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6
Technological Chance and the
Work Environment
The impacts of technological change on employment within the U.S.
economy extend well beyond the availability of jobs and the wages
associated with those jobs. Technology also affects the organization of
work and the structure of the firm; as we discussed in Chapter 2, the
adoption of new technology in many industries and firms requires
significant changes in the organization of the work process to realize the
potential productivity gains of innovations. In addition, labor relations
and human resources policies are affected. Cooperation between labor
and management is essential to address worker concerns about employ-
ment security and to plan the large-scale adoption of new technology and
the development of new systems for job classification and compensation.
New technologies also may have important effects on health and safety in
the workplace, imposing new demands on private and public policies and
organizations charged with responsibility for regulating workplace haz-
ards.
THE IMPACT OF TECHNOLOGICAL CHANGE ON
ORGANIZATIONAL STRUCTURE
Evidence of the effects of technological change on organizational
structure can be found in three bodies of work: case studies of individual
firms, studies of changes in the occupational structure of sectors or the
entire economy, and studies of changes in the occupational and organi-
zational structure of individual industries. As in the case of the employ
122
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TECHNOLOGICAL CHANGE AND THE WORK ENVIRONMENT 123
ment impacts of technological change, this evidence is mixed in its quality
and conclusions because of several major shortcomings. As we suggested
in Chapters 2 and 5, the skill requirements and job characteristics of many
of the occupational categories for the overall U.S. economy can change
significantly over time. Occupational categories also have undergone
considerable redefinition in successive published tabulations of occupa-
tional data (see the 1980 report of the National Research Council's
Committee on Occupational Classification and Analysis), which makes
longitudinal comparisons extremely difficult. This analytic approach also
is hampered by the fact that the impact of technology on changes in firm
and workplace structure frequently cannot be disentangled from that of
other influences, such as increased international competition. Finally, as
was discussed in Chapter 2, the relationship between technology and the
structure of the firm and workplace is interactive technology influences
but does not "cause" a particular structure. Organizational factors and
managerial decisions often influence the effects of a given technology on
workplace structure and worker skills. Separating the influence of tech-
nology on organizational structure from that of other factors and assigning
a causal role to this factor are very difficult tasks.
In view of these limitations, the following discussion of changes in the
structure of the firm draws heavily on a limited number of case studies
and examples, rather than on comprehensive evidence. These studies
suggest that the adoption of new technologies will transform the content
of many jobs in both the manufacturing and nonmanufacturing sectors.
The new jobs that result will involve a wider range of functions or duties,
training for these more numerous tasks, and (as discussed in Chapter 4)
more emphasis on mental acuity than on physical strength. Moreover,
despite contentions and anecdotal evidence to the contrary, we do not
expect that the adoption of these technologies will reduce opportunities
for intrafirm advancement and thereby produce a "two-tiered" labor
force.
The Structure of the Firm
We can better understand the effects of new technologies on manufac-
turing and service sector firms by considering the technological origins of
the structure of the U.S. firm and its production organization. The
organizational structure of the modern U.S. manufacturing firm arose
during the late nineteenth century in response to innovations in produc-
tion processes that favored the development of continuous-flow, mass-
production technologies for the manufacture of goods. The development
of low-cost, reliable, and rapid modes of communication and transporta-
tion also influenced the structure of the firm. Reductions in the costs of
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124 TECHNOLOGY AND EMPLOYMENT
managing the flow of goods and information within a single organization
increased the payoffs from centralizing the management of a growing
number of production plants and a broadening range of activities within the
firm (Chandler, 19761. These changes resulted in an expansion of the
geographic area that could be served by a single production plant, as well as
an increase in the number of production establishments that could be
managed by one organization.
Within many manufacturing and nonmanufacturing establishments, the
work process was organized along lines pioneered by Henry Ford and
Frederick Taylor in the early twentieth century. Tasks were broken down
into a series of relatively unskilled, repetitive activities, the performance
of which relied on specialized capital equipment. The production assem-
bly line had an analogue in the large keypunching and data-entry
"back-room" operations of the central management staff of manufactur-
ing and nonmanufacturing firms.
Although controlling the pace of work and the structure of jobs was the
exclusive province of management within this work environment, unions
sought to establish internal employment regulations based on seniority
and job classifications. Narrow job classifications for production workers
allowed management to rely on lower-level managers, rather than work-
ers, to make decisions and also lowered the firm's costs for training
replacements for workers leaving the firm. From the union's viewpoint,
narrow job classifications increased the number of workers on the payroll
while protecting senior workers from displacement. Although these
practices benefited both labor and management, they also contributed to
the development of an adversarial relationship between these groups in
many industries and workplaces.
The technologies of product design and manufacture within this envi-
ronment relied on long production runs of standardized goods, a system
that was developed to defray the high costs of specialized capital
equipment. "lIard" automation- for example, automatic drill presses-
is representative of the manufacturing process technologies associated
with this production structure; machinery was specialized, the pace and
characteristics of tasks generally were beyond the control of the individ-
ual worker, and changes in product design were time-consuming and
expensive. Management's control of production processes, as well as the
growth in nonmanufacturing functions within the large firm (e.g., market-
ing and product distribution), meant that middle management employ-
ment expanded considerably within U.S. manufacturing firms. These
middle managers exhibited considerable specialization by function; re-
search, product development, and design often were carried out sepa-
rately from production engineering.
In many firms this organizational structure is now changing in ways that
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TECHNOLOGICAL CHANGE AND THE WORK ENVIRONMENT 125
have been facilitated, if not always caused, by new manufacturing and
information technologies. For example, information technologies have
lowered the costs of managing information, which in some instances has
reduced the advantages of intrafirm management and performance of such
activities as marketing or research. The advantages of the large firm,
which were rooted for many years in the low costs of intrafirm commu-
nications, are being eroded in some industries by the rapid decline in the
costs of interfirm communication, in addition to other factors. Together
with intensified international competition, this development has led U.S.
firms in some industries to rely on external sources for administrative and
support services, which often results in "spinning off' portions of these
activities to other organizations. Consequently, the number of employees
in some large U.S. manufacturing firms is growing very slowly or is
shrinking. Simultaneously, growth in the business services sector gener-
ally, and in the temporary worker industry in particular, has been very
rapid (Carey and Hazelbaker, 1986; Howe, 1986~. Similar trends are
apparent in other industrial nations. (See Pearson, 1986, for a discussion
of this phenomenon in Great Britain.)
The case of the Benetton Group of Italy illustrates one pattern of
change in firm structure (see Belussi, 19861. Sales of Benetton, an
international producer of woolen goods, have increased from 55 billion
lira in 1978 (at current exchange rates, roughly $42 million), when the firm
consisted of roughly 1,000 employees, to more than 623 billion lira (nearly
$480 million) in 1984 with only 1,600 employees. Through extensive
reliance on subcontractors and franchisees, the firm has grown rapidly in
domestic and international markets while expanding its management stab
very little (total headquarters employment at Benetton in early 1986
amounted to fewer than 250 people). To accomplish this feat, Benetton
maintains communications with retailers and minimizes inventories
through technologies that support an intensive, two-way flow of informa-
tion between the firm's far-flung retailing operations (a thousand stores in
at least seven industrial nations) and the northern Italian headquarters of
the firm in Ponzano.
The future growth of middle management in large manufacturing and
nonmanufacturing firms may well be much slower or even nonexistent
because of the restructuring of these firms. Much of the work control
function formerly performed by supervisors and middle managers is now
superfluous increasingly, control and monitoring activities are embod-
ied in hardware and software installed on a production line or at a desktop
computer or workstation. The displacement (or reduced employment
growth) of middle managers within individual firms, however, must not be
confused with reductions in the total employment of white-collar workers
within the U.S. economy. There will continue to be ample employment
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126 TECHNOLOGYAND EMPLOYMENT
opportunities for individuals with white-collar managerial qualifications-
BLS projections for white-collar and professional occupations (U.S.
Bureau of Labor Statistics, 1986b) forecast growth through 1995 but
these opportunities may be located less frequently within a large firm.
Another organizational change that is being encouraged in some sectors
by the conjunction of advances in information technology, higher re-
search costs, and greater international competition is increased interfirm
collaboration in product development and manufacture. International
collaboration in the development of commercial aircraft, engines, and
other products relies heavily on the rapid digital transmission of design
and test data through satellite links, as well as on the exchange of design,
engineering, and test data and specifications on computer tapes (Brooks
and Guile, 1987; Mowery, 19871. Domestic and international technology
transfer among firms in many manufacturing industries will increase
considerably as a result of collaboration among firms in product research
and development.
Within firms, as noted in Chapter 2, the successful exploitation of CIM
technologies, as well as computer-aided design and manufacturing, fre-
quently requires that firms reduce organizational barriers to cooperation
among different functional areas. ~ Compton and Gjostein (1986) argue that
"the computer will undoubtedly assist in reducing the time required to
complete a design and bring it into production. The key to such reductions
is the transformation of design from a serial process to a simultaneous
one . . ." (p. 94~. In addition, more rapid rates of international technology
transfer, as well as intensified international competition, mean that U.S.
firms must move new products from laboratory to market more rapidly; in
some U.S. firms, this development has contributed to the more extensive
use of project teams combining research, design, production engineering,
and marketing personnel for product development efforts. New product
development periods often can be shortened significantly by increased
collaboration between product design and production engineering staffs.
In addition, in some U.S. industries, the imperative for more rapid
development of new designs and the modification of existing ones,
combined with lower direct labor costs resulting from the use of
computer-aided manufacturing technologies, may reduce the attractive-
ness of offshore assembly and fabrication (Cyert, 1985; Sanderson, 19871.
has is true of other changes wrought by the adoption of computer-based technologies,
however, the development of project teams does not depend solely on the adoption of
computer-integrated or other computer-based manufacturing technologies. Japanese manu-
facturing firms, for instance, used multifunction project management teams for a number of
years prior to their adoption of computer-based manufacturing technologies (Abegglen and
Stalk, 1986).
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TECHNOLOGICAL CHANGE AND THE WORK ENVIRONMENT 127
The Structure of the Workplace
The adoption of information and computer-based manufacturing tech-
nologies will place new demands on individual workers. As was noted
previously, the adoption of these technologies in many industries means
that functions formerly performed by middle management will move
downward within the organizational structure to the teller, clerk, or
machine operator. The breadth of the tasks performed by workers in
many cases also will expand. As the National Research Council's
Committee on Effective Implementation of Advanced Manufacturing
Technology (1986) has noted, many jobs in the CIM establishment
". . . include more planning and diagnosis, and both operating and
maintenance duties, in recognition that traditional distinctions between
such tasks are blurring" (p. 3~. Tasks that formerly were separate can be
integrated in a single workstation by the worker with a computer.
This expansion in the range of tasks performed by a worker is likely
to increase the requirements for employers to provide training in job-
related skills, although the job-related skill requirements for entry into a
job should not be affected, as noted in Chapter 4. Management has a
number of incentives to encourage the acquisition by workers of the
capabilities to perform more tasks, or "multiskilling." Coordination is
easier when workers can perform a greater variety of activities. Workers
also perform better (productivity increases, as does attention to product
quality) when they can see the relationship between their job and other
jobs, a relationship that becomes clearer when the worker is trained to
perform more than one job.
From a worker's point of view, multiskilling can lead to higher wages or
the retention of current wages. Most workers also find multiskilled jobs to
be more interesting and challenging than single-skill jobs. Serious disin-
centives to investment by firms in such training arise from its costs, which
may be particularly burdensome for small firms, and the fact that it may
be difficult for firms to recover the fruits of their investments in training
(see Chapter 71.
As we noted in Chapter 4, the increased use of advanced manufacturing
technologies means that worker productivity will depend more on mental
ability than on physical effort. Diagnostic skills will be necessary to
recognize a potential problem before a machine, a production cell, or an
entire plant shut down and cause expensive production delays. These
changes in the duties of workers will force changes in the criteria for
selecting, promoting, and rewarding workers in the CIM or office work-
place. Moreover, the steady evolution of the technologies used within the
office or factory, as well as the greater responsibility of workers for
controlling production quality and speed in many industries, means that
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128 TECHNOLOGYAND EMPLOYMENT
training and retraining in these industries may have to be continuous
rather than sporadic. The knowledge requirements and responsibilities of
production workers may well come to resemble those of engineers, who
have long recognized the need for constant upgrade and "brush-up"
training to keep up with changes in their fields. On the one hand,
employers and other institutions will have to provide training on a
continuous basis; on the other, the work force will have to adapt to these
changing requirements.
A number of researchers (Appelbaum, 1984; Baran, 1986; U.S. Congress,
Office of Technology Assessment, 1986b) have expressed concern about the
effects of computer-based technologies on opportunities for internal promo-
tion within service and manufacturing firms. Will upward mobility within the
workplace be reduced as a consequence of reductions in the skill require-
ments for entry-level jobs and increases in the educational qualifications for
high-level management positions? These misgivings were echoed in the
widespread belief voiced by respondents to the Cambridge Reports (1986)
poll that information and computer technologies were moving the U.S. work
force toward a two-tiered structure, characterized by a technological elite
and a large group of low-skill workers engaged in data entry and hamburger
turning. This two-level characterization of the future workplace, however,
rests on assertions concerning skills that we contested in Chapter 4; it also
predicts changes in the distribution of earnings and income that disagree with
the data presented in that chapter.
The evidence gathered by this panel on trends in the occupational
structure of the U.S. work force does not support the hypothesis that
technological change leads to a polarized aggregate occupational structure.
Singelmann and Tienda (1985) analyzed data on occupational trends within
industries, concluding that during 1970-1980, occupational upgrading, rather
than polarization, characterized the U.S. economy. Much of this upgrading
reflected changes in the occupational mix within industries, rather than shifts
in the relative importance of sectors with contrasting occupational mixes:
"This turn-around of the relative importance of intra-industry occupational
shifts on total occupational change is-if continued-of major importance,
because it implies possibilities for future occupational upgrading even after
the industrial transformation towards a service economy has been com-
pleted" (Singelmann and Tienda, 1985, p. 64~.2 Technological change thus
does not appear to be systematically "deskilling" workers or creating a
two-tiered work force, although additional evidence on occupational trends
and continued monitoring are needed.
2Similar evidence on changes in the U.S. occupational structure is found in the work by
Rosenthal (1985) and Lawrence (1984) discussed in Chapter 4.
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TECHNOLOGICAL CHANGE AND THE WORK ENVIRONMENT 129
LABOR-MANAGEMENT RELATIONS AND THE
IMPLEMENTATION OF TECHNOLOGICAL CHANGE
Many of the previous innovations of the post-1945 period could be
accommodated without great changes in the structure of the firm and
workplace. Information and computer-based technologies, however, pose
fundamental challenges to the existing organization of many firms (as
discussed previously) and therefore place great demands on the relation-
ships between labor and management in the manufacturing and office
workplace. Thus far, U.S. labor and management have been slow to
develop creative and cooperative responses to these demands, although
there are important and heartening exceptions to this generalization.
Nonetheless, we are concerned that managers and workers may not
appreciate the need to change many of the management practices and
divisions of responsibility that historically have governed their activities.
The changes in the structure of the firm and the workplace offered by
new technologies in many cases lead to more satisfying, stimulating work.
Both labor and management stand to gain from the smooth, rapid
adoption of these innovations. Yet such adoption has proceeded slowly
within many sectors of the U.S. economy. Moreover, the full productivity
gains from the adoption of computer-based manufacturing processes have
been realized only slowly, if at all, in many production establishments. In
this section, we discuss strategies for managing the adoption of new
technologies, drawing on the study by the National Research Council's
Committee on the Effective Implementation of Advanced Manufacturing
Technology (1986) and on other case study evidence.
Human Resources Challenges and Strategies
Successful implementation of new technologies often requires consid-
erable modification of the tasks performed by individuals in the workplace
and the skills required to fill those jobs. Many of these changes apply to
both management and labor if workers are to exercise greater control
over the pace and character of work, the duties of supervisors and middle
management also must be modified.
Our examination of the evidence, which is largely anecdotal, has led to
the conclusion that "best-practice" (i.e., most effective, equitable, and
productive for management and labor) strategies for meeting these
challenges involve several elements. First, successful adoption of new
technology requires strong assurances from management to the work
force concerning job security. These assurances enable management to
retain the loyalty and commitment of the work force and may reduce
turnover rates among workers who have been retrained at considerable
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130 TECHNOLOGYAND EMPLOYMENT
cost to the employer. Fundamental components of any adoption strategy
thus include job security provisions and extensive retraining programs for
managers and workers. Such a strategy appears to yield considerable
payoffs for both management and labor, producing a more highly skilled,
motivated work force with lower turnover rates.
Job classification, seniority, and pay structures may require considerable
modification to realize the potential payoffs from the adoption of new
technologies. The incentive for both labor and management to implement
these changes is great; labor can gain greater job security and skills
enhancement, while managers obtain greater control over the structure of
tasks within manufacturing and office establishments. The role of supervi-
sors also may be altered, as many of their duties-for example, setting
production schedules and hours-may be delegated wholly or partly to a
work team.
The complexity and amount of planning and reorganization that under-
pin a successful adoption strategy make it imperative that management
begin planning, retraining, and job reclassification, as well as notification
of and consultation with the work force, well in advance of the introduc-
tion of new technologies. Advance announcement of the adoption of
major new technologies and consultation with the work force are central
components of a successful strategy. In many cases, the adoption of these
technologies, combined with reorganization of the production process,
will increase worker responsibility for product quality and production
rates. This in turn means that worker involvement in planning the
adoption of the production technology can enhance the performance of
the new process. In cases in which the characteristics and performance of
new technologies are not well understood by managers prior to adoption,
worker input into the design and purchase of this equipment can contrib-
ute significantly to the productivity of the new technology.
Adoption Strategies in the Unionized Workplace
There is a long history in this country of union-management bargaining
over the erects of technological change. In some industries, this bargaining
has resulted in "red-circling" jobs that have had their skills downgraded by
technology, a practice that enables the occupant of such a job to retain the
same wage for a specified period of time. Firms in such industries as printing
also have provided attractive retirement packages to workers faced with
displacement. A growing number of union contracts have provisions dealing
with these issues. One analysis of 400 such contracts (Bureau of National
Affairs, 1986) found that 25 percent had clauses covering the introduction of
new technology, a considerable increase from less than 10 percent within a
similar sample of 1961 agreements. Fifteen percent of these agreements
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TECHNOLOGICAL CHANGE AND THE WORK ENVIRONMENT 131
provided for discussions with or notification of the union prior to the
introduction of new technologies; in roughly 6 percent, retraining was
required for any displaced worker.
Union and worker concerns over the impact of new technologies, job
classifications, and work rules on the integrity of the bargaining unit (the
union local's size and coverage of the establishment work force) have
been addressed in many contracts through retraining and employment
security provisions. These provisions stipulate that union members will
be retrained to perform the jobs created by technological change that
replace jobs previously held by union members. Training programs
funded by employers or jointly by union and employer contributions have
been adopted in a number of recent contracts. The United Automobile
Workers (UAW) contract with General Motors provided for advance
notice to the union of the adoption of new technology and created a
special union-company committee to deal with technology-related lay-
offs. In addition, workers whose jobs are eliminated as a result of
technological change are guaranteed employment with full pay and
benefits as long as they are willing to retrain (Pascoe and Collins, 19851.
A similar scheme has been established under the terms of the 1986
contract between the Communications Workers of America and the
American Telephone and Telegraph Corporation, as well as in agreements
between the union and various regional operating telephone companies.
Comparable guarantees, however, do not exist in other industries in
which employment issues are increasingly salient.
Katz (1985) and others have noted that collective bargaining between
industrial unions and employers over employment security, job reclassi-
fication, and other issues related to technology adoption is introducing
differences in the financial and other provisions of contracts between a
single union and different firms (and different plants operated by a single
firm) within an industry. As a result of technological change and increased
competitive pressure on workers and management, "pattern bargaining,"
in which a settlement with one firm largely determined the terms of
contracts with all or most other firms in an industry, has declined in
importance (Freedman and Fulmer, 19821. Its demise will increase
demands on industrial union leaders faced with differences in the financial
treatment of members at different firms, as well as pressure from firms to
gain contractual agreements no less favorable than those of their compet-
itors (Schlesinger, 19871.
Impediments to Best-Practice Adoption Strategies
The elements of best-practice adoption strategies seem sufficiently
prosaic and profitable for both labor and management that serious
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132 TECHNOLOGY AND EMPLOYMENT
questions arise as to why these policies are not pursued more widely. A
number of large manufacturing firms, many of which have unionized work
forces, recently have adopted some or all of the elements of such
strategies. Many firms have not, however, and we believe that the reasons
for this failure extend beyond a lack of information.
The pursuit of best-practice adoption strategies requires mutual accom-
modation and trust between labor and management. Where labor-man-
agement relations historically have been adversarial in tone and charac-
ter, the use of these strategies is less likely. In such a situation, the
conditions that engender mistrust must be addressed before the adoption
of new technologies can be discussed. This may require that labor and
management complement intermittent bargaining over wages and job
classifications with continuous joint problem-solving sessions that ad-
dress general workplace topics. Firms that have used labor-management
committees to deal with such issues as worklife quality or workplace
safety often have laid the groundwork for dealing with the introduction of
new technologies.
Even in those workplaces in which labor and management historically
have not been in conDict, serious misconceptions on both sides may
impede the pursuit of best-practice policies. The manager of the General
Electric household appliances plant in Louisville, Kentucky, a model of
labor-management cooperation in the adoption of new production tech-
nologies that have improved product quality, was amazed at the level of
worker interest in the new production and marketing strategies that were
an important part of the reorganization of plant operations:
We [General Electric-Louisville plant management] set up a series of meetings
with foremen which we followed every time with a meeting with all the union
stewards in the building. We began by showing a lot of market and business
information we had never disclosed to them in the past, partly because it had not
occurred to us that they would be interested. But they were! We included
information about what was going on elsewhere in the world with respect to the
modernization of factories.... They watched and listened with great interest. In
the end we all believed that unless we took a major leap ahead in productivity and
quality we were going to be overrun. (Stevens, 1983, p. 35; emphasis in original)
.
The need for consultation with the work force, as well as the loss of
managerial powers and responsibilities that may result from many adop-
tion strategies, often conflicts with the goals of middle management. For
example, middle managers may resist transferring a portion of their power
to workers who seek greater involvement in production decisions, as was
noted in a recent discussion of participative management:
Information is power, and access to it remains a clear badge of rank to managers.
Even though many companies are forcing managers to put out information on the
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TECHNOLOGICAL CHANGE AND THE WORK ENVIRONMENT 133
number of units produced, costs, and other sensitive issues, the idea still doesn't
sit right.
Fearing a loss of power, many middle managers torpedoed early participative
programs.... (Saporito, 1986, p. 60)
Many firms have found that when senior managers communicate
clearly their commitment to new forms of production organization and are
willing to alter internal incentives and evaluation criteria, middle manag-
ers and supervisors are able to overcome their natural reluctance to
implement novel procedures. There also may be resistance to restructur-
ing job classification and compensation schemes, however, within the
leadership of union locals and within the work force in nonunion plants
and offices. Managers in nonunion workplaces may resist the develop-
ment of formal labor-management consultation mechanisms because
these mechanisms may imply recognition of a collective organization
representing workers.
Another significant impediment to the widespread use of these technol-
ogy adoption strategies is their high cost. The ambitious retraining,
screening, and reclassification efforts that are an integral element of the
success of these strategies are expensive and may be particularly difficult
for small firms to sustain. It may also be difficult for firms, no matter what
their size, to justify the costs of the strategies relative to their measured
benefits. Conventional accounting methods often are unable to measure
the productivity and product quality payoffs from the reorganization of
the work process, which impedes the adoption of other new manufactur-
ing technologies such as robots (Kaplan, 1986~. The savings from lower
work force absenteeism and turnover, for example, or higher product
quality and shorter product development cycles are not easily captured
within conventional accounting methods, which look at individual oper-
ations or processing steps and may not account fully for all components
of overhead or fixed costs.
We are concerned by the slow adoption of new process technologies in
some manufacturing industries and the frequent inability of U.S. firms to
develop organizational structures that can accommodate and fully exploit
the productive potential of these innovations. These problems stem in
part from the lack of proficiency of many U.S. managers in evaluating the
overall costs, consequences, and benefits of new technologies, as well as
the difficulties workers and managers often experience in developing a
more fruitful, cooperative relationship within the workplace. Both of
these problems must be addressed by workers, managers, and the
organizations that train them if the benefits of technological change are to
be realized more rapidly and distributed equitably within the U.S.
economy.
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134 TECHNOLOG Y AND EMPLO YMENT
TECHNOLOGICAL CHANGE AND WORKPLACE
HEALTH AND SAFETY
Ensuring human health and safety during new technology adoption and
application is one of the most significant challenges of technological
change. The topic, however, is far too complex to address in a single
section of this report. Instead, we note and briefly discuss areas in which
more study and research are needed. These areas range from the effects
on workers of workplace design to the potential use of new methods to try
to determine the susceptibility of workers to health effects from exposure
to substances in the workplace. We have grouped the issues into three
broad categories: (1) new workplace health and safety hazards resulting
from technological change; (2) opportunities for greater workplace safety
made possible by technological change; and (3) challenges to existing
health and safety regulations that arise from the novel environments
within which many of these technologies will be applied.
Workplace Hazards Created by Technological Change
Many of the workplace hazards produced by new technologies are not
novel in themselves. For example, the substances to which workers in the
microelectronics industry are exposed, such as arsenic compounds, have
been present in other manufacturing occupations for years. In the case of
the microelectronics industry, it is the novel environment within which
exposure is occurring rather than the exposure per se that may require
new control strategies. Other worrisome issues include worker exposure
to new materials and solvents for which few toxicological data have been
compiled.
The extended use of video display terminals has highlighted the issue of
workplace stress. Workplace stress is not new; fast-paced, high-pressure
assembly and clerical occupations in which worker productivity was
carefully monitored have characterized many American workplaces
throughout this century. Proper design of equipment and the workplace,
as well as training, also can minimize the symptoms of eyestrain, back
strain, and wrist strain that occur among clerical employees using
computer terminals and other electronic displays for extended periods.
Technology's Potential for Reducing Workplace Hazards
Information and computer-based manufacturing technologies have sig-
nificant promise for reducing workplace hazards. Robotics and automatic
materials transfer, for example, can reduce lifting and other strenuous,
injury-producing tasks; they can also reduce worker handling of hazard
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TECHNOLOGICAL CHANGE AND THE WORK ENVIRONMENT 135
ous substances (e.g., through the use of robot painting and welding
operations in automobile production). Advanced computer-based tech-
nologies for monitoring and correcting chemical and other production
processes can reduce the emission of toxic or hazardous substances and
enable workers to control such processes from more remote and conse-
quently safer locations.
Technological change also has improved our ability to monitor worker
exposure to various substances through such techniques as the analysis of
chemicals or their metabolic products in blood, urine, or exhaled air.
Enhanced monitoring technologies allow greater precision in controlling
and restricting worker exposure to toxic and other substances. In
addition, information technologies have enhanced the ability of research-
ers to conduct large-scale exposure and epidemiological studies of health
and safety effects. These developments will expand our knowledge of
workplace hazards and aid in our choice of more effective control
strategies and safer production technologies.
Changes in the Work Environment
In conjunction with other forces, technological change is altering the
structure of the workplace in the United States. As we noted in the first
section of this chapter, such change may favor the growth of smaller
firms. This phenomenon in turn could affect the level of worker protection
from hazards provided by federal regulation. The current enforcement
strategy of the federal Occupational Safety and Health Administration, as
well as state agencies, relies on a limited number of inspections of larger
plants. To the extent that the share of total employment accounted for by
larger manufacturing plants declines, an increasing share of the U.S. work
force will be located in firms that typically receive limited enforcement
attention.
In addition, new technologies increasingly will be found in offices rather
than on assembly lines; they will also be found in establishments with
work forces that include larger shares of women. Employment growth is
likely to be most rapid in sectors that historically have not had extensive
union representation, which means that internal pressures for monitoring
workplace health and safety may be less intense within some firms.
Finally, the work force in many firms is likely to include more individuals
with a limited understanding of English; additional resources may be
required to provide these workers with information about hazards and the
training in workplace safety now mandated by law. The environment
within which new technologies are applied thus will depart in a number of
ways from the workplace that existing federal and state regulatory
structures have been designed to monitor.
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136 TECHNOLOGYAND EMPLOYMENT
This brief survey is intended to highlight important emerging issues in
the area of workplace safety and health. Rather than developing specific
findings, we wish to ensure that the potential hazards created by these
technologies are investigated promptly and then carefully monitored, that
efforts are undertaken to exploit the potential of these technologies for
reducing workplace safety and health hazards, and that the effectiveness
of existing regulatory structures for the workplace of the future receive
appropriate consideration.