Professional Documents
Culture Documents
1
History
Industrial revolution: Substitute machines for
human effort.
Examples from past.
Mechanization : Attendant reqd. to operate the valves
to channelize steam.
Automation: Later Watt's fly ball governor removed
need for human intervention.
Automation decreased need for physical labour
besides reducing the requirement of decision
making on part of the attendant.
2
Mechanization
Use of machines
Replace manual labour of animals or
humans.
Based on principles of
specialization of tasks
Adherence to specificity
Power, compactness and speed of
machine operation.
Example: Farming practices
3
Organization Structure
close adherence to the chain of command
a functional division of work into specialized
activities/job
use of the formal hierarchy for coordination
detailed job descriptions that provide a precise
definition of rights, obligations, and technical
methods for performing each job
vertical interaction - supervisor and subordinate
4
Process-Oriented Structure
5
When Does Mechanization
Work?
Straight forward task to perform
Stable environment to ensure that the
products produced will be appropriate
ones
Produce exactly the same product again
Precision is at a premium
6
Why Not Mechanization
May lead to difficulty in adapting to
frequent changes in market condition.
Conflict of individual goals with respect to
organizational goals
Dehumanizing effects upon employees at
lower level of hierarchy
Job loss
Mundane work
7
PRINCIPLES OF
AUTOMATION
Mechanization
Continuous process
Automatic control
Rationalization
8
Continuous Process
Assembly line-Continuous flow process
skilled worker moved from one job to another
performing the same task-specialization
Innovations
mass production technology
automatic transfer machines
no human intervention
control through remote electronic panel
E.g. automobile industry, bottling
9
Automatic Control
Automatic control/feedback
Input of machine regulated by its output
till desired objectives met.
Machine can start, stop, accelerate,
decelerate, count, inspect, test,
remember, compare, measure
dimensions of space, sound,
temperature and other physical
properties
10
Automatic Control (Contd.)
If there are any production problems, the
system intervenes and suggests alternate
course of action.
E.g. CNC* controlled processing
machines(metal , plastic ,wood ) with
programs with modifiable parameters and run
by electronic controlling system
11
Rationalization
Design of each step in process to
contribute most efficiently to final product
Logical evaluation of performance
Conservation of resource, energy,
12
Management Automation
Managers need (accurate, timely, concise, complete,
relevant, etc.) information to:
Plan
Control
Coordinate activities
Motivate subordinates
decisions)
Good quality information has value when it allows
managers to do the above.
13
Management
Automation(Contd.)
Deals with automation of
Decision Making
Detecting problems
Problem Solving
14
What is automation
computers
service automation
15
Automation-contd..
Automation has been defined as Any
development that may cause employee
displacement
Automation may:
o Wipe out certain jobs
o Reduce contents of certain jobs
o Combining several jobs into one.
16
EXAMPLES OF AUTOMATION
automatic machine tools to process parts-
CNC m/c
industrial robots
Fixed automation
Programmable automation
Flexible automation
18
Fixed automation
Fixed automation refers to the use of
custom-engineered (special purpose)
equipment to automate a fixed sequence
of processing or assembly operations.
This is also called hard automation.
The primary drawbacks are the large initial
investment in equipment and the relative
inflexibility.
GE: 2 million light bulbs
19
Programmable automation
20
Programmable automation
contd.
In programmable automation, reconfiguring
the system for a new product is time
consuming because it involves reprogramming
and set up for the machines, and new fixtures
and tools.
Jacquard loom
21
Flexible automation
22
23
Source: www.seas.upenn.edu
Source: www.seas.upenn.edu 24
Reasons for automation
Shortage of labor
High cost of labor
Increased productivity
Competition
Safety
Reducing manufacturing lead time
Lower costs in the long run
25
Reasons against automation
Labor resistance
Cost of upgraded labor new skill set
Initial investment
Management of process improvements
Reengineering
26
Adapting Organization To New
Technology
Changes may come in 2 ways
Policy Decision to modify objective to get
Result of technical/administrative
development
Readjustment period
27
Impact of Technology
(Contd.)
Disproportionate time spent on evaluating
technical aspect in comparison to study its
affect on organization.
Ways to avoid discrepancies
Change technology to adapt to organization
structure
Change organization as per technology.
Maintain existing organization structure &
technology, modify processes.
28
Impact of Technology
(Contd.)
Hence, appraisal of organizational structure and
study of organization change along with
technical change is a must.
Studies show correlation between the affect of
29
Impact of Automation on
Industrial -Relations
system
30
Impact of Automation on
Industrial -Relations system
Analyzing the labor relations dynamics set
in motion by the introduction of new
technologies in a competitive and highly
unionized environment.
Intense industry competition has lead to
the adoption of technology at a highly
rapid rate in order to retain
competitiveness .
31
Impact of Automation on
Industrial -Relations system
contd.
Today therefore, workers and their unions
have a direct and vital interest in how
Technology is introduced and its effect.
32
Will unions impede the diffusion of
automation and to what degree (if any)?
33
Workers perspective
Simultaneously, we must ask:
What will be the degree of displacement
of workers?
What happens to displaced workers?
employers?
How many will be laid off?
34
What kind of changes in work rules will
unions seek?
35
Impact of Automation on
Industrial -Relations system
(Contd..)
Automation often changes skill
requirement , degree of responsibility and
working condition.
36
The Quandary of Wage
setting
When productivity rises due to Automation:
Unions may ask for higher wages even
37
Way Out..
38
Way Out contd..
39
Labour-management relations
and Automation
-Case study of Canadian Railroad
Network(CRN)-
Canadian Pacific Railway provides an
important and interesting case study for
analyzing the labor relations dynamics set
in motion by the introduction of new
technologies in a competitive and highly
unionized environment.
40
Rail deregulation, industry consolidation,
trucking competition, and the increased
power of shippers have left rail companies
little choice but to adopt new technology
and other market-oriented policies in order
to survive. The pace of change has
accelerated and the ability of the
companies to shield workers from its
impact has declined.
41
Time-line of Automation
at CRN
1960s-The introduction of diesel
locomotives not only reduced the size of
train crews, it also decreased maintenance
frequency, eliminating shop-craft jobs.
1980s-The development of sophisticated
sensors and communication devices that
could be attached to the rear of trains
enabled the elimination of cabooses, again
reducing train crews.
42
Time-line of Automation
at CRN contd.
Future- global positioning satellites (GPS)
systems combined with wireless
communication and computer advances
will provide the technical capability for
crewless trains
Indeed, one analyst has commented that
at the rate they [railway companies] are
going, in 10 years time, there will be 2
guys sitting behind a computer and the
trains will be running themselves"
43
Catch 22
(To be or not to be..)
Unions- They make a buck, we make a buck
dilemma Jobs are being lost at an ever
increasing rate yet Union representatives are
cognizant that technological change is inevitable as
well as necessary for company survival.
Management -On one hand management
is hurt by the job cuts, yet its hands are
tied by the market forces.
44
The Settlement
The unions settled through for Collective
Bargaining and achieved the following Benefits:
Job Security Agreement
Income Security Agreement
Material change provision
45
The Settlement (Contd..)
Material change Agreement:Operating Unions,
have a material change provision in their
contracts. (Note: A material change refers to a
significant or substantive change that adversely
affects employees, not literally a change in
material.)
Job Security Agreement: Provides an array of
benefits for employees adversely affected by
technological, operational, or organizational
change.
46
Income Security Agreement
These agreements emphasize providing long-
service employees with options in the event new
technology eliminates jobs
Thirty years ago you had two choices: layoff or
severance. Now there is early retirement,
bridging, and even paid educational leave.
In essence it is akin to a generous, but
contingent, severance package
47
Conclusions:
48
Equally important, however, the running-
trade unions do not have the ability to halt
technological change just because it may
adversely affect their members. 'OK, I
have a gun and I am going to shoot you.
You get to pick where I shoot you. But in
the end, you will get shot. Whether I shoot
in the arm, in a fleshy area, or internal
organ; it is up to you
49
IMPACT OF AUTOMATION ON
EDUCATION TRAINING AND
RETRAINING
50
IMPACT OF AUTOMATION ON EDUCATION
TRAINING AND RETRAINING
At various stages in history, changes in workplace operations
and procedures in all sectors of the economy have resulted in
changes in education, training, and retraining requirements for
those employed or preparing for employment.
Industrial Revolution
Outsourcing
Y2K Bug
51
The application of automation in
manufacturing operations has the potential to
trigger widespread changes in education and
training requirements.
52
Education, training, and retraining, should
facilitate the identification of
new opportunities,
problems,
issues
Since the mid-19th century, both business and the labor movement
have contributed to or participated in the design and delivery of
instructional programs.
54
Technological Literacy
Individuals must have knowledge of the computer as a
tool for managing and
providing access to massive amounts of information.
Challenges : Teacher
Level :1 Industrial Level
Level : 2 College and University level
57
Retaining programs for the employee
worker whose job content is changing in
the automated plant
Concern over retaining peoples whose job
59
Retaining Programs
Older men , especially those whose
area of skill have disappeared as a
result of technological change.
60
Training and Retraining
UAW reached with Ford Motor Co., General
Motors, and International Harvester, there are
provisions for training and retraining programs for
current employees as well as those laid off.
61
by new technologies, new techniques of
production and . . . shifts in customer
preference. Employeesboth skilled and
semiskilled are covered under other provisions
of the agreements.
62
Training for management of automation
process is linked with the training of
technical manpower because these
process breakdown the distinction
between manpower and managerial skills.
63
Automatic production is also likely to
increase the advantage of formal training
in management , Because each plant
must operate as a unified whole and such
operation is best achieved by techniques
of management planning and control,
which have been acquired by formal
training
64
References
Books :
Designing Effective organisation , T Elanine Gagne & David K Banner ,
sage publication, California 1995
The future of the Organisation ,Colin Coulson Thomson, Kogan page
limited, London 1997
Organisation Learning , Micheal D cohen, Lee S Sproull, sage publication,
California 1996
Website :
www.wcupa.edu/ACADEMICS/sch_cas.psy/Career_Paths/Industrial/subfield
2.htm Date : 12/10/2005
http://www.pp.bme.hu/so/2001_2/pdf/so2001_2_02.pdf Date :
09/10/2005
http://www.elsevier.comcws_home/620640/description Date : 10/10/2005
http://www.skyenet.net Date : 15/10/2005
http://nicic.org/Library/period195 Date 16/10/2005
http://www.hpsys.com/leader.htm Date 18/10/2005
http://www.managementhelp.org/quality/tqm Date 18/10/2005
http://www.vcp.com.br/English/Institutional/ Company Date 18/10/2005
65
Is Training Necessary
Functional illiteracy rate is high