ICTsandtheEconomy

=__//EFFECTS OF ICT'S : MACRO EFFECTS//__=

With the development of ICT’s and its applications in the workplace, they tend to have an impact on the economy as a whole.

//__THE QUANTITY OF WORK:__//
ICT’s are inclined towards increasing productivity by decreasing production costs. However, very often this reduction in production costs is achieved mainly because technology have eliminated not only people’s jobs but the work itself, as computers have taken over several tasks that were once performed by people.‘ Lights Out” is a new concept that has been developed to describe a situation where computers have taken over people’s jobs i.e. as there are no human workers, there is no need to keep the lights on. This concept is also referred to as ‘Job Displacement” by labour economists. For instance, ‘Blue-collar middle class’ have completely been wiped out from United States in a single generations and nearly one-third of its labour force are contigent employees without long-term employment agreements. Nonetheless, it cannot be deduced whether or not the development and the applications of ICT’s increase productivity at all times, a concept described as ‘Productivity Paradox’ by economists.

__//NATURE OF MANAGEMENT://__
The old corporate pyramid, where the top managers would command the middle managers who would then instruct the rank and file workers, have toppled with advancement in both time and technology. Conversely, ICT’s have made it possible for a much ‘flatter pyramid’ to exist where the top managers have to deal with fewer middle managers as it is much easier and convenient to deal with the rank-and-file workers themselves. In addition, in view of the ‘core and ring’ model and a situation described above, middle management has completely been eliminated as contingent workers are hired and laid off on a daily basis. Moreover, ICT’s have also made possible for ‘Virtual Corporations’ to exist where all level of workers including the top management is in a constant flux as networks of workers are established for a particular task and dissolved on its completion.

//__POSITIVE EFFECTS OF ICT’s:__//
Conversely, there are also many applications of ICT’s that may up-skill jobs, restoring work to a meaningful and dignified pursuit. In view of the concept of ‘Work Decentralization’, it may be understood that Internet has made it possible more workers to work from their place of residence while avoiding the stress of commuting and relocating at intervals. Also, as technology has enabled workers to perform tasks that were previously performed by specialized workers, the workers may have undergone the process of ‘Up-Skilling’.

__//NEGATIVE EFFECTS OF ICT’s://__
In consideration of the ‘core and ring’ model, as contingent workers will be hired and laid off on a daily basis, it would cause a sense of job insecurity within the workers which would consequently place a downward pressure on both their wages and benefits. With the aid of technology, most tasks can be performed by anyone, thus, technology have reduced the requirement of skills in many job sectors, a process well known as de-skilling. Likewise, in view of the concept of ‘taylorism’, all brainwork and skills involved with performing a job have been removed as all tasks are simplified with the development of technology, providing managers with even more power. Similarly, under consideration of ‘Fordism’, an assembly line system where each worker repeatedly performs a single and narrowly defined task. As a direct consequence of Taylorism and Fordism, workers are not specialized since their knowledge is limited to a single task, making it impossible for them to move higher in rank within an organization. Furthermore, as described by the concept of ‘Post Fordism’, de-skilled workers can be paid less and replaced anytime.

Nonetheless, despite the development of ICT’s and their applications in our everyday lives, it is still hard to determine whether their advantages outweigh their disadvantages or vice verca.

//__REFERENCES :__//
Straubhaar, Joseph and Larose, Robert.Media Now. California: Allen, 2004.

Webster, Frank et al. The Information Society Reader. New York: Routledge, 2004.

Hamelink,Cees.Digital Advantage for Development,1998.United Nation’s Chronicles.25 February 2006. 

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