Tackling New Technology Blues

New technology is being introduced all over the world primarily to ensure that high quality goods are produced with reduced cost, greater efficiency and profitability. Technological upgradation is a new production technique process whereby a changed combination of existing newly-acquired human and material resources is used. But employees (mainly in the developing countries) feel that technological upgradation means job losses, increased responsibility, and greater risk with relatively lesser pay. The consumer, on the other hand, looks at new technology as an improvement of facilities, features, design, quality and consistency. These are some of the attitudes that have led to confusion with regard to technology adaptation in the manufacturing sector.

 

However, there are problems of technology adaptation in countries where labour is larg- ely unskilled and copious. Adaptation in developed nations has been smooth since it has been done in a phased manner. The phases can be divided into two broad categories: fundamental unionisation combined with a growing bargaining power; and deunionisation due to increased economic status of the employees, as evident in the UK and the US. These countries adopted a participatory approach in the second phase where employees were managed through a programme called Human Resource Management which took care of recreation, health and the family welfare.

But the management approach of developed nations cannot be adopted in the Third World since it is related to the question of survival of the large section of undernourished and unskilled workforce in traditional manufacturing sectors like textiles, iron and steel. There can be no common policy for technology adaptation. What is needed is a policy which is balanced and which looks at comparative advantages of the nation concerned in the field of exports. It has to be of a short-term nature specific to industry and regional concerns.

Economic liberalisation and reforms in India have brought to the fore many hidden problems in the manufacturing sector and specific problems in industries dominated by the public sector. These problems cannot be removed suddenly. In a democratic setup, such solutions generally take time, moreso when the government plays the role of entrepreneur and producer.

Manik Kher has undertaken the difficult task of collecting the experiences of three areas in the manufacturing sector steel (four firms ), textiles(11 firms) and engineering (seven firms). The author has also looked at the difference in employee reactions to technological upgradation in 11 public and 11 private sector firms.

The issue of technological adaptation has been focussed from the viewpoint of its link to human resource management, i.e productivity, skill flexibility and redeployment, training, incentives and wage increments, working conditions and work-related facilities, voluntary retirement and creation of a technology-friendly work culture. The last chapter deals with new techniques.

The author observes that technological adaptation and related issues can be broadly classified on the basis of location of firms, composition of labour force (immigrants etc.) and type of firm (public/private). Some existing lacunae in industrial relations, according to Kher, are the soft approach taken by the employers (specific to the public sector), militancy and corruption in TUs and the fear of technological advancement in the production process. These approaches have predominantly been found in the public sector, according to the book. But these results may be biased, since the study consists of 10 steel and textile firms from the public sector out of a total of 15 firms surveyed. In fact, the public sector needs maximum upgradation since it has been neglected for long, and firms under it seem to have aged too. Whereas, the engineering sector, which is concentrated in the western region, has been subject to frequent upgradation, combined with an enthusiastic skilled labour force. The survey should have balanced the representative firms sector-wise.

The author notes that it is time the labour movement in India understood that since technology upgradation has no substitute, there is need for an attitudinal change towards work.

Kher suggests a holistic approach towards the problem of coping with technological changes. This includes continuous training packages, direct rapport with employees, improved quality consciousness and building of confidence and optimism. Coping With Technological Change

Manik Kher Response Books (Sage Publications) Rs 295