Impact of Technology on Employee Relations
Impact of Technology on Employee Relations
January 19, 2012
[pic]
Fig 1. Technology affects Structure affects Employee Relations
1. How Technology impacts organization structure?
Employee relations involve multiple layers of communication, from employer-employee relations to interactions among the workforce itself. To understand the effect of technology on employee relations we have to understand how the structure of an organization changes with the type of technology being used in the organization. We have various theories to study this phenomena, these are:
- Joan Woodward’s(1965) technology contribution which characterized the major technologies used in manfacturing organizations into unit, process and mass technologies. What we could derive from this theory was that routine technology (i.e. technology leading to more routiness in work) like mass meant a more formalized structure and vice versa.
- Another one was Perrow’s(1967) knowledge technology contribution which divided technology into 4 types routine, non routine, craft and engineering types based on task variability and problem analyzability factors used in the technology.
- The third major contribution was Thompson’s Technology structure that divided technology into Long linked, mediating and Intensive technologies, with long linked corresponding to standardization of operations, tools, parts and machines.
Focusing on the Knowledge Technology contribution of Perrow, since the world has moved on to become a knowledge based economy. Its two main dimensions are:
a. Task variability that describes the number of exceptions individuals encounter in their work.
b. Problem analyzability which describes the type of search procedure employees follow in responding to exceptions.
The four technology categories in his theory are:
1. ROUTINE: characterised by the lack of exceptions and its depth of comprehension. Traditional manufacturing
January 19, 2012
[pic]
Fig 1. Technology affects Structure affects Employee Relations
1. How Technology impacts organization structure?
Employee relations involve multiple layers of communication, from employer-employee relations to interactions among the workforce itself. To understand the effect of technology on employee relations we have to understand how the structure of an organization changes with the type of technology being used in the organization. We have various theories to study this phenomena, these are:
- Joan Woodward’s(1965) technology contribution which characterized the major technologies used in manfacturing organizations into unit, process and mass technologies. What we could derive from this theory was that routine technology (i.e. technology leading to more routiness in work) like mass meant a more formalized structure and vice versa.
- Another one was Perrow’s(1967) knowledge technology contribution which divided technology into 4 types routine, non routine, craft and engineering types based on task variability and problem analyzability factors used in the technology.
- The third major contribution was Thompson’s Technology structure that divided technology into Long linked, mediating and Intensive technologies, with long linked corresponding to standardization of operations, tools, parts and machines.
Focusing on the Knowledge Technology contribution of Perrow, since the world has moved on to become a knowledge based economy. Its two main dimensions are:
a. Task variability that describes the number of exceptions individuals encounter in their work.
b. Problem analyzability which describes the type of search procedure employees follow in responding to exceptions.
The four technology categories in his theory are:
1. ROUTINE: characterised by the lack of exceptions and its depth of comprehension. Traditional manufacturing
References: Baskar, V.M, Boeck S.R & V. Gayatri (2001), "Labour in the New Economy: Case of the Indian Software Industry", The Indian Journal of Labour Economics, 44(1): 39-54 Betcherman, G Budhwar, P.S. (2003), "Employment Relations in India", Employee Relations, 25(2): 132-48 Chakravarty, D Chakravarty, D. (2006), "Labour Arrangements and Bargaining Outcomes under Different Market Conditions", The Indian Journal of Labour Economics, 49(1): 121-31 Chowdhury, S.R Daniel, W.W. (1997), Workplace Industrial Relations and Technical Change, Eds Frances Pinter. Datta, S.K. (1990), "Automation and Industrial Relations: Implications for employment, utilisation and deployment of workforce", Indian Journal of Industrial Relations, 25(3): 254:76 Datta, R.C Datta, R.C. (2001), "Economic Reforms, Redundancy and National Renewal Fund: Human Face or Human Mask?", The Indian Journal of Labour Economics, 44(4): 675-690 Davis, T.R.V Davis, F.D., Bagozzi, R.P. & Warshaw, P.R. (1989): "User Acceptance of Computer Technology: A Comparison of Two Theoretical Models", Management Science, 35(8): 982-1003 Dayal, I Dayal, I. (1999), "Union Management Relations in the Changing Business Environment", Indian Journal of Industrial Relations, 35(2): 217-23 Dhanaraj, P.P Fishbein, M. & Ajzen, L. (1975), Belief, Attitude, Intention and Behaviour: An Introduction to Theory and Research, Addison-Wesley, Reading MA Ghose, A.K Ghosh, S. (1995): "Industrial Restructuring and Labour Relations", Indian Journal of Industrial Relations, 31(2): 211-30 Goldar, B Hill, E. (2009), "The Indian Industrial Relations System: Struggling to Address the Dynamics of a Globalizing Economy", Journal of Industrial Relations, 51(3):395-410 Hofstede, G Nagaraj, R. (2004), "Fall in Organized Manufacturing Employment: A Brief Note", Economic & Political Weekly, July 24:3387-90 Ratnam, Venkata Ratnam, Venkata (2000), "Competitive Labour Policies and Labour Laws in Indian States, The Indian Journal of Labour Economics, 43(4): 1049-60 Sharma, A.N Singh, M & Nandini, S (1999), "Impact of Trade and Technology on Employment: A Study of the Indian Software Industry", The Indian Journal of Labour Economics, 42(4): 957-68 Venkatachalam, J Virmani, B.R. (1990), "Automation and Changing Technologies: Issues and Concerns for Manpower Planning and Industrial Relations", Indian Journal of Industrial Relations, 25(4): 323-34 Wiggenhorn, W