Automation Computerization New Technologies of Industrial Revolution
2022 SOCIOLOGY-COMPLETE SOLUTIONS
Globalization:- When business can no longer have a local focus and management now recognizes the global char. This means that the business had a global orientation. Due to globalization-
- a) The globe has become almost like a village because of the best means of communication. Distance is no longer a problem for sound and vision due to the phenomenal development of TV, video and D telecommunication.
- b) we have an increase
To develop technical and managerial capabilities to cater to the global market with the help of global brands. Even production can be located in several countries.
- c) We have now developed a global outlook in business. Nothing is foreign now.
The current global business scenario is characterized by turbulent changes, high levels of uncertainty and intense competition. The impact of globalization is briefly outlined below.
Changes in the Business World:
- a) Total Quality Management (T&M) of the company
- B) Restructuring and Restructuring Revolution
- c) Planned changes in management/organisation.
- d) Short life cycle of the product, small change of product in the cycle, high rate of new product development, ample scope for creativity and innovation.
- e) Product quality integration, internals of zero defect production.
- f) The growing importance of project management, self management, self managed teams, holistic values and strategic management.
- g) Rapid development and increasing use of information technology including telecommunications and computers.
- h) Education and training of employees The technology-based competitive strategy is multitasking. Skills based on all personnel values are empowerment of employees with organizational change, planning and decision making, strategy for problem solving, genuine participation and responsibility of workers in management.
Automation:- Traditionally, automation has been understood as greater replacement of labor by machines- this perception has now changed. Today, automation projects are undertaken not only for labor cost savings, but also for improving product quality, faster production and delivery of products, and increased product flexibility. Simply put, automation is the technology of operating or controlling a productive process by electronic devices and minimizing human intervention.
refers to. Human contribution to production includes two types of effort – physical and mental. The physical aspect i.e. labor was taken over by machines which came into use increasingly after the industrial revolution. The mental contribution to production is now taken over by electronic devices, primarily computers, which are often referred to as giant brains. With the advent of automation, the second industrial revolution has begun.
In a fully automated plant, all aspects of manufacturing
i.e. the feed, production, information and control is done by computer, supervised only by a few men who take an occasional look at the control room or clear the cutting. However, the extent of automation varies from plant to plant, and depends on the willingness and ability of management, the cooperation of workers and their trade unions, and the general economic conditions of the country. ‘In the simplest sense’ author Ruddell Reid ‘Automation is nothing more than an extension of the principles of mechanization to the integration of machines with each other in such a way that the group operates as an individual processing and control unit. The other extreme is the application of automation electronic digital computer control systems, which not only read the individual measuring instruments but also analyze the data received from the instruments, arrive at a decision and adjust the control values or motors or proper setting for optimum results. does.
There are many levels of application of automation techniques and principles between the extremes.
In practice, automation can include three district forms, namely integration, feedback control and computer technology. Integration involves processes in which finished products are automatically moved, untouched by human hands, from one stage to another, for example, industries handling liquids of gases, powdery goods such as the oil and chemical industries. Feedback control is primarily an electronic process by which any movement or movement of a machine is automatically corrected by the planned performance. These controls, called ‘servo mechanisms’, are highly developed in chemical industries and operate a number of mechanisms involved in these industrial processes. Third, computer technology relies on the use of electronically operated machines capable of recording and classifying information and, when necessary, drawing conclusions from this information. Third, computer technology relies on the use of electronically operated machines capable of recording and classifying information and, when necessary, drawing conclusions from that information.
Advantages and Disadvantages of Automation:
Automate or Die is the slogan of many producers all over the world, increasing production and productivity. Lower cost, better quality, elimination of wastage and inefficiency etc. is an essential requirement for the owner of any industrial establishment to successfully face the competition. . Gone are the days when whatever was produced found a ready market, in times to come only the best manufacturers would perform
Excellence will prevail and best performance will be possible only through automation.
Specifically the benefits of automation are:
1) Increase in production and increase in productivity:- Automation increases productivity and leads to increased production speed, eliminates production bottlenecks, reduces dead time (the time when No machine works due to lack of things like cutter fixtures etc.).
2) Better and Uniform Quality:- The quality of production has been greatly improved, as the whole production process, starting from raw material to final product, is controlled by machines. There is consistency in the quality of the products – a factor that makes or breaks customer goodwill.
3) Reduced Cost:- Automation results in reduced overall cost per unit of production, cost savings in the factory mainly due to virtual elimination of labour.
4) Dangerous and Unpleasant Work:- Factory work like sawing causing ear-splitting noise, Painting in which workers have to cover their entire face except their eyes, Work in machinery plant where oil seeps directly through clothes and skin etc are now controlled by robots instead of men. It is predicted that robots will perform many public and welfare services in the next few years. Will fight fines, work in garbage dumps, remove dirty water, and take the place of nurses in lifting patients from beds. The day is not going to stop when robots will step outside to perform tasks in dangerous situations.
Harm:
1) Heavy capital investment:- Automation involves high capital outlay, and hence increases cost of capital, also increases depreciation, power consumption etc. Therefore automation is a luxury for small firms.
2) Labor displacement:- Despite assurances to the contrary, automation results in labor replacement and often management replacement as well. Labor union concerns oppose the move to automation. LIC wanted to introduce computers in 1965. The trade unions protested and observed that automation through a computer would ultimately lead to the elimination of any LI.
The employee C was not retrenched. ‘The office was set up in Mumbai, and further employment opportunities were lost forever.
3) Fighter Specifications: – May need be Machines are not as flexible as humans. Mistakes in design or product cannot be corrected by machines. Therefore, increased automation will place demands on suppliers to adhere more strictly to specifications.
4) Dehumanization:- Automation taken to its logical end, dehumanises the plant and creates a strange environment in it. It is the three that offer many advantages. It is also true that an automated plant can save management from labor related hassles. But it should not be forgotten that employing thousands of people in a single plant has its own charm and hundreds of robots or computers give a comet-like sense of pride and achievement.
5) Effect on Employment :- In developing countries already the unemployment rate in such countries is very high. With the advent of machines, unemployment will increase further. foreign shortage
Exchange, the lack of highly skilled personnel and the lack of capital may not allow the country to go up to 100%. Computerization automation can be useful for increasing production in agricultural and industrial sectors but for some time to come these countries cannot afford this luxury selective automation to ensure accuracy, if not speed may be more relevant.
Subcontracting and Outsourcing:
It is most common to think of skill upgrades as spontaneous technological change, for example the discovery and introduction of computers that displace production workers. Several authors, such as Feenstra and Howson (1997), compared the effects of automation in the United States to law wage outsourcing to developing countries. They found that the effect on salary dispersion of computerization is more than half that of outsourcing.
While there are many other explanations for the spontaneous change in technology, skill upgrades have been seen as being at least partially driven by recent increases in the relative supply of skilled workers. The first concern of premia firms is paying for good employees. In the early 1970s the proportion of professionally trained workers was low and advanced qualifications were rarely available as an index of quality. Today, since the 1990s, tertiary qualifications have increased the costs of removing unsatisfactory employees. So it seems natural for them to use tertiary qualification as quality and index and select professionally trained candidates even for regular jobs.
Companies always love it when they see benefits in both the financial and quality aspects of production by outsourcing many of their components. Since it has become too expensive to employ highly skilled workers and firms have to maintain or grow
To maintain the quality of many products in the market, outsourcing i.e. subcontracting various parts or stages of production to small industries, which may be in developing countries, has been found to be most beneficial and cost-effective. But such industries have to produce quality products with high-tech production technology. 1) Business competition, when combined with internationally mobile physical capital!, affects vertically integrated internationally mobile physical capital, increasing the outsourcing of components to vertically integrated production processes. , It is the form of internal industry structural change that produces the observed ski; Upgradation in all areas. It provides the appearance of innovation in the form of technological change.
2) Labor displacement:- Despite assurances to the contrary, automation results in labor replacement and often management replacement as well. workers are unionized concerns
Resist the move to automation. LIC wanted to introduce computers in 1965. The trade unions protested and saw that eventually no LIC employee was retrenched due to automation through a computer. ‘The office was set up in Mumbai, and further employment opportunities were lost forever.
3) Fighter Specifications: – May need be Machines are not as flexible as humans. Mistakes in design or product cannot be corrected by machines. Therefore, increased automation will place demands on suppliers to adhere more strictly to specifications.
4) Dehumanization:- Automation taken to its logical end, dehumanises the plant and creates a strange environment in it. It is the three that offer many advantages. It is also true that an automated plant can save management from labor related hassles. But it should not be forgotten that employing thousands of people in a single plant has its own charm and hundreds of robots or computers give a comet-like sense of pride and achievement.
5) Effect on Employment :- In developing countries already the unemployment rate in such countries is very high. With the advent of machines, unemployment will increase further. Lack of foreign exchange, lack of highly skilled personnel and lack of capital may not allow the country to go up to 100%. Computerization automation can be useful for increasing production in agricultural and industrial sectors but for some time to come these countries cannot afford this luxury selective automation to ensure accuracy, if not speed may be more relevant
subcontracting and outsourcing
2022 SOCIOLOGY-COMPLETE SOLUTIONS
It is most common to think of skill upgrades as spontaneous technological change, for example the discovery and introduction of computers that displace production workers. Several authors, such as Feenstra and Howson (1997), compared the effects of automation in the United States to law wage outsourcing to developing countries. They found that the effect on salary dispersion of computerization is more than half that of outsourcing.
While there are many other explanations for the spontaneous change in technology, skill upgrades have been seen as being at least partially driven by recent increases in the relative supply of skilled workers. The first of these concerns the premium the firm pays for good employees. In the early 1970s the proportion of professionally trained workers was low and advanced qualifications were rarely available as an index of quality. Tertiary qualifications today have made more progress to reduce costs than in the 1990s
unsatisfactory worker. So it seems natural for them to use tertiary qualification as quality and index and select professionally trained candidates even for regular jobs.
Companies always love it when they see benefits in both the financial and quality aspects of production by outsourcing many of their components. Since it has become too expensive to employ highly skilled workers and firms have to maintain or enhance the quality of many products to market, outsourcing i.e. subcontracting various parts or stages of production may occur in developing countries. . Has been found most profitable and cost effective. But such industries carry with them high-tech production techniques to produce quality products. Trade competition, when combined with internationally mobile physical capital!, affects vertically integrated internationally mobile physical capital, increasing the outsourcing of components to vertically integrated production processes. It is the form of internal industry structural change that produces the observed ski; Upgradation in all areas. It gives the appearance of innovation, as technological change in the sectors measured at the end, when what is actually happening is a shifting of component activities with increased import competition, a decline in both wages and employment of production labor. comes because many firms are ready to manufacture products of similar quality. And that too at low prices eg. Chinese goods in Ind
I am one As imports of competing products flow in, the monopolist responds better by contracting its output while keeping the price of its original product intact. Low-skill employment falls and the laid-off workers reduce unskilled wages elsewhere in the economy or, if those wages are severely reduced, increase unemployment.
With the enormous growth of services in industrialized economies and the corresponding decline in manufacturing, there is a greater demand for good manufacturing in developing countries. Yet the relative proliferation of service firms in the new industrial economy brings pressure for organizational change. One of the European style of managing this is the phenomenon of ‘multitasking’ in a typical service firm. This makes the central reform wage bargaining prevalent in Europe less efficient, creating pressure to switch to individual contracts and therefore greater wage dispersion.
Many companies in India have started subcontracting their products. Parle Gulkos Biscuit, Johnson & Johnson, well-known jewellers, Bombay Dyeing, Bata Shoe Company, many pharmaceutical firms that outsource their parts or components and market those products under their own trademarks after carefully monitoring their properties. Sells For small firms, such subcontracting reduces labor costs by not having to employ skilled labor at the factors. such as competition with multinational companies or foreign manufactures
The market is very difficult and uncertain, it is absolutely necessary to increase the level of productivity and quality of goods. If the present labor structure is unable to produce the desired output, it has to be changed and technological change has to be brought about. Business process outsourcing is considered to be one of the biggest job opportunities the Indian market is a part of in IT. Enabled Services. In the rapidly changing business environment in the world today, many large companies no longer want to be involved in routine and administrative tasks. This trend is today giving rise to a huge industry called Business Process Outsourcing (BPO).
B P O – means delegating back end administrative tasks that are necessary to run the business but do not generate any revenue directly. Companies around the world are increasingly outsourcing their routine and administrative tasks, including data entry, data conversion and processing, insurance claim processing, document management, billing services, accounting, results, payroll services, credit and debit card processing, and more. A huge number is involved. services, logistics management, sales administration, travel management and data research.
This (infection technology) is the first sector which has started outsourcing on a large scale. East Man Kodak helps ignite outsourcing industries, with its IT
Outsourced the bulk of the tasks to three external partners. The practice became widespread over the next 20 years. Gnomonic certainly and the rapid pace of change are driving companies toward transformative outsourcing partnerships, says Mazzavi – a consultant at Cap Gemmons. Performance improvement under traditional outsourcing is operational, but rather strategic in nature to do the same job better, faster or cheaper. But usually there is no scope for change. Transformational outsourcing transforms the entire business. Earlier non-essential services such as payroll, processing or security activities were outsourced to outside agencies. But now, according to Jim Jackson and Jim Lasseter, more essential activities like manufacturing or logistics can also be transferred.
Downsizing and its impact
Exit Policy:- The proposal to introduce an exit policy was first put forward in September 1991 when it was introduced that without the flexibility of the labor market it would be difficult to achieve efficient industrialization. The World Bank and the IMF have long argued that governments should initiate labor market changes to allow employers to move workers from one unit to another and to retire excess labor. It is the threat of retirement that is worrying the working class.
In the guise of improving the competitive strength of our experts and introducing a competitive environment in the Indian domestic market, the new economic policy has opened the door for multinational companies. Over the past few years a large number of cooperation with foreign companies have dived. MNCs are also controlling many Indian companies. Tendencies are found for workers in MNCs which employ capital intensive technology with automatic machine, the production process in a unit can be run with a handful of workers and this can reduce the size of the unit i.e. size Shrinkage of workers. The danger sign is open in front of everyone, which can be seen by everyone. A large number of companies have already raised objections regarding VRS (Voluntary Retirement Scheme) in their various units. While some companies have copied
Some companies have adopted VRS to overcome losses by making them ‘lean and fit’ to improve their profit margins at the expense of employees due to the growing threat from foreign competition. Domestic companies are now building more on care capability and diversification. Accordingly, they are trying to weed out unrelated and unprofitable business. VRS is also adopted by companies when they enter into strategic alliances with other companies or there is an acquisition. Workers of Halpern are currently victims of the process of restricting the consolidation, mergers, acquisitions and amalgamation sector. The government’s policy has been to ease the process of retrenchment of employees.
impact on trade unions
Trade unions in India played an extraordinary role in protecting the interests of the workers even by controlling and regulating the management at the expense of the organization. But trade unions now play an important role by collaborating with the management as the organization will survive in the state under the competitive environment. The role of trade unions fighting with management to protect workers’ interests would be changed, with most employment conditions determined by market forces rather than the political and all-membership power of trade unions. Further the government will support the management rather than the trade union as opposed to the part, as at present the aim of the government is to achieve faster income growth. Therefore, liberalization will not guarantee equal role and importance for trade union in India.
Trade unions in India oppose the imposition of economic liberalization as they generally do not favor free access to the Indian industrial sector to multinationals, support the development of small scale sector, oppose privatization of public enterprises and do not want to close down the sick units. but they could not answer
Substantially and effectively led to a rapid decline in employment and wages. Market manipulations force the management to take unilateral decisions to solve the labor problem to reduce the labor burden. Technological and other changes may be introduced to modernize and/or restrict enterprises to recover from the crisis and face competitive pressures. Most of the private sector organizations are seeking to promote labor management cooperative through consultation instead of collective bargaining. Hence collective bargaining machines would not be able to enjoy the same privileges under a liberalized economy.
Voluntary Retirement Schemes (VRS)
To increase profitability, many managements decided to downsize their organization. This is called downsizing. For this they adopted various exit policies. Under the current policy, the government has allowed business and industrial establishments to lay off additional staff and reduce staff. Due to modernization by implementing new technology and new methods of operation, the reduction of additional staff is the result of the rest metering of the organization, so that the industrial organization becomes economically viable.
operate and face competition with a body of companies that have captured foreign collaborations, innovative methods and Technology upgrade provides some staff surplus.
Since the procedure under the Industrial Disputes Act 1947, retrenchment involves a lot of legal handles and complicated system, government authorized schemes of voluntary retirement of employees provide suitable voluntary retirement benefits and under the guidelines issued by the government and income tax authorities Doing something gives relief. Public sector units are providing employment to lakhs of people but many of them are not cost effective. Trade unions have been opposing retrenchment under existing labor laws. So the government found a solution to the problem of surplus employees by allowing voluntary retirement to both private and public units. Industrial units of workers a) have become surplus due to the existing level of technology b) will become surplus with the adoption of good technologies and technological upgradation.
The Industrial Disputes Act 1947, as it stands, imposes restrictions on employees in case of reduction of excess workforce by retrenchment, closure of establishment. Unions strongly oppose any plans for retrenchment and reduction of employees and workforce. The government had decided to amend the labor laws, so that employees would be able to legally join the labor force following the conditions of the labor laws. but for
For some reason the government will not do this. However, a way was found by allowing employees, including government units, to offer voluntary retirement schemes to offload surplus manpower. The URS plans were not opposed by the unions, it became the nature of being voluntary and not using any coercion.
URS complication has not been detected. This includes voluntary separation
Employees who are above 40 years of age or who have served the company for at least 10 years. The company may offer different severance benefits to employees of different age groups subject to overall benefits including tax exemption PSY, however, prior permission from the government has to be obtained before starting any such programme. Reason for proposing Rs.
- Slowdown in business.
- Intense competition which makes the establishment unviable unless downsizing is resorted to.
- Charge in technology, production process innovation, new product line.
- Restructuring of business due to market conditions
- Joint venture with foreign collaboration
- Acquisitions and Mergers
- Business Reengineering Process
- Product/Technology has become out of date process by now, the employer has to circulate his proposal mentioning URS
- a) Reason for downsizing.
- b) Eligibility i.e. who are eligible for voluntary retirement.
- c) Age limit and minimum length of service of the employees applying.
- d) The advantages offered by us.
1) Provident Fund.
2) Gratuity Fund.
3) Privilege leave pay up to the date of his retirement, in addition to UR benefits
4) Right of the employee to accept or reject any application for voluntary retirement.
5) The date up to which the scheme is open and applications are received for consideration.
6) The circular may indicate income tax benefit on any voluntary retirement benefit exceeding Rs. 5 lakhs which is the maximum for fax benefits
7) It should also be mentioned that those who accept UR and the benefits thereunder shall not be eligible for employment in the establishment in future.
Rewarding the studies done on UR and their impact on employees and workers, it is observed that after UR many people blow away the money they received as part of the retirement package. Some blame it on the high interest rates. Some bought houses which had to be sold after the wards. Some even committed suicide after being abandoned by their children. Some others have become alcoholics. It was observed that the rate of protest across departments has increased in Mumbai. On the bright side, there are people who restricted and reorganized their lives. Some started their own business, some became outsourcing partners of their farming companies.
Counseling is necessary for people taking VR there. Essentially UR is neither voluntary nor retirement but a retrenchment scheme. Many employees are separated from the organization to increase efficiency. The union leaders do not accept the VRS schemes. He says the management sees VRS as a way to increase profits. For them if is unacceptable. And go for subcontracting. Establishment of new units is also named, some managements close down and many others.
Globalization, liberalization and privatization had influenced the economic policies of India. The New Economic Policy set the course for the entry of multinational companies, foreign direct investment, investment, privatization and a more liberal economy. Computerization, subcontracting and down sourcing of outsourcing have all affected the growth of industries and labor and large scale workers are being laid off with no work in hand.