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Transformation of work with Information Technology
1. Week 8 – The Transformation
of Work in the Information
Age
•Manuel Castells. 2000. (2nd
ed.). The Rise of the
Network Society. Volume 1 of The Information Age:
Economy, Society and Culture. Blackwell. pp. 216-354
•Frank Levy and Richard Murnane. 2004. The New
Division of Labor: How Computers are Creating the
Next Job Market. Princeton University Press. pp. 1-54
2. Introduction
This presentation is on
Transformation of work and employment
1920-70, 1970 and beyond
All analysis based on data of Advanced Capitalist Countries:
the G7
Evaluation period is 1920-2007
3. The Transformation of Work and Employment
Manuel Castells, tries to address following:
Secular transformation of employment structure
Emergence of Global Labor
Impact of IT, widespread fear of jobless society
Impact on social structure with emergence of the
Information paradigm.
4. The Transformation of Work and Employment
Classical theory of post-industrialism
Source of productivity and growth lies in
generation of knowledge
Demise of agricultural and manufacturing
employment
New social structure based on importance of
managerial, professional and technical
occupations
5. The Transformation of Work and Employment
Proposed criterion for post-industrialism
Distinction not to be done on base of source,
rather should be on form of knowledge based
production.
Services sector increased, however manufacturing
sector did not decline as predicted.
Growth may be small, however low end or
unskilled jobs continue to represent a significant
number in post-industrial occupational structure.
6. The Transformation of Work and Employment
The transformation of employment structure
1920-70, 1970-90
Post-agricultural (1920-70) – Increase in
employment in transformative activities. True for
all G7.
Post-industrial (1970-90) – Decrease in
manufacturing employment, however depression
was uneven.
De-industrialization rate: rapid in US, UK and Italy. Moderate in Japan and
Germany. Intermediate in France and Canada.
7. The Transformation of Work and Employment
The transformation of employment structure
1920-70, 1970-90
Agriculture {Manufacturing and Services}
8. The Transformation of Work and Employment
Services industry
Types
Producer services – information provider, support productivity
Social services – health, hospitals
Distributive services – transporation, communication
Personal services – eating and drinking places
Findings
Increased for all G7 countries
US: Pioneered
Japan: Increased, however rate was moderate
9. The Transformation of Work and Employment
Paths of growth post-industrial (after 1970)
Rapid phasing out of manufacturing services,
increase in producer services (in rate) and social
services (in size)
Integrating manufacturing and producer, cautious
increase in social services and maintaining
distributive services. e.g. Japan (greater
agricultural and retail), Germany (higher
manufacturing employment)
10. The Transformation of Work and Employment
Quicker destruction of manufacturing jobs,
instead of a gradual phasing out, does not
mean more advanced.
Rather the rate of decline of manufacturing
services depends on policies and strategies
followed, which in turn are based on cultural,
social and political backdrop.
11. The Transformation of Work and Employment
The new occupational structure
Diverse path (US {new . minus. old)}, Japan {old
.coexist. new}) , however trend toward increase in
informational occupations is common.
Polarization of occupation structure = FALSE
Rate of change of jobs at top and bottom is different.
12. The Transformation of Work and Employment
Employment projections for 21st
century:
agriculture phased out;
steady decline in manufacturing employment;
increase in services sector;
producer + social services on rise
13. The Transformation of Work and Employment
Sectoral employment shares (%) in the world, 1997 - 2007
Source: ILO, Global Employment Trends Model, November 2007
14. The Transformation of Work and Employment
Is there a Global Labor Force?
Yes, individuals in innovative R&D, research
scholars, cutting technology, financial
management and services form global labor force.
Indicators: keep high profile / non-repetitive,
innovative task, outsource others for cheaper labor ,
sub-contracting, temporary labor, automate,…
(downsize firm size)
15. The Transformation of Work and Employment
Source : US Bureau of the Census. (
http://www.census.gov/population/www/socdemo/foreign/STP-159-2000tl.html)
Foriegn Born US
Population
Foreign Born US Population (before 1970 and 1970:2000)
16. The Transformation of Work and Employment
The Work Process in the Informational
Paradigm
work and labor model is messy, not a neat
(technological change + industrial relations
policy + social action)
e.g. Automation demands human brain in work
process, however later computers turn human into
second order robots.
17. The Transformation of Work and Employment
The Work Process in the Informational
Paradigm
With informational technology
more employee participation – mainframe to PC (phases
in office automation)
increased productivity, and quality product
better feedback in production process
18. The Transformation of Work and Employment
The Work Process in the Informational
Paradigm
Professional job polarization (low skilled, high skilled
clerical and highly specialized task)
Women participation
Multi skilling and more responsibility. (Job titles such as
Assistant Manager.)
19. The Transformation of Work and Employment
The Effects of Information Technology on
Employment: Toward a Jobless Society?
Unemployment as predicted did not occur
Employment growth positive in all regions
namely US, Japan and Europe
Global Employment Trends (1997-2007) by ILO,
later in presentation. (Click here)
20. The Transformation of Work and Employment
Summary
New jobs created, old jobs depressed, however on
quantitative analysis (Job created .minus. Job
lost) varied from region to region, due to several
other factors such as government policies.
21. The Transformation of Work and Employment
Work and Information Divide: Flex-timers
Working time: flex, means unconstrained by tradition 35-
40 hours per week
Job stability: no commitment to future employment
Location: large concentration at work place, however
increase in proportion of outside workplace
Employer and employee contracts: less commitment than
traditional contract.
Trends:
More freedom, self employment, and temporary help on the rise.
22. The Transformation of Work and Employment
Status of Employment Shares in total employment, 2007 in all
regions (%)
Source: ILO, Global Employment Trends Model, November 2007
23. The Transformation of Work and Employment
Work and Information Divide: Flex-timers
US model to deal with labor shortage
Non-traditional incentive such as stock options.
Use of immigrant labor in both highly skilled and unskilled
occupations
Temporary of JIT labor.
What model Europe practiced
Dutch model: moderate wage increase however preserve core
jobs in the industry.
Expansion to temporary, part-time and other flexible forms of
employment.
24. The Transformation of Work and Employment
Information Technology and the
Restructuring of Capital-Labor Relation:
Social Dualism or Fragmented Societies?
Productivity and profitability (↑)
Labor protection (↓)
25. The Transformation of Work and Employment
Information Technology and the
Restructuring of Capital-Labor Relation:
Social Dualism or Fragmented Societies?
Occupational Structure
Top and Bottom layer (↑)
Middle layer (↓), rate of decline varied from country
to country. It is dependent on political climate and
position in global competition.
26. The Transformation of Work and Employment
Summary
New social structure
Disjoint labor
Rise of individualism
Showing up of network society
27. New Divisions of Labor
Adhoc committee miscalculation.
Expectation : computers will replicate all models
by which human process information. {Statement was
partly correct}
Fact: Major upheaval in nature of work, not mass
unemployment.
28. New Divisions of Labor
“divisions of labor” words by Adam Smith,
new meaning in computer age
Division of labor between computers and humans
Growing division within human labor
Can or cannot do valued work in computers world
The two above has created the divide.
29. New Divisions of Labor
To bridge the divide
Rethink training and education
Identify who (computer vis a vis humans) is good
at what?
Identify well paid work in now and in future
How people can learn the new skills in the
computerized world.
30. New Divisions of Labor
How work has changed
Computerization new jobs and destroyed old.
Depression: clerical and blue collar jobs
Growth:
cafeteria workers, security guards {held by working poor}
and managers, doctors, lawyers, engineers etc. {held by
upper part}
Traits: higher pay, extensive skills, use of computers to
increase productivity.
31. New Divisions of Labor
How work has changed
Summary:
Upper and Lower (↑) – Intermediaries (↓)
32. Why People Still Matter
11.Nov.1999 Liffe closed, now Euronext.
Euronext – digital, many other exchanges joined.
September 2001, Dr. Stephen Saltz used
computers for better diagnostics.
Computerization
Replaced Traders, however could only
complement Doctor’s diagnostic skills.
33. Why People Still Matter
Rules – step by step : computerized
e.g. Rail Ticketing, Flight enquiry
Pattern – solving new problem referring an
old existing pattern : not computerized.
Perception : difficult to program
Interpreting what is perceived: even human differs
34. Why People Still Matter
Can computers substitute humans in all jobs
No, its not easy. However computers can
complement humans by providing large
information at low cost.
Example: echocardiograph
35. How Computers Change Work and Pay
Boeing – Use of CATIA, CNC
Dispersed manufacturing, low cost production and
new foreign customers
36. How Computers Change Work and Pay
What characterizes use of a new computer
application
Adopt computer, gain a particular competitive
advantage
Recognize computer potential, reorganize work
Create new jobs and destroy old jobs
37. How Computers Change Work and Pay
Computerization: Employment or Unemployment ?
With reference to Herbert Simon’s 1960 essay
Humans and computers both will be used, however in
areas of their respective comparative advantage.
More output, low cost, higher income, more
customers
bestUse (Humans, Computers) = Mass employment
38. How Computers Change Work and Pay
Source: ILO, Global Employment Trends Model, November 2007
39. How Computers Change Work and Pay
Economy’s job mix in computer’s world
Two schools of thought
Computers – low skilled jobs, Humans – move to high
skilled jobs
Computers – high skilled jobs, Humans – forced to
menial jobs
40. How Computers Change Work and Pay
Predictions by Herbert Simon, in his essay
Blue-collar workers – (↓)
Machine maintenance workers – (↑)
Clerical workers – (↓)
Salespeople – (↑)
Managers – (↑)
41. How Computers Change Work and Pay
Source : News Bureau of Labor Statistics, United States Department of Labor.
Released: Tuesday, December 4, 2007
Top 10 industries with largest wage and salary employment growth, 2006 - 2016
42. How Computers Change Work and Pay
Workers skills and New Nature of Work
Expert thinking – no rule based solution;
Humans, computers will only complement
Complex communication – interacting with other
humans; humans only
Routine manual/cognitive tasks – rule based;
candidate for computerization
Non routine manual tasks – involving optical and
fine muscle control; human
43. How Computers Change Work and Pay
Summary
Constant drive to develop, produce, and market
new products depends on
Humans ability to manage and solve analytical
problems and communicate new information.
Above keeps Expert Thinking and Complex
Communication in strong demand.
Web link for slides:
“http://www.slideshare.net/itsmeritesh/tags/esit” [last
accessed on November 30, 2008]
44. References
ILO, Global employment trends: January
2008.
Home page: (http://www.ilo.org/global/lang--en/index.htm)
Bureau of Labor Statistics, United States
Department of Labor.
Home page: (http://www.bls.gov/)
US Bureau of the Census
Home page: (http://www.census.gov/)