Effect of IT Alignment on Employee Performance and the Operating Role of Operating Environment

The thesis was about the information technology alignment and employee performance in private service sector a case of Umeme Uganda limited. The study set out to: examine the IT Alignment practices in Umeme (U) Limited; to analyses the relationship between IT Alignment and employee performance; and to examine the moderating role of the operating environment on the relationship between IT Alignment and employee performance. The study was cross-sectional in nature, using both qualitative and quantitative approaches. Data was collected using self-administered questionnaires, and interviews with top management of Umeme limited central Uganda. Out of a population of 290, the study targeted a sample size of 165 respondents. The study applied Statistical Programmed for Social Scientists (SPSS) to test all four hypotheses. The results were presented as descriptive statistics and inferential statistics specifically correlation, regression analysis and hierarchical regression analysis models. The study confirmed a positive significant predictor relationship between information technology alignment and employee performance in Umeme this was done by Exploratory Factor Analysis (EFA).

The moderating role of the operating environment on the relationship between IT Alignment and employee performance at Umeme (U) Limited Central Uganda using a hierarchical regression analysis where interaction term (ITA*OP) appeared a significant predictor of employee performance The study designed a model, the Information Technology Alignment Innovative Preference Model (ITAIP) to build capacities and conduct research activities that would result in long-term and sustainable improvements in employee performance in private service sector. The study concluded that since ITA influence employee performance, the management of Umeme in support of IT needs to build a dynamic ITAIP, that will enable them cope with continuous improvement for greater efficacy and increased productivity as protocols are more strictly followed when orienting new employees. The study suggests that in order to build and install new IT governance the firm needs a detailed knowledge of how to improve efficiency, Costs optimization, Collaboration, collective decision, commitment, time management, creativity and digital work to release new services to customers, Transformational of ITA and improve the overall quality of the IT services provided in UMEME limited Uganda.

Purpose: The purpose of this study was to empirically establish the relationship between IT alignment practices and employee performance in the Private Service Sector particularly in Umeme Limited.

Design/methodology/approach: The study took a cross-sectional descriptive and analytical design. Out of a sample size of 165 employees, a total of 165 usable questionnaires were identified implying a response rate of 100%. The paper applied Statistical Programme for Social Scientists (SPSS) to test four hypotheses. The results are presented in terms of correlation and simple regression analysis models.

Findings: Results indicate that of the four hypotheses developed in literature review, three were positive and significant predictors of employee performance. IT governance, IT implementation and IT investment were found to be significant positive precursors of employee performance. The authors did not test the Integration of IT activities – employee performance association as Integration of IT activities was eliminated during Exploratory Factor Analysis.

Practical implications: This study is relevant and useful to private service entities as it provides them with a blue print on how to implement IT alignment practices with the aim of improving employee performance. To policy makers at National level, the study outcomes will be helpful in collecting, analyzing, and disseminating economic data that will serve private decision makers at all levels, on fiscal and monetary policy, business finance and investment strategy, and personal household economic matters.

Originality/value: This study demonstrates that the proper implementation of IT alignment practices leads to improvements in employee performance in terms of collaboration, collective decision making, commitment, time management, creativity and digital work within the workplace.