Technology and Division of Labor
“The development of technology follows from the increasing complexity of the division of labor and has the consequence of entrenching corporate power. Evidence, explain and critically evaluate this claim.
Technology is meant to make work easier, more efficient and also to save time. Technology has significantly advanced, and over the years, more advanced technology gets invented. As technology continues to advance, the division of labor becomes more complicated because of the interlocking functions of different departments. For instance, the work of the human resource department may overlap with the purposes of the procurement department. The complexity of the division of labor has resulted in the entrenching of corporate power. Corporate power means the authority of any business entity that applies to law and they are stated in the charter of the company or corporation. This essay will discuss how the development of technology has increased the complexity in the division of labor and led to the entrenching of corporate power.
Since time immemorial, human effort has been the core of the production of goods and services. Before the advent of technology, the harnessing of mechanical power was by muscular effort. People used a lot of time and energy to produce goods and services. However, a new wave of technological change and computerization saw the elimination of muscular effort in production. In line with Leontief (4,1983), as soon as not only the physical but also the controlling “mental” functions involved in the production of goods and services can be performed without the participation of human labor, labor’s role as an indispensable “factor of production” will progressively diminish. Therefore, the technology automatically reduces the need for human labor which creates unemployment.
The wave of technology brought about unemployment but created the need for skilled labor. Although machines simplified work, humans were still needed to operate the machines. As such, workplaces lost were replaced by new job openings in rapidly expanding industries. Many service companies got started during this era, and they required skilled labor. It is during this era that the demand for skilled labor went up since many companies needed people who technology savvy.
Companies were stratified into departments to ease the workflow. The production department takes charge of all activities necessary to provide the services or products of an organization. The production department is in charge of planning and scheduling, control and supervision, managing product or quality service, control of inventory as well as deciding the best production methods and company layout. The research and development department is in charge of developing new products as well as improving the existing ones. The procurement department is concerned with acquiring goods and services used in the organization. This department procures items not just for the production department but the entire organization as well. The marketing department of an organization is dealing with identifying and satisfying the needs of the customers. The marketing department further analyses the competition and devises ways of gaining a competitive advantage. The human resource department deals with the employees of an organization. It is the responsibility of the human resource department to ensure maximum productivity from their employees by providing favorable working conditions. Also, the human resource department recruits new employees and facilitate their training and orientation. The accounting and finance department deals with all the monetary functions of an organization. The finance department keeps all financial records, prepares financial statements, payroll administration, and preparation of all management and accounting information and analysis. All these separate entities of an organization are held together by corporate power without which an organization seizes to function correctly.
Specialization of function has been a cardinal principle of the business organization since the beginning of the industrialization (Faunce, 2, 1965). Therefore, for an organization to run efficiently, every department must conduct their different functions without overlapping with each other. For instance, the production department should perform their tasks without interfering with the services of the procurement department. Job specialization raises productivity since every person understands what their specific role is and as such, they perform their duties without confusion.
Technology has brought complexity in the division of labor. Automation continuously creates changes in production technology. New technology has brought about modern machines that can handle several activities. In the same manner, developers continue to invent software technology that automatically carries out several functions at once. For instance, there is computer software that can take orders from a customer, process the order and keep financial records. In this case, the software has performed functions of almost all departments of an organization. As such, such an organization will need very few employees since the computer reduces the workload.
The division of labor requires that each performs the activity that they are gifted or specialized in (Pagano, 2, 1991). Division of labor minimizes training time since one only requires to train is a specific area. However, technology complicates the division of work due to technology that cut across all functions. When an organization utilizes technology in all its services, it requires very few employees. The few employees are trained in the functions of all the departments of an organization as well as using and operating the technology. Thus, the division of labor gets complicated in that the same employees have to specialize in the different functions of different departments. Besides, employees require training in technology.
Corporate power requires that an organization carries out its activities within the prescribed rules as laid off in charter of the organization. One of the prescribed standards in many organizations is that every department carries out its specific role to ensure maximum productivity. The way work practice is selected and implemented profoundly affects the performance of an organization (Black et al., 3, 2001). Therefore, when an organization decides to implement automated technology in its system, it should consider whether the said technology will entrench corporate power or not.
An organization that implements the optimum division of labor achieves a competitive advantage. It is the goal of every organization to gain a competitive advantage against all competitors in the market. Whereas technology may put an organization ahead by simplifying the production process, the lack of division of labor may put an organization at risk. Employees way to waste a lot of time moving from one activity to another rather than concentrating on one specific event and perfecting their skills.
In conclusion, technology has brought about complexity in the division of labor which in turn entrenches corporate power. Division of labor requires that employees in an organization specializing in their field of expertise to increase their productivity. Technology, on the other hand, simplifies work and even interlocks the functions of different departments of an organization. Corporate power lays down rules that govern how an organization carries out its activities. One of the regulations requires that the division of labor gets fully implemented to ensure maximum productivity. Therefore, technology entrenches corporate power by complicating the division of labor.
References
Black, S.E. and Lynch, L.M., 2001. How to compete: the impact of workplace practices and information technology on productivity. Review of Economics and statistics, 83(3), pp.434-445.
Faunce, W.A., 1965. Automation and the division of labor. Social Problems, 13(2), pp.149-160.
Leontief, W., 1983. Technological advance, economic growth, and the distribution of income. Population and Development Review, pp.403-410.
Pagano, U., 1991. Property rights, asset specificity, and the division of labour under alternative capitalist relations. Cambridge Journal of Economics, 15(3), pp.315-342.