. Industrial and public relations services, legal services, financial management and other services to all t