January 22, 2003: Overview of the Networked Workplace - The Possible Effects on WORKERS

Overview of lecture:

1. Two extreme possibilities
2. Utopic perspective – how computers can be used to give more control to workers
3. dystopic perspective – how computers can be used to extend control over workers

Lectures:

Monday, Jan. 27 – “The End of Work” – Reich article in kit + Menzies’ analysis of effect on society as a whole
Wednesday, Jan. 29 – The Canadian perspective – Dr. Crow’s lecture - article online

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Two Scenarios (dystopic and utopic)

Scenario A	Scenario B
Cenralized Model	Decentralized model

Scenario A - dystopic:

- management uses networked computers to increase their control over the workers
- computer systems look like factories....

> the industrial revolution has been extended:
> use of new technologies used mostly for rationalizing and mechanizing individual skills and for supervising employee tasks

computers used to "automate" tasks (i.e., decrease the complexity of tasks)

Scenario B - utopic:

- management installs computer systems that give workers much more information about the company and much more power to make decisions
- decentralizing the company's information erodes the traditional lines of authority and distinctions between managers and workers

communication technologies can "informate" - make information available to anyone with the skills to access and understand it. [Scenario B]

As Sproull and Kiesler (1991) say:

"Computer-based communication technology differs from other workplace technologies because it has more potential to support upward influence and lateral influence, NOT JUST DOWNWARD MANAGEMENT CONTROL."

Why does Zuboff (in Scientific American, Sept. 1995) feel that Scenario B is possible?

Development of businesses in early 20 century — organized as a functional hierarchy [i.e., Scenario A]—which was successful at increasing productivity and lowering unit cost:

--> business processes divided into separate functions: manufacturing, engineering, sales, clerical, etc.

--> introduction of mass-production techniques

--> fragmentation of tasks

--> creation of new work force--clerical workers' and clerics' jobs stripped of all complexity and no opportunities to exercise judgment

--> professionalism of management

--> growth of managerial hierarchy to control operations
premise: complexity handled by managers; they became the company's "knowledge base"

RESULT -- managerial hierarchy continued because 1) it was efficient, and 2) some people were valued, and others weren't.

Zuboff’s Premise: "In the brave new world of the information economy, this system cannot hold." (Zuboff, 1995, p. 204)

WHY?

Mass market has given way to a highly differentiated marketplace. Customers won't wait for "managers" to make decisions.

- If you have networked communications, then the knowledge base no longer just resides with the managers--it's accessible on-line. [i.e., Scenario A]

But business has to give up on the old division of labour....
need a new social contract--"would redefine who people are at work, what they can know, and what they can do." (Zuboff, 1995)

Where is this likely to happen??

Scenario A: How does computer technology "allow managers to maintain their control"? (explanation of terms)

through DOMINATION and HEGEMONY (according to Mosco, The Pay -Per Society, 1989)

DOMINATION: "the direct exercise of coercive power, typically though physical control or the threat of that control."

1. displacement

2. redistribution of work

3. deskilling

DISPLACEMENT: workers losing their jobs because of technology introduced into workplace.

Canadian examples (from Longford and Crow article online):

Canada Post:
“Handles 45% more mail volume despite a 32% drop in fill-time employment.”

Human Resources Development Canada (HRDC) replaced 5,000 frontline staff with several thousand electronic self-serve kiosks, resulting in an annual personnel cost-savings of $200 million.”

2. Redistribution of Work

21. shift from unionized to non-unionized

an example from the Information Sector Industries:

companies that produced information products--such as

conduits (telephone cables)
information services (mail)
content (broadcast, etc.)

had strong unions.

New industries, such as:

computer service bureaux
software design companies

have mostly non-unionized jobs.

or jobs which were once unionized losing their unionization:

(example of Bell Canada’s move to sell off its telephone-operator division to U.S.-based company: workers lose 40% of salary + lose their seniority + relocate + impact on wage equity fight).

2.2. shift of work activity once performed by wage labourers to consumers

examples? See Toronto Star @Biz section Monday, jan. 20 – article “Self-check-out if here”.

But what about counter-trends? jobs that workers now have that consumers used to do?

examples? Make food (fast food workers); look after children (nannies), etc.

But aren't these in the lowest paid occupations?

2.3. International division of labour—also called “migration”

--> centralization of company in first world country and labourers in third world.

e.g. database clerks can be anywhere given the communication links...

From Barney, Prometheus Wired, 2000:

1992: data-entry clerks in U.s. received $65.00 for 10,000 keystrokes
in Philipines workers received betweem 4.00 and 6.00 for the same volume.

3. Deskilling: (take away) skills (see Menzies, p. 78 ff in kit)

genesis of idea: workers' skills weren't needed according to Frederick Taylor's "scientific management":

his goal: maximize workers' efficiency, thereby increasing productivity and profits.

A worker is thus "an efficient MACHINE for getting a job done" (Taylor as quoted in Wessells, 1994, p. 58)

the task of worker is not to think, but to follow strict orders; rule of management is to maintain tight control of workers.
--> while this restrictive view is no longer “sanctioned” it has had tremendous effect on work place:

1) resulted in rise of middle managers who were crucial to the success of this model--to oversee workers (now middle-managers not needed to supervise),

2) belief that work can be broken down into small steps,

3) belief that workers can be monitored and controlled

FINALLY idea of Hegemony: "is power exercised by controlling the values that people use to define themselves and their place in everyday life.....is the process of making managerial control part of the taken-for-granted culture of the workplace." (Mosco, 1989, p. 54)