Computer Harmful effects to organizations

• Poor return on investment in IT infrastructure
•With rapid changes in information technology, the skill set required for using information technology changes drastically. This causes frustration to people involved in information technology and the organization's management.
• Threat of unemployment and consequent insecurity of staff will affect their morale and motivation.
• The organization might become overstaffed. Introduction of computers into routine activities in the organization automates many activities or replaces many jobs.
• Introduction of computers and networks disturbs the power structure in the organization. Some people lose their power, some gain power. Power and politics in organizations change and jockeying for regaining power aggravates the organizational environment. Computerization leads to loss of power for some people who were the custodians of information till computers were introduced. Once, computer networks are put in place, information becomes an organizational resource and freely available to every user. Those who lost their hold over information (a source of power for them) will try to regain the power through other means which leads to more organizational problems.
• Security risk and frauds may increase. Electronic frauds are difficult to detect unless there are systems to detect them in time and plug them.
• Too much transparency makes the organization vulnerable to competitive attacks. In a network, information is made available freely for use. Some of the employees of the organisation may misuse the information thus available or competing firms misuse such information against the organization. System failure may bring entire operation to a halt. Any computer system is susceptible to failure. Computerized systems run the risk of system failure and the consequent disruption of normal routines.

System malfunctioning is yet another problem. The system may malfunction due to operator error, data errors, software bugs or hardware problems.