The Changing Workplace
The Constancy of Change
It is a common saying that change is the only constant. This is especially true in the workplace. Understanding change in businesses and its causes helps us better understand organizational behavior.
In a 2023 report, Joshua P. Meltzer and Brahima S. Coulibaly noted a resurgence in U.S. manufacturing and improvements in supply chain issues following the 2020 pandemic. However, they emphasized the need for additional investments and policies in areas such as:
Labor market training and education
Access to business services
Ensuring supply chains are free of forced labor
Enabling data flows
Aligning on regulation and non-tariff measures (Meltzer & Coulibaly, 2023)
Companies face numerous changes and challenges that significantly impact organizational dynamics and performance, determining which companies thrive and which do not.
International Competition
International competition is fierce and impacts the products we use every day. Consider a simple item like a chair. Its components and assembly may involve multiple countries. For example, IKEA, a Swedish company, sources materials from China, fabricates kits in Poland, and designs some furniture in Italy. An IKEA chair may pass through several countries before being assembled by the consumer.
Until the 1980s, many American firms faced little international competition, resulting in little incentive to innovate and remain efficient. This changed as companies in Asia and Western Europe developed sophisticated products and marketing systems, gaining market share in areas like home electronics, automobiles, and telecommunications. This led to a decline in the clout and profitability of American companies.
The lowering of trade barriers and acceptance of trade agreements like NAFTA in the 1990s led corporations to seek less expensive labor overseas, resulting in lower costs and more competitive prices. However, this also led to a drop in manufacturing in industries like steel production and the relocation of call centers from the U.S. to countries like India.
Many North American firms lost their industrial competitiveness, either losing their capacity to compete in global markets or choosing to locate in foreign countries to broaden their reach. According to the International Monetary Fund, while the U.S. has the world’s largest economy, its growth is slow compared to other countries. In 2022, India’s growth was almost and China’s was over , while the U.S. and Canada were only about . Economic growth often correlates with population growth, but the U.S. and China had similar population growth rates.
Traditional jobs have shifted to developing countries, while countries like the United States and Canada have transformed their economies by incorporating more technology and automation, with a greater proportion of the workforce in the service sectors. The coming decades will continue to disrupt traditional workplace skills, challenging workers to continually evolve their skills.
The use of Artificial Intelligence (AI) in customer support is an example of this shift. AI, the synthesis of rich data and algorithms to simulate human functions, is increasingly used to provide solutions to customer problems before a human is involved.
The number of products invented in the United States but manufactured overseas has increased dramatically. However, since 2010, the United States has risen in world manufacturing, driven by advanced manufacturing capabilities that require fewer line workers and the benefit of producing products near their major markets.
Considering indicators of the relative competitiveness of economies, the U.S. performs well in areas such as institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, and labor market efficiency, leading to an environment of stable growth.
To remain competitive, workers need to be nimble and embrace continuous education and training. Management's biggest challenge is becoming more competitive, which requires an understanding of individuals, groups, and entire organizational systems.
Technology
Technology is integral to most businesses. For example, Uber is a tech company that connects the physical and digital worlds to facilitate movement. Amazon focuses on cloud computing, online advertising, digital streaming, and AI tools like Alexa.
These companies have disrupted and reinvented their industries. Just about every business relies on technology to track customers, market products and services, and recruit talent. Technology has impacted how we shop and research products, as well as the people who constitute the backbone of businesses.
Robotics, AI, expert systems, and computer-integrated manufacturing systems have changed how many products are manufactured and sold. Self-ordering touch screens at fast food restaurants are an example of technology reducing labor costs. Such changes affect production efficiency, product quality, and the nature of jobs.
Software is increasingly replacing first-line supervisors, handling scheduling, quality control, and performance appraisals. These positions are replaced by managers who can implement the technology while still maintaining and developing the organization’s human resources.
Quality and Efficiency
The challenge of industrial competitiveness involves several factors, including an appropriate product mix, manufacturing efficiency, effective cost controls, and investment in research and development. Quality control is also crucial. Companies like BMW have built their reputations on high quality.
Beginning in the late 1970s, Quality Management Systems (QMS) began to be implemented to standardize, measure, and improve quality. Total Quality Management (TQM) was a well-known system, but it has been replaced by newer QMS models like ISO 9000, Lean Manufacturing, and Six Sigma. The most significant change is the systems themselves, the rigor in collecting data and using it to make decisions, and the efforts to streamline and standardize processes.
Quality control includes several organizational issues, such as how to get people or teams who work independently on different products to follow the same protocols. This involves the need for design staff, manufacturing engineers, workers, suppliers, and potential customers to come to a consensus. It also involves motivating staff to commit to high quality.
Quality Management Systems (QMS): A planful and intentional process to standardize, measure, and improve quality, such as Total Quality Management or ISO 9000.The lesson covers the constantly changing workplace and the elements that need to be considered in organizations. It addresses the impact of international competition on businesses, the increasing sophistication of technology, and the greater focus on processes and data-based decision making to improve the quality of products and efficiency in operations.