Assessing the Impact of Human Error Assessment on Organization Performance in the Software Industry

Assessing the Impact of Human Error Assessment on Organization Performance in the Software Industry

Shampave Paramanantham, Sidath Liyanage
Copyright: © 2023 |Pages: 32
DOI: 10.4018/ijissc.314563
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Abstract

The influence of human errors on organizations is wide-ranging concerning customer service, productivity, teamwork, quality, execution, decision-making, and loss (Irmi.com, 2018). When the employee makes an error, this may prompt an operational failure, effectively affecting whatever is being assessed. There is a commonly accepted connection between human errors and organizational performance. However, the theory is all hypothesis without confirmation since there is minimal literature writing in this research. Data was gathered from 365 employees of IT export companies in Sri Lanka. 5 people working as project managers in IT export companies were interviewed to get their opinion about human errors. The findings show that human errors such as skill-based, design, quality testing, and maintenance errors can significantly influence performance outcomes, namely sales growth, return on investment, customer satisfaction, innovation development, and product and service quality.
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Introduction

Humans make mistakes. That is the nature of the human. Sometimes those mistakes lead to a colossal disaster. Human errors occurred in ancient times. Some mistakes which occurred by humans in ancient times changed history. As per the research, human errors are the root cause of 70% to 90% of accidents in organizations (Ganguly, 2011a). Organizations are made up of humans and are the main reason for a successful business and better organizational performance. At the same, their mistakes lead to the bad performance of the organization.

Human errors can initiate at the personal level. In this current situation, organizations do not have a clear idea of the reason for the downfall of their organizational performance. Human errors are also one of the leading causes of failure. All humans make mistakes in their lifetime. At one point, all the humans are making mistakes within the organization. Those mistakes do not depend on age diversity or personal characteristics. Some small mistakes can create severe problems. To change organizational performance, these human errors need to be reduced. There are many examples of loss of money within the organization due to human error, and the organization’s name went down. According to a StorageCraft survey (News and News, 2018), approximately 30% of IT professionals stated that human errors are the main reason for data loss. On the other hand, BakerHostetler reports (Bakerhostetler, 2016) mentioned that nearly 50% of incidents in organizations were held because of human error. In early 2017, the S&P company in the U.S.A faced a massive loss of approximately $160 million because Amazon Web Services was down for nearly 4 hours (Deltaxml, 2018). This happened due to human error.

This study is based on human errors occurring in everyday day-to-day life. It needs a critical evaluation of the factors affecting human error assessment and reduction of human errors to improve organization performance. In this study, a particular preference gave to Software development companies in Colombo that are doing exports. When the clients are in other countries, there are a lot of chances for mistakes. Sometimes there will be miscommunication. Human errors are a vital force in the software industry. Sometimes best developers also make careless mistakes, leading to a big failure time and money lost, which cannot be returned. This will affect organizational performance. So, the study included all age diversity people who are working as a developer. This research study entirely focused on problems occurring to human errors in the organization.

This study identified four hypotheses:

  • 1.

    Relationship between skill-based errors and organization performance.

  • 2.

    Relationship between design errors and organization performance.

  • 3.

    Relationship between quality testing errors and organization performance.

  • 4.

    Relationship between maintenance errors and organization performance.

After discussing organizational performance and human errors, analyzed whether there is any relationship between corporate performance and hypotheses. To do that, we distributed surveys and conducted some interviews within a particular time. Then we discussed limitations and future enhancement and conclusion with some recommendations to avoid human errors.

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