In adapting to new technology, universities face many challenges. This is in terms of systems for performance evaluation, compensation systems and decision rights. Problems usually arise when people have to adapt to changes. Information has to be communicated as well as processed. Everyone in the university has to have access to information; otherwise it will not function as it is meant to. Universities are in need of technology, which will facilitate their work processes. They have to ensure that they effectively deal with challenges, such as decision authority. The other challenges include how to have proper incentives as well as team work. Some universities are still using a system, which is traditional and in turn, it has made the mass markets become exhausted. Organization structure is affected if it does not employ the use of information technology (Hitt & Brynjolfsson, 1997).
Most of the employees who work in universities, which are traditional, are not happy with changes related to the existing organization structure and coming up with an organization, which is virtual. There is usually a need in universities to ensure that people are united, in order to increase their productivity. The theory of social action is extremely useful in knowing the impact technology has had on the universities. This is because their failures and successes are easily made known.
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