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Adjustments to the Introduction of
Office Automation _ _ _ _ _
IOWA S T A T E

TEACHERS COLLEGE
J U L 1 11960

:ii!llSI!

l ib r a r y

A; study ;of some implications of the installation of
electronic data processing in 20 offices in private
industry, with special reference to older workers.

Bulletin N<». 1276
u n it e d s t a t e s

D epartment

James P. Mifchei|j Secretary
BUftSAU O f LABOU STAtfSTICS

Ewen Ctegue, CommTssioner



o f labor




Adjustm ents to the Introduction of
Office Automation

Bulletin No. 1276
M a y 1960

UNITED STATES DEPARTMENT OF LABOR
James P. Mitchell, Secretary
BUREAU OF LABOR STATISTICS
Ewan Clague, Commissioner

For sale by the Superintendent of Documents, U.S. Government Printing Office, W ashington 25, D.C.




Price 50 cents




PREFACE

The in tr o d u c tio n o f e l e c t r o n ic data p r o c e s s in g has brought
con cern ov er the problem s o f employee adjustm ent t o t h i s innova­
t i o n , although i t i s w id e ly re co g n iz e d th a t con tin u in g p r o d u c t iv ­
i t y ga in s are e s s e n t ia l t o the N ation ’ s econom ic grow th. In an
attempt t o f i n d out what problem s are in v o lv e d and how th ey are
b e in g m et, th e Bureau o f Labor S t a t i s t i c s undertook a study o f
20 o f f i c e s which had in s t a lle d la r g e - s c a le e le c t r o n i c computers
f o r p r o c e s s in g b u s in e s s d a ta . The study was undertaken as p a r t
o f th e Bureau’ s resea rch on the econom ic and s o c i a l im p lic a tio n s
o f im portant t e c h n o lo g ic a l developm ents.
The study was made in th e Bureau’ s D iv is io n o f P r o d u c t iv it y
and T e c h n o lo g ic a l Developments under th e g e n e ra l d ir e c t io n o f
Leon G reenberg, C h ie f. Edgar Weinberg d ir e c t e d th e study and
w rote th e r e p o r t . Herman R othberg, S ta n ley M ille r , R ichard R ich e ,
and Bennett Moss, a s s is t e d b y G retchen Mann and Edward Jakubauskas,
made the d e t a ile d f i e l d in te r v ie w s .
The study c o u ld n ot have been accom plished w ith out the gen­
erous co o p e ra tio n o f th e o f f i c i a l s o f th e companies and unions
v i s i t e d . The Bureau i s in d ebted t o them f o r t h e ir c o n tr ib u tio n s
o f tim e and e f f o r t .




i




CONTENTS
Page
Chapter I .

Chapter I I .

Chapter I I I .

Chapter IV .

Chapter V.

Chapter V I.

Chapter V II.

Chapter V III.




Introduction................................................................................................ 1
Implications fo r a Changing Labor Force............................... 1
Objectives o f Study.......................................
2
Summary and Conclusions............................................ . .......................... 3
Management O bjectives...................
3
Personnel Planning for Transition............................................ 3
Extent o f Displacement and Reassignment.*........................... 3
E ffect on Growth o f O ffice Employment.................................
li
Creation o f New Jobs........................................................................ U
Change in Grade Structure............................................................. 5
Selecting and Training Employees......... ..................................
5
Some Problems o f the Changeover................................... ............
5
Implications for Older Employees..............................................
6
Scope o f Study.................................
7
Coverage o f the S u r v e y ................... ......................... ................. 7
Limitations o f the Survey...............
8
Applications, O bjectives, and Achievements o f Electronic
Data Processing...................................................................................
9
Application o f Electronic Data Processing......... ................. 9
Company Objectives.................
10
Achievements o f Electronic Data P r o ce ssin g ............. ..
11
Planning in Introducing Electronic Data Processing................. lit
Intensive Study Phase...............................................
lit
Planning and Preparing for Computer Applications............15
In sta lla tio n and Testing............................
15
Normal Operation............................................................................
15
Informing Employees About Change....................
17
Methods Used in Informing E n p l o y e e s ................................... 17
Information G iven................................................................................ 17
Union Contract Provisions...............
20
Attitudes o f Unions............................................................................. 21
Displacement, Reassignment, and R e t r a i n i n g . . . . . . . . ................. 22
Procedures fo r Avoiding Displacement.................................... 22
Reassignment P r a c t i c e s . . . . . . ......................
22
Retraining................................
27
Some Problems o f Reassignment.................................................... 28
Changes in Employment and Occupational S t a t u s ..................... 30
Method Used in S t u d y . . . . . . . . . . . .................
30
Employment, Displacement, and Turnover in Affected
Units............................................................................................................31
Extent o f Reassignment, Upgrading, and Downgrading.... 33
Changes in Type o f Occupation......... ......................
3U
Changes in Total O ffice Employment......... .................................. 36

iii

CN
O TENTS—Contim ed
Page
Chapter IX .

Chapter X.

Chapter X I.

Organizing Electronic Data Processing.........................................
Number of Positions R e q u ir e d ............. *....................... ..
Occupational Structure................................................................
Determining Salary and Wage R a te s.................................. ..
Relative Level o f Electronic P ositions...............................
C ollective Bargaining on C la ssifica tio n s and R a t e s ...
Selecting Employees for Electronic Data P ro ce ssin g ...
Selection Procedures Under Union Agreements....................
Testing Applicants fo r Electronic Data P r o c e s s in g ....
Training Programs................................................
Some Problems o f Organizing Electronic Data
Processing.....................................
C haracteristics o f Employees in Electronic Data
P r o c e s s in g .......................................
Sex and Age of E m p lo y e e s.........................................................
Educational Attainment..........................
Previous Work Experience.....................
Extent o f Upgrading...................
Implications for Older O ffice Employees.................................. ..
Employee Traits Required..........................................................
Opinions of Personnel O ff ic ia ls ...............
Findings o f Research Workers...........................................
Summary Evaluation...............

38
38
38
39
U
O
Ul
U2

bZ

U5
U7
$1
52
52
52
55
55
58
58
61
62

6k

TABLES
1.
2.
3.
U.
5*
6.
7.
8.
9.
10.
11.

Management's objectives in introducing electronic data processing,
by order o f importance.....................................................................................
Management communication with employees about c h a n g e s . . . . . . . . .........
Practices reported in reassigning and separating eitployees................
Job status o f employees o f the affected units 1 year a fte r intro­
duction o f electronic data processing, selected age group..................
Grade status o f employees in affected units 1 year after
in sta lla tio n o f electronic computers, by age..............................................
Percentage distribution o f employees in affected u n its, by
occupational c la s s ific a tio n , 1 year a fte r computer i n s t a l la t i o n ...
Methods o f selectin g employees for electronic data-processing
p o sition s............................................................. ............................................................
Training programs for electronic data processing p o sitio n s................
Employees in affected units and in electronic data processing
positions by age and sex.........................................................................................
Educational le v e l o f employees in affected units and in electronic
data processing. .................. ......................................................................................
Occupational c la s s ific a tio n of employees in electronic dataprocessing positions by prior occupational c la s s ific a tio n ..................




iv

10
18
23
32

3h
35
U3
1*8
53
51i
56

TABLES— Continued
Page
12*
1 3.

Grade status o f employees in electronic data-processing positions
a fte r tran sfer from other o ffic e u n its, by age...................... ...................
Employee t r a it s desired for positions in electronic data
processing........................................................................................................................

57
60

APPENDIXES
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.

Unemployment rates, 195U -59.*...................... . . . ....................................................
Provisions of union contract relating to reassignment o f physically
impaired employees.................................................................
Excerpt from International Labor Organization Report.................. ............
Reassignment procedures and time schedule followed in a large
insurance company....................
Principles established by a large insurance company to guide the
reassignment o f employees affected by electronic data p r o c e ssin g ...
T itle s used and duties of six types o f electronic data processing
positions at companies studied.................
Provisions of union contracts relating to the settin g o f wage rates
for new positions in electronic data p r o c e s s i n g . . . . . . . ...........................
Steps followed in one large company in selectin g employees for
electronic data-processing p o sitio n s......................................................
L ist of te sts used by companies in selecting employees for elec­
tronic data-processing p o sitio n s......................................................
Selected annotated bibliography.............................................. .....................




v

65
66
67
70
72
7li
76
78
80
81




ADJUSTMENTS TO THE INTRODUCTION OF OFFICE AUTOMATION

Chapter I .

Introduction

The growing use In modern o ffic e s o f electron ic computers Is one o f the
most important recent trends in American technology. The past decade (1950-60)
saw a steady increase in the use o f improved mechanical and e le c tr ic a l devices
fo r a l l types o f o ffic e work, but electron ic computers or data processing ma­
chines, with th e ir v a stly greater speed, more compact f ilin g cap acity, and
more continuous operation, represent dramatic advances. Developed as part o f
the post-W orld War I I expansion o f s c ie n tific and engineering research, the
computer is often regarded as a symbol o f the moire complicated technology now
emerging in our in d u stria l l i f e .
F irst introduced in 19 ^6 , electron ic computers are being used on an in ­
creasingly wider scale in o ffic e s and plants with a large volume o f routine
paperwork. The computers were f i r s t used in making the long arithm etical c a l­
culations necessary in preparing b a llis t ic ta b le s , in carrying out various
engineering ta sk s, and in conducting s c ie n tific research. A pioneering step
in th e ir use on la rg e-sca le c le r ic a l tasks was the processing o f data from the
1950 Census o f Population. By early 1959# an estimated 2,0 0 0 electron ic com­
puters o f a l l size s were being used fo r a variety o f bu sin ess, s c ie n t ific , and
engineering purposes, by private companies and government agencies.
The future w ill probably see electron ic data processing equipment d iv e rsi­
fie d in design, improved in performance and r e lia b ilit y , and extended to many
types o f a c t iv it ie s . The rate o f introduction w ill no doubt depend on a host
of complex economic, adm inistrative, and so cia l facto rs including the reactions
of o ffic e employees themselves to the changes.
Im plications fo r a Changing Labor Force
These innovations imply important changes in employment fo r the broad
cla ss o f employees engaged in c le r ic a l occupations. In th is group are f i l e
cle rk s, bookkeepers, o ffic e machine operators, cash iers, ty p is ts , and many
others engaged in various types o f data processing.
About 9*6 m illio n persons were employed as c le r ic a l workers in February
i 960, representing about 1 o f every 7 workers in the united S ta te s. Thus fa r ,
employment in c le r ic a l occupations has been growing at a fa ste r rate than the
labor fo rce , with the proportion o f employees in c le r ic a l Jobs risin g from 1
in 20 in 1910 to 1 in 8 in 1950. C le ric a l employment is s t i l l increasing at a
fa ste r rate than the workforce as a whole, though the rate o f increase i s
somewhat slower than in the p a st. 1 /
Unemployment among c le r ic a l workers has

l/
BLS B u ll.

See Automation and Employment Opportunities fo r O ffice Workers
(1 9 58 ).

12kl




2

1959

been r e la tiv e ly low. The unemployment rate averaged 3*7 percent in
1
compared to 5*5 percent fo r the c iv ilia n labor fo r c e . (See appendix A .)
The rate has declined from the 1958 r a te , the highest o f recent years, but
is s t i l l higher than i t was in the 195^ -57 period.
At the same time that electron ic data processing and other technological
advances are modifying c le r ic a l job requirements, o ffic e adm inistrators,
union o f f i c i a l s , and others w ill be increasingly concerned with the employment
problems o f older workers. About 5*5 m illio n o f the 1 3 . 5 m illio n increase in
the labor force expected in the i960-70 period w ill come from persons U years
5
o f age and over with e sp e cia lly sharp increases among women in th is age group.
Although i t is d iffic u lt to estim ate the proportion of a l l c le r ic a l em­
ployees who are employed in position s or o ffic e s where electron ic data proc­
essing would be economically fe a s ib le , the trend toward the use o f more data
processing equipment i s expected to have a widespread impact. Some people
fear that many o ffic e employees may be adversely affected because of displacement
and downgrading o f s k i l ls ; others are hopeful that the new technology w ill bring
su bstan tial b en efits and new opportunities.
O bjectives o f Study
The study covered a variety o f su b jects: the ob jectives and re su lts o f
electron ic data processing; the extent o f displacement and reassignment of
o ffic e employees; the practices regarding tran sferrin g , retrain in g, and se ­
le ctin g employees fo r new occupations; the ch aracteristics of employees whose
jobs are elim inated and who were assigned to new p o sitio n s; and some of the
im plications o f o ffic e automation fo r middle-aged and older employees.
An account o f the procedures that some o ffic e s used in planning and e f ­
fe ctin g changes may suggest to management and employee organizations measures
that might be u sefu l elsewhere.




3

Chapter I I .

Summary and Conclusions

The major findings o f the study are summarized in th is chapter. These
conclusions are based on information co llected from 20 o ffic e s that had in ­
sta lle d la rg e-sca le electron ic data processing equipment fo r business purposes.
Management O bjectives
The introduction o f a la rg e-sca le electron ic computer increased d ataprocessing capacity and provided a means o f achieving sig n ifica n t operating
savings on a variety of la rg e-sca le routine a c tiv itie s such as p a yroll prepara­
tio n and b illin g . These savings generally resulted not only in a larger c le r i­
c a l output with the same or fewer employees— a major ob jectiv e—but also econ­
omies in processing tim e, space, and equipment, and greater accuracy. Moreover,
some o ffic e s were able to process data fo r management decisionmaking that were
previously uneconomical to c o lle c t . This new information increased the c le r ic a l
workload. But, by extending management's control over inventory, other opera­
tio n s and conditions, the acq u isition o f such data also opened up the p o s s ib ility
o f achieving savings in n on clerical a c t iv it ie s .
Personnel Planning fo r Transition
The in sta lla tio n o f a new computer involved a sequence o f adm inistrative,
te ch n ica l, and personnel changes th a t, on the average, spanned nearly 3 years.
This long preparatory period was p a rticu la rly u sefu l in avoiding extensive
d islocation o f employees. During th is prelim inary period, most of the o ffic e s
studied informed employees about prospective changes, assured those a ffected
of job se cu rity , and cu rtailed h iring to f i l l vacancies. In the seven o ffic e s
where employees were organized, ex istin g contracts provided machinery fo r em­
ployee n o tific a tio n and the application o f sen io rity ru les in displacement and
tra n sfe r. A few o f the contracts contained provisions regarding con su ltation ,
tra in in g, and severance b e n e fits.
Extent of Displacement and Reassignment
Within 1 year a fte r the in sta lla tio n o f the computer, about one-third
of the approximately 2,800 employees in u n its whose work was d ir e c tly a ffected
had been reassigned to other p o sitio n s, eith er w ithin the same unit or elsewhere
in the o ff ic e . A m ajority remained in the same p o sitio n . Close to on e-sixth
had q u it, re tir e d , died , or had taken leave of absence. Only 9 persons had
been la id o f f . A ltogether, employment in the a ffected -u n it had been reduced by
about 25 percent at the end o f the year.
A l i t t l e over 80 percent o f the employees affected by the change were in
jobs involving p ostin g, checking and maintaining records, f i li n g , computing,
or tab u latin g, keypunch, and related machine operations. Most o f the remainder
were in adm inistrative, supervisory, and accounting work. Only a l i t t l e over
percent were engaged in the le s s routine c le r ic a l jobs such as correspondence,
stenographic, and secre ta ria l Work.

h




4
About tw o-thirds o f those workers s t i l l employed in the o ffic e s 1 year
a fte r the in sta lla tio n continued to do the same type o f work. Only about
16 percent o f th is group were sh ifte d to a d iffe re n t type o f work, e .g ., from
posting and checking to computing. A l i t t l e under 2 percent, a to t a l o f
52 persons, most o f whom had been doing adm inistrative, accounting, or tabu­
la tin g machine work, were transferred from the a ffected group to electron ic
data processing jo b s.
Close to one-third o f the employees in the a ffected group had been
promoted to a higher grade. A n e g lig ib le number had been downgraded. Most
of the upgrading involved employees under age
and to some extent re fle c te d
promotions which would have taken place regardless o f the advent o f the new
equipment.
The r e la tiv e ly favorable experience o f these o ffic e s re fle cte d the widespread^adoption o f p o lic ie s to provide job se cu rity , the continued growth o f
the c le r ic a l workload, and the high rate o f labor turnover during a period o f
prosp erity. Since these were large o ffic e s , employees could be transferred to
comparable c le r ic a l position s requiring a r e la tiv e ly short period o f on -th ejob retraining (with the exception o f those assigned to electron ic data
processin g.)
E ffe ct on Growth o f O ffice Employment
In the o ffic e s studied, the groups d ir e c tly affected by the introduction
of electron ic data processing represented, on the average, only about 5 percent
o f to ta l o ffic e employment. Since the companies planned to apply the computers
to other a c tiv itie s a larger proportion o f o ffic e employees w ill obviously be
a ffe c te d .
Despite the reduction in labor requirements fo r the tasks performed by
the computers, to ta l employment o f the o ffic e s as a whole ro se. Over the
!» years from December 1953 bo December 1957 to ta l o ffic e employment at 17
■
o f the o ffic e s studied increased an average o f 7 percent. This in crease, how­
ever, was le s s than the 15-percent r ise reported fo r c le r ic a l and kindred work­
ers in the Nation as a whole. In 6 o f the 17 o ffic e s , the increase was greater
than 15 percent; in 7 , le s s ; and in U there was a decrease. Although the im­
mediate e ffe c t o f electron ic data processing suggests some retardation in the
growth of o ffic e employment, p a rticu la rly part-tim e work, the experience o f
some o ffic e s suggests the p o s s ib ility o f expanding employment in new areas o f
o ffic e a c tiv ity to handle information which had previously been uneconomical
to acquire.

>

Creation o f New Jobs
A sm all number o f new p osition s were created to operate, program, and
manage electron ic data-processing a c t iv it ie s . An average of 29 persons was
employed in these u n its at the time o f the study. Close to 7 out o f 10 persons




5

in electron ic data-processing work were in programming and planning p o sitio n s,
about a quarter were engaged in operating the equipment, and 8 percent of the
group were in adm inistrative and supervisory p o sitio n s.
Wage and Salary rates were generally fix ed through e x istin g job evalu­
ation and personnel c la s s ific a tio n systems and, where the employees were
organized with the p a rticip ation of the unions. The o ffic e s generally rated
these new position s at somewhat higher grades than jobs in other data proc­
e ssin g , placing them at the top o f the o ffic e pay structure.
Change in Grade Structure
The introduction o f electron ic data-processing raised the average grade
or s k i ll o f o ffic e occupations, but only to a slig h t exten t. Routine low paid
jobs becoming vacant during the tra n sitio n period were elim inated, which r e ­
sulted in the higher paid group making up a larger proportion o f the to t a l in
the affected group. The c la s s ific a tio n o f electron ic data-processing p osition s
at the top of the o ffic e pay structure a lso tended to upgrade the pattern .
Since the newly created p o sition s constituted a sm all proportion of to t a l o ffic e
employment, however, the net e ffe c t on the structure o f an en tire o ffic e was
sm all.
Selecting and Training Employees
More than 80 percent of a l l employees in the new p osition s were selected
from within the o ffic e s . Those hired from the outside were prim arily tra in e e s.
Of the 915 employees in these new p o sitio n s, only 5 2 , or close to 6 percent,
were selected from among employees whose work had been d ir e c tly a ffe cte d . Most
o ffic e s used standard te s ts o f learning a b ility and numerical aptitude to
screen applicants fo r these p osition s but based th e ir selectio n on individual
interviews and appraisal.
T y p ica lly , the persons selected fo r programming and planning work, which
accounted fo r the la rg est group o f new p o sitio n s, were men between the ages o f
25 and 3k, who had some college education, and who had been engaged in ac­
counting, procedure a n a ly sis, or related work. Few women or older workers were
chosen fo r the newly created p o sitio n s. Four out o f fiv e employees assigned
to these position s were upgraded. A ll o ffic e s provided at le a st ^ or 5 weeks
o f formal classroom in stru ction fo r programmers and on-the-job train in g fo r
operators of the equipment.
Seme Problems o f the Changeover
Although la y o ffs were averted fo r a l l those whose jobs were elim inated,
reassigning employees and sta ffin g the new p o sition s sometimes involved complex
personnel problems. Finding su itable position s fo r lon g-service employees,
esp e cia lly supervisors, without disturbing promotion opportunities o f other
employees, presented d if f ic u lt ie s .
P artly because o f the newness o f the f i e ld ,
estab lish in g salary le v e ls fo r the new jobs and interpreting te s ts fo r selectin g




6

s t a ff caused some uncertainty. In unionized o ffic e s , there were sometimes
prolonged negotiations over which, i f any, o f the new position s would he.
within the c o lle c tiv e bargaining u n it.
Im plications fo r Older Employees
Older employees were a ffected by changes in job status to a le sse r
extent than younger workers. They benefited from general p o lic ie s assuring
job se cu rity , sen iority provisions in union agreements, and sim ilar protective
provisions in agreements. However, they were not promoted to the newly created
electron ic position s to the same extent as were younger workers, nor were they
hired as tra in e e s. Their educational q u a lific a tio n s, employer’ s opinions, and
preexisting hiring p ra ctice s, as w ell as th e ir own lack of confidence in th eir
learning capacity, were said to be among the fa cto rs retarding th e ir advance­
ment. In the few cases in which they were assigned to computer work a sense
of re sp o n sib ility and th e ir maturity and experience were considered important
facto rs in favor o f older employees.
In those instances where employers had formed opinions about the in fle x i­
b i li t y or lack of ad aptab ility o f older workers, the introduction o f electron ic
data processing may have in te n sifie d reluctance to hire or promote them. The
examples of the successful performance of older employees in these new p o si­
tio n s , however, in the o ffic e s studied, reinforce the findings o f research
workers on the v a r ia b ility in learning capacity at a l l ages and underscore the
importance of individual appraisal of employees in th is fie ld as in others.
As automation is extended, an important task fo r those concerned with
maintaining opportunities fo r older workers is to develop a b etter appreci­
ation o f the value o f the new job of the older workers’ maturity and s ta b ilit y
and a b etter understanding of th e ir capacity to learn new methods.




7

Chapter I I I .

Scope o f Study

Information fo r the study was collected by BLS representatives through
personal v is it s and interview s with management and union o f f ic ia ls who had
d irect knowledge o f the changes. Such information consisted o f ( l ) Informa­
tio n , la rg ely n o n sta tistic a l, about the personnel p o lic ie s and practices o f
o ffic e s that have in sta lle d electron ic data processing systems and ( 2) sta­
t i s t i c a l data compiled from personnel records.
Coverage o f the Survey
The survey was lim ited to 20 o ffic e s in private industry which had been
operating large electron ic d ig ita l computer systems at le a s t one year by mid1957 fo r processing business data. Each system, Including the main apparatus
and various pieces o f au xiliary equipment, s e lls fo r over $1 m illion or rents
at over $25,000 a month. At that tim e, these o ffic e s accounted fo r more than
a h a lf o f the companies which were applying electron ic data processing systems,
on a large sc a le , to c le r ic a l work.
Only o ffic e s a ctu ally using such computers on a "normal run" or "debug­
ged" b a sis were covered. The cu to ff date o f mid-1956 was chosen to assure
that the companies in the study would have at le a st a y e a r's operating experi­
ence by m id-1957, when planning o f the study was in itia te d . Of the 20 o ffic e s
studied, 3 had in sta lle d th e ir computers in 19 5 4 , 9 in 19 5 5 , and 8 in 19 5 6 .
The 20 o ffic e s in the survey were part o f some o f the la rg est corporations
in the American economy. Most were in industries that had grown r e la tiv e ly
rapid in the past decade— public u t i l i t i e s , a ir transportation, insurance,
chem icals, e le c tr ic a l machinery, and a ir c r a ft. Others were in the petroleum
re fin in g , ste e l manufacturing, and railroad in d u stries. Seven were in
insurance.
With few exceptions, the computers were in sta lle d a t the central or home
o ffic e , the lo ca le o f much o f the corporation's accounting and recording work.
The to ta l number o f employees in these o ffic e s (based op 17 o ffic e s studied)
ranged from about 700 to approximately 14,000 and averaged about 4 ,0 0 0 .
Most o f these o ffic e s were located in metropolitan areas o f eastern
United S ta tes; a few were in Midwestern S ta te s. According to reports by the
lo c a l employment service o ffic e s , supply and demand fo r c le r ic a l workers in
these labor markets at the time the computers were in sta lle d were generally
in balance, but with some shortages, p rin cip a lly o f experienced ty p is ts ,
stenographers, and tabulating machine operators.
These o ffic e s had processed data fo r many years by mechanical tabulating
and related punchcard equipment. In only one o ffic e did electron ic data pro­
cessing take the place o f a more or le s s manual system. The introduction o f
electron ic computers, th erefo re, was merely the la te s t step in a sequence o f
technological improvement.




8

U M M & g r a <?f

tin Sam
.

In assessing the findings o f th is surrey, i t i s important to bear in
mind some important lim ita tio n s. Not a l l aspects o f the subject could be
considered in th is study and th is in i t s e l f may suggest areas where research
might be undertaken by oth ers.
F ir s t, the scope did not extend to a l l types o f users o f large electron ic
d ig ita l computers. Government agencies, firm s using electron ic systems fo r
engineering or s c ie n tific purposes on ly, or fo r in d u stria l operations, service
cen ters, service bureaus o f computer manufacturers, and o ffic e s with sp ecial
purpose computers fo r a ir lin e reservations control and sim ilar uses were
excluded. 2 / Another group outside the scope o f th is survey consisted o f
users o f sm all and medium size computers fo r business purposes. This group
i s r e la tiv e ly more numerous than the group using large computers, but the
im plications o f such computers are believed to be sim ilar to those resu ltin g
from the impact o f large computers. 2/
Second, the experiences on th is sample o f in sta lla tio n s may net ba
representative o f the e ffe c ts that might be recorded in these o ffic e s a t a
la te r stage o f use.
Third, no attempt was made to c o lle c t data on the attitu d es o f employees
and supervisors about the changes in th e ir sta tu s, the steps they adopted,
e tc .

y

Fourth, the study was concerned only with the immediate im plications
fo r employment a t the o ffic e s v is ite d . Indirect e ffe c ts on employment trends
among factory and tech n ical workers at plants where computers are used or
manufactured were not studied. Nor were the p ossib le e ffe c ts on o ffic e
employment at competing companies which had not yet adopted electron ic com­
puters considered.

2/

For the experience o f Federal agencies, see Personnel Impact o f
automation in Federal Service, U .S . C iv il Service Commission, Washington, 1957,
and Use o f E lectronic Bata Processing Equipment, Hearings before the Subcommit­
tee on Census and Government S ta tis tic s o f the Committee on Post O ffice and
C iv il Service, House o f Representatives ( 86th Cong., 1 st S e ss.) For a study o f
the use o f a sp ecia l purpose computer, see A Case Study o f an Automatic A ir­
lin e Reservation System, BLS Report 137 (1 9 5 8 ).
See study by Charles E. Ginder, Why Automation, National O ffice
Management A ssociation (1 9 5 9 ).
4 / For studies o f the attitu d es o f o ffic e employees to technological
changes, see H. F. C raig, Administering o f a Conversion to E lectronic Account­
in g , Harvard Business School, D ivision o f Research, Boston, 1955; Jack S teib er,
Automation and the W hite-C ollar Worker (in Personnel Magazine, Novembei^-December
1 9 5 7 ); and Eugene Jacobson, e t . al.,Em ployee A ttitudes Toward Technological
Change in a Medium Sized Insurance Compary (in Journal o f Applied Psychology,
December 1 9 5 9).

2/




9

Chapter IV.

A pplications, O bjectives, and Achievements o f E lectronic
Data Processing

Among the f i r s t questions that must be considered in assessing the
im plications o f the new o ffic e technology are: What applications were made,
what were the o b je c tiv e s, and how su ccessful were users in accomplishing th e ir
o b jectiv es?
A pplication o f E lectronic Data Processing
The f i r s t applications o f the computer were made on large sc a le , rou tin e,
re p e titiv e operations which to a great extent were already performed mechani­
c a lly . Some exanples are p a yroll preparation, premium b illin g , calcu lation o f
reserve l i a b i l i t y , customer b illin g , revenue accounting, accounts payable and
receivab le, car accounting, mortgage accounting, inventory co n tro l, actu arial
ca lcu la tio n , m ultiple correla tio n , and dividend ca lcu la tion .
The applications subsequently made were in somewhat le s s routine areas
o f data processing; Following use fo r p a yroll preparation, fo r example,
several manufacturing companies u tiliz e d th e ir conputers fo r reports on sa le s,
production c o sts, and market research inform ation. As the scope o f applica­
tio n has widened, the capacity o f computer in sta lla tio n s has been used more
in te n siv e ly . At the time o f the survey, 14. companies reported m u ltish ift
operations. Eight o f these companies were on a tw o -sh ift b asis and six worked
three s h ift s . Because o f the large investment involved several companies in ­
dicated a strong incentive toward m u ltish ift, continuous operation o f e le c­
tron ic computers*
Looking forward, many companies reported that they were planning, over
the next few years, s t i l l other applications which would mean greater u t i l i ­
zation o f e x istin g capacity and, in some cases, the in sta lla tio n o f additional
conputers. Some ty p ica l applications that were being planned were machine
loading stu d ies, commission accounting, s t a t is t ic a l rep orts, stockholder
records, production scheduling, general accounting, and sales forecastin g.
Many plan to extend electron ic data processing to mass accounting
operations, along the lin e s already begun. One insurance conpany executive,
fo r exanple, predicted at the time o f the conputer’ s in sta lla tio n th at—
I ts use w ill . . . be extended in to new areas through a
gradual tra n sitio n over several years. U ltim ately, i t s ap p li­
cations w ill cover su b stan tial parts o f the routine administra­
tion connected with a l l phases o f the conpany's business.
A few o ffic e s were planning to process inform ation, in some cases
hitherto unavailable, that would improve management's control and hence the
e ffic ie n c y o f th e ir n on clerical operations. For example, one manufacturing
conpany intended to make sales fo r e c a sts. Another planned to use electron ic




10

systems to prepare data on machine loading to improve in d u stria l operations.
Others planned to apply th e ir computers to inventory control problems.
Company O bjectives
The ob jectives in applying electron ic data processing were prim arily
cost savings from greater p rod u ctivity, both o f labor and c a p ita l. Thus, a
m ajority o f the o ffic e s surveyed ranked c le r ic a l laborsavings as th e ir most
important o b je ctiv e . (See tab le 1 .) By t h is , they meant increasing c le r ic a l
output with the same amount o f la b o r, not n ecessarily a reduction in o ffic e
employment.
Table 1 .

Management's ob jectives in introducing electron ic data processing,
by order o f importance

O bjective

O bjectives, by number o f companies
and order o f importance 1 /
F irst

C le ric a l laborsaving........................................
Equipment saving.................................................
Spacesaving.................................. ............ ..
Tim esaving............................................. ............ ..
Greater accuracy........................................... ..
Overcoming c le r ic a l labor shortage.........
New in fo r m a t io n ...........................................

11

•4
2
2
2
2

Second

Third

5
1

—
3
5
2
2

1
1

6

4
3
4

1 / Some o f the 20 companies lis t e d several ob jectives as o f equal
importance.

Savings in the amount o f equipment and space fo r data processing
operations were also important o b je ctiv e s. With th e ir computers, these
o ffic e s expected to have the capacity to process a growing volume o f data
without having to expand the o ffic e area occupied or the physics!, volume o f
equipment used.
Although cost saving was the primary o b je ctiv e , a number o f comoanies
ranked high such goals as greater accuracy, timesaving on preparing rep orts,
and new inform ation. These la tte r firm s, no doubt, expected that such gains
would also ultim ately y ie ld moneysavings, by reducing the cost o f data pro­
cessing sind by contributing to a more e ffic ie n t management.




11

Achievements o f E lectronic Data Processing
Seventeen o ffic e s ( a l l fo r which data were availab le) reported they had
achieved some economies in th e ir operations. Many o ffic e s reported reductions
in the time required to prepare rep orts. Others stated that ex istin g c le r ic a l
s ta ffs were able to process a larger workload, including information hitherto
not a v a ila b le .
Factors in p recisely measuring the gains in output per man-hour are
complex. I t was d if f i c u lt , fo r example, to indicate exactly the extent o f
preparatory work involved in converting to electron ic data processing. Also
there was no measure by which to determine whether gains were achieved in
the productivity o f the whole o ffic e as a resu lt o f the use o f electron ic
equipment.
Some examples o f the savings in elapsed time required for d iffe re n t
ap p lication s, nevertheless, can be c ite d , as fo llo w s:




A large insurance o ffic e processed 141,000 premium
b illin g s in 4 days before electron ic data processing.
With the computer, 2 days are required to process
200,000 b illin g s , a reduction in unit time require­
ments o f 64 percent.
A manufacturing company achieved a 40-percent time­
saving in preparing a report on customer sales and
the amount o f information taken from each invoice
was doubled.
The o ffic e o f one manufacturing company required
5 days to prepare a p ayroll fo r 2,000 employees.
This was reduced to 2 days fo r a payroll o f 4,000
employees, an 80-percent reduction in time per
u n it.
A large corporation reduced by 75 percent the time
required to prepare s ta tis tic s on orders and ship­
ments, although the number o f items processed was
25 percent greater.
A u t ilit y company reported a 28-percent reduction
in unit time requirements fo r processing i t s cus­
tomer b illin g s . The number o f days between the
meter reading and the mailing o f the b i l l was re­
duced from 7 to 5. About 38,000 b i l l s were pro­
cessed d a ily .

12

A manufacturing company reported a 66-percent
reduction in time fo r preparing production cost
rep orts, despite a 25-percent increase in items
covered.
An insurance company reduced by 80 percent the time
fo r preparing a report on agency experience, tnaking
p ossib le the preparation o f a monthly instead o f a
quarterly report.
These examples re la te to a sp e c ific narrow data-processing operation
and, th erefo re, are im pressively la rg e . Where the number o f persons employed
on these operations was also reduced, the savings in terms o f unit labor re­
quirements were even greater than the unit tim esavings.
Several o ffic e s reported savings in space and equipment— a form o f cap­
i t a l rather than labor savings.
A chemical company, fo r example, used nine re els o f
magnetic tap e, which could be fitte d into one drawer,
to store data previously needing 12 filin g cabinets.
An insurance company reported savings amounting to
$215,000 in annual ren tals fo r 104. punchcard machines
to do the work now done on the computer. In addition,
the number o f punchcards was reduced by 2 .5 m illion per
month.
A somewhat le s s tangible accomplishment was the acqu isition o f new in ­
form ation. Eight o ffic e s reported a to ta l o f 18 instances o f new information
on company operations made p ossible through electron ic data processing. A l­
though the amount o f savings is d iffic u lt to determine, such u ses, no doubt,
resulted in tangible savings in the n on clerical operations o f these companies.




One manufacturing company found i t fe a sib le to prepare
two reports not previously a v a ila b le : a semiannual
analysis o f time spent on machine to o l maintenance
and a weekly report on the e ffic ie n c y rate attained
on each incentive jo b .
A large u t ilit y company now prepares fu e l a n a ly sis,
station e ffic ie n c y stu d ies, and data on transformer
loads— reports not hitherto a v a ila b le .

13

New reports prepared by a large chemical coupany in­
clude gross p r o fit a n a ly sis, forecast o f depreciation
fo r budget, analysis o f freig h t c o sts, analysis o f re­
turn sales and discounts by product, and comparison o f
gross p r o fit by product.
In sh ort, electron ic data processing appeared, from the information re­
ported by the o ffic e s in the survey, to provide a high-speed, accurate, r e lia ­
b le , and fle x ib le means o f performing a wide variety o f tasks more e ffic ie n t ly .




Chapter V.

Planning in Introducing Electronic Data Processing

Introduction of a computer involved a sequence of steps often extending
over a fairly long period of time, rather than a single act of conversion.
The physical installation of the equipment was only one step in this sequence.
The extended period required for changes in methods, procedures, and office
layout provided an opportunity for planning changes in the staffing plans for
the office.
The sequence of steps may be divided into four phases: First, an
intensive study of the feasibility of the new technology for the office's
operation; second, planning and preparation for applying the computer; third,
physical installation and testing; and finally, normal operation.
These phases generally spanned a considerable time period. The average
time reported by 17 companies, from the beginning of the first to the begin­
ning of the last step of the sequence, was nearly 3 years. One company took
only 17 months, whereas two others required as long as 5 years to complete
these phases of introducing the computer.
The importance of a long time period for planning changes among office
employees was particularly emphasized by officials at one large company:
The conversion . . . takes longer than is antici­
pated. . . . The changeover is never precipitous— it never
occurs between Friday evening and Monday morning. . . . We
were given much more time to handle the personnel problem than
we assumed U years ago would be available. The whole process
of reassignment can be a more orderly and gradual affair than
we had anticipated.
Intensive Study Phase
The first phase of the introductory process at the offices studied in­
volved essentially the orientation of only a small number of key management
officials.
Typical steps involved attendance at formal classes and conferences
where basic information about the new equipment was given; an investigation of
the economic "feasibility" of its use, covering, for example, comparative labor
costs of different systems, types of operations adaptable, and necessary pro­
cedural changes; and finally, a decision by top management, based on the
investigation, to make the large investment required.
The entire time spent on this study phase, from the earliest informal
investigation of the equipment to the final decision to make the installation,
is somewhat difficult to estimate, but it was fairly long. The offices stud­
ied reported that they required, on the average, about 16 months to carry out




15

their feasibility studies. Two large companies, which were among the first
to consider electronic data processing for business operations, reported that
a committee spent more than 5 years on a part-time basis studying the feasi­
bility of the new equipment. Several others, however, gave only perfunctory
review, readily convinced that computers would produce major economies and be
applicable to many operations.
Planning and Preparing for Computer Applications
Once the decision to purchase the computers was made and the order
placed with the manufacturer, the new system became the concern of a larger
group of employees. While awaiting delivery of the computer, it was gener­
ally necessary to make changes in office layout for the installation of the
equipment (including the air-conditioning and electrical connections), to
write the procedures and instructions to guide the computer in its initial
application, and to prepare employees for the new technique. These prepara­
tory steps were taken without disrupting the existing systems of data
processing.
Since only a few large-scale electronic data-processing systems were
being produced at the time of the survey, the waiting period prior to de­
livery was often relatively long, averaging about 15 months; one company
waited 2-1/2 years.
Some of the most important steps in planning personnel changes took
place during this phase. First, management generally informed employees
about the nature of the change and the employment policies to be followed.
Second, the content of the new positions was defined, salaries were estab­
lished, and the staff was selected and trained.
Installation euid Testing
The physical installation of the electronic data-processing system, the
third stage, resulted in few immediate, widespread job changes among the em­
ployees of the offices studied.
Thus, before beginning operations, it was usually necessary for techni­
cians to test and adjust the complex computer system. Responsibility for this
prior to formal acceptance by the users rested with technical employees of the
manufacturers, who often remained in the office for some time after installa­
tion to assist the company's employees in operating the new equipment.
Normal Operation
With the initial use of the computer, the more active phase of personnel
planning began. At first, some offices used both the old and new methods to
assure that work would not be interrupted in case the new system failed to
work smoothly. Such parallel operations required additional personnel or over­
time and lasted, in some cases several months.




16

a

Finally, when the computer system could be operated on
normal basis,
reassignments and transfers were undertaken for employees whose jobs were
eliminated. Since electronic data processing was applied to the work of an
office on a piecemeal basis, as indicated earlier, the impact on employees
extended over a long period of time.




17

Chapter VI.

Informing Employees About Changes

In view of the computer’s supposed potentialities for laborsavings,
management made special efforts to allay the fears of employees about their
jobs by informing them in advance about the changes. The responsibility for
administering this and other policies regarding the changeover was generally
borne by the personnel staff, under the direction of a high-level company
official.
Methods Used in Informing Employees
A majority of the offices notified their employees of installation plans
from 1 to 6 months in advance of the actual installation. A few waited until
the computer was put into operation. In seven offices, employees were notified
a year or more in advance; in one case, at the time that the feasibility study
was undertaken.
Existing channels of communication, such as employee newspapers, were
used to describe the equipment and the company policies regarding personnel
changes to all employees. Some offices supplemented these announcements by
special letters or circulars. One office, for example, distributed an illus­
trated brochure describing the speed and capacity of the computer and pre­
senting the company's employment policy. (See table 2.) Management officials
in some offices first briefed supervisors, who in turn met with employees.
In seven offices with collective bargaining relationships, the union
constituted the channels through which employees were informed about the changes
and the problems of adjustment were considered.
Information Given
A majority of the offices gave assurance that no employee would lose his
job with the company or suffer loss in pay because of the electronic computer.
This assurance was in line with a long-existing policy of retaining employees
with permanent status, as long as their performance and conduct were satis­
factory. Some offices issued statements to all employees, over the signature
of the highest official, to give more authority to their reassurance. Others
referred to the likelihood that the steady growth of business and normal
attrition would avert layoffs.

5/ Three of these offices were in manufacturing companies; 2 in trans­
portation; and 2 in public utilities. All but one of the unions were affili­
ated with the AFL-<5I0. In ^ offices, clerical employees were represented by
the same union which represented production workers; in 3# they were repre­
sented by unions whose jurisdictions were more or less confined to clerical
and related employees.




18

Table 2. Management communication with employees about changes
Company

Channels used and information given

A -------------

Talks by supervisor to employees. Articles in company periodical. Company president
announced that no employee would "lo s e his or her job because of electronic computer
Acknowledged elimination of some jobs, but promised reassignment to satisfactory jobs,
no downgrading, probable upgrading, less drudgery in some tasks.

B ---------

Articles in company bulletins and newspaper publications.

C -------------

Articles in company periodicals. Talks by supervisors and technical staff. Written
notice to union posted in all offices. Notice of changes to take place at end of 3-month
period. Union given list of all jobs to be abolished or created. Job changes posted in
areas affected.

D ________

Articles in company newspaper. Talks by supervisors with union grievance committees.
Press releases. Timetable of installation. Company policy on reassignment. Union
representatives were told that no one would be downgraded or laid off.

E -------------

Letter from comptroller to all employees. Press release just prior to computer delivery*.
Notice of installation and pledge of no displacements.

F ________

Memorandum from top management to department heads directing that all employees be
informed of company’ s policy statement. Supervisory staff met with employees to explain
that there would be no displacement; that all would be retained; that there would be no
reduction in salary for any affected employees; and that some employees would be
upgraded.

G -------------

Circular containing announcement signed by president sent to all employees. Explained
uses to be made of computer. Expected it to provide a better method of processing
repetitive and monotonous tasks. Assured all employees doing a good job they would not
be released; that normal attrition, reduced hiring, reassignments and increase in business
would accomplish transition to the computer. Special effort to reassure long-time
employees.

H ________

Notice to union at time of placing order for computer. Management held meetings with
union representatives. Discussions between individual supervisors and employees in their
departments. Explained scope of the change and notified that while company could not
guarantee their retention, it would make every effort to place them either on computer
work or positions of similar level.

I ________

j

-------------

K -------------




Notice given to union. Meetings of supervisors and employees. Asked union to offer
suggestions to implement transition without disrupting effect. Supervisors told employees
of proposed installation, timetable for applications, expected impact, and gave assurances
that no employee would lose in pay or employment status. Upgrading indicated for those
qualifying for computer jobs.
Meetings of supervisors and employees. Motion pictures, articles in company publica­
tions. Showed computer installations and operations. Supervisors discussed computer
functions and company policies to assure employees of no job loss. Information on
2-year plan to schedule changes so that normal attrition would take care of surplus
positions. Pledged acceptable reassignment, no downgrading, possible upgrading.
No official statement made in reference to computer installation. News of computer in­
stallation came to employees via "grapevine” . Supervisors gave answers to direct in­
quiries, insofar as they could supply information sought.

19

Table 2. Management communication with employees about changes— Continued
Company

Channels used and information given

L ________

Announcement in company publication including statement by president. Described com­
puters and told of planned functions. Assured employees there would be no job loss and
that computer would raise general level of jobs in the areas affected.

M ________

Notice to employees in affected department 3 months before delivery. After installation
all employees were notified at meetings, by memorandum from company president and other
officials, and employee magazine. Stated company policy, as affirmed by president, that
no employee would lose his job because of change in methods.

N -------------

Meeting of Division Chief with the employees of the sections to be affected. Reasons for
installation of computer. Stated that no employee would lose his job or be reduced in
salary level. Wherever possible, employee’ s job preference would be given every
consideration.

O -------------

General notice to staff. Interviews with employees affected. Announced acquisition of
computer. Stated that Personnel Department would study changes to ease any dislocations
and to effect an orderly transition.

P

Memorandum. Meetings of company officials with supervisors and union stewards. Stated
that computer installation would be a gradual, long-term process; that there would be no
layoff; that attrition would take care of displacement problems, if any; that same rates of
pay would be maintained.

Q

----------------------

Statement by company president in home office news publication. Information about the
computer equipment; job security; selection of personnel.

R

----------------------

Notice to union. Press release. Article in company publication. Notice to union listed
areas to be affected and reaffirmed company policy on displacement as governed by union
contract. Article described equipment ordered.

s

------------- Statement at time of feasibility study. General notices issued shortly after placing order
and just before delivery. First statement informed employees of feasibility study. Second
statement gave notice of computer order. Followed by meetings with management personnel
who in turn informed employees. Reassurances of no job loss or downgrading.

T

------------- Speeches by company officials. Statements in company magazine. Explained computer
operation. Assured of no job loss or downgrading. Stated repetitive, lower paid clerical
jobs would be reduced while many higher paid, more interesting jobs would open up for
qualified personnel.




20

The statement given by one large insurance company, signed by the
Chairman of the Board, exemplifies the kind of positive assurance given:
As the business grows, the records we keep and the work
we do with them in the home office grow in proportion. It has
not been easy to find the number of new employees needed each
year to meet this growth and to replace those who leave us.
Electronic data processing will help to relieve these pressures,
while opening up new avenues to improved service for policy­
holders and our field forces. No employee will lose his or her
job because of changes brought about by the 705*s use, and for
many there will be opportunities for rewarding new kinds of work
and for increased responsibility as new methods of operation take
effect.
The approach adopted by some offices took account of possible dis­
locations and offered more conditional assurance of job security. Thus, one
company informed its employees as follows:
Although the content of a number of jobs undoubtedly will
be partially changed during this period, we are confident that the
studies being made by the personnel department will ease any nec­
essary dislocations, and that transition from the present way of
processing data to the electronic method will be accomplished in
an orderly fashion.
Union Contract Provisions
Procedures for notification in the provisions of contracts covering the
establishment of new jobs, wage rates, promotions, and transfers were applied in
the changeover to electronic data processing.
Three union contracts contained explicit provisions for advance notice
of the introduction of technological changes. One Contract (negotiated after
the first computer installation had been made) contained an "Automation" clause
under the section on "Seniority:”
When the installation of mechanical or electronic equipment will
have an effect on the job status of employee, management shall review the
matter with the Local Union Grievance Committee in advance of such
installation.




21

The second contract gave in some detail the circumstances that would
require notification:
The management agrees that as to major changes in business
or practice or in the maimer of operating units of business, it
will give advance information to the union as to contemplated
changes as would reduce the number of employees or the pay of the
employees in a job classification or work group or would cause
the transfer of a substantial proportion of the employees in a
job classification or work group into one or more other classi­
fication or work groups.
Finally, the third contract spelled out the scheduling of the notice.
It required that whenever the company wanted to put more work on the computer,
the union was to be notified at least 90 days in advance, with a statement as
to the number of workers affected. Within 30 days after the notice, the
company and the union were to begin negotiations about the "manner and con­
ditions" under which the work would be moved.
Attitudes of Unions
The general attitude of the unions visited, as expressed in contracts
and reported by officials, was to recognize management's need to improve pro­
ductivity and to accept the introduction of technological advances. No one
was opposed to the introduction of electronic data processing. One contract,
for example, stated that:
It is understood and agreed to be the duty of the company
and the Brotherhood to cooperate fully both individually and
collectively . . . to further the efficiency and economy of
operations.
Union officials were particularly interested in having prior notice
and an opportunity to consult with management so that any problems of employee
adjustment might be anticipated and jointly settled. The union viewpoint was
best summarized in the following statements by officials of one office worker's
group:
Automation will cause relocation of employees and some
hardship. However, if technological improvements are instituted
with good judgment and consideration for human needs, they will
be a good thing for the people and for the country . . . the re­
sponsibilities of a labor organization axe to negotiate suitable
provisions with management in order to accommodate new conditions. . . .
The union can work with management to secure opportunities
for present employees to be trained on all types of newly installed
equipment. It can help to set up proper conditions of work with
fair rates for new jobs. It can speak up for older employees who
might otherwise be dumped out by automatic processes or new people
who operate the new equipment.




22

Chapter VII.

Displacement, Reassignment, and Retraining

A major question arising upon introduction of electronic data processing
is what happens to employees whose positions are eliminated? The answer
depends partly on the measures that are taken regarding displacement, reas­
signment, and retraining of such employees. This chapter describes the prac­
tices adopted by the companies studied. Statistical data on the extent of
job changes will be presented in the following chapter.
Procedures for Avoiding Displacement
One important task of personnel administration was to develop internal
procedures to achieve laborsavings without laying off employees. Layoffs were
often averted by matching the desired reduction in employment against the
reduction resulting from quits, retirements, death, etc. Such planning in­
volved the coordination and control of hiring policies of the entire office,
including areas not affected directly by the change. 6/
Some offices, for example, reported that they reduced all hiring so that
employees affected by the computer could be readily reassigned. One company
indicated that when it became necessary to fill vacancies during the conversion
period, employees, particularly married women, were hired on a temporary basis,
so that such jobs could be filled later by permanent employees whose jobs in
the affected areas were to be eliminated. Seme offices temporarily scheduled
overtime in the affected unit prior to the changeover, rather than hire addi­
tional employees who might later be displaced.
Reassignment Practices
Since the policy generally was to avoid laying off employees whose jobs
were affected, primary attention was given to reassigning and transferring
employees to other positions. Efforts were usually made to minimize dissatis­
factions, particularly among long-service employees, that arose in changing
their duties, associates, and surroundings, without negating the company’s
desire to effect economies.
In a majority of offices, management transferred employees to other
positions according to procedures customarily followed when particular jobs
were eliminated. (See table 3*) Essentially, each employee was treated as

6/ See appendix C for the type of personnel planning endorsed at a meeting
of the International Labor Office’s Advisory Committee on Salaried and Profes­
sional Workers, in December 1959*




23

Table 3. Practices reported in reassigning and separating employees
Practices

Company

A --------------

No separations were required because of normal attrition in affected area and need for
clerical workers elsewhere in office. Reassignments were jobs within affected unit requir­
ing little or no new job skills.

B ------------- No separations or reassignments of employees were required because of plant expansion
at time of computer installation.
c --------------

Reassignments and separations were made in accordance with the seniroity provisions of
the union agreement. Jobs to be eliminated were posted. To avoid separations, about
30 employees were offered transfers to a company office in another city. About 2 5 percent
accepted the offer. The rest were subsequently reassigned. Agreement also provided for
layoff benefits or lump-sum severance pay.

D ----------------

No separations were required as new hires were reduced to allow displaced workers to fill
job vacancies. Reassignments were made according to seniority provisions of union agree­
ment. Posted job openings in appropriate areas. Placed employees on temporary assign­
ments until permanent assignments were available. Agreement also provided for reason­
able training arrangements to permit employees to qualify for available jobs. In the event
of layoff, because of permanent discontinuance of a substantial part of a department, union
agreement provided that employees with 3 or more years of service may receive severance
pay. Other laid-off employees with at least 2 years* continuous service may receive sup­
plemental unemployment benefits.

E --------------

No separations were required. Reassignment was negligible.

F _________

No separations were required because of turnover and continued company expansion. Re­
assignment of some employees involved transfer to positions of lower grade with retention
of the higher rates of prior positions.

G --------------- No separations were required because of continued company expansion. Extent of reassign­
ment was reduced among permanent employees by placing some younger women or potential
military draftees in units likely to be affected by later computer applications.
H --------------

No separations were required owing to growth of company and normal turnover. Reassign­
ments were governed by union provisions on seniority. Affected employees were trans­
ferred to positions of equal or higher grade than those previously held.

I -------------- No separations were required. Within framework of contract provisions, company policy is
to cause as little disruption as possible. "L e ss adaptable** employees were reassigned
to related work. In the event of layoff, union agreement provided that years of service and
merit would be considered and separated employees would be given priority in future hiring.

j

-------------- No separations were required. Reassignments to units which might later be affected by
computer operations were avoided. Effort was made to reassign "le s s adaptable** em­
ployees to related work and "readily adaptable’ * people to positions involving more
changes in job content.

K -------------- Separation of represented employees was govern* d by the union agreement. Layoff was on
the basis of seniority for hourly rated employees and on a merit basis for salaried employees.
A severance pay provision was applicable only to the latter group. Laid-off employees
were given preference in rehiring. While reduction in force was imminent, there was no out­
side hiring. Reassignment also covered by the agreement was on the same basis as that
used for layoff.




2k

Table 3* Practices reported in reassigning and separating employees— Continued
Company

Practices

L --------------- No separations were required. Reassignments were made to jobs of comparable difficulty
and importance or higher. In some instances, however, it was necessary to place people
temporarily on assignments of less importance. In no case was salary reduced. These
employees were upgraded to their former level as soon as vacancies occurred.
M --------------- No separations were required mainly because of normal attrition and the need for clerical
help. Some departments accepted transferees whom they did not particularly need in order
to comply with the president’ s announced policy of no layoffs.
N --------------- No separations were required. Reassignments were made to units not likely to be affected
by the computer, in order to avoid double displacement. Trnasfers of employees were made
so as not to interfere with their normal promotional opportunities or with the promotional
opportunities of those in the units to which they were transferred. Temporary assignments
were made to special projects until permanent positions could be secured. Efforts were
made to place " least adaptable” employees in related work sections, reserving the most
adaptable for placement elsewhere.

0 ------------- No separations were required. "L e ss adaptable” employees were reassigned to units not
likely to .be affected by introduction of the computer. Special training classes were con­
ducted to create or update unused skills, such as typing or keypunching, to permit greater
flexibility in transfers.
p --------------- No separations were required. Hiring was reduced when a labor surplus appeared immi­
nent. During conversion period, married women were hired on a temporary basis. Re­
assignments were made to positions of lower grade, but previous pay rate maintained. In
the event of layoffs, the union contract provides for separation on the basis of seniority,
total company service governing. Before layoff provision is applied, contract requires ne­
gotiations in an attempt to find reassignment.

Q ------------------ No separations or reassignments were required.
R

------------------------

No separations were required. Reassignments were made according to union contract on
the basis of seniority, fitness, and ability. Fitness and ability being equal, seniority pre­
vailed. During the transition period, under a special agreement, vacancies were filled on
a temporary basis with notice to new employees that they would be displaced when em­
ployees from affected areas had to .be reassigned. In the event of layoffs, the union con­
tract provided for a severance allowance.

s --------------- No separations were required because of normal attrition and use of some temporary em­
ployees during the conversion period. Reassignments were made on a noncompetitive
temporary basis pending eventual posting of permanent assignments. Maintenance of pay
rate level was promised for any who might be downgraded in job level.
T --------------- No separations were required. Reassignments negligible. No special provisions for
reassigning employees.




25

if he were being placed for the first time. Personal records were reviewed
and the individuals interviewed. The aim in a majority of offices was to
place employees at the same or higher wage or salary rates. Where it was
necessary to reassign an employee, particularly one with long service, to
a lower paying classification, most offices maintained the pay rate previously
held. In one instance, a tabulating machine operator with 23 years* service
at one insurance company was transferred to a routine clerical position
classified at several grades lower. No change was made in the salary paid.
Displacement Provisions of Union Agreements. In unionized offices, the
procedures governing displacement or transfer of employees, which were formally
set forth in the existing union contracts, were applicable to the changes
resulting from the introduction of the computer. A key principle of these
provisions was that seniority, or length of service, was an important, and
sometimes the only factor, in determining the order of displacement or transfer.
Another important point was that any dispute about the application of these
rules was to be settled through the grievance machinery.
Basically, three types of seniority protection were offered. Some fol­
lowed a straight seniority rule, under which length of service alone determined
the order of displacement or transfer. The applicable provisions of one
contract read:
When a reduction in force is necessary, temporary and pro­
bationary forces shall be laid off first.
In case it is necessary to further reduce the number of
employees in a job classification, employees who are lowest on
the seniority list shall . . . be demoted to the next lower job
classification in accordance with the lines of demotion set
forth . . .
If such demotions or transfers necessitate a layoff
from the lowest job classification in the promotional series, as
listed . . . service shall govern.
Another type of protection made seniority the primary factor but also
allowed management some discretion to consider other factors; one agreement
provided:
If at any time it becomes necessary, in the opinion of
the company, to lay off employees for lack of work or other
proper cause . . . or to transfer or demote employees to such
extent as will avoid the making of one or more imminent layoffs . . .
in the selection of any employees who are to be laid off, trans­
ferred, or demoted, preferred consideration shall be given to
length of continuous service in the company.




26

A third approach provided that seniority was the deciding factor when
the individual employees were relatively equal in merit. For example, a Clause
of one contract stated:
In all cases of decrease in forces or rehirings after layoffs,
the following factors as listed below shall he considered; however,
only where both factors a and b are relatively equal shall con­
tinuous service be the determining factor:
a. Ability to perform the work,
b. Physical fitness,
c . Continuous service.
Besides establishing the order for layoff and transfer of employees, a
few agreements made special provision for consultation in advance of any dis­
placement. Such provisions were in addition to the grievance machinery under
which any dispute over transfers, etc., would be considered. One contract
provided that:
Whenever, by reason of the workload, the company contemplates
a layoff, the company will negotiate with the union to formulate
a program for spreading work, moving employees from one group or
department to another, or other appropriate action*
• • •
Finally, the special program adopted for employees of a railroad covered
by the svtrvey offered extensive benefits in case of displacement. The program
(originally adopted industrywide in 193^ in connection with the coordination
and merger of lines) was applied in this company, after collective bargaining
negotiations in 195®, to cover office employees who might be displaced by the
introduction of electronic data processing.
The agreement provided that a displaced employee would not be downgraded
in pay or working conditions for a period up to 5 years, depending on length
of service, and would be reimbursed for traveling and moving expenses, if
transferred to a different location. In case of layoff, he would be given
unemployment benefits for periods from 6 months to 5 years or limp-sum sever­
ance pay, depending on his length of service, and maintenance of hospitalization,
pension, and other benefits.
Since this program was limited only to employees displaced as a result
of the use of electronic data processing, one problem in applying it was to
distinguish this group from those who had been reduced in force because of
lack of work. Resolving this issue satisfactorily involved considerable
negotiation between management and union representatives.
Special Reassignment Programs.
A few offices not covered by union
agreements, where extensive changes were made or expected, developed policies
for reassigning employees that also gave special attention to long-service




27

employees. These special provisions supplemented the transfer procedures
normally applicable. An objective of these measures was to minimize the
extent of reassignment, particularly among the permanent employees of the
office. Such programs often required extensive advance planning on the part
of personnel officials. (See appendix D.)
One outstanding example of this approach was the set of principles
developed by a large insurance company to guide the reassignment of its
employees. The program took account of the continuing process of change.
(See appendix E.) It stressed the need to avoid placing employees in posi­
tions where they might be subject to displacement a second time and underscored
the importance of planning special projects in advance (for example, on work
that had been deferred) to which displaced employees might be temporarily
assigned.
Another insurance company, anticipating further applications of the
computer, selected women employees and potential draftees for reassignment
to units scheduled to be affected. This step was intended to reduce the extent
of change among employees who were considered by the companies as probably
more permanent.
Retraining
With one exception, formal programs to retrain employees affected by the
electronic computers for other clerical positions were apparently not considered
necessary. (The training programs for electronic data processing positions
will be considered in chapter IX.) All companies reported that they tried
to transfer such employees to clerical positions comparable in duties and skill
to" the positions held before the introduction of the computers. Such positions
generally required only a relatively short period of on-the-job instruction to
familiarize the employee with new forms and procedures.
One insurance company reported a somewhat more explicit training ar­
rangement. A few employees affected by the computer were given an opportunity
to revive unused but needed skills, by working with the typing and keypunching
pools. Another company gave 18 routine clerical employees 1 week’s training
to become keypunch machine operators.
Specific reference to retraining of employees was made in one union
agreement under an "Automation" clause:
In the event such mechanical or electronic equipment is
installed, management shall provide reasonable training ar­
rangements for the employees affected by such installations
in order that such employees may have an opportunity to become
qualified for available jobs.




28

Some Problem s o f Reassignm ent
In s h if t in g em ployees from t h e ir custom ary p o s it io n s , c o n f li c t s som etim es
a ro se th a t re q u ire d co n sid e ra b le a d m in istra tiv e s k i l l t o r e s o lv e .
P la c in g O lder E m ployees.
Some o f f i c e s rep o rted d i f f i c u l t y in fin d in g
s u ita b le p o s itio n s f o r em ployees w ith lo n g y e a rs o f s e r v ic e . Because th e y had
s p e c ia liz e d in one typ e o f work over a lo n g p e rio d o f tim e , such em ployees
were som etim es presumed t o be l e s s ad ap tab le and hence more d i f f i c u l t t o
p la c e .
To m inim ize t h i s source o f d i f f i c u l t y , one company fo llo w e d a p o lic y o f
having th e P erson n el D iv is io n , ra th e r th an th e o p era tin g u n i t , determ ine th e
p erso n n el t o be r e a s s ig n e d . P erso n n el o f f i c i a l s th en endeavored t o p la c e in
d is s im ila r p o s itio n s th o se em ployees whom th e y co n sid ered th e most ad ap tab le
t o change w h ile re se r v in g the more fa m ilia r work f o r th o se co n sid ered le s s
a d a p ta b le .
Summing up th e fin d in g s o f 3 y e a r s ' e x p e r ie n c e , a p erso n n el o f f i c i a l
o f t h i s company recommended th e fo llo w in g approach:
In th e se c a se s where i t i s e v id e n t th a t th e re i s goin g t o
be some d i f f i c u l t y in p la c in g th e in d iv id u a l, th ere should be
no attem pt t o p la ce him in a h u rry . R a th e r, a le i s u r e ly and
thorough survey o f a l l p o s s ib le jo b o p p o r tu n itie s b o th w ith in
th e e m p lo y ee's p resen t u n it and elsew here i s in order . . .
There i s no s te p -b y -s t e p procedure t o recommend . . . T h is i s
an area where th e p a tie n ce and u nderstanding o f a g re a t many
p eo p le are req u ired i f th e in d iv id u a l i s t o be s a t i s f a c t o r i ly
p la ce d . . .
I f n e c e s s a r y , an ap p eal may be made t o management
p eop le t o co n sid e r th e p a r t ic u la r problem from a companywide
s ta n d p o in t, ra th e r th an from t h e ir own s e l f - i n t e r e s t . . . .
In te r fe r e n c e W ith Prom otion O p p o rtu n itie s.
Another source o f d i f f i c u l t y
in r e a s s ig n in g c l e r i c a l em ployees a rose from tr y in g t o a ssu re f o r a l l em ployees
th e same prom otion al o p p o r tu n itie s as e x is te d b e fo r e th e change. Some com panies,
f o r exam ple, rep o rted d i f f i c u l t y in tr a n s fe r r in g h ig h -s a la r ie d em ployees t o
p o s itio n s in o th er c l e r i c a l u n its w ith co n tin u in g s a la r y and jo b growth oppor­
t u n i t i e s , w ith ou t in t e r fe r r in g w ith th e p rom otion a l o p p o r tu n itie s o f th e se
a lre a d y in th e se u n it s .
P erso n n el o f f i c i a l s o f one la r g e company su g gested a tem porary in c re a se
in th e number o f h igh er le v e l p o s itio n s t o be o f f s e t b y n o t f i l l i n g v a c a n cie s
a t low er g ra d e s. The o f f i c i a l s acknow ledged, how ever, th a t th e se o p e ra tin g
p r in c ip le s would be "e a s ie r t o s t a t e th an t o c a rry out in p r a c t i c e ."
R eass ignment o f S u p e rv iso r s.
S a t is fa c t o r y reassignm ent o f su p e rv iso ry
em ployees was o fte n p a r t ic u la r ly d i f f i c u l t . Where appointm ents t o th e se
p o s itio n s were made b y prom otion from w ith in th e o r g a n iz a tio n , th e problem




29

became doubly co m p lica te d . One company, f o r exam ple, re p o rte d c o n sid e ra b le
r e s is ta n c e from o p era tin g o f f i c i a l s wbo were r e lu c ta n t t o in c r e a se t h e ir
b u d g e t.
The p erso n n el s t a f f o f one la r g e company recommended a c a r e fu l review
o f th e adequacy o f s u p e r v is io n , throughout th e o r g a n iz a tio n , and where p o s s ib le
an in c re a se in th e number o f s u p e r v is o r s .
I t su g g e ste d , m oreover, th a t th e
need f o r reassignm ent cou ld be reduced b y advance p la n n in g th a t would e lim in a te
su p e rv iso ry p o s itio n s through a t t r i t i o n .
M ain tain in g S a la r ie s .
Some c o n f li c t s a ro se in tr y in g t o m ain tain th e
s a la r ie s o f em ployees te m p o ra rily a ssig n e d t o low er grade p o s it io n s . One
o f f i c e rep o rted th a t em ployees r e c e iv in g th e low er pay n orm ally a tta ch ed t o
such d u tie s a t f i r s t re sen te d th e d iscre p a n cy > b u t were m o llifie d when inform ed
th a t such assignm ents were tem porary, pending a s h i f t t o more a p p ro p ria te d u t ie s .
A pp lyin g Union Agreem ents.
The a p p lic a tio n o f p r o v is io n s o f union a g ree­
ments co v erin g a ffe c t e d em ployees in v o lv e d , in a few in s ta n c e s , some d iffe r e n c e
o f o p in io n about th e meaning o f th e language used in th e c o n tr a c t. For exam ple,
in in te r p r e tin g th e autom ation c la u se (s e e p.' 2 7 ) , some q u estio n aro se about
th e e x te n t o f management’ s o b lig a tio n t o r e tr a in em ployees who were a ffe c t e d
b y e le c tr o n ic d ata p r o c e s s in g . The union la t e r sought t o r e v is e t h i s c la u se
t o p ro v id e more s p e c i f i c a ll y th a t r e tr a in in g should be g iv en n ot o n ly t o
em ployees a ffe c te d b y th e f i r s t computer a p p lic a tio n , b u t a ls o t o th o se
a ffe c te d by a l l subsequent a p p lic a tio n s .




30

Chapter V I I I .

Changes in Employment and O ccu p a tion al S ta tu s

The e x te n t t o which em ployees in th e o f f i c e s stu d ie d were d is p la c e d ,
r e a s s ig n e d , upgraded, downgraded, or s h ift e d in occu p atio n was o fte n a m atter
o f judgment on such fa c t o r s a s th e le n g th o f th e p e rio d o f o b s e r v a tio n , th e
id e n t if ic a t io n o f th e group o f em ployees o b serv ed , and th e sta g e o f th e b u s i­
n e ss c y c le co v ere d . D iffe r e n t in te r p r e ta tio n s o f th e se fa c t o r s and d iffe r e n t
methods o f stu d y m ight have y ie ld e d d iffe r e n t r e s u lt s . A f i r s t s t e p , th e r e fo r e ,
in in te r p r e tin g th e d a ta p resen ted in t h i s stu d y i s t o understand th e methods
u sed t o o b ta in them .
Method Used in Study
The approach in v o lv e d tr a c in g th e changes in employment and o cc u p a tio n a l
s ta tu s in a s p e c ific group o f in d iv id u a ls in each o f f i c e .
The p e rio d o f
o b se rv a tio n f o r th e stu d y was 18 m onths, b eg in n in g 6 months b e fo r e and ending
1 y ea r a f t e r th e i n s t a lla t i o n o f th e com puter. These p e rio d s were s e le c te d in
order t o e x c lu d e , as much a s p o s s ib le , th e e f f e c t s o f fa c t o r s o th e r th an th e
in tr o d u c tio n o f th e com puter.
The em ployees whose s ta tu s was tr a c e d over t h i s l8-m o n th p e rio d in clu d ed
a l l th o se in th e o r g a n iz a tio n a l u n its which perform ed th e d a ta p r o c e s s in g work
th a t was tr a n s fe r r e d t o th e e le c tr o n ic computer du rin g th e p e r io d . The d a ta
p resen ted in t h i s c h a p te r , t h e r e fo r e , r e fe r t o th o se person s whose work was
presum ably most d ir e c t ly a f f e c t e d . O ther em ployees may have been in d ir e c t ly
a ffe c t e d (some a s a r e s u lt o f changes in th e work o f th e d ir e c t ly a ffe c t e d
g r o u p ), b u t i t was n ot f e a s ib le t o o b ta in d a ta on them .
For each in d iv id u a l, in fo rm a tio n was com piled from re co rd s on a g e ,
employment s t a t u s , g ra d e , and p o s it io n , b o th b e fo r e and a f t e r th e change.
T a b u la tio n s o f th e se r e c o r d s , showing th e e x te n t o f change among d iffe r e n t
age g ro u p s, are p resen ted la t e r in t h i s c h a p te r.
In a s s e s s in g th e d a ta on employment and o cc u p a tio n a l ch an g es, i t i s im­
p o rta n t t o keep in mind th re e im portant c o n s id e r a tio n s . F i r s t , m ost b u t n ot
a l l o f th e changes recorded can be p r im a r ily a ttr ib u te d t o th e i n s t a lla t i o n o f
e le c tr o n ic d a ta p r o c e s s in g .
Some changes no doubt would have tak en p la c e in
th e norm al course o f e v e n ts , b u t sin c e i t was n ot p o s s ib le t o e s t a b lis h a
c o n tr o l group f o r com parative p u rp o se s, no e x a ct e v a lu a tio n o f t h i s fa c t o r i s
p o s s ib le .
Secon d, n ot a l l o f th e p e rso n n e l changes r e s u lt in g from i n s t a l la t i o n o f
th e computer had been com pleted a t th e end o f th e stu d y p e r io d .
Some o f f i c i a l s
in d ic a te d th a t many employee adju stm en ts ta k e p la c e more th an 1 y e a r a f t e r th e
i n s t a l la t i o n .




31

F in a lly , th e changes in employment were a ffe c t e d b y th e g e n e r a lly fa v o r ­
a b le economic c o n d itio n s o f th e 1955 bo m id -1957 p e r io d .
I t i s n ot known,
fo r exam ple, i f th e q u it r a te among em ployees in th e a ffe c te d u n it during a
r e c e s s io n would have been h igh enough t o a llo w o f f i c e s t o a d ju s t th e le v e l o f
employment w ith ou t la y in g o f f w ork ers, a s i t was under fa v o r a b le economic
c o n d itio n s .
Employment, D isp la cem en t, and Turnover in A ffe c te d U n its
S ix months b e fo r e th e change 2 ,8 1 5 person s were employed b y 18 o f f i c e s
in o r g a n iz a tio n a l u n its which were doing th e d a ta -p r o c e s s in g work th a t was
tr a n s fe r r e d t o e le c tr o n ic com puters. As a grou p , th e se c o n s titu te d a r e la ­
t i v e l y sm a ll p ro p o rtio n o f t o t a l employment a t th e o f f i c e s v i s i t e d .
In 15
o f f i c e s where data were a v a ila b le f o r t h i s com parison, employment in th e a f ­
fe c te d u n its rep resen ted about 5 p ercen t o f t o t a l o f f i c e employment.
The r e la t iv e im portance o f th e se u n its v a rie d among th e com panies,
depending on th e nature o f th e computer a p p lic a tio n , th e e x te n t o f i t s u s e ,
and th e degree o f m echanization th a t p r e v io u s ly e x is t e d .
In e ig h t o f f i c e s ,
th e a ffe c te d u n it c o n situ te d l e s s th an 5 p ercen t o f t o t a l o f f i c e employment;
in fo u r , 5 t o 10 p e r c e n t; and in th r e e , th e r a t io was more than 10 p e r c e n t.
The e x te n t o f d isp la cem e n t, rea ssig n m en t, and tu rn over among 2 ,8 0 8
em ployees i s p resen ted in ta b le i .
A pproxim ately 85 p ercen t o f th e se em ployees
were s t i l l employed in some u n it o f th e 18 companies a t th e end o f th e 18-m onth
p e r io d . O f th o se no lo n g e r em ployed, v i r t u a lly a l l had l e f t t h e ir jo b s v o lu n ­
t a r ily .
Employment in th e a ffe c t e d u n its was about 25 p ercen t lo w e r.
L a y o ffs were n e g li g i b le , r e fle c t in g th e r e te n tio n p o li c i e s d e scrib e d
e a r l i e r , growth o f th e w orkload, p erso n n el p la n n in g , and r a te o f tu rn o v e r.
T h is absence o f d isp la cem e n t, how ever, r e la t e s o n ly t o th e ex p erien ce o f th e
o f f i c e s up t o 1 yea r a ft e r th e i n s t a l la t i o n , i . e . , p r io r t o 1 9 5 8 . As ex p la in e d
e a r l i e r , any subsequent la y o f f s o r reassign m en ts are n ot in clu d ed in th e d a ta
in ta b le 4 . 7 /
The r a te o f se p a ra tio n — 15 p ercen t over th e 1 8 -month p e r io d — w as, as
in d ic a te d e a r l i e r , a fa c t o r in a v o id in g d isp la c em e n t. Three out o f fo u r
se p a ra tio n s were em ployees who q u it v o lu n t a r ily .
(See ta b le k . ) Many were
young women who q u it , presum ably, t o become h ou sew ives. A few em ployees in
th e a ffe c te d u n its were rep o rted t o have q u it because o f d is s a t is f a c t io n w ith
t h e ir new s t a t u s , b u t th e number was n ot g iv e n .

7 / For exam ple, in fo rm a tio n o b ta in ed about one company where b u sin e ss
had co n tra cted re v e a le d th a t some disp lacem en t to o k p la c e a t th e end o f
1958 among a group o f em ployees whose work was p la ce d on th e com puter. A
re d u ctio n in fo r c e was c a r r ie d out accord in g t o s e n io r it y r u le s and em ployees
a ffe c te d re c e iv e d severance b e n e fit s under a union agreem ent.




32

T able 4-.

Job s ta tu s o f em ployees o f th e a ffe c t e d u n its 1 y e a r a f t e r
in tr o d u c tio n o f e le c tr o n ic d a ta p r o c e s s in g , s e le c te d age groups

A l l em ployees
Type o f jo b change

Employees under
age 45

1/

Employees age
45 and over

P ercen t

Number

P ercen t

2 / 2,808

100.0

2 ,1 6 4

100.0

644-

100.0

...

1 ,4 9 8

5 3 .3

1 ,0 5 9

4 9 .0

439

68.2

P o s itio n changed .................
R eassign ed w ith in same
work u n it .........................
T r a n s fe r r e d ...................... ..
To computer u n it . . . .
To o th er u n its .............

883

3 1 -3

7 24

3 3 .5

159

2 4 .7

552
331
52
279

1 9 -7

46o
2 64
46

2 1 .3

92

1 2 .2
2 .1
10 .1

67
6
61

1 4 .3
1 0 .4

427

1 5 .2

381
322

1 7 .6

46

1 4 .9

6

3

.1
1 .6
•6
.4

39

Number
T o ta l ............................................
No change in p o s it io n

Q u its , l a y o f f s , and o th e r
se p a ra
...................... tio n s
Q u its .......................................
R etirem ent and d eath s .
Leaves o f absence ..........
D isch a rg es .......... ...............
L a y o f f s .......... .......................

328
42
35
13
9

1 1.8
1 .9
9 -9

1 1 .7
1 .5

218

1 .2

34

.5
•3

13
9

Number

1

P ercen t

.9
9 .5

7 .1
•9

6 .1
(2/ )

—
■—
“

1 / D ata r e la t e t o em ployees in a ffe c t e d u n its o f 18 o f f i c e s , 6 months
p r io r t o in tr o d u c tio n .
2 / T o ta l e x clu d e s 7 em ployees f o r whom d a ta were i n s u f f i c i e n t .
3 / L ess than 0 .0 5 p e r c e n t.
NOTE:

Because o f ro u n d in g , sums o f in d iv id u a l item s may n o t eq u a l t o t a l s .




33

Employment o f th o se aged 45 and over was more s ta b le th an th a t o f th e
group under 4 5 . O nly 7 p ercen t were no lo n g e r employed b y th e company a t the
end o f th e 18-m onth p e rio d and a m a jo r ity o f th o se had r e t ir e d . No one o f
t h i s group had been la i d o f f .
E xten t o f R eassignm ent, U pgrading, and Downgrading
N ea rly o n e -th ir d o f th e group In th e a ffe c t e d u n its had been r e a s s ig n e d ,
e it h e r t o p o s itio n s w ith d iffe r e n t t i t l e s and d u tie s w ith in th e same work u n it
or t o p o s itio n s in o th er u n i t s . Two out o f th re e were a ssig n e d d iffe r e n t
d u tie s b u t remained in th e same o r g a n iz a tio n a l u n it and In th e same work en ­
viron m en t. The o th e rs were tr a n s fe r r e d t o o th er work u n i t s . I t i s notew orthy
th a t o f th e approxim ately 2,800 in th e a ffe c t e d u n i t s , o n ly 5 2 , o r a l i t t l e
under 2 p e r c e n t, were tr a n s fe r r e d t o e le c tr o n ic d a ta p r o c e ssin g u n i t s . Most
o f th e se had been doing a d m in is tr a tiv e , a c c o u n tin g , or ta b u la tin g machine w ork;
o n ly a fe w , c h ie f ly from equipment o p e r a tio n , came from ro u tin e c l e r i c a l w ork.
O lder em ployees were s h ift e d t o o th er p o s itio n s l e s s fr e q u e n tly than
o th er em p loyees. A la r g e r p ro p o rtio n —68 p ercen t o f th e o ld e r grou p , compared
w ith 49 p ercen t o f th o se under 4 5 — were in th e same p o s itio n s th e y h e ld b e fo r e
th e computer i n s t a l la t i o n , r e fle c t in g th e s e n io r it y and o th er p o li c i e s adopted
t o p r o te c t lo n g -s e r v ic e em p loyees. About o n e -fo u r th o f th e o ld e r grou p , com­
pared w ith o n e -th ir d o f th e under 45 age grou p , exp erien ced some change in
t h e ir d u t ie s , m o stly w ith in th e work u n i t . A n e g lig ib le p ro p o rtio n o f em ployees
age 45 and o v er— le s s than 1 p e rc e n t— were tr a n s fe r r e d t o e le c tr o n ic d a ta
p ro c e ssin g p o s it io n s .
A l i t t l e over tw o -th ir d s o f th e em ployees who remained w ith th e company
.during th e 18 months covered b y th e stu d y were in p o s it io n s c l a s s i f i e d a t th e
same grade as a t th e b eg in n in g o f th e p e r io d ; n e a r ly a t h ir d , had been prom oted
t o h ig h er grade p o s it io n s ; and o n ly a l i t t l e over 1 p ercen t had been downgraded.
(See ta b le 5 » )
Prom otions t o a h ig h er grade meant h ig h er s a l a r i e s . Those in th e same
grade re c e iv e d th e same s a la r y , ex cep t f o r g e n e ra l s a la r y in c r e a s e s g iv e n t o
a l l o f f i c e em p loyees. S in ce many com panies endeavored t o m ain tain th e s a la r ie s
o f th o se a ssig n ed t o low er g r a d e s, downgrading d id n ot n e c e s s a r ily mean a
re d u ctio n in p a y .
Among o ld e r em p loyees, th e amount o f upgrading and downgrading was
l e s s e x te n siv e than among th e o th e r s . Pour out o f f i v e em ployees age 45 and
o v e r , compared w ith about th re e out o f f i v e o f th o se under 4 5 , were in p o s itio n s
a t th e same grade a f t e r th e com puter’ s i n s t a l la t i o n .
S in ce o ld e r em ployees
p rob ab ly had a tta in e d , or were c lo s e t o t h e ir maximum grade l e v e l s , a low er r a te
o f prom otion was t o be e x p e c te d . S e n io r ity and s im ila r p r o v is io n s p r o te c te d
them from downgrading.




T a b le 5*

Grade s ta tu s o f em ployees in a ffe c t e d u n its 1 y ea r a f t e r i n s t a lla t i o n
o f e le c tr o n ic com puters, b y age l /

A l l em ployees

Employees under
age

Employees age
1*5 and over

Grade s ta tu s
Number

Number

P ercen t

Number

P ercen t

2 / 2 ,3 7 2

100.0

1 ,7 7 5

100.0

597

100.0

Same grade ...............

1 ,5 9 9

6 7.h

1 ,1 1 6

62.9

1*33

8 0 .9

H igher grade . . . . .

7k
0

35

111

18 .6

Lower grade .......... ..

33

3

.5

T o ta l ......................

3 1 .2
1 . 1*

629
30

1 .7

P ercent

l/
Grade s ta tu s 1 yea r a f t e r compared w ith grade s ta tu s 6 months b e fo r e
in s t a lla t i o n o f com puter. Data were a v a ila b le from 18 o f f i c e s .
2 / E xcludes U27 em ployees who were sep a ra ted and l 6 em ployees who
rem ained a t th e se o f f i c e s but f o r whom d a ta were n ot a v a ila b le .

Changes in Type o f O ccupation
Among th e im portant q u estio n s about th e im p lic a tio n o f e le c t r o n ic d a ta
p r o c e s s in g fo r o f f i c e em ployees are what ty p e s o f work are a ffe c t e d and t o
what e x te n t are em ployees s h ift e d from one typ e o f work t o an oth er? To answer
th e se q u e s tio n s , th e p o s itio n s o f n e a r ly 2,800 em ployees b o th b e fo r e and a f t e r
th e change were c l a s s i f i e d in to 10 broad fu n c tio n a l o cc u p a tio n a l groups th a t
cover th e f i e l d o f o f f i c e w ork. The d e fin it io n s o f th e s e broad groups and th e
c l a s s i f i c a t i o n o f in d iv id u a l jo b s a t th e o f f i c e s in th e su rvey are b ased m ain ly
on d e s c r ip tio n s and l i s t i n g s o f o f f i c e jo b s shown in a stu d y , by th e U .S .
Employment S e r v ic e . 8 /
T able 6 shows th e typ e o f work done b y th e se em ployees 6 months p r io r t o
th e computer in s t a lla t i o n
and th e p ercen t d is t r ib u t io n o f th e in d iv id u a ls in
each group accord in g t o th e typ e o f work done 1 y ea r a f t e r . The r a te o f sep a­
r a tio n f o r each group i s a ls o shown. A change in th e ty p e o f work done im p lie s
a somewhat g r e a te r degree o f readjustm ent and r e tr a in in g on th e p a rt o f an
em ployee.

8 / See A F u n ctio n a l C la s s if ic a t io n o f R ecording J o b s, U .S , Department
o f L abor, O ccu p a tion al A n a ly s is Branch, U .S . Employment S e r v ic e , November 1950




Table 6.

Percentage distribu tion o f employees in affected u n its, by occupational c la s s ific a tio n , 1 year a fter computer in sta lla tio n

Employment
6 months prior
to computer
in sta lla tion

Occupational
cla ssifica tio n

Number Percent

Occupational C la ssifica tion

A ll
groups

1

2

3

if

5

6

7

0 .1

1.3

i/2,772

100.0

100.0

1.6

6.2

6.0

22.3

15.2

Administrative

in

1.5

100.0

82.9

—

1^9

—

--

—

....

2. Supervisory ..
3 • Accounting and
professionals

176

6.3

100.0

3 .*

80.7

2.8

2.3

0.6

—

—

157

5.7

100.0

1.3

3.2

719

25.9

100.0

A

1.1

68.6

If.o

Confuting and
s ta tis tic a l •

492

17 .7

100.0

lA

2.2

7-1

73 A

6.

Correspondence
work

2/3

.1

Stenographic
and secretarial

3^

1 .2

100.0

—

- -

2.9

—

Keyboard or
keypunch machine
operations . . . .

1^7

16 .x

100.0

.2

A

^•5

1.8

618

22.3

100.0

2 .k

1.3

5-5

3A

85

3 .1

100.0

10

E lectronic
data proc­
essing

Sepa­
rated

100.0

7•

9

81.5

Posting, check­
in g, and main­
taining rec­
ords .............

8

A ll groups ..........
1.

5*

8.

9 • Tabulating and
related machine
operations ••••
10*

Sorting, routing,
cla ssify in g ,
and filin g .• ..
l/
2/

—

.2

1.2

Excludes ^3 employees fo r whom data were in su fficie n t.
In su fficien t data to warrant presentation o f percentage d istrib u tion .

NOTE: Because o f rounding, sums o f individual items may not equal 100.




1A

1.8

15.0

--

7 .3

lf.9

2.3

—

3A

*.5

8.3

—

15.1
—

lk .1

5.7

1.7

1.5

A

17-9

1.8

A

.6

A

12.6

85.3

2.9

--

—

8.8

72.9

2.2

•7

1 6 .1

3-6

—

3.5

1.1

—

O.k

«...

o.k

62.0

1.0

3.1

17 .6

9A

8.2

23.5

—

23.5

—

—

36

N ea rly h a lf o f a l l em ployees in th e a ffe c t e d u n its b e fo r e in s t a lla t i o n
o f th e computer were engaged in r o u tin e c l e r i c a l work such as p o s tin g and
checking r e c o r d s , com puting, and f i l i n g .
C lo se t o t w o -f i f t h s op erated o f f i c e
m achines such as ta b u la to r s and keypunch m ach in es. About 1^ p ercen t were in
a d m in istra tiv e p o s itio n s such a s su p e rv iso rs and m anagers, or a s a cc o u n ta n ts.
A sm a ll p ro p o rtio n were in somewhat l e s s ro u tin e c l e r i c a l w ork, such as c o r r e s ­
pondence and sten ograp h ic and s e c r e t a r ia l jo b s .
One y ea r fo llo w in g th e in s t a lla t i o n o f e le c t r o n ic d a ta p r o c e s s in g , most
o f th o se s t i l l employed in th e o f f i c e s stu d ie d were doin g th e same ty p e o f
w ork. About 1 6 p ercen t o f th e e n tir e group had been s h ift e d t o a d iffe r e n t
typ e o f w ork, e . g . , from ta b u la tin g -m a ch in e o p e ra tio n t o com puting and
s t a t i s t i c a l w ork.
The e x te n t o f change among em ployees in t a b u la tin g , s o r t in g , and su p er­
v is o r y work was g r e a te r th an in o th er ty p e s o f w ork. A d m in istra tiv e and
accou n tin g em ployees on th e o th er hand, were s h ift e d l e s s fr e q u e n tly t o oth er
ty p e s o f w ork. No d o u b t, th e e x te n t o f s h if t in g among th e groups d o in g ro u tin e
c l e r i c a l work such a s p o s tin g , f i l i n g , and machine o p e ra tio n s was reduced
becau se o f th e r e la t i v e l y h ig h r a te o f se p a ra tio n among th e se em p loy ees.
E x ten siv e s h if t in g to o k p la c e among th e em ployees in ta b u la tin g and
r e la te d o c c u p a tio n s. Most o f t h i s group were tr a n s fe r r e d t o nonm echanical
c l e r i c a l w ork, c h i e f ly in com puting, p o s tin g , checking and m a in ta in in g r e c o r d s .
The s h if t in g o f su p e rv iso rs t o n on su p erv iso ry p o s itio n s su g g e sts a p o s­
s ib le source o f d i f f i c u l t y . About 5 p ercen t o f th e su p e rv iso ry em ployees were
s h ift e d t o p o s it io n s in v o lv in g more or l e s s r o u tin e c l e r i c a l work and machine
o p e r a tio n . A lthough th e se changes d id n o t in v o lv e a re d u ctio n in p a y , as
in d ic a te d p r e v io u s ly , th e y p ro b a b ly meant some lo s s in p r e s t ig e .
O nly 2 p ercen t o f th e em ployees were tr a n s fe r r e d t o e le c t r o n ic d a ta
p r o c e s s in g o c c u p a tio n s, and m ost o f them were in a d m in istr a tiv e and accou n tin g
and p r o fe s s io n a l w ork. Few em ployees from th e r o u tin e c l e r i c a l f i e l d s were
a ssig n e d t o th e new ty p e s o f w ork.
Changes in T o ta l O ffic e Employment
In a d d itio n t o th e approach d e sc rib e d a b o v e, o f re co rd in g changes in
s ta tu s among a group o f o f f i c e em ployees d ir e c t ly a ffe c t e d b y th e i n s t a l la t i o n ,
changes in th e t o t a l o f f i c e o f which th e a ffe c t e d u n it was a p a rt must be
re co rd e d . Such changes r e f l e c t n o t o n ly th e n e t im pact o f i n s t a l li n g th e com­
p u te r , b u t a ls o th e in flu e n c e o f o th er e v e n ts th a t occu rred a t th e same tim e ,
such as changes in volume and ty p e o f b u s in e s s o r m o d ific a tio n s o f procedure
th a t may have been u n re la te d t o th e te c h n o lo g ic a l change.
T o ta l o f f i c e employment a t 1 7 o f f i c e s f o r which d a ta were a v a ila b le
in cre a se d 7 p ercen t from December 1953 t o December 1957•
In s ix o f f i c e s , th e
in c re a se was 1 5 p ercen t or m ore; in s e v e n ,le s s th an 15 p e r c e n t; and in th e
rem aining fo u r o f f i c e s , employment d e cre a se d .




37

Employment o f a l l c l e r i c a l and kindred w orkers during t h i s p e r io d , as
shown b y U .S . Bureau o f Census e stim a te s f o r th e N ation as a w h o le, in crea sed
b y about 15 p e r c e n t. T h is o v e r a ll e stim a te co v ers em ployees in a l l in d u s tr ie s
and does not n e c e s s a r ily r e f l e c t th e same c o n d itio n s as th o se a ffe c t in g o f f i c e s
in th e su rv e y . Thus, average o f f i c e employment f o r th e 17 companies tended t o
la g beh in d th e o v e r a ll in c r e a s e .
In 6 o f f i c e s , th e in cre a se was g r e a te r ;
in 2 1 , th e in cre a se was s m a lle r .
The im p ressive sa v in g s su g g est th a t e le c tr o n ic d a ta p ro c e ssin g reduced
th e r a te o f in cre a se in th e demand fo r c l e r i c a l em p loyees, e s p e c ia lly fo r
r o u tin e w ork. S e v e ra l o f f i c e s rep o rted th a t a f t e r th e i n s t a lla t i o n o f e le c ­
tr o n ic com puters, th e need f o r overtim e f o r d a ta p ro c e ssin g had been red u ced ,
h ir in g cu t b a ck , and p a rt-tim e employment c u r t a ile d .




38

Chapter I X .

O rg an izin g E le c tr o n ic Data P ro ce ssin g

The in tr o d u c tio n o f e le c tr o n ic d a ta p r o c e ssin g re q u ire d n ot o n ly the
re d u ctio n o f some ty p e s o f o f f i c e em ployment, hu t a ls o th e o rg a n iz a tio n o f
new fu n c tio n s and th e opening o f new job o p p o r tu n itie s . T h is ch ap ter d i s ­
cu sse s th e adju stm en ts in v o lv e d in o rg a n izin g th e hew work groups and in
s e le c t i n g , t e s t i n g , and tr a in in g em p loyees, a s w e ll as some o f th e problem s
en cou n tered , e s p e c ia lly th o se concerned w ith o ld e r em p loyees.
Number o f P o s itio n s R equired
O rgan izin g a group o f em ployees t o manage, p la n , and op erate th e computer
was one o f th e f i r s t s te p s in in tro d u cin g e le c tr o n ic d a ta p r o c e s s in g . T h is
in v o lv ed determ in in g th e number and typ e o f Jobs n eeded, d e s c r ib in g th e c o n te n t,
and s e t t in g th e s a la r y r a te s o f th e new p o s it io n s .
Sin ce th e re was u n c e rta in ty
about th e e x t e n t , n a tu r e , and le v e l o f d i f f i c u l t y o f th e w ork, d e c is io n s about
th e se m a tters were o fte n t e n t a t i v e , s u b je c t t o changes as ex p erien ce d ic t a t e d .
E le c tr o n ic d a ta p ro c e ssin g req u ired a r e la t i v e l y sm a ll number o f p o s i­
t io n s in each o f f i c e .
The 20 o f f i c e s in th e survey had a t o t a l o f 915 em ployees
in e le c tr o n ic p ro c e ssin g Jobs w ith an average (m edian) o f 29 . The groups
v a r ie d in s i z e , from 9 em ployees in a m anufacturing p la n t t o over 200 in a
la r g e insurance company, r e fle c t in g th e e x te n t and typ e o f a p p lic a tio n b ein g
made. The s iz e d is t r ib u t io n o f th e se groups was as fo llo w s :
Number o f em ployees
A ll o ffic e s

.......................................

Number o f o f f i c e s
20

Under 10 ............................

1

10-19 .................................................
20-29 .................................................

2
8

3 0 -3 9

.....................................................

5

I1O 9 ...............................
-I4

2

50 ando v e r .....................

2

The ta b u la tio n ex clu d es th o se em ployees in r e la te d p o s it io n s , such a s keypunch
and ta b u la tin g -m a ch in e o p e r a tio n s , who perform ed c e r ta in p re lim in a ry ta s k s t o
prepare d a ta f o r th e e le c tr o n ic com puter.
O ccu p a tion al S tru ctu re
The work o f em ployees in th e se groups may be c l a s s i f i e d b ro a d ly a s
p la n n in g and programming; computer o p e r a tio n ; and a d m in istra tiv e and s u p e r v iso r y .
The f i r s t grou p , 69.5 p ercen t o f th e t o t a l , was engaged in a n a ly zin g and de­
v e lo p in g o f f i c e procedu res f o r e le c tr o n ic da ta p r o c e ssin g and p rep a rin g th e
d e ta ile d programs o r in s tr u c tio n s fo r o p era tin g th e com puter. The second
group, w ith 2 2 .9 p ercen t o f th e t o t a l , in clu d ed th e o p era to rs o f th e main




39

apparatus and o f th e r e la te d equipm ent, such as p r in t e r s . Those who su p er­
v is e d and planned th e work o f th e se te c h n ic a l a n a ly s t s , programm ers, and
o p era to rs rep resen ted 7 *5 p ercen t o f th e t o t a l .
The e x te n t o f jo b s p e c ia liz a t io n w ith in th e se f i e l d s o f work v a r ie d
among th e o f f i c e s su rveyed . For exam ple, many o f f i c e s e s ta b lis h e d sep a ra te
p o s it io n s o f methods or system s a n a ly s ts f o r th e work o f plan n in g p ro ced u ra l
ch an g es, and programmers f o r th e programming fu n c tio n . A few o f f i c e s , on th e
o th er hand, combined th e se d u tie s in one p o s it io n .
No standard p a tte rn was fo llo w e d in o rg a n iz in g th e jo b p r o g r e s s io n . Some
p r e fe r r e d a s in g le c la s s i f i c a t i o n f o r programmer or a n a ly s t .
O thers s e t up
p o s itio n s a t th re e le v e ls o f s k i l l :
f o r exam ple, tr a in e e a n a ly s t , ju n io r
a n a ly s t , and a n a ly s t. A common p r a c tic e was t o e s t a b lis h th e p o s it io n o f
method a n a ly st a t th e to p o f a la d d e r which programmers and ju n io r programmers
a t low er le v e ls cou ld clim b as th e y a cq u ired exp erien ce and s k i l l .
G e n e r a lly ,
sep a ra te c la s s i f i c a t i o n s were e s ta b lis h e d f o r o p era tin g th e main apparatus o r
c o n s o le , w ith su bordin ate em ployees o p e ra tin g th e a u x ilia r y p r in t e r s , e t c .
(See appendix F .)
D eterm ining S a la ry and Wage R ates
A.
key ste p in o rg a n izin g th e e le c tr o n ic d a ta -p r o c e s s in g u n it was s e t t in g
th e s a la r y and wage r a te s o f th e new p o s it io n s . H ere, th e e x is t in g p o s it io n
c la s s i f i c a t i o n and e v a lu a tio n system s proved ad eq u ate. A p p a ren tly , no modi­
f ic a t io n s o f th e fa c t o r s were n e c e s s a r y .
The exp erien ce o f one la r g e o f f i c e e x e m p lifie d some o f th e ste p s fo llo w e d .
F i r s t , s t a f f members o f th e p erso n n el departm ent prepared standard job d e s c r ip ­
t io n s f o r th e e le c tr o n ic d a ta -p r o c e s s in g jo b s which id e n t ifie d th e p r in c ip a l
fu n c tio n s in term s o f m achines or equipment u se d , th e su p e rv isio n re c e iv e d and
e x e r c is e d and th e working procedures a p p lie d .
In c la s s if y in g th e new p o s itio n s
th e p erso n n el s t a f f e v a lu a te d , in r e la t io n t o oth er o f f i c e p o s it io n s , th e
fo llo w in g f a c t o r s :
( l ) Preemployment t r a in in g , ( 2 ) e x p e r ie n c e , (3 ) m ental
a b i l i t y , (4 ) r e s p o n s ib ilit y fo r perform an ce, (5 ) r e s p o n s ib ilit y f o r "c o n t a c t s ,"
(6 ) r e s p o n s ib ilit y f o r d ir e c t io n s , and (7 ) w orking c o n d itio n s . For each o f

9 / For d e ta ile d d e s c r ip tio n s o f th e o ccu p atio n s in e le c tr o n ic d a ta p ro c­
e s s in g , see th e fo llo w in g U .S . Department o f Labor p u b lic a tio n s :
O ccupations
in E le c tr o n ic Data P ro ce ssin g S y stem s, Bureau o f Employment S e c u r ity , January
19595 and Autom ation and Employment O p p o rtu n itie s f o r O ffic e W ork ers, BLS
Bun. i2 k i, 19 58 .
A ls o see The R ole o f Humans in Complex Computer S y stem s, a re p o rt p r e ­
pared by th e E le c tr o n ic s P erson n el R esearch Group, Department o f P sy ch o lo g y ,
U n iv e r s ity o f Southern C a lifo r n ia , fo r th e U .S . Navy D epartm ent, O ffic e o f
N aval R esea rch , January 1959*




*0
4

th e se f a c t o r s , c e r ta in p o in ts on a predeterm ined s c a le were a s s ig n e d . In
r a tin g co n so le o p e r a to r s , f o r exam ple, two fa c t o r s in th e e v a lu a tio n scheme—
m ental a b i l i t y and r e s p o n s ib ilit y f o r perform ance— accounted f o r th e m a jo r ity
o f th e t o t a l p o in ts which determ ined th e grade and s a la r y o f th e p o s it io n .
R e la tiv e L e v e l o f E le c tr o n ic P o s itio n s
The new p o s itio n s o f co n so le o p era to rs and programmers were g e n e r a lly
r a te d a t th e to p o f th e s a la r y stru c tu re in th e o f f i c e s su rv ey ed . S a la r y
r a te s f o r co n so le o p era to rs were u s u a lly s e t a t about th e same grade a s th o se
o f su p e rv iso rs o f m echanical ta b u la tin g s e c tio n s and th o se f o r p e r ip h e r a l
equipment o p era to rs were fix e d a t about th e same l e v e l a s th o se o f o p era to rs
o f m echanical ta b u la tin g equipm ent. Programmers and a n a ly s ts were r a te d some­
what h ig h er than co n so le o p e r a t o r s .!^

o ffic e

The r e la t io n o f th e new p o s it io n s in e le c tr o n ic d a ta p r o c e ssin g t o o th er
jo b s i s i llu s t r a t e d b y th e fo llo w in g c a s e s :
A t one o f f i c e covered b y a union agreem ent, co n so le o p era to rs
and programmers were c l a s s i f i e d a t th e h ig h e st grade in th e c l e r i c a l
u n i t . The r a te s were c lo s e t o 5 p ercen t above th e r a te f o r th e
h ig h e st p a id accou n tin g c le r k p o s it io n in machine accou n tin g d e p a rt­
m ent. O ther c l e r i c a l p o s it io n s a t th e same le v e l in clu d ed s e n io r
grade accou n tin g a n a ly s t and se n io r p la n t a n a ly s t .
The co n so le o p era to r p o s it io n a t one u t i l i t y was c l a s s i f i e d
a t th e same grade as th e su p e rv iso r o f th e m echanical ta b u la tin g
s e c tio n and th e o p era to rs o f a u x ilia r y equipment were r a te d th e
same a s o p era to rs o f m echanical ta b u la tin g equipm ent. Programmer
a n a ly s ts in t h i s o f f i c e were ra te d somewhat h ig h er th an c o n so le
o p e r a to r s .
The s a la r y range f o r co n so le o p era to rs a t one o f f i c e was
from $397 t o $65^ per m onth, compared w ith a range o f $2^5 t o
$3^8 f o r ta b u la tin g -m a ch in e o p era to rs and a u x ilia r y machine
o p e r a to r s . S a la r ie s f o r se n io r programmers ranged from $ty?9 t o
$770 and $397 t o $654 f o r ju n io r programm ers.

In b r i e f , th e in tr o d u c tio n o f e le c tr o n ic d a ta p r o c e ssin g in v o lv e d th e
c r e a tio n o f a sm a ll group o f jo b s a t th e to p o f th e grade stru c tu re fo r
o f f i c e em p loyees. A lth o u g h , t h i s change r a is e d th e average grade o f o f f i c e

l< y A d e ta ile d and com prehensive su rvey o f wage and s a la r y r a te s f o r
e le c t r o n ic da ta p ro c e ssin g p o s itio n s was not made in t h i s study* For such
d a ta , see Autom ation S a la r y S u rvey, made by th e N a tio n a l O ffic e Management
A s s o c ia tio n and p u b lish e d in O ffic e E x e c u tiv e , March 1959 > PP* 2 5 -5 8 *




jo b s , o n ly a sm a ll number o f such p o s itio n s were c re a te d in each o f f i c e , and
th e r e fo r e th e o v e r a ll e f f e c t was n e g li g i b le .
In th e absence o f in fo rm a tio n
on th e d is t r ib u t io n , by g ra d e, o f a l l jo b s in th e o f f i c e s s tu d ie d , i t i s
d i f f i c u l t t o determ ine th e e x a c t in p a ct o f th e new jo b s on th e o v e r a ll job
s tr u c tu r e .
C o lle c t iv e B argain in g on C la s s if ic a t io n and R ates
The s a la r y and wage r a te s o f some o f th e new p o s itio n s in o f f i c e s covered
by c o lle c t iv e b a rg a in in g agreem ents were n e g o tia te d b y management and union
r e p r e s e n ta tiv e s . The u n io n ’ s p a r t ic ip a t io n , how ever, was u s u a lly lim ite d t o
co n so le o p e r a to r s , a u x ilia r y machine o p e r a to r s , and programm ers. Method ana­
l y s t s and procedure s p e c i a li s t s were g e n e r a lly co n sid ered p a rt o f th e man­
agement and th e r e fo r e o u tsid e th e b a rg a in in g u n it .
(See appendix G .)
The m achinery fo r c o lle c t iv e b a rg a in in g over new r a te s w as, as a r u le ,
co o rd in a ted w ith th e e x is t in g c la s s i f i c a t i o n or e v a lu a tio n sy ste m s. The
i n i t i a l p re p a ra tio n o f d e s c r ip tio n s and c la s s i f i c a t i o n s o f new p o s itio n s was
management’ s fu n c tio n under fo rm a l jo b e v a lu a tio n sy ste m s. Two c o n tr a c ts s e t
fo r t h some b a s ic p r in c ip le s co v erin g t h e ir p r e p a ra tio n .
In some o f f i c e s , management c l a s s i f i e d th e new jo b s and pu t in fo r c e
a p p ro p ria te wage r a t e s .
I f th e union d isa g ree d w ith such r a t e s , i t hatd th e
r ig h t t o subm it i t s o b je c tio n s t o th e g riev a n ce m achinery. In o th er o f f i c e s ,
management and union r e p r e s e n ta tiv e s d isc u sse d r a te s f o r new p o s itio n s in
advance.
I f no agreement co u ld be reached w ith in a s p e c ifie d tim e p e r io d ,
th e r a te s went in to e f f e c t , pending f i n a l se ttle m e n t through th e griev a n ce
p ro ced u re.
I n one company, th e u n ion and management agreed t o a lim it a t io n on th e
c o s t o f upgrading o f p o s itio n s a s a r e s u lt o f in tro d u cin g e le c tr o n ic d a ta
p r o c e s s in g . The c o n tra c t p rov id ed t h a t —
Changes in wage r e la tio n s h ip s as may be m u tu a lly agreed
t o b y th e company and th e union r e s u lt in g from th e i n s t a lla t i o n
o f new o p era tin g methods now underway . . .
s h a ll be e f f e c t e d ,
p rov id ed th e c o s t o f such wage changes does n ot exceed $ 1 0 0 ,0 0 0
on an annual b a s i s .
The wage changes t o be made w i l l be
determ ined a ft e r 6 m onths' exp erien ce w ith th e new m ethods. . . .
C o lle c t iv e b a rg a in in g over th e new p o s it io n s som etimes in v o lv e d com plex
and prolon ged n e g o tia tio n s . For exam ple, among th e m ajor is s u e s , one group
co n sid ered a t th e b a rg a in in g t a b le were th e e sta b lish m e n t o f s p e c ific a t io n s
fo r e le c tr o n ic p o s it io n s ; in c lu s io n o f new p o s it io n s in th e b a rg a in in g u n i t ;
and th e s e t t in g o f wage r a te s f o r proposed c l a s s i f i c a t i o n s . To prepare
th e m se lv e s, la b o r r e p r e s e n ta tiv e s a t t h i s o f f i c e atten d ed a b r i e f cou rse on
e le c tr o n ic d ata p r o c e s s in g . They met w ith management 22 tim es b e fo r e agreement
was reached on p o in ts o f d iffe r e n c e .




k2

Selecting Employees for Electronic Data Processing
All offices in the study sought qualified persons for electronic data
processing primarily from among their own employees. Some offices, however,
recruited a small number of employees for training positions. One insurance
company explained that the purpose of its policy of utilizing its own em­
ployees was (l) to preserve promotion opportunities for present employees,
and (2) to assure that the programmers would have a knowledge of life insurance
principles, of the company’s opertions and procedures, and of the company
organization. This did not mean, however, that its choice was confined to the
group who were doing the data processing placed on the computer. The general
practice, particularly in filling the programmer position, was to extend the
area of selection to the entire office staff.
Selection procedures were of two general types. (See table 7») One
group of offices relied on a review of personnel records and recommendations
of supervisors to draw up a list of employees considered qualified for various
new positions. (Little publicity was given to the employees concerning the
program.) Those who were interested were then given an aptitude test. Finally,
the supervisory staff of the electronic data-processing group made its selection
from among those who passed, taking into account education, experience, and
other personal qualifications as disclosed in interviews and records, as well
as the scores on the tests. At one office, for example, 125 employees were
interviewed for the ID electronic data-processing positions originally set up.
Tests were given to those who were still interested and the final selection
made from the 50 who passed.
Other companies adopted the "reserve pool" system of selecting employees.
For example, one insurance company with a long-range program announced openings
to all its employees and invited them to take an aptitude test for the new
positions. Those who passed comprised the group from which the company se­
lected employees to fill not only the initial openings on its staff but also
subsequent ones that would be created with the expansion of electronic data
processing. (See appendix H.)
Selection Procedures Under Union Agreements
In offices with collective bargaining, new positions covered by the
contract frere "posted" or announced to all employees, with information on
duties, qualifications, pay, and working conditions. Employees were permitted
to "bid" or apply for the new positions. One union agreement, for example,
provided that:
All new positions or vacancies (except those of less
than thirty (30) calendar days’ duration) will be promptly
bulletined at agreed locations, for a period of five (5)
calendar days. Employees who consider they are qualified
for such bulletined positions may file their applications
within the time limit shown on the bulletin with the




^3

T able 7. Methods o f s e le c tin g em p loyees for electron ic d a ta -p rocessin g p osition s

Methods used

Company

A ----------------

R eview ed em ployee record s. An a p p lica n t’ s rating on the W onderlic P erson nel T e s t, given
to a ll em ployees when first hired, was co n sid ered . No s p e c ia l tests were adm inistered for
se le ctin g em ployees.

B ----------------

R eview ed em ployee record s, sought supervisory recom m endations, and gave 4 te sts:
Wonderlic P erson nel T e s t; Schubert General A bility T e st (to c o lle g e graduates, on ly);
D ifferential Aptitude T e s ts (A . Numerical Aptitude, and B. A bstract R ea son in g). D if­
ferent p assin g grades were used for each type o f jo b . E xperience with the company was
given more weight than test resu lts. No tests were given for the auxiliary equipment
operator p osition s.

C ----------------

Announced openings to a ll em ployees through union. Gave Wonderlic P erson nel T e st and
Aptitude T e s t forEDPM Programmers. For top analysts jo b s , gave se rie s o f person ality and
in tellig en ce te s ts , plus a 3-hour personal interview — ll part o f a management training pro­
a
gram. No tests were given for c o n s o le or auxiliary equipment operator p o sitio n s.

D ----------------

R eview ed em ployee records and fille d key p o sitio n s. Next, announced openings to a ll
em p loyees, se le ctin g q u alified em ployees on b a sis o f interview s and record s. A lso ran
some newspaper advertisem ents. No tests given .

E ----------------

R eview ed em ployee record s. A va ila b le and qu alified em ployees were interview ed and
s e le c tio n s made. No tests were given for s e le ctio n o f em ployees at first. (Aptitude T e st
forE D P M Programmers currently being given for methods analyst and programmer jo b s .)

p ----------------

Announced openings to a ll who cared to take the Aptitude T e st for EDPM Programmers.
T h ose who p a ssed test were interview ed and se le c tio n s were made. E m ployees were
assured supervisors would not be given individual test s c o r e s . No tests were given for
the auxiliary equipment operator p o sitio n s.

G ----------------

Supervisors were asked to recommend em ployees for p o sitio n s; some em ployees volun­
teered to take training co u r s e s . Aptitude T e st for EDPM Programmers was used in e v a l­
uating em p loyees, together with other fa ctors, including in terview s. No te sts were given
for the c o n s o le or auxiliary equipment operator p o sitio n s.

H ----------------

N otice given to union o f p osition s to be made a va ila b le. P o sitio n s were d escrib ed , re­
quirements establish ed; b u sin ess and academ ic background standards set up; p osition s
were posted ; a p plication s review ed; applicants interview ed. No tests were given at first.
Currently, a ll em ployees e lig ib le for p osition s must pass Aptitude T e st for EDPM
Programmers.

I

----------------

N otice given o f new p o s itio n s . Aptitude T e st for EDPM Programmers was given primarily
as an aid to evaluating a p p lica n ts. E xperience in company operations was regarded most
important. No tests were given for the auxiliary equipment p o sitio n s.

j

----------------

P ersonnel o ffic e r s review ed em ployee records and informed top men in newly esta b lish ed
electron ic unit of lik ely ca n d id a tes. S election s were made on b a sis o f evaluation by
su p ervisors. No tests were given .

K

___________

R eview ed records o f em p loyees to s e le c t those to take qualifying te sts: C alifornia T est of
Mental Maturity, Kuder P reference T e s t, and then Aptitude T e st for EDPM Programmers.
T h ose with s u c c e s s fu l s c o r e s in each o f these tests were p erson ally interview ed by
Manager o f Data P ro ce ssin g Department who made se le c tio n . No tests given for the aux­
iliary equipment p osition s.




T able 7. Methods o f se le ctin g em ployees for e le ctro n ic d ata-p rocessin g p o sitio n s

Company

L ------------------

Continued

Methods used

Initially, em ployee records were review ed for ca n didates. T h ese were given a battery o f
company design ed tests to determine general in te llig e n ce and reasoning a b ility. Arith­
m etic and vocabulary were m ost important fa cto rs. S e le ctio n s were then made, (Sub­
sequently, these te sts were rep la ced by Aptitude T e st for EDPM Programmers.) A ll
applicants were assured that failure in any test would not ad versely a ffe c t them in their
jo b s . F irst group o f c o n s o le and auxiliary equipment operators were not given any te s ts .
Mainly s e le c te d from among other machine operators, with su p ervisor’ s recomm endation
most important factor.

M ------------------

For analyst and analyst-program mers, review ed personnel data card file s , em ployees work
record s, and gave personal in terview s. No tests were g iven . F or the p o sitio n s o f pro­
grammer and c o n s o le operator, the Aptitude T e st for EDPM Programmers was given . T e st
results plus other personal data were con sid ered . No te sts were given for the auxiliary
equipment operator p o sitio n s.

N ------------------

A pplicants were given the follow in g te sts: A. C. E . P s y c h o lo g ic a l Exam ination: F ou stSchorling T e st o f F unctional Thinking in M athematics; and Moore M echanical Comprehen­
sion T e s t. T e s t resu lts, person nel record s, and personal interview s were used in s e l e c ­
ting em p loyees. A ssuran ces were given that test results would not be d is c lo s e d to
previous su p ervisors. No tests were given for the auxiliary equipment operator p o sitio n s.

O ____________ On the b a sis o f in terview s, can didates for planning and programming job's* were given the
follow in g te s ts : Wesman P erson n el C la ssifica tio n T e st; Watson—G laser C ritical Think­
ing A ppraisal T e s t; Aptitude T e st for EDPM Programmers; and the Strong V oca tion a l
Interest Blank T e st. P o sitio n s were fille d after con sid erin g both personnel records and
test resu lts. A pplicants for c o n s o le and auxiliary equipment operator p o sitio n s were
given the Strong V oca tion a l Interest Blank T e st.
p

------------------

Union was informed o f openings and n ecessa ry q u a lifica tio n s. A pp lican t? were then
given a personal interview . If found a cce p ta b le , they were permitted to take a company
design ed test (s in c e rep la ced by the Aptitude T e st for EDPM Programmers). T h ose who
p a ssed were interview ed again and then rated on a number o f fa cto rs, including age,
company record, edu cation , test s c o r e , and interview . S e le ctio n for p osition fo llo w e d .
No tests were given for the auxiliary equipment operator p o sitio n s.

Q ------------------ Department heads were asked to su ggest em ployees to be given training cou rses with
understanding they might be returned to their original work s e c tio n s . From among those
who took co u rse s, original group was formed. No tests were given .
R ------------------ N otice o f new p osition s was given to union. Opened p osition s to a ll q u alified em ployees
in the general accou ntin g department. U sed Aptitude T e st for EDPM Programmers in
conjunction with other fa cto rs, in se le ctin g em p loyees.

s

------------------ Job openings were p osted and ap p lication s invited. Department heads were asked to r e c­
ommend qualified em p loyees. The Aptitude T e st for EDPM Programmers was given , to­
gether with sev era l other te sts design ed by com pany’ s industrial p sy c h o lo g ist. T e sts
were used primarily to provide a ready history o f those who might not otherw ise be c o n ­
sidered. A ll persons examined were assured that the resu lts would be con fid en tia l. No
tests were given for auxiliary equipment operator p o sitio n s.

T ---------------— Most candidates were s e le c te d from com pany’ s machine accou ntin g s e c tio n . A ll were given
the Aptitude T e st for EDPM Programmers. The test resu lts, supervisory recom m endations,
educational background, and em ployee performance record were con sid ered in making the
final s e le c tio n .




45

official whose name is signed to the bulletin. The senior
qualified employee whose application is filed with the
designated official within the time limits of the bulletin
shall be awarded the position or vacancy. When no qualified
employee applies within the time limit stipulated above, the
company may proceed to fill the position with any employee
or new employees. A notice of assignment showing bulletin
number and names of all applicants, and designating the
successful applicant shall be posted as promptly as possible.
All agreements provided that merit as well as length of service were to
be factors in the final selection, with seniority determining the choice only
when all applicants were equally qualified. If disputes arose over the inter­
pretation of these provisions, they were to be settled through grievance and
arbitration procedures. One agreement, for example, contained the following
section:
Preference for promotion: In all
employees from one classification
factors shall be considered: (a)
service; (b) knowledge, training,
efficiency; (c) physical fitness;

cases of promotion of
to another, the following
Length of continuous
ability, skill, and
and (d) attendance record.

Where factors (b), (c), and (d) are relatively equal, the
length of continuous service shall govern. If action contrary
to the foregoing is taken by the management, any employee who
is aggrieved thereby may present a grievance for adjustment
or determination as provided in article XI of this contract.
Another contract was less specific about the factors, other than senior­
ity, governing the selection:
In selecting an employee for promotion or upgrading to an
available opening the following standards shall apply:
Where ability, skill, and efficiency are substantially
equal, preference shall be given to the most senior qualified
employee within the applicable unit.
In short, although the senior employee under union contracts had some
advantage in premotion to these new positions, he was first required to prove
his ability in competition with younger employees.
Testing Applicants for Electronic Data Processing
Since the new electronic data processing jobs required training and
differed from existing types of work, it was generally believed that a more
or less objective and independent basis for predicting the success of applicants




k6

was needed. Fourteen offices in the study gave some type of aptitude test in
selecting programmers and analysts. In 10 offices, tests were also given in
selecting console operators. Only three offices tested applicants for posi­
tions as auxiliary equipment operators. In addition, three offices made use
of tests given to employees at the time of their entrance. The use of tests
in selecting office employees had long been the standard practice in many
offices. A few large companies employed staffs of industrial psychologists
for research on methods of selection. In one large insurance company, psy­
chologists administered tests to more than 500 office employees to fill about
100 electronic positions.
Three of the offices surveyed did not use tests to select employees for
electronic data processing. Some officials expressed skepticism about the
reliability of the tests available. They preferred to depend on the personnel
officer*s or supervisor’s evaluation of the applicant's background and experi­
ence. One union official opposed on principle the use of tests for promoting
office employees arguing that management already has adequate means of observing
their work performance on related positions and of evaluating their potentiality
for higher level positions.
The type of test generally used was designed to measure the learning
ability of individuals rather than to test clerical skills or personality.
Some typical objectives, as indicated on the tests themselves were "to test
how well you can thinkj" " . . . how well you are able to reason analytically
and logically;" and " . . . how well you can think in math." One widely used
test, specifically designed for determining aptitudes for programming, was
in three parts, covering the ability (l) to follow instructions in completing
numerical series, (2) to see relationships among geometrical figures, and
(3) to solve problems in arithmetic reasoning. (See appendix I for list of
tests used.)
Some companies gave a number of tests. One company, for example, tested
the applicant's aptitude in fields of engineering and physical sciences as
well as in learning ability. Another company administered tests of vocational
interest on the theory that persons with a strong preference for accounting
would be successful in programming work.
The weight given to these tests in selecting employees varied from company
to company. Many offices used the results only to eliminate those who could
not pass, with the final choice depending on consideration of the applicant's
record and personal interview. Other offices gave weight to the actual scores
achieved in the test. One office, for example, adopted an elaborate screening
procedure based on test results. Only applicants who had achieved a high
score on the Wonderlic Intelligence Test, which they had taken upon entrance,
were selected to take the California Test of Mental Maturity and the Kuder
Preference Test. Next, those who received a high score in mechanical aptitude
on the Kuder Test were eligible to take the Aptitude Test for Electronic Data
Processing Programmers. Finally, only those who achieved a high score on the
latter were personally interviewed by the manager of the data processing
department before a selection was made.




**•7
Training Programs
One of the most important phases of the transition to electronic data
processing was the special retraining of employees selected for the new posi­
tions in programming and operating the computer. The content of these jobs
differed so greatly from their previous activities that the employees needed
special training. Also more systematic training was required than that norm­
ally given by supervisors or the training department, to meet day-to-day
changes in office equipment and procedures.
Both formal classroom instruction and on-the-job training were provided.
All employees selected for planning and programming positions were given class­
room training in the principles of programming. (See table 8.) A majority of
the offices also gave console operators such courses and a few included their
auxiliary equipment operators. Although the former group required this in­
struction in order to perform their duties, the chief purpose of giving con­
sole operators this type of training was to enlarge their understanding of the
entire process of preparing instructions. They also comprised a reserve group
who could be assigned to programming work, if needed.
The formal instruction was generally developed and presented by staff
representatives of the manufacturer of the electronic computer. In a few
companies, experienced programmers were used as instructors. The classes were
held at the offices of the equipment manufacturer or where the computer was
being installed.
The classroom instruction
of the new equipment. Trainees
ing and coding instructions and
courses generally lasted from A

involved lectures and practical demonstrations
were also given opportunities to practice writ­
testing them on the electronic computer. These
to 5 weeks.

Costs of training were paid by the companies. This included the tuition,
the wages or salaries of employees while training, and transportation and some
related expenses where travel was involved.
Training on the job was generally used in developing skill for operating
the auxiliary equipment, such as printers and card-to-tape converters. The
starting, stopping, and adjusting of these automatic machines through their
cycles of operations was first demonstrated by representatives of the equipment
manufactures.
Another form of on-the-job training was implicit in the progression sys­
tem for employees in programming and planning. Since the general policy was
to promote employees in the group to higher paid positions as openings occur­
red, each employee was usually given progressively more difficult tasks under
the supervision of a more experienced programmer or analyst. One company, for
example, advanced a junior programmer to a fully qualified programmer after
only 1 year's experience and on-the-job training.




Table 8. Training programs for e le ctro n ic data p ro ce ssin g p osition s

Company

Planning and programming jobs

C on sole operators

A uxiliary equipment
operators

A ------------------

4-w eek programming course at o ffice by equipment
manufacturer’ s representative. On-the-job
training.

Same as for planning and
programming jo b s .

O n-the-job training.

B ------------------

4-w eek programming course (or 16 w eeks, part time)
by instructors o f company-operated sch ool.

4-week programming course
by company and 4 w eeks of
on -th e-job training.

O n-the-job training.

c ------------------

12-week programming course at equipment manu­
facturer’ s sc h o o l.

8-week cou rse at equipment
manufacturer’ s sc h o o l.

30 days on -th e-job training
required to qu alify.

D ------------------

1 V2-month programming course at equipment manu­
facturer’ s s c h o o l or 3-month course at o ffic e by
manufacturer’ s representative. A lso , 3 months onthe*«job training at sp e c ific job e x clu sive o f other
company training.

2 months on -th e-job training.

1 month on -th e-job training.

E ------------------

4-Week programming course at equipment manu­
facturer’ s sc h o o l. 6-12 months on-the-job training.

4 to 6 months on -th e-job
training. A ls o , 2 afternoon
s e s s io n s on nature o f
equipment.

Same as for co n s o le operators|.

F ------------------

5-w eek programming course at equipment manu­
facturer’ s s ch o o l. 2-3 years’ on-the-job training.

5-week programming cou rse
at equipment manufacturer’ s
sc h o o l, 1 year on-th e-job
training.

1 year on -th e-job training.

G ------------------

4-w eek programming course at equipment manu­
facturer’ s s c h o o l, plus company training cou rse
o f 5 w eeks for 4 hours a day, or 10 weeks for
2 hours a day, after regular workday, by manu­
facturer’ s representative.

Same as for planning and
programming jo b s .

Same as for planning and
programming jo b s .




Table 8.

Company

Training programs for electronic data processing positions— Continued

Planning and programming jo b s

C on sole operators

A uxiliary equipment
operators

H ------------------

4-w eek programming course at either equipment manu­
facturer’ s sch o o l or at company o ffic e by manufac­
turer’ s representative. A lso , 3-6 months on-the-job
training.

Same as for planning and
programming jo b s.

1 month on -th e-job training

I

------------------

5-w eek programming course at equipment manufac­
turer’ s s c h o o l and subsequent on-the-job training.

Same as for planning and
programming jo b s.

B rief lecture s e s s io n at
equipment manufacturer’ s
serv ice bureau plus on-thejo b training.

j

------------------

4-w eek programming course at equipment manu­
facturer’ s sch o o l, plus 1 year of on -th e-job
training.

4-6 months’ on-the-job
training.

4-6 m onths’ on -th e-job
training.

4-5 w eeks o f programming instruction at equip­
ment manufacturer’ s or 1 month o f training at
company o ffic e by manufacturer’ s representa­
tiv e. A ls o , 6 months’ o f on-the-job training for
programmers and analysts.

4-5 w eeks o f instruction at
equipment manufacturer’ s
s c h o o l and on-the-job
training.

O n-the-job training.

L ------------------

4-w eek programming course at equipment manufac­
turer’ s s c h o o l or at company o ffic e by manufac­
turer’ s representative or by experienced company
programmer; a ls o , on-the-job training.

Same a s for planning and
programming jo b s.

O n-the-job training.

M ------------------

5-week programming course at equipment manufac­
turer’ s s c h o o l; a lso , on-the-job training.

2 w eeks o f cla ssroom in­
struction by ch ie f co n so le
operator. O n-the-job train­
ing for from 4 to 8 w eek s.

O n-the-job training for 34 w eeks.

N ------------------

4-w eek, or more, programming course at equipment
manufacturer’ s s ch o o l or at the company o ffic e with
instruction by experienced company personnel; a ls o ,
5 months’ on-the-job training.

6-w eek cou rse at equipment
manufacturer’ s s c h o o l and
4 w eeks o f programming in­
struction by company per­
son n el; a ls o , 10 months^of
on -th e-job training.

6 months’ on -th e-job training.

K ----------------------




Table 8.

Company

Training programs for electron ic data p ro ce ssin g p o sitio n s— Continued

Planning and programming jobs

C on sole operators

Auxiliary equipment
operators

o

------------------

5-week (full-tim e) programming course at equipment
m anufacturers s c h o o l or 8 weeks (half time) at com ­
pany 's o ffic e by manufacturer's representative or e x ­
perienced company programmer; a lso, 6 months' onth e-job training.

8-w eek (half time) cou rse at
(Equipment operated by con ­
company o ffic e by manufac­
s o le operators.)
turer's representative or e x ­
perienced company program­
mer. (Operators are qu alified
programmers.)

p

------------------------

4-w eek programming course at equipment manufac­
turer's s c h o o l and 5 weeks o f formal training at
company; a ls o , 3 months' on-the-job training.

Same as for planning and
programming jo b s .

3 months' on -th e-job training.

Q

------------------------

12-week programming course at company o ffic e by
manufacture]?'s representative; a lso, 1 year on-thejo b training.

8-w eek course at company
o ffic e by manufacturer's
representative. A lso , 6
months' on-the-job training.

6 w eek s' on -th e-job training.

R ------------------

4-w eek programming course at equipment manufac­
turer's s c h o o l.

Same as for planning and
programming jo b s.

Same as for planning and pro­
gramming jo b s.

S ------------------

4-week programming course at equipment manufac­
turer's s c h o o l; a ls o , on-the-job training.

Same as for planning and
programming jo b s .

O n-the-job training.

T -------------------

4-w eek programming course at equipment manufac­
turer's s c h o o l; a ls o , onrthe-job training.

Same as for planning and
programming jo b s.

Same as for planning and pro­
gramming jo b s.




51

Some Problems of Organizing Electronic Data Processing
A number of complex problems relating to the claims and fears of employ­
ees arose in organizing and staffing new positions, just as they did in re­
assigning employees.
The creation of new electronic data-processing units with relatively
high-salaried positions, for example, tended in some offices to be resisted by
officials and employees in other activities who felt their standing in the
office threatened by the change. At one insurance company, supervisory
officials who felt their status had been downgraded were reluctant to cooperate
with the new unit in furnishing information about their procedures.
Uncertainty about the salary level of the new positions created problems
in some offices. One company, for example, discovered that it had overrated
some positions in setting temporary salaries at the outset of the program.
Later, it was not possible to meet the salary expectations of the employees
who were permanently assigned to these positions.
The use of tests to select employees were said to make some qualified
employees reluctant to compete for the new positions. Since many persons
qualified for the new work were middle aged and had had no recent schooling,
one company made a special effort to assure all candidates that unfavorable
results on tests would not be disclosed to their supervisors and, therefore,
would not jeopardize their present position.
Differences between management and union representatives arose in some
offices concerning the union’s jurisdiction over electronic data-processing
positions. In one case, some friction arose because tasks performed by union
employees at one office were transferred to an electronic data-processing unit
at another office of the same company which was not unionized. At another
company, programmers were first considered part of management and, therefore,
exempt from the provisions of the union agreement. Later, after prolonged
negotiations, it was agreed that such positions were covered by the contract
and that openings must be filled according to the provisions concerning pro­
motions and seniority. The differences were finally resolved when the employ­
ees selected through these procedures proved to be well qualified to do the
work.




52

CHAPTER X.

Characteristics of Employees in Electronic Data Processing

Assessment of the effects of the introduction of electronic data proc­
essing should take account of the characteristics of employees selected for
new positions, as well as of those whose jobs were eliminated. In this
chapter, data from office records are presented on age, sex, education, pre­
vious occupation, and grade changes of those accepted for this new field of
work. Although information on all employees who applied and were tested for
the new positions, including those who were rejected, would be useful in under­
standing more fully the standards of selection, such data were not available.
Sex and Age of Employees
The distribution of employees in electronic data processing by sex and
age is presented in Table 9. The characteristics of those who were in the
affected units are also shown for comparative purposes.
These data highlight the dominant position of men in this new field of
work. Men outnumbered women 8 to 1 in electronic data-processing positions.
Among newly hired employees, the ratio in favor of men was even greater. But
among employees in the units affected, women outnumbered men by 8 to 7.
Relatively few persons
and over were employed in electronic data
processing. The median age of both groups was about 32 years, but only 10
percent of the employees in electronic data processing were age
and over,
compared with 23 percent of those in the affected unit. Newly hired persons
for electronic data processing, were younger, with a median age of 26, and no
persons age U5 or over were hired for these new positions.
U S

h S

These differences reflect partly the preference explicitly reported by
management officials. A high rate of turnover among women employees and the
need for operators to work late shifts were cited as obstacles to the employ­
ment of women. Moreover, a majority of officials voiced a preference for
employees in the 2 > to U5 age group.
£
Besides the preferences expressed by personnel officials, the attitude of
employees to these new jobs must be considered. A few offices, for example,
reported that some qualified employees over age
were reluctant to apply for
training for the new positions.
b S

Educational Attainment
There was a striking contrast between the average educational levels
attained by employees in the affected units and those in electronic data
processing (table 10), All but 5 percent of the employees in electronic posi­
tions were at least high school graduates, whereas 17 percent of those in the
affected units had not completed high school. Among those newly hired, more
than 99 percent had completed high school.




Table 9.

Employees in affected units and in electronic data-processing positions, ty age aid sex

Age and sex

Employees in affected units
Number

Employees in electronic data-processing positions
All employees
New hires
(including new hires)

Percent

All employees ....
Under 25 ......
25-31+ .........
35-1+1+.........
1+5-51+ .........
55-61+ .........
65 and over ....

2,815
781+
860
527
1+66
170
8

100.0
27.9
30.5
18.7
16.6
6.0
.3

M a l e ............
Under 25 ......
25-31+..... .
35-1*1+.........
1+5-51+ .........
55-61+ .........
65 and over ....

1,316
207
113
++
253
285
122
6

Female..........
Under 25 ......
25-31+.........
35-U1+.........
1+5-51+.........
55-6U #... #....„
65 and over ....

1.1+99
580
11+
+1
271+
181
18
+
2




1/

Number

y

915

Percent

Number

177
1+12
237
80
9
~

100.0
19.1+
1+5.0
25.9
8.7
1.0
—

1/ 173
"
7+
1
95
1
+

100.0
15.7
33.6
19.2
21.7
9.3
0.5

812
li+5
371+
212
73
8
—

100.0
17.9
1+6.0
26.1
9.0
1.P
—

156
62
90
1
+
--

100.0
38.7
27.6
18.3
12.1
3.2
0.1

103
32
38
25
7
1

100.0
31.1
36.8
21+.3
6.8
1.0

17
12
5

Excludes 1 person whose age was unknown.

Percent
100.0
1+2.8
51+.9
2.3

mm mm

mm mm

—
—

-—
100.0
39.7
57.7
2.6
mm mm

—

—

—
__
—

——

—
100.0
70.6
29.
k

Table 10.

Educational level of employees in affected units and in electronic data processing
Employees in electronic dataprocessing positions

Employees in affected units
Educational level

All employees
Number

Employees age
U5 and over

All employees
(including
new hires)

New hires

Percent

Number

Percent

Number

Percent

2,799

100.0

2/ 638

100.0

3/ 915

100.0

8

0.3

6

0.9

Grade school, graduate ....

95

3.U

79

12. U

6

0.6

High school, nongraduate ...

37U

209

32.8

ao

a. a

1

(V)

37.2

26

15.0

All levels ................
Grade school, nongraduate ..

I f

13.

h

—

Number
y

173

Percent
100.0
—

9mmm

—

—

1,600

57.2

191

29.9

Business school, graduate ..

255

9.1

6U

10.0

U2

a. 6

3

1.7

College, nongraduate ......

273

9.7

62

9.7

100

10.9

9

5.2

College, graduate.... .....

162

5.8

19

3.0

316

3a. 5

112

6a. 8

College, postgraduate .....

32

1.1

8

1.3

71

7.8

22

12.7

High school, graduate .....




1/
2/
k /

3 h 0

Excludes 16 employees for whom educational data were not available.
Excludes 6 employees for whom educational data were not available.
Excludes 1 person for whom educational data were not available.
Number is too small to calculate percent.

55

About 7 percent of those in the affected group had completed undergrad­
uate college programs or work beyond graduation; I 2 percent of the employees
j
in electronic data processing had graduated from college or had some post
graduate work. Among those newly hired, nearly 78 percent had achieved this
level.
Previous Work Experience
Table 11 shows the type of work done by those assigned to the electronic
data processing unit, prior to and after the installation of the computer.
Most of -the programmers and analysts came from closely related types of jobs.
About half of them were formerly in accounting and related professional worie.
Only a relatively small proportion had previously been engaged in routine
clerical work. A little over one-fifth of those in programming and planning
work were newly hired, primarily as trainees. A little over one-tenth were
formerly in administrative and supervisory work.
Of the console and auxiliary equipment operators, the largest proportion
had been transferred from occupations related to machine tabulation work.
Of those in the administrative and supervisory positions, about 75 per­
cent were formerly in similar positions or in accounting work. Only 7 percent
were newly hired.
Extent of Upgrading
The transfer of employees to electronic data-processing units from other
parts of the office generally involved upgrading. Table 12 shows that U out
of 5 were in higher grade positions after their transfer to electronic data
processing. Some of these employees might have been promoted in the normal
course of events.
Employees age
and over in electronic data processing were upgraded
less often than younger employees, that is, only three out of four employees
age
and over were placed in higher grade positions. This probably reflects
the fact that some older persons had already attained high grades.




h S

56

T able 1 1 .

O ccu p a tion al c la s s i f i c a t i o n o f em ployees in e le c tr o n ic d a ta p ro c e ssin g p o s it io n s , by p r io r o cc u p a tio n a l c l a s s i f i c a t i o n s

O ccu p a tion al c l a s s i f i c a t i o n
p r io r to employment in
e le c tr o n ic d a ta p ro c e ssin g

P ercentage d is t r ib u t io n o f em ployees in e le c ­
tr o n ic d a ta -p r o c e s s in g p o s itio n s a f t e r com­
p u ter in s t a lla t i o n stu d y

T o ta ls

Adm inis­
t r a t iv e
and su per­
v is o r y

P lanning
and
program­
ming

C onsole A u x ilia r y
opera­
equ ip­
ment
tio n
o p era tio n

Number.................
P e rc e n t...............

69
7 .5

637

77

100.0

69.6

8 .U

132
ih .h

A l l g r o u p s .......................

100.0

100.0

100.0

100.0

100.0

A ccounting and p r o fe s s io n a l

35.U

blw 9

U 3.5

1 6 .9

2 .3

A d m in istra tiv e and super­
v is o r y ..............................................

1 3 .3

h 0 .6

1 1 .9

lit .3

5 .3

T a b u la tin g and keyboard
machine o p e r a tio n ....................

1 3 .1

2 .9

U .b

3 1.2

50.0

P o s tin g , ch eck in g , main­
ta in in g r e c o r d s , and f i l i n g

1 0 .7

2 .9

9 .3

1 6 .7

1 8 .2

A l l ( g rou p s:

915

Computing and s t a t i s t i c a l . .

5.U

—

6.0

2.6

6.8

Correspondence and s e c r e ­
t a r i a l work..................................

2.0

— —

1 .7

5 .2

2 .3

N o n c le r ic a l.....................................

1 .2

l .l i

1 .1

1 .3

1 .5

New h i r e s ..........................................

18 .9

7 .2

2 2 .1

1 1 .7

1 3 .6

NOTE:
t o t a ls .




Because o f rou n din g, sums o f in d iv id u a l item s may n ot eq u a l

57

T able 1 2 .

Grade s ta tu s o f em ployees in e le c tr o n ic d a ta -p r o c e s s in g p o s itio n s
a f t e r tr a n s fe r from o th e r o f f i c e u n it s , by age 1 /

A ll em ployees
Grade s ta tu s
Number

P ercent

Employees under
age 16
Number

Employees age
U5 and over

P ercent

Number

Percent

2/ 7U1

100.0

652

100.0

89

100.0

Same grad e................. ..

127

1 7 .1

105

1 6 .1

22

2U .7

H igher grad e.........................

612

82.6

5U5

83.6

67

7 5 .3

Lower grade...........................

2

.3

2

.3

T o t a l.........................................

mmmm

1 / Grade s ta tu s a f t e r t r a n s fe r , compared w ith grade s ta tu s b e fo re
b ein g tr a n s fe r r e d to e le c tr o n ic d a ta -p ro c e ssin g p o s it io n s .
2 / E xcludes 17U new ly h ire d p e rso n s.




mmmt

58

CHAPTER X I.

Im p lic a tio n s f o r O ld er O ffic e Employees

O ld er em ployees whose jo b s were a ffe c t e d by th e in tr o d u c tio n o f e le c ­
tr o n ic d a ta p r o c e ssin g were p r o te c te d , on th e w hole, from la y o f f o r down­
grading b y th e e x is t in g p o lic y o f a ssu rin g jo b s e c u r ity o f a l l em ployees.
They b e n e fite d from some aw areness o f th e s p e c ia l problem s fa c in g o ld e r
em ployees, as in d ic a te d by th e p r o v is io n s f o r jo b s e c u r ity in th e e v e n t o f
p h y s ic a l d i s a b i l i t y ; re tirem e n t b e n e fit s supplem enting s o c i a l s e c u r it y ; and
form al re tire m e n t co u n se lin g program s. 1 3 /
No o ld e r p erson , on th e o th e r hand, was h ir e d to f i l l an e le c tr o n ic d a ta p r o c e ssin g p o s it io n .
To some e x te n t, t h is f a ilu r e fo llo w e d from th e g e n e ra l
p r a c tic e o f h ir in g p erson s from th e o u ts id e o n ly f o r the r e la t i v e l y low p a id
e n try o r tr a in in g p o s it io n s , which a t t r a c t few o ld e r a p p lic a n ts .
W ith in t h is
framework, a few o f f i c e s had h ig h ly r e s t r i c t i v e age li m i t s .
A few in su ra n ce
o f f i c e s , however, had a c tiv e programs o f r e c r u itin g o ld e r women fo r p a r t-tim e
o r se a so n a l work.
A t one o f f i c e , th e c o lle c t iv e b a rg a in in g agreem ent s t ip u ­
la t e d :
"T he company a g rees th a t th e r e s h a ll be no e s ta b lis h e d maximum age
l i m i t on th e h ir in g o f e m p lo y ee s."
An im portant a sp e c t o f th e im pact o f th e in tr o d u c tio n o f o f f i c e au to ­
m ation co n sid ered in th is ch a p ter i s th e e f f e c t o f a g in g on the a b i l i t y to
meet th e requirem ents o f th e new p o s it io n s .
The approach taken in t h i s stu d y
was f i r s t to id e n t ify what was demanded o f em ployees in th e se p o s it io n s a t the
o f f i c e s v i s i t e d and second to in v e s tig a te th e c a p a c ity o f o ld e r p erso n s to
m eet th e se demands on th e b a s is o f th e fin d in g s o f resea rch w orkers a s w e ll as
th e ex p erien ce o f management.
Employee T r a it s R equired
In o rd e r to determ ine th e demands o f e le c tr o n ic d a ta p r o c e ssin g jo b s ,
p erso n n el o f f i c i a l s were asked to s e le c t from a c h e c k lis t o f a p titu d e s ,
tem peram ents, and knowledge f a c t o r s , th o se th a t were co n sid e re d in s e le c t in g
em ployees.
The l i s t and d e fin it io n s used were based on a resea rch stu d y by

1 1 / A lthough th e d i s a b i l i t y p r o v is io n s were a p p lic a b le to em ployees o f
a l l a g e s, th e y were m ost r e le v a n t to o ld e r p e rso n s.
They in clu d e d m ed ica l
exam ination to determ ine th e e x te n t o f d i s a b i l i t y , reassign m en t to more
s u ita b le jo b s , and m o d ific a tio n o f th e work sch ed u le o f lo n g -s e r v ic e em ployees.
Two union c o n tra c ts made s p e c ia l p r o v is io n to p r o te c t s e n io r it y r ig h ts and
m aintain pay r a te s o f d is a b le d em ployees whose jo b s were changed.
(S ee
appendix B .)




59

the U. S. Employment S e r v ic e . 1 2 /
Respondents were asked t o d iffe r e n t ia t e
between th e t r a i t s which th ey sim p ly lo o k f o r and th o se which th e y p a r t ic u la r ­
l y s t r e s s , in s e le c t in g em ployees fo r th re e d iffe r e n t p o s it io n s .
In a d d itio n ,
they were asked t o d e sc r ib e th e k in d o f exp erien ce d e s ir e d .
T able 13 summa­
r iz e s r e p lie s from 16 o f f i c e s reg a rd in g th e a p titu d e s , temperament, and edu­
c a t io n a l le v e l d e s ir e d .
A p titu d e s.
A p titu d e s r e fe r to th e s p e c if ic p o t e n t i a li t y f o r a cq u irin g
a b i l i t y to perform a jo b a d eq u a tely .
In t h i s c a te g o r y , th e im portance o f
m ental fa c to r s r a th e r than p h y s ic a l c a p a c it ie s , in a l l ty p e s o f p o s it io n s , i s
c le a r .
A b ilit y to understand in s tr u c tio n s and u n d erly in g p r in c ip le s , i . e . ,
le a r n in g a b i l i t y , was l i s t e d as d e s ir a b le by a la r g e m a jo r ity o f o f f i c i a l s and
was s t r e s s e d more fr e q u e n tly than any o th e r , f o r both p lan n in g and o p e ra tin g
p o s it io n s .
For p la n n in g p o s it io n s , many o f f i c i a l s a ls o co n sid ered im portant
an a p titu d e fo r w r itin g re p o r ts and in s t r u c t io n s .
Although a p titu d e s c o n sid ­
ered im portan t f o r c l e r i c a l work— i . e . , th e a b i l i t y to perform a rith m e tic
o p e ra tio n s q u ic k ly and a c c u r a te ly and to p e r c e iv e s ig n if ic a n t d e t a ils and
ta b u la tio n s — were l i s t e d as d e s ir a b le , th ey were n o t s tr e s s e d .
Good motor
c o o rd in a tio n and manual d e x t e r it y were sou gh t o n ly in equipment o p era to rs b u t
even in th e se p o s it io n s such a p titu d e s were n o t co n sid ered c r i t i c a l .
Temperament.
In d e s c r ib in g th e temperament re q u ire d f o r p lan n in g and
programming p o s it io n s , respon den ts in d ic a te d a p re fe ren c e f o r em ployees who
are r e a d ily ad ap tab le to work in v o lv in g change and d e a lin g w ith d a ta r a th e r
than w ith th in g s o r p e o p le .
P a r tic u la r s t r e s s was p la c e d on a d a p ta b ility to
work r e q u ir in g r e s p o n s ib ilit y fo r ca rry in g a jo b to com p letion and f o r m eeting
d e a d lin e s.
Employees who op erate e le c tr o n ic com puters were re q u ire d to be
a b le to adapt r e a d ily to w orking under p re ssu re s o f d e a d lin e s and unusual
w orkloads and to m eeting p r e c is e , p r e s e t sta n d a rd s.
E ducation.
M ost o f f i c e s in d ic a te d th a t a knowledge o f accou n tin g was
s u f f i c i e n t fo r e le c t r o n ic p r o c e ssin g fo r b u sin e ss p u rp oses.
A knowledge o f
c a lc u lu s and h ig h e r m athem atics, u s u a lly acq u ired o n ly in c o lle g e c o u rse s,
was n o t g e n e r a lly sou gh t.
V ery few o f f i c e s in d ic a te d th a t m athem atical
knowledge was c r i t i c a l .

12 / See E stim a tes o f W orker T r a it Requirem ents f o r UOOO Jobs (a s de­
fin e d in th e D ic tio n a ry o f O ccu p a tion al T i t l e s ) .
U .S . Department o f Labor,
Bureau o f Employment S e c u r ity , 1 9 5 6 .
A ls o ,
a r t i c l e by Sid n ey A. Fine and
C arl A. H einz, The F u n ctio n a l O ccu p a tion al C la s s ific a t io n S tru c tu re ( i n
P erson n el and Guidance J ou rn al, November 1 9 5 8, pp. 8 0 -9 2 ) .




Table 13.

Employee traits desired for positions in electronic data processing 1 /

Employee tra it

Planning and
programming
positions
Listing Stressing
trait
trait

Console operators

Auxiliary
equipment
operators

Number o f companies—
Listing Stressing Listing Stressing
tra it
trait
tra it
tra it

Aptitudes
Person should have a special ability for—
Writing reports and instructions clearly and effectively . . .
Performing arithmetic operations quickly and accurately . . . .
Perceiving significant details in tabulations, etc. .............
Understanding instructions and underlying p rin ciples..........
Coordinating eye and hand or fingers rapidly and accurately.
Manipulating small objects rapidly and accurately................

1$
11
12
16
0
0

6
2
2

6

9

9

13

k

0
0
1

2
1
5

7
3

0
0
1
6
2
2

0
0

12
9

1

12
11
11

1U

6

11

1

10

0

1$

7

U

3

0

0

5

1

13

5

6
8

2
1
2

12

13

lh

k

Temperament
Person should be readily adaptable to work involving—
Variety o f duties and frequent change......................... .........
Responsibility for planning and controlling an entire
a ctiv ity ....................................................................................
Repetitive or short-cycle operations carried out according
to set procedures.................................................................
Judgments based on quantitative data.......... ..........................
Decisions based on qualitative d a ta ......................................
Deadlines, unusual workloads, and calls outside hours.........
Precise, preset standards .........................................................

13

1

15

3

3
3
13
13

U
5

0
0
3
1

1
1
8
8

0
0
0
0

1
1
1
6

12
12

6

5

3

0
0
2
3

0
0
0
0

Educational level
Person should have knowledge of—
Theoretical mathematics.............................................. .............
Calculus.................................................................................... .
Accounting ...................................................................................
Decimal, fractions, percentages..............................................

11
11

1 / These data were obtained from 16 of the 20 companies visited.




6i

E xp erien ce.
Knowledge o f company proced u res th a t comes from e x p erien ce
in th e o f f i c e was s p e c ifie d by a m a jo r ity o f o f f i c e s a s d e s ir a b le fo r th e new
p o s it io n s .
E xperience in accou n tin g work was co n sid e re d im p ortan t f o r p ro ­
grammers and m a ch in e -ta b u la tin g ex p erien ce was p r e fe r r e d f o r o p e ra to rs.
In s h o r t, on th e b a s is o f in fo rm a tio n about th e p a r t ic u la r t r a i t s
needed in e le c tr o n ic d a ta p r o c e s s in g , i t appears th a t e le c t r o n ic -d a t a p r o c e s s ­
in g jo b s r e q u ir e in d iv id u a ls who are r e a d ily ad ap tab le t o change, who have
a b i l i t y to le a r n q u ic k ly , and who have a t l e a s t a h ig h s c h o o l e d u ca tio n , some
company e x p erien ce, and a sen se o f r e s p o n s ib ilit y about t h e ir jo b s .
To a s s e s s
th e c a p a c ity o f o ld e r em ployees f o r th e new jo b s , th e r e fo r e , th e se jo b demands
must be co n sid ered in r e la t io n to th e p ro c e ss o f a g in g .
O pinions o f Personnel O f f i c i a l s
P erson n el o f f i c i a l s a t th e o f f i c e s v i s i t e d ex p ressed o p in io n s both
fa v o r a b le and u n fa v o ra b le to th e s e le c t io n and r e tr a in in g o f o ld e r em ployees
fo r new jo b s .
A w id e ly h e ld o p in io n was th a t o ld e r em ployees ten ded to be l e s s adapt­
a b le to change than younger em ployees.
Some ph rases u sed in d e s c r ib in g t h is
t r a i t were "la c k o f f l e x i b i l i t y , " " i n a b i l i t y to adapt to new c o n c e p ts ,"
"s lo w e r t o le a r n ."
O f f i c i a l s who h e ld t h is o p in io n were d is in c lin e d to em ploy
o ld e r person s in t h is new f i e l d o f work.
O lder em ployees a ls o were a t some disadvan tage because o f t h e ir lo w er
l e v e l o f e d u ca tio n .
Some d iffe r e n c e s among age groups in e v it a b ly r e s u lt from
lo n g -te rm s o c i a l changes.
O p p o rtu n itie s f o r h ig h e r ed u ca tio n have been more
abundant sin c e th e end o f W orld War I I than th ey w ere e a r lie r .
An im portan t fa c t o r fa v o r a b le to o ld e r w orkers was t h e ir a ttitu d e s
toward work.
Many p e rso n n e l a d m in istra to rs a t th e o f f i c e s surveyed b e lie v e d ,
on the b a s is o f t h e ir ex p e rie n ce , th a t m ature and o ld e r in d iv id u a ls , on the
w hole, have a g r e a te r sen se o f r e s p o n s ib ilit y toward t h e ir jo b s than do
younger w orkers.
Comments em phasized th e fa v o r a b le a t t r ib u t e s o f o ld e r w orkers
rep o rted in o th e r s tu d ie s . 13 (
Thus, th e fa c t o r s c it e d as fa v o r a b le to the
r e tr a in in g o f o ld e r p erson s were " t h e i r r e l i a b i l i t y ," "c a r e fo r d e t a i l s ,"
"m ature ju d gm en t."
T h e ir low r a t e o f ab sen teeism was a ls o n o ted .
W hile some
a tte n tio n was always given to th e se t r a i t s , e it h e r e x p l i c i t l y or im p li c i t ly ,
in a s s e s s in g jo b a p p lic a n ts , some o f f i c i a l s gave s ig n if ic a n t w eigh t to th e se
q u a lit ie s in s e le c tin g and r e tr a in in g em ployees f o r th e new p o s it io n s .

1 3 / See C ounseling and Placem ent S e r v ic e s fo r O lder W orkers, Bureau o f
Employment S e c u r ity , U .S . Department o f Labor (Septem ber 1 9 5 6 ), p. 8.




62
B r ie f ca se h is t o r ie s i l l u s t r a t e how some o f f i c e s which gave w eigh t to
ex p erien ce and m a tu rity , s u c c e s s fu lly tr a in e d men and women, 1*2 and o v e r, and
a ssig n e d them to v a rio u s p o s it io n s in t h is new f i e l d .
A correspon den t in a la r g e in su ran ce company, age 1*7, w ith 28 y e a rs
o f s e r v ic e and a high s c h o o l e d u ca tio n , was tr a n s fe r r e d to work as a
programmer in e le c tr o n ic da ta p r o c e s s in g .
H is w eekly s a la r y was in ­
crea sed from $129 to $ 16 2 .
An accou n tan t in a p u b lic u t i l i t y , age 2 l , w ith 3 y e a rs o f h igh
s c h o o l and 3 1 y e a rs o f s e r v ic e was prom oted from h is p o s itio n pegring
$200 a month to th a t o f methods a n a ly s t a t $690 a month.
A 1*8-y e a r -o ld woman in an in su ran ce company, who had 23 y e a r s '
s e r v ic e and a high s c h o o l e d u ca tio n , was prom oted from h er p o s it io n a s
s e c tio n head o f c l e r i c a l group, payin g $ 1*, 680 a y e a r, to programmer a t
$ 2 , 821* a y e a r.
A c o s t correspon d en t in an in su ran ce company, age 1*6, w ith 21*
y e a r s ' s e r v ic e and 2 y ea rs o f c o lle g e , was prom oted from h is $ 1 1 2 a week
jo b to a s s is t a n t co n so le o p e ra to r a t $ 11 *1* a week.
A 1*9-y e a r -o ld s u p e r v iso r in th e V a lu a tio n D iv is io n o f an in su ran ce
company, w ith 29 y e a rs s e r v ic e and 3 y e a rs o f h ig h s c h o o l, was made a
su p e r v iso r o f computer o p e r a tio n s, w ith a r a is e from $ 7,200 to $ 8,600 a
y e a r.
A cla im s exam iner in an in su ran ce company, age 1*2, w ith 26 y e a rs
o f s e r v ic e and a h igh s c h o o l ed u ca tio n , was prom oted from h is p o s it io n
a t $ 2 , 821* a y e a r to e le c t r o n ic co n so le o p era to r a t $ 7,10 0 a y e a r .
A 1*6 y e a r o ld woman, w ith 2 y e a rs o f b u sin e ss s c h o o l and 30 y e a r s
in an in su ran ce company, was prom oted from procedure a n a ly s t a t $128 a
week to s e n io r programmer a t $180 a week.
F in d in gs o f R esearch W orkers
In a d d itio n to th e o p in io n s o f p erso n n el o f f i c i a l s a t th e com panies
v i s i t e d , th e co n c lu sio n s o f resea rch workers should be co n sid ered .
S c ie n tific
in v e s tig a to r s o f th e r e la tio n s h ip between agin g and le a r n in g a b i l i t y em phasize
th e need f o r making in d iv id u a l a p p r a is a l o f em ployees r a th e r than a p p ly in g fix e d
n o tio n s about th e m ental c a p a c ity o f d iffe r e n t age groups.
Some resea rch s tu d ie s , fo r exam ple, have shown th a t, on t e s t s o f a b i l i t y
to s o lv e problem s and le a r n new m a te r ia l, th e re i s a w ide v a r ia tio n among
in d iv id u a ls in each age group.
Average t e s t sc o r e s are somewhat low er as a
r u le f o r o ld e r person s b u t some o ld e r p erson s do b e t t e r than some younger




63

p erso n s (a s in s tu d ie s o f age and a c tu a l work p e rfo rm a n ce). Furtherm ore, th e r e
i s some evid en ce th a t age d iffe r e n c e s in sc o re s may be le s s s ig n if ic a n t on
t e s t s o f m ental a b i l i t i e s than on t e s t s o f o th e r a p titu d e s , such a s manual
d e x t e r it y o r p e r c e p tio n . 1 b /
In c o n tr a s t w ith th e c r o s s -s e le c t e d approach, th e few resea rch s tu d ie s
on changes in th e a b i l i t i e s o f p a r t ic u la r in d iv id u a ls a s th e y grow o ld e r
su g g e st th a t m ental a b i l i t i e s may n o t d e c lin e w ith a g e .
Some lo n g itu d in a l
s tu d ie s in d ic a te th e p o s s i b i l i t y o f improvement in m ental a b i l i t y w ith a g e . 1 5 /
These fin d in g s s tr o n g ly support th e need f o r in d iv id u a l a p p r a is a l o f em p loyees.
S e v e ra l in v e s tig a to r s a ls o conclude th a t th e re a re ways o f com pensating
f o r some o f th e shortcom ings o f o ld e r p erso n s in le a r n in g new s k i l l s . W elfo rd
fou n d , f o r exam ple, th a t in s o lv in g problem s demanding in s ig v t in to a mass o f
d a ta , o ld e r person s were a b le t o improve t h e ir perform ance b y u sin g n o te s fo r
ta s k s th a t would oth erw ise have to be c a r r ie d out m e n ta lly .
S im ila r ly , a tte n ­
tio n to th e manner o f p r e se n tin g new m a te r ia l and to the circu m stan ces and
pace o f tr a in in g makes i t p o s s ib le n o t o n ly to sh orten the tr a in in g tim e fo r
m iddle aged and o ld e r p erson s b u t a ls o h e lp s t o reduce the a n x ie ty th a t o fte n
r e s u lt s in d isco u ra g in g o ld e r person s d u rin g in s t r u c t io n . 1 6 /

111/ P relim in a ry unpublished r e s u lt s from a stu d y o f the r e la t io n o f age
t o perform ance on the G eneral A p titu d e T e st B a tte r y , conducted under the super­
v is io n o f th e Bureau o f Employment S e c u r ity , in d ic a te o n ly s lig h t d iffe r e n c e s
among o ld e r and younger age groups in average sc o r e s on t e s t s o f v e r b a l and
n u m erical a p titu d e s and g en eral le a r n in g a b i l i t y .
For a BLS stu d y o f age
d iffe r e n c e s in a c tu a l o f f i c e work perform ance (n o t le a r n in g a b i l i t y ) see sum­
mary a r t i c l e by Ronald K utscher and James F . W a lk er, Comparative Job Perform ­
ance o f O ffic e W orkers b y Age (in M onthly Labor R eview , January I 9 6 0 , p p . 3 9 b 3 ).
A ls o , Jerome Mark, Comparative Job Perform ance b y Age (in M onthly Labor
R eview , December 1 9 5 7 , p p . I b 6 7 -lb 7 1 ) .
1 5 / See W. A . Owens, Age and M ental A b i l i t i e s , a L o n g itu d in a l Study (in
G en etic P sychology
M onographs, 1 9 5 3 , PP* 3 - 5 b ) .
P ro fe sso r Owens r e te s te d
in d iv id u a ls w ith the same t e s t a f t e r about 30 y e a rs and found an in c re a se in
the performance o f th e group. The im portance o f such s tu d ie s i s d isc u sse d by
Nancy B ayley and W. A . Owens in P sy c h o lo g ic a l A sp ects o f A g in g , e d ite d by
John E . Anderson (W ash in gton , D . C ., 1 9 5 6 ), American P sy c h o lo g ic a l A s s o c ia t io n ,
p p . 1 5 1 -1 5 7 .
1 6 / See A . T . W e lfo r d , Ageing and Human S k i l l , London, O xford U n iv e r s ity
P r e s s ,"T 9 5 8 , pp . 2 2 3 , 2 5 6 , and 2 7 7 . A ls o , James E . B irre n , Age Changes in
S k i l l and L earn in g, in E arning O p p o rtu n itie s fo r O ld er W oricers, e d ite d by Wilma
Donahue, Ann A rb o r, U n iv e rs ity o f M ichigan P r e s s , 1 9 5 5 , p p . 7 0 -7 3 .




61*

F in a lly , some re sea rc h w orkers are ca u tio u s about th e in te r p r e ta tio n o f
a p titu d e t e s t r e s u lt s , p a r t ic u la r ly as th e y p e r ta in to o ld e r w orkers. 1 7 /
Such t e s t s are o fte n c o n sid e re d a way o f determ ining b a s ic a b i l i t i e s d e s p ite
d iffe r e n c e s among in d iv id u a ls in fo rm a l e d u c a tio n a l achievem ents.
S in ce t e s t s
fr e q u e n tly draw on book know ledge, i t i s b e lie v e d th a t some b ia s a g a in s t th e
o ld e r person who com pleted h is ed u ca tio n some y e a rs ago rem ain s.
The em phasis
on speed and a la c k o f r e c e n t ex p erien ce w ith t e s t s a ls o tend to p e n a liz e the
o ld e r p erson .
Summary E v a lu a tio n
The tendency t o d isco u n t th e m a tu rity , p a s t ex p e rie n ce , and o th e r a s s e s ts
o f o ld e r em ployees, as new te c h n o lo g ic a l developm ents are in tro d u ced , im p lie s
th a t new b a r r ie r s may be r a is e d t o t h e ir prom otion and employment.
From th e
eviden ce p re se n te d , however, i t i s c le a r th a t a fix e d age li m i t w ould exclu de
some q u a lifie d o ld e r in d iv id u a ls who co u ld be s u c c e s s fu lly r e tr a in e d f o r the
new p o s it io n s .
In view o f th e em phasis th a t o f f i c e s undergoing te c h n o lo g ic a l change
p la c e on th e need fo r em ployees who are ad ap tab le and f l e x i b l e , i t w i l l be
n e c e ssa ry to g iv e more stu d y to the le a r n in g c a p a c itie s o f m id d le -a g ed and
o ld e r p e rso n s.
Research now su g g e sts th a t a p p ro p ria te tr a in in g methods can
in c r e a s e th e a d a p ta b ility o f such in d iv id u a ls .
As o ld e r em ployees become more
numerous in th e la b o r fo r c e , em ployers w i ll need to fin d ways o f u t i l i z i n g t h e ir
s k i l l and a b i l i t y to th e f u l l e s t c a p a c ity .

1 7 / See C h arles O d e ll, A p titu d e s and Work Perform ance o f th e O ld er
W orkerT lin P s y c h o lo g ic a l A sp e cts o f Aging, op. c i t . , p. 21*0).




Appendix A .

Y ear

Unemployment r a t e s ,

195U-59

P ercen t unemployed
E xperienced
C le r ic a l and kin d red
w orkers
c i v i l i a n la b o r fo r c e

1959...................................................
1958...................................................

5 .5
6 .8

1957...................................................
1956...................................................
1955....................................................
195U...................................................

U.3
U.2
U.U
5 .6

3 .7
U.U
2 .8
1 / 2.U
2 .6
3 .1

1 / Data for 1954-56 are based on data for U months and on a slig h tly
different definition of unemployment.
S o u rce:




U . S . Bureau o f Labor S t a t i s t i c s .

66
Appendix B .

P ro v isio n s o f union c o n tr a c ts r e la t in g to reassignm ent o f
p h y s ic a lly im paired em ployees

Agreement A
In th e c a se o f a re g u la r employee who has given lo n g and f a i t h f u l
s e r v ic e and who i s unable to ca rry out h is r e g u la r work to ad van tage, the
company w i l l attem pt t o p la ce such an employee on work which he i s a b le
to p erfo rm . In such c a s e s , th e o th e r p r o v is io n s o f t h is a r t i c l e s h a ll not
ap p ly ( i . e . , on s e n i o r i t y ) , and th e employee s h a ll be accorded s e n io r it y
on h is new jo b equ al to th a t which he had on th e jo b c l a s s i f i c a t i o n he
l e f t i f he i s tr a n s fe r r e d t o an eq u a l or low er jo b c l a s s i f i c a t i o n .
Agreement B
An employee w ith tw e n ty -fiv e (2 5 ) o r more y e a rs o f s e r v ic e w ith th e
company, who cannot t h e r e a fte r perform h is r e g u la r d u tie s due to some phys­
i c a l c o n d itio n o r o th e r im pairm ent, and i s a ssig n e d to a work fu n ctio n which
he i s cap ab le o f p erfo rm in g , s h a l l , fo r th e d u ra tio n o f h is employment by
th e company, r e ta in th e same jo b t i t l e and con tin u e to r e c e iv e the same r a te
o f com pensation as t h e r e t o fo r e , re g a rd le ss o f th e range o f pay a tta c h in g to
th e jo b c l a s s i f i c a t i o n fo r such work fu n c tio n , but s h a ll not be e l i g i b l e fo r
wage in c r e a s e s beyond the maximum r a te f o r th a t work fu n c tio n which he i s
p erfo rm in g .




67
Appendix C .

E xcerpt from In te r n a tio n a l Labor O rg a n iza tio n Report

(The fo llo w in g paragraphs are tak en from th e c o n c lu sio n s o f th e Sub­
com m ittee on th e E ffe c t s o f M echanization and Autom ation in O f f i c e s , o f th e
In te r n a tio n a l Labor O r g a n iz a tio n 's A d v iso ry Committee on S a la r ie d Employees
and P r o fe s s io n a l W orkers, which h eld i t s F if t h S e ssio n in C o lo g n e, Germany,
November-December, 1959* The Subcommittee was composed o f 51 members, i . e . ,
17 from each o f th e th re e grou p s:
governm ent, em p lo y ers, and w ork ers. The
Subcommittee adopted th e c o n c lu sio n s u n an im ou sly .)
1.
The a p p lic a tio n o f m echanization and autom ation in o f f i c e s has t o be
reco g n ized a s an in e v ita b le developm ent in th e search fo r improved methods and
in cre a se d e f f i c i e n c y . A dvantages have a lre a d y r e s u lte d from th e new tech n iq u es
and th e se advantages should be o f b e n e fit t o th e whole community.
2.
The developm ent o f o f f i c e tech n o lo g y i s ta k in g p la c e under c o n d itio n s
and t o an e x te n t v a ry in g co n sid e ra b ly between c o u n tr ie s , in d u s tr ie s and under­
ta k in g s .
In some c o u n trie s m ech an ization i s ju s t b e g in n in g , in o th e rs i t i s
w e ll d ev elo p ed .
3.
O ffic e autom ation i s s t i l l in i t s in fa n c y , even in th o se c o u n tr ie s
and com panies which are fa r t h e s t advanced. The a c tu a l s ta te o f developm ent i s
such th a t i t i s d i f f i c u l t t o determ ine w ith c e r ta in ty and p r e c is io n what th e
consequences w i l l be on th e s o c ia l p la n e .
It-. T h e r e fo r e , th e In te r n a tio n a l Labor O rg a n iza tio n co u ld p la y a m ost
u s e fu l r o le in b rin g in g to g e th e r th e r e s u lt s o f e x p e rie n ce s a cq u ired by
c e r ta in c o u n trie s and d isse m in a tin g in fo rm a tio n about th e se r e s u lt s t o a l l
member c o u n tr ie s .
5.
For v a rio u s r e a s o n s , th e in tr o d u c tio n o f autom ation in o f f i c e s has
th u s fa r n o t brought about any s ig n ific a n t d is m is s a l o f p erso n n el nor r e s u lte d
in a d e c lin e in th e g e n e ra l le v e l o f employment o f o f f i c e w orkers.
6 . The in tr o d u c tio n o f o f f i c e autom ation has g e n e r a lly occurred during
p e rio d s o f a h igh le v e l o f econom ic a c t i v i t y .
I t s in tr o d u c tio n in an under­
ta k in g ta k e s p la c e over a lo n g p e rio d o f tim e , som etim es as much as 3 y e a rs
f o r th e f i r s t a p p lic a tio n , so th a t i t has been p o s s ib le t o g iv e c a r e fu l con­
s id e r a tio n t o th e p o t e n t ia l e f f e c t s on th e s t a f f .
In some c a s e s , autom ation
has made new in fo rm a tio n a v a ila b le and t h i s has le d t o in cre a se d jo b
o p p o rtu n itie s .
7*
N e v e r th e le s s , i t i s n o t p o s s ib le t o be c a t e g o r ic a l about th e fu tu r e
e f f e c t s o f m echanization and au to m atio n , and i t i s d e s ir a b le t o g iv e some
c o n sid e ra tio n t o problem s which may a r i s e .
8.
The l e v e l o f employment may be red u ced , a t le a s t f o r a tim e , in th e
s p e c if ic u n its in which autom ation i s in tro d u c e d . The d is m is s a l o f em ployees
in th e se u n its can be m in im ized, i f n ot c o m p le te ly a v o id e d , b y th e fo llo w in g




68

ty p e s o f a c t io n , some o f which have been fo llo w e d b y u n dertakin gs which have
in tro d u ced o f f i c e a u to m atio n :
(a )

p la n n in g con v ersion o p e ra tio n s w e ll in advance in o rd e r th a t changes can
be in tro d u ced in to th e o r g a n iz a tio n w ith a minimum amount o f c o n fu s io n ,
d is lo c a t io n o r d isp la cem en t o f th e w orking fo r c e ;

(b )

in tro d u c in g au tom atic procedu res a t a s u f f i c i e n t ly slow pace to perm it
th e o rg a n iz a tio n and th e w orkers t o a s s im ila te th e new r o u tin e s ;

(c )

employment in an oth er branch o f th e same u n dertak in g w h ile m ain ta in in g
a cq u ired r ig h t s ;

(d )

tr a n s fe r t o an oth er l o c a l i t y w ith in th e same undertaking w ith th e pay­
ment o f c o s t s o f moving and re h o u sin g , where such c o s t s are in c u rre d ;

(e )

suspending o r lim it in g th e recru itm en t o f new p erso n n el during th e tr a n ­
s i t i o n p e r io d ;

(f)

encouragem ent o f re tirem e n t o f o ld e r w o rk ers, i f adequate pen sion system s
e x is t;

(g )

advance n o tic e to em ployees o f the im pending changes and, i f th e o cca sio n
a r i s e s , a s s is ta n c e in fin d in g employment in o th e r u n d erta k in g s, in c lu d in g
th e n o t if ic a t io n o f p u b lic employment a g e n c ie s .

9.
Because o f problem s o f p o s s ib le redundancy in an u n d erta k in g , and
because autom ation i s s t i l l in a p io n ee rin g s t a g e , s p e c ia l a tte n tio n needs t o
be g iv en t o t r a in in g .
F a c i l i t i e s f o r v o c a tio n a l tr a in in g may need to be pro­
v id ed f o r p erso n n el in o rd er th a t th e y may a cq u ire th e knowledge and q u a li­
f ic a t io n s n e ce ssa ry f o r th e new fu n c tio n s .
For o ld e r em p loyees, p a r t ic u la r ly
e n g in e e rs and te c h n ic ia n s , i t may be d e s ir a b le t o o rg a n ize co u rses to keep
them up to d ate w ith th e la t e s t te c h n ic a l p r o g r e s s . T ra in in g may a ls o be
needed fo r th o se w orkers who are tr a n s fe r r e d t o o th e r Jobs which a lre a d y e x i s t
in th e u n d erta k in g . F a c i l i t i e s f o r t h is kin d o f tr a in in g m ight in c lu d e , where
a p p r o p r ia te , p r o v isio n fo r tim e o f f and fin a n c ia l a s s is t a n c e .
10.
M echanization and autom ation in o f f i c e s b rin g about changes in
o cc u p a tio n a l s tr u c tu r e and in th e kin d s o f s k i l l s needed f o r o f f i c e w ork. How­
e v e r , sin c e autom ation i s s t i l l in a p io n e e rin g sta g e th e changes a lre a d y in ­
trod u ced may undergo fu r th e r m o d ific a tio n .
In view o f t h i s p rob ab le e v o lu tio n i t i s d e s ir a b le th a t fo r e c a s tin g
s tu d ie s be developed both through government i n i t i a t i v e and p r iv a te e f f o r t s
in o rd e r to determ ine a s e x a c tly a s p o s s ib le , both on a sh o rt and lo n g -te rm
b a s i s , th e scope and pace o f th e se m o d ific a tio n s .

Vocational guidance of young men and women towards the various cate­
gories of o ffice employment should be carried out, taking account of th eir
personal aptitudes and the resu lts of the forecasting studies, in order to




69

a v o id te c h n o lo g ic a l unemployment and to render a s in fre q u e n t a s p o s s ib le th e
n e c e s s it y f o r reco u rse t o o cc u p a tio n a l rea d a p ta tio n du rin g t h e ir ca reer*
Teaching and v o c a tio n a l tr a in in g programmes should be r e v is e d and adapted
c o n tin u a lly so a s t o tak e in to account th e new knowledge and q u a lific a t io n s
which tiie autom ation and m ech an ization o f o f f i c e work w i l l req u ire o f an e v e r in c r e a s in g number o f em ployees* In a d d itio n , i t may be a d v isa b le to in c r e a se
th e number o f te c h n ic a l sc h o o ls and t o adapt th e cu rricu lu m s t o th e changing
requirem ents o f o f f i c e te c h n o lo g y . I t i s a ls o d e s ir a b le fo r in d iv id u a l work­
e r s t o keep th em selves a b re a st o f th e s e changing requirem ents*
11.
I t has been found a d v is a b le in o f f i c e s , where m echanization and
autom ation have been in tro d u ce d , to pay a tte n tio n to the w orking c o n d itio n s ,
such a s :
(a )
a p p ro p ria te m ed ical s u p e r v is io n ; (b ) adequate h y g ie n e , h e a tin g ,
li g h t i n g , v e n t ila t io n and c le a n in g ; ( c ) arrangem ent o f w o rk p la ces, p a r t ic u la r ly
in re sp e c t o f th e e lim in a tio n o r red u ctio n o f n o is e ; (d ) s u ita b le arrangem ent
o f hours o f work and r e s t p e r io d s , i t b ein g understood th a t i f i t i s n e ce ssa ry
t o work in su c c e ssiv e s h i f t s , nigE tw ork sh o u ld , a s fa r a s p o s s ib le , be a v o id e d .
12* In ca se s where t r a n s fe r s o f s t a f f re q u ire th a t w orkers be tempo­
r a r i ly p la ced in low er grade jo b s , th e y should n o t a t th e same tim e exp erien ce
any fin a n c ia l d isa d v a n ta g e .
13* In g e n e r a l, p re se n t o r fo r e s e e a b le c o n d itio n s make c o n s u lta tio n
a d v isa b le between th e in te r e s te d p a r t ie s : w o rk ers, em p loy ers, w orkers’ organ­
i z a t i o n s , em p lo y ers' o r g a n iz a tio n s ; t h i s c o n su lta tio n would tak e p la ce in
accordance w ith th e u su a l p r a c tic e s in each co u n try . The s u b je c ts which might
be covered by such c o n s u lta tio n would in c lu d e :
(a ) in fo rm a tio n about p la n s fo r
th e in tr o d u c tio n o f autom ation in an u n d erta k in g ; (b ) changes in jo b c l a s s i f i ­
c a t io n , rem uneration and c a r e e r p r o s p e c ts ; ( c ) th e e f f e c t s o f t t e a p p lic a tio n
o f the new tech n iq u es on c o n d itio n s o f w ork.
li t . In a broader p e r s p e c tiv e , th e spread o f mechani a tio n and autom ation
in o f f i c e s may have c e r ta in g en eral s o c ia l re p e rcu ssio n s which c a l l f o r a c tio n
on a n a tio n a l s c a le , in re g a rd , fo r in s ta n c e , to reform s o f ed u cation and voca­
t io n a l tr a in in g alo n g th e li n e s o u tlin e d in paragraphs 9 and 10 ab ove, g en era l
m easures f o r the m aintenance o f a h igh le v e l o f em ploym ent, and p o s s ib le ad­
ju stm en t o f s o c ia l s e c u r ity p r o v is io n s . W hile such m easures f a l l w ith in the
competence o f government a u t h o r it ie s , th e y should be taken in c o n su lta tio n w ith
th e em ployers and w orkers con cern ed , in accordance w ith n a tio n a l p r a c tic e *
The
f u l l co o p era tio n o f em p loy ers, w orkers,and p u b lic a u th o r it ie s i s e s s e n t ia l in
o rd er t o ensure th a t th e t r a n s it io n t o autom ation on a broad s c a le ta k e s p la c e
in an o r d e r ly manner, and th a t th e b e n e fit s a re shared by s o c ie ty a s a w h ole.

S o u rce: R eport q f th e U nited S ta te s Government D e le g a te s to a m eeting o f
th e I n te r n a tio n a l Labor O rg a n iz a tio n . The F ift h S essio n o f the A d v iso ry Com­
m itte e an S a la r ie d Em ployees and P r o fe s s io n a l W ork ers, C ologn e, Germany,
November 23-Decem ber U , 1959*
U .S . Department o f L abor, W ashington, I9 6 0 *




70

Appendix D .

R eassigiraent procedures and t in e sch edu le fo llo w e d in a la r g e
Insu ran ce company

(1 )

In O ctober 1953 (9 months b e fo r e th e f i r s t equipment was i n s t a l l e d ) ,
th e A c tu a r ia l D iv is io n e s ta b lis h e d an approxim ate tim e ta b le f o r th e
co n v ersio n o f i t s c l a s s i f i c a t i o n work to e le c tr o n ic p ro ced u res. That
tim e ta b le covered th e 18-m onth p e rio d from January 1 , 1 9 5 b , t o June
30 , 19 5 5 * I t w as, o f c o u r se , n e ce ssa ry to r e v is e i t from tim e to
tim e , but i t did serv e a s a v e ry u s e fu l g u id e .

(2 )

In January 1 9 5 b , m eetings were h e ld o f r e p r e s e n ta tiv e s o f a c t u a r ia l
and p erson n el d iv is io n s .
These were f o r th e purpose o f id e n t ify in g
th e work a reas and p erso n n el th a t would u ltim a te ly become in v o lv e d .
D iscu ssed were such item s a s th e number o f person s a f f e c t e d , t h e ir
jo b l e v e l s , g e n e ra l company e x p e rie n c e , le n g th o f s e r v ic e , s k i l l s ,
s e x , r a te o f r e le a s e , e t c .

(3 )

In A p r il 1 9 5 b , th e s e n io r o f f i c e r o f th e p erso n n el d iv is io n p e r s o n a lly
met w ith th e person s whose work would be d ir e c t ly a f f e c t e d .
He t o ld
them what was b ein g p lan n ed , th e e f f e c t th a t i t would have on then^ and
gave them f u l l reassu ran ce o f f a i r tre a tm e n t.

(b )

A lm ost im n ed ia te ly th e r e a fte r a r e p r e s e n ta tiv e o f th e a c t u a r ia l d iv is io n
p e r s o n a lly in te rv ie w e d each employee in v o lv e d and prepared a r a th e r d e­
t a i l e d b io g r a p h ic a l s k e tc h . T h is in clu d ed th e u su a l in form a tion w ith
re sp e c t to appointm ent d a te s , jo b l e v e l s , s a la r y , s k i l l s , jo b h is t o r y ,
e d u c a tio n a l background, e t c .
However, i t a ls o in clu d e d two v e ry impor­
ta n t s p e c ia l ite m s— (1 )
The em p lo y ee's jo b p re fe re n c e s a s ex p ressed by
th e employee h im s e lf, and (2 )
The in te r v ie w e r 's a p p r a is a l o f th e em­
p lo y e e , w ith s p e c ia l re fe re n c e to any p o s s i b i l i t i e s o f the developm ent
o f a "problem c a s e ."

(5 )

A l i t t l e la t e r a r e p r e s e n ta tiv e o f th e p erso n n el d iv is io n had s im ila r
in te r v ie w s w ith a l l o f th o se em ployees who appeared to be placem ent
p rob lem s. T h is , on the s u r fa c e , m ight seem lik e an u nnecessary d u p li­
c a t io n , but we f e l t i t w ise to have i t done in o rd e r th a t someone in
th e p erso n n el d iv is io n m ight be more p e r s o n a lly fa m ilia r w ith th e se
in d iv id u a ls than i s p o s s ib le when w orking e x c lu s iv e ly from a r e c o r d .
T h is proved to be a v e ry g r e a t h elp e s p e c ia lly in connection w ith th o se
em ployees who la t e r were a ssig n e d t o o th e r a rea s o f th e company.




71

( 6)

A t about th e same tim e , th e p erso n n el d iv is io n h e ld a s e r ie s o f m eetin gs
w ith Management r e p r e s e n ta tiv e s throughout th e home o f f i c e ; a p p rised
them o f th e su rp lu s d e v e lo p in g in th e a c tu a r ia l d iv is io n and req u ested
each r e p r e s e n ta tiv e to review h is work u n its t o determ ine how many such
em ployees m ight be ta k e n , a t what c l a s s i f i c a t i o n s , when, what s k i l l s
would be n eed ed , e t c .
These r e p o r ts were c a r e fu lly stu d ie d in th e p e r­
so n n el and a c t u a r ia l d iv is io n s , and an attem pt made to make a t e n t a t iv e
reassignm ent o f in d iv id u a ls to p o s itio n s then open o r to be made a v a il­
a b le in th e near fu t u r e .
The a c tu a l placem ent o f person s began about
February 1 , 195k, and th e w hole o p era tio n was s u b s t a n t ia lly term in a ted
by September 1 9 $ 5 .

S o u rce:




Memorandum from company p erso n n el o f f i c e .

72

Appendix E .

I.

P r in c ip le s e s ta b lis h e d b y a la r g e in su ran ce company to guide the
reassign m en t o f em ployees a ffe c t e d b y e le c tr o n ic d a ta p r o c e ssin g

Double D isplacem en ts Should Be A void ed .
C o n sid era tio n w i l l be given to fu tu re p la n s f o r any u n it t o which a
su zp lu s em ployee i s to be a ssig n e d so a s to a v o id , in s o fa r a s p o s s ib le ,
placem ent in a s e c t io n , o r in a p o s it io n , w hich i s l i k e l y to be a b o l­
ish ed *
Should a su rp lu s n e v e r th e le s s occu r in a u n it fo llo w in g such
placem en t, a second disp lacem en t i s t o be a v o id e d , i f p o s s ib le , by
th e tr a n s fe r o f o th e rs n o t p r e v io u s ly d is p la c e d .

II.

When a Complete U n it (D iv is io n Or S e c tio n ) I s To Be A b o lis h e d , A l l
Employees in th e U nit Are t o Be C onsidered a s S u rp lu s.
As o f an advance reco rd d a te , th e names o f a l l occupants w i l l be re ­
corded and any tr a n s fe r s (in c lu d in g th o se w ith in th e d iv is io n o r
departm ent) are to c le a r through th e Surplus Placem ent group in th e
P erson n el D iv is io n . E f fo r t s w i l l be made t o p la c e th e l e a s t a d ap tab le
employee in r e la te d d iv is io n s o r s e c t io n s , r e s e r v in g th e m ost ad ap tab le
f o r placem ent e lse w h e re, i f n e c e s s a r y .
The purpose o f t h is arrangem ent i s to a v o id d is tu r b in g , in s o fa r a s
p o s s ib le , lo n g -s e r v ic e em ployees who are g e n e r a lly l e s s a d ap tab le to
change w ith r e s p e c t t o both work fa c t o r s and a s s o c ia t e s } to avo id
p r o tra c te d t r a in in g , discouragem ent and p o s s ib le f a ilu r e o f th e l e s s
com petent em ployees by p la c in g them in work having as many fa m ilia r
fa c t o r s a s p o s s ib le } and t o reduce th e problem s in v o lv e d in p la c in g
h ig h er le v e l em p loyees. The same g e n e ra l procedure w i l l a p p ly when
o n ly s e le c te d p o s itio n s w ith in a u n it a re to be d isc o n tin u e d .

III.

When a Large Group I s To Become Su rp lu s a t One Tim e, o r Over a Short
P e rio d , a P ro p o rtio n a te A llo tm en t May fie Made to A l l D iv is io n s in Which
the Development o f a M ajor Surplus I s N ot A n tic ip a te d .
T h is m ethod, which may c r e a te a tem porary su rp lu s in o th e r d iv is io n s ,
w i l l be used o n ly when th e su rp lu s cannot be managed b y o th e r m eans.
An im p a r tia l d is t r ib u t io n w i l l be arranged w ith th e r e s p e c tiv e d iv is io n s
by th e Su rp lu s Placem ent group in th e p erson n el d iv is io n .

IV .

A s s ig i S u rp lu s Employees Tem porarily t o S p e c ia l P r o je c ts
The con v ersion o f reco rd s p r io r to th e in s t a lla t i o n o f an e le c t r o n ic s
sy stem , postponed o r d e fe r r e d w ork, and o th e r tem poraiy p r o je c t s may be
u t i l i z e d fo r t h i s p u rp o se. T h is method w i l l be u t i l i z e d o n ly i f o th e r
placem ent o p p o r tu n itie s are in a d eq u a te. Employees so a ssig n e d w i l l be
tr a n s fe r r e d t o permanent assignm ents a s q u ic k ly a s p o s s ib le .
I f a d d i­
t io n a l em ployees become su rp lu s th e y are t o be ro ta te d in t o such work




73

to r e p la c e and r e le a s e th o se a ssig n e d e a r l i e r . Such work w i l l g e n e r a lly
be d isc o n tin u e d , o r a ssig n e d t o new em p loyees, a s soon a s th e su rp lu s
em ployees can be p la ce d in permanent a ssig n m en ts.
V.

A void Unduly R etard in g Prom otions fo r O th ers in the U n it by C reatin g
A d d itio n a l H igher L e v e l Openings as Weeded i o Absorb S u rp lu s.
The fo llo w in g means sh ou ld be co n sid e re d :
a.

b.

A ssig n fem ale em ployees to h ig h er le v e l p o s itio n s t r a d it io n a lly
occupied by m a le s, whenever p r a c t ic a l.

c.

In cre a se th e number o f s u p e r v is o r s , where a p p ro p ria te , and
a s s ig n a p o rtio n o f each s u p e r v is o r 's tim e to the h an d lin g o f
th e more d i f f i c u l t work assignm ents o f th e u n it .

d.

V I.

Tem porarily in cre a se th e number o f h ig h e r le v e l occupants on
e x is t in g p o s itio n s and o f f s e t w ith v a c a n cie s on low er le v e l
p o s itio n s in th e u n it .
D ivide th e low er le v e l work among the
h ig h er le v e l occupants u n t il such tim e as th e su rp lu s i s
e lim in a te d .

Review th e o rg a n iz a tio n o f each u n it to provide a d d itio n a l
su p e rv iso ry p o s itio n s where th e p re se n t u n its su p erv ised are
la r g e r than optimum s i z e .

Reduce f o r a R easonable P eriod in Advance (P o s s ib ly 6 M onths) th e
Numbers o f Employees in Those H igher L ev el P o s itio n s Which W ill Be
A b o lish e d .
*
T h is may o fte n be accom plished by re p la c in g h ig h er le v e l em ployees by
em ployees a t low er le v e ls who a re a ssig n ed o n ly th e more ro u tin e and
sim ple p a rts o f th e w ork .

S o u rce:




Memorandum from company p erson n el o f f i c e

7h

Appendix F .

T i t le s used and d u tie s o f s i x ty p e s o f e le c tr o n ic data
p ro c e ssin g p o s itio n s a t companies stu d ie d

A n a ly s t, methods o r system s
T i t le s u sed . A c tu a r ia l a s s is t a n t , d ata p ro c e ssin g e n g in e e r, e le c tr o n ic
resea rch a n a ly s t and p la n n e r, ju n io r procedures a n a ly s t , ju n io r system s
a n a ly s t, procedures a n a ly s t , p r o je c t a n a ly s t, s e n io r procedures d e s ig n e r ,
se n io r system s a n a ly s t, system s d e s ig n e r , system s p la n n e r.
D u tie s .
Examines e x is t in g system o f o p era tin g u n it . M o d ifie s and
ad ap ts system to e le c tr o n ic d a ta p r o c e s s in g , o u tlin in g p lan fo r programming
o p e r a tio n .
A u x ilia r y equipment o p e ra to r
T i t le s u sed . A ccounting cleric I I I , acco u n tin g machine o p e r a to r ,
a s s is t a n t o p e r a to r , com puter tape ch a n g er, EDP machine o p e r a to r , e le c tr o n ic
a u x ilia r y machine o p e r a to r , machine system t r a in e e , machine te c h n ic ia n ,
p h e rip h e ra l o p era to r A o r B , ta b u la tin g c o n tr o l c le r k , tap e c le r ic .
D u tie s .
O perates in p u t and output equipm ent, such as p r in t e r s , con­
v e r t e r s , and a s s o c ia te d m achines, w hich are a p a rt o f the e le c tr o n ic computer
sy stem . May a ls o serve a s tap e lib r a r ia n .
C onsole o p era to r
T i t le s u sed . A s s is ta n t c h ie f o p e r a to r , EDP machine o p era to r A ,
e le c t r o n ic computer te c h n ic ia n , e le c t r o n ic co n so le o p e ra to r, ju n io r system
o p e r a to r , s e n io r o p e r a to r , su p e rv iso ry c o n tr o l o p e r a to r , system o p e r a to r .
D u tie s .
o p e r a to r s .

O perates com puter c o n s o le .

May su p e rv ise a u x ilia r y equipment

Programmer
T i t le s u se d .
Computer te c h n ic ia n , EDPM programmer, EDPM programmer
t r a in e e , e le c t r o n ic resea rch a n a ly s t , ju n io r e le c tr o n ic resea rch a n a ly s t,
ju n io r procedures e n g in e e r, ju n io r programmer, s e n io r EDPM programmer,
s e n io r programmer.
D u tie s . Diagrams program f o r a p p lic a tio n to computer system in
accordance w ith recommendations o f a n a ly s t .
C onverts program in s tr u c tio n s
in t o machine "language*1 o r codes and t e s t s new program s.




75

P rogram m er-analyst
T i t le s u sed * EDP programmer a n a ly s t, jo b s p e c ific a t io n s a n a ly s t,
methods a n a ly s t , programmer, se n io r programmer a n a ly s t.
D u tie s . Engages in a com bination o f th e d u tie s in d ic a te d above fo r
th e a n a ly s t and programmer jo b s .
Tape lib r a r ia n
T i t le s u sed .

L ib ra ria n

D u tie s .
R e c e iv e s, f i l e s , c a t a lo g s , m a in ta in s, and is s u e s m agnetic
ta p e s t o e le c tr o n ic machine o p e r a to r s , a s re q u ir e d .

S o u rce:




Based on p o s itio n d e s c r ip tio n s used a t o f f i c e s v i s i t e d .

76

Appendix G.

P ro v isio n s o f union c o n tra c ts r e la t in g to th e s e t t in g o f wage
r a te s f o r new p o s itio n s in e le c t r o n ic d a ta p r o c e ssin g

C on tract A
In th e even t th a t a new jo b o r p o s itio n i s e s ta b lis h e d o r th ere i s a
s u b s ta n tia l change in th e d u tie s o r requirem ents o f an e s ta b lis h e d jo b , the
company s h a ll develop an a p p ro p ria te jo b d e s c r ip tio n and e s t a b lis h w ith in
th e e x is t in g ra te str u c tu r e provided in s e c tio n 2 o f t h is a r t i c le th e b a s ic
r a te s t o ap ply to such jo b .
The company s h a ll fu rn ish th e union w ith the
new jo b d e s c r ip tio n and s h a ll subm it fo r i t s ap proval th e ra te e s ta b lis h e d
fo r such jo b .
In th e ev en t th a t agreem ent i s not reached w ith in seven ( 7 )
ca len d a r days from th e date o f such subm ission o r w ith in such a d d itio n a l
tim e a s may be m u tu ally agreed upon, th e company may p la c e th e new jo b
d e s c r ip tio n and r a te in e f f e c t , s u b je c t to con tin u ed n e g o tia tio n o f the
r a t e . W ith in f iv e ( 5 ) w orking days from th e d a te the jo b i s p la ced in to
e f f e c t , th e union may proceed in accordance w ith Step 3 o f th e g rievan ce
procedure e s ta b lis h e d in a r t i c le I I I , s e c tio n 1 o f t h is Agreem ent.
In th e even t agreem ent on th e r a te range f o r the new ly e s ta b lis h e d
jo b i s n o t reached by th e Labor R e la tio n s Com m ittee, e ith e r p a rty may r e fe r
the m atter t o a r b itr a tio n in accordance w ith th e p r o v is io n s o f a r t i c l e I I I ,
s e c tio n k o f t h is agreem ent. The a r b itr a to r s h a ll have th e a u th o rity to
determ ine th e proper p o s itio n o f th e new o r amended c la s s i f i c a t i o n w ith in
th e e x is t in g agreed upon r a te s tr u c tu r e on th e s o le b a s is o f th e r e la tio n s h ip
the new o r amended jo b b ea rs t o the o th e r jo b s in the e x is t in g r a te s tr u c tu r e .
Any change in the e s ta b lis h e d r a te r e s u lt in g from the n e g o tia tio n s s h a ll be
r e tr o a c tiv e t o th e date such r a te was p la ce d in e f f e c t .
Job d e s c r ip tio n s s h a ll be a p p lie d in accordance w ith th e Supplement
a tta ch ed h e re to and e n t i t l e d , “J o in t Statem ent o f P o lic y f o r A p p lic a tio n
o f Job D e s c r ip t io n s ."
C on tract B
Whenever i t i s n e ce ssa ry to e s t a b lis h jo b c l a s s i f i c a t i o n s which may
f a l l w ith in the scope o f t h i s Agreem ent, r a te s o f pay f o r such c l a s s i ­
fic a t io n s s h a ll be conformed to the r a te s o f pay e s ta b lis h e d b y t h i s A gree­
ment fo r e x is t in g p o s itio n s o f s im ila r ran k , c l a s s , and jo b c o n te n t.
I f no
s im ila r c l a s s i f i c a t i o n s e x i s t fo r com parative p u rp o ses, the company s h a ll
determ ine th e ranking o f th e new c l a s s i f i c a t i o n .
I f the brotherhood i s o f
th e o p in io n th a t th e p r o v is io n s o f t h is agreement have not been p ro p e rly
a p p lie d , i t s co n ten tio n may be p resen ted as a grievan ce under a r t i c l e 33
h e r e o f.




C on tract C
When and i f from tim e to tim e th e company, a t i t s d is c r e t io n , e s ta b ­
li s h e s a new jo b o r changes th e jo b co n ten t (req u irem en ts o f th e jo b as to
t r a in in g , s k i l l , r e s p o n s ib ilit y , and working c o n d itio n s ) o f an e x is t in g jo b
to th e e x te n t o f one f u l l jo b c la s s o r m ore, a new jo b d e s c r ip tio n and
c l a s s i f i c a t i o n fo r th e new o r changed jo b s h a ll be e s ta b lis h e d in accordance
w ith th e fo llo w in g p roced u re:
1.

Management w i l l d evelop a d e s c r ip tio n and c la s s i f i c a t i o n o f th e
jo b in accordance w ith p r o v is io n s o f th e May 6 , 1 9 5 0 , Agreement
between the p a r t ie s h e r e to .

2.

The proposed d e s c r ip tio n and c l a s s i f i c a t i o n w i l l
t o th e g rievan ce com m ittee fo r a p p r o v a l, and th e
s c a le ra te f o r the jo b c la s s t o which th e jo b i s
s h a ll ap p ly in accordance w ith th e p r o v is io n s o f
o f t h i s s e c t io n .

3.

I f management and th e g riev a n ce com m ittee are unable to agree
upon th e d e s c r ip tio n and c l a s s i f i c a t i o n , management s h a ll in ­
s t a l l th e proposed c l a s s i f i c a t i o n , and the stan d ard s a la r y
s c a le ra te f o r th e jo b c la s s t o which th e jo b i s th u s a ssig n e d
s h a ll ap p ly in accordance w ith th e p r o v is io n s o f su b sectio n B
o f t h i s s e c t io n .
The employee or em ployees a ffe c t e d o r the
grievan ce committee may a t any tim e w ith in 3 0 days f i l e a
grievan ce a lle g in g th a t th e jo b i s im properly c l a s s i f i e d under
th e jo b d e s c r ip tio n and c la s s i f i c a t i o n procedure o f the May 6 ,
1 9 5 0 , Agreement between th e p a r t ie s h e r e to .
Such grievan ce s h a ll
be p ro cessed under th e grievan ce and a r b itr a tio n procedures o f
t h is Agreement and s e t t le d in accordance w ith th e jo b d e s c r ip tio n
and c l a s s i f i c a t i o n p r o v is io n s o f th e a fo r e s a id May 6 , 1 9 5 0 ,
Agreem ent.
I f th e g riev a n ce i s su bm itted to th e a r b itr a tio n
procedure th e d e c is io n s h a ll be e f f e c t i v e a s o f the d a te when
th e d isp u te d jo b d e s c r ip tio n and c l a s s i f i c a t i o n were put in to
e ffe c t.




be subm itted
standard s a la r y
th u s a ssig n e d
su b sec tio n B

78

Appendix H.

S tep s fo llo w e d in one la rg e company in s e le c t in g em ployees fo r
e le c tr o n ic d a ta p ro c e ssin g p o s itio n s

A.

A review o f p erson n el r e c o r d s .

B.

A review o f th e ca n d id a tes th u s s e le c te d by lo c a l D iv isio n Managements
who were requ ested t o add o th e r s u ita b le ca n d id a tes and n ote th o se
co n sid ered u n s u ita b le .

C.

The con d u ctin g o f group m eetings in th e r e s p e c tiv e D iv is io n s w ith th e
Managements (u s u a lly th e O ffic e r in ch arge) and the p ro sp e c tiv e can d i­
d a te s . An ex p la n a tio n was given o f th e o p p o r tu n itie s , req u irem en ts,
and s e le c tio n procedu res and an in v it a t io n was extended fo r anyone in ­
te r e s te d to a p p ly . A s im ila r in v it a t io n was extended to o th e rs who
had n ot been in v ite d t o a tte n d the m ee tin g s.
I n c id e n t a lly , sin ce many ca n d id a tes co n sid ered were m iddle aged , and had
had no re ce n t s c h o o lin g , a l l were assu red th a t i f th e y com pleted th e
t e s t s w ith poor r e s u lt s , t h i s fa ilu r e co u ld n ot a d v e rs e ly a f f e c t them
sin c e th e r e s u lt s would n o t be made known to management. T h is assurance
i s b e lie v e d t o have in te r e s te d many em ployees in com peting fo r the a s s ig n ­
ments who would n o t o th erw ise have been w i lli n g to a p p ly .

D.

The a d m in istra tio n o f a group o f t e s t s to th e ap p roxim ately 250 em ployees
respon d in g a ffir m a t iv e ly to th e in v it a t io n .
Three ty p e s o f t e s t s were
u se d :
( 1 ) m ental a le r tn e s s (w ith su b sco res fo r num erical and v e r b a l
f a c i l i t y ) , ( 2 ) fu n c tio n a l m athem atics (s e le c t e d a s a measure o f a b i l i t y
t o work w ith numbers and sy m b o ls), and ( 3 ) m echanical com prehension.

E.

The ta b u la tio n o f th e a p p lic a n ts in t e s t sco re o rd e r, by a s li g h t ran k in g ,
g iv in g g r e a te s t w eigh t to m ental a le r t n e s s — and second to th e t e s t o f
fu n c tio n a l m athem atics.

F.

A review from th e h ig h e s t sco re downward to weed out ob viou s problem
c a se s or oth erw ise c le a r ly u n su ita b le c a n d id a te s.

u.

A stu d y o f th e in d iv id u a l case h is t o r ie s o f th ose s c o r in g h ig h e st on the
te sts.

H.

The conducting o f p erso n a l in te r v ie w s , and a c o n s u lta tio n w ith em p lo y ee's
p re se n t management.

I.

The making o f f i n a l s e le c t io n s based on a l l a v a ila b le d a ta , and th e
review o f c h o ic e s w ith p resen t o f f i c e r in charge to o b ta in r e le a s e .
N o t ific a t io n t o in d iv id u a l em ployees.




79

J.

A p e r so n a l l e t t e r was se n t o v e r the sig n a tu re o f th e p erson n el o f f i c e r t o
each employee who com pleted th e t e s t s but was n o t s e le c t e d . The l e t t e r
thanked th e em p loyees, ex p la in ed th a t no im mediate assignm ent would be
made, and in v ite d them t o d is c u s s t h e ir t e s t r e s u lt s w ith a member o f the
s t a f f i f th ey were in t e r e s t e d . About 60 p ercen t responded to t h is in ­
v it a t io n and the v ery fa v o ra b le gen eral a ttitu d e tow ards th e e n t ir e s e ­
le c t io n procedure i s b e lie v e d to have been g r e a tly a ffe c t e d by t h i s s t e p .

K.

A ft e r th e f i r s t group o f programmers had been s e le c te d and p a r t i a lly
tr a in e d , th e in v it a t io n was extended t o em ployees a second tim e . N e a rly
3 0 0 more em ployees a p p lie d and were t e s t e d , b rin g in g th e t o t a l to about
5 5 0 . The purpose o f th e second in v it a t io n was tw o fo ld — to accommodate
th o se who had su b seq u en tly ex p ressed an in t e r e s t , and to o b ta in needed
d iv e r s ific a t io n o f company e x p e r ie n c e .

S o u rce:




Memorandum from company p erso n n el o f f i c e .

80

Appendix I .

L is t o f t e s t s used b y com panies in s e le c t in g em ployees fo r
e le c t r o n ic da ta p ro c essin g p o s itio n s

American C o u n cil on E ducation P sy c h o lo g ic a l E xam ination, E d u cation al T e stin g
S e r v ic e , 15 Amsterdam A v e ., New York 2 3 , N . Y .
(no d a te )
A p titu d e T e st fo r EDFM Programmers,
New York 3 6 , N . Y . , 1 9 5 5 .

The P sy c h o lo g ic a l C o r p ., 522 F if t h A v e .,

C a lifo r n ia T e st o f M en tal M a tu rity ,
C a lifo r n ia T e st Bureau, 5 9 1 6 Hollywood
B ou levard , Los A n g eles 2 8 , C a l i f , ( n .d .)
D iffe r e n t ia l A p titu d e T e s t s . Form A . N um erical A p titu d e s and Form B .
A b stra c t R eason in g. George K . B en n e tt, H arold G. S ea sh o re, and
A lexan d er G . Wesman. The P sy c h o lo g ic a l C o r p ., 522 F ift h A v e ., New York
3 6 , N . Y . , 19U 7.
F o u st-S c h o r lin g T est o f F u n ctio n a l T hinking in M ath em atics.
313 Park H i l l A v e ., Yonkers 5 , N . Y .
( n .d .)

W orld Book C o .,

Kuder P referen ce T e s t .
S cien ce R esearch A s s o c ia t e s , 57 W est Grand A v e .,
Chicago 1 0 , 1 1 1 .
( n .d .)
O tis Employment T e s ts 2B .
191*3.

W orld Book C o ., 313 Park H i l l A v e ., Yonkers 5 , N. Y ,

P ersonnel C la s s ific a t io n T e s t.
New York 36 , N . Y . , 19U 6.

A lexander G. Wesman.

Schubert G eneral A b i l i t y B a tte r y .
V o ca tio n a l I n t e r e s t Blank f o r Men.
P r e s s , S ta n fo rd , C a l i f . , 1 9 3 8 .

The P sy c h o lo g ic a l C o r p .,

Herman J . P . S ch u b ert.

19U 6.

Edward K . S tro n g , J r . S tan ford U n iv e r s ity

W a tso n -G la ser C r i t i c a l T hinking A p p ra isa l (Form Am .) Goodwin Watson and
Edward Maynard G la s e r . W orld Book C o ., Yonkers 5 , N . Y . , 1 9 5 1 -5 2 .
W onderlic P ersonnel T e s t.
( n .d .)




E . F . W o n d e rlic .

P .0 . Box 7 , N o r th fie ld , 1 1 1 .

81

Appendix J .

A.

S e le c te d Annotated B ib lio g ra p h y

Im pact o f E le c tr o n ic Data P ro cessin g on O ffic e Employees
1.

Department o f Labor P u b lic a tio n s .
Autom atic Technology and I t s Im p lic a tio n s ’—A S e le c te d Annotated
B ib lio g ra p h y . B u ll. 1 1 9 8 , Bureau o f Labor S t a t i s t i c s , W ashington,
1956.
78 p p .
More than 350 re fe r e n c e s on th e o p era tio n s o f automated equipment
in b u sin e ss and in d u s tr y , and th e im p lic a tio n s fo r la b o r , management,
governm ent, and th e economy.
Autom ation and Employment O p p o rtu n itie s f o r O ffic e w o rk e rs.
(Occu­
p a tio n a l O utlook S e r ie s — B u ll. 121*1). Bureau o f Labor S t a t i s t i c s ,
W ashington, 1 9 5 8 .
lit pp.
V o ca tio n a l im p lic a tio n s o f e le c tr o n ic d ata p ro c essin g equipment fo r
c l e r i c a l p e r so n n e l. D isc u sse s th e tr a in in g re q u ire d , e a r n in g s , and
employment ou tlook f o r th e new ly c re a te d occu p atio n o f programmer.
A Case Study o f an A utom atic A ir lin e R eserv ation System .
Bureau o f Labor S t a t i s t i c s , W ashington, 1 9 5 8 .
21 pp.

R eport 1 3 7 ,

R eport on the in tro d u c tio n o f an e le c tr o n ic system o f p r o c e ssin g
p a ssen g er r e s e r v a tio n s a t a la r g e a i r l i n e .
The p ro cess o f making
th e change and i t s im p lic a tio n f o r employment, jo b c o n te n t, and jo b
a ssig n m e n ts. A ttitu d e o f management and em ployees toward the change.
The In tro d u c tio n o f an E le c tr o n ic Computer in a Large Insurance
Company. Bureau o f Labor S t a t i s t i c s , W ashington, 1955*
18 p p .
A c a se stu d y o f methods used to plan fo r and implem ent a con v ersion
t o e le c tr o n ic data p r o c e s s in g . E ffe c t on o p e ra tio n s and employment,
rea ssig n m en ts, jo b c o n te n t, and tr a in in g req u irem en ts.
O ccupations in E le c tr o n ic Data P ro ce ssin g S y stem s.
Employment S e c u r ity , W ashington, 1 9 5 9 .
Ut p p .

Bureau o f

Job d e s c r ip tio n o f 13 key o c c u p a tio n s, q u a lif ic a t io n s , and p rocess
flo w .
R eport o f the U n ited S ta te s Government D ele g a te s to a M eetin g o f th e
In te r n a tio n a l Labor O rg a n iz a tio n . The F ift h S e ssio n o f th e Ad­
v is o r y Committee on S a la r ie d Employees and P r o fe s s io n a l W ork ers.
C ologn e, Germany, November 2 3 -Decem ber it, 1 9 5 9 . W ashington, I 9 6 0 .
C ontains th e re p o rt o f the Subcommittee on the E ffe c t s o f M echaniza­
tio n and Autom ation in O f f i c e s .




82

2.

O ther Government P u b lic a tio n s
P erson n el Im pact o f Autom ation in th e F ed eral S e r v ic e . U .S . C iv il
S e rv ic e Com m ission, Bureau o f Programs and S ta n d a rd s, W ashington
19$7.
21 p p .
R e s u lts o f a stu d y to a s c e r ta in th e s ta tu s o f m ajor te c h n o lo g ic a l
changes in F ed era l o p e r a tio n s .
I d e n t if ie s p erson n el problem s and
n e e d s, and p rov id es a b a s is f o r fu r th e r a c t io n .
Autom ation and T e c h n o lo g ic a l Change; H ea rin g s. J o in t Committee on
th e Economic R e p o rt, C ongress o f th e U n ited S ta te s (8U th C o n g .,
1 s t s e s s 4 O ctober 1 U -1 7 ; 2 U -2 8 , 1 9 5 5 .
Statem ents by R obert W. B u rg ess, U .S . Bureau o f th e C ensus;
Ralph C o rd in er, G en eral E le c t r ic C o r p ., and Howard C ou gh lin , O ffic e
Employees In te r n a tio n a l U nion, on o f f i c e au to m atio n .
Automation and R ecent T ren d s; H ea rin g s.
J o in t Economic Com m ittee.
C ongress o f th e U nited S ta te s (8 5 th C o n g ., 1 s t s e s s .) , November lU 15, 1957.
Statem ents by E v e re tt J . L iv se y and A . R . Z i p f , o f Bank o f Am erica
on a p p lic a tio n o f e le c tr o n ic d a ta p ro c essin g to banking o p e r a tio n s .
O ffic e Autom ation and Employee Job S e c u r ity ; H ea rin g s. Subcommittee
on Census and Government S t a t i s t i c s o f th e Committee on P ost
O ffic e and C i v i l S e r v ic e .
House o f R e p re se n ta tiv e s (8 6 th C o n g .,
2nd s e s s .) , March 2 and U, I 9 6 0 .
P erson n el p o li c i e s and e x p e rie n ce s o f government o f f i c e s .
Use o f E le c tr o n ic D a ta -P ro c e ssin g Equipm ent; H earin g. Subcommittee
on Census and Government S t a t i s t i c s o f the Committee on P ost
O ffic e and C i v i l S e r v ic e .
House o f R e p re se n ta tiv e s (8 6 th C o n g .,
1 s t s e s s ., ) W ashihgton, June 5 , 1 9 5 9 .
Surveys o f im pact o f e le c tr o n ic d a ta p r o c e ssin g in F ed era l
Government.




83

3.

P e r io d ic a ls and Books
A lle n V . A s t in . How W i l l Autom ation A ffe c t th e W h ite -C o lla r W orker?
Labor Looks a t th e W h ite -C o lla r W orker. (In P roceedings o f a
Conference on Problems o f the W h ite -C o lla r Worker sponsored by
th e I n d u s tr ia l Union D epartm ent, AFL-CIO, F eb . 2 0 , 1 9 5 7 , p p . 4 5 -5 3 .)
E v olu tion and growth o f o f f i o e au tom ation . Im p lic a tio n s fo r
employment, s k i l l req u irem en ts, and u t i li z a t i o n o f o f f i c e w ork ers.
Autom ation and S o c ie ty . E d ited by H. B . Jacobson and J . S . Roucek.
New Y o rk , P h ilo s o p h ic a l L ib ra ry , 1 9 5 9 .
Case study o f o f f i c e autom ation by David G. O sborn.
E . R . Becker and E . F . Murphy. The O ffic e in T r a n s itio n .
Harper and B r o s ., 1 9 5 7 ),
pp . 99-1148.

(New Y o rk ,

Problems o f employee communication about a con v ersion to EDP.
In te r v ie w s , q u e s tio n n a ir e s , and t e s t s as a id s in s e le c tin g em p loyees.
R ole o f tr a in in g program s. Human r e la tio n problem s during th e
t r a n s it io n .
B e n e fits o f o f f i c e au tom ation .
F . H. B e r g th o ld t.
S e le c tin g and T ra in in g P erson n el fo r th e EDP Team.
In E le c tr o n ic s in A c tio n , S p e c ia l R eport N o. 2 2 .
(New Y o rk ,
American Management A s s o c ia tio n , 1 9 5 7 )5 p p . 5 l-5 9 »
Methods used b y a la r g e fo o d p ro c e ssin g company to s e le c t and tr a in
em ployees f o r e le c tr o n ic d a ta -p r o c e s s in g jo b s . In te r v ie w s , t e s t s , and
o n -th e -jo b tr a in in g assignm ents as s e le c tio n m ethods.
A B igger R ole fo r the C le r k s?
ff).

(In R ailw ay A ge, J u ly 2 9 , 1 9 5 7 , p p . 19

U n io n 's (Brotherhood o f R ailw ay C le r k s) p o lic y toward the in t r o ­
du ction o f e le c tr o n ic com puters in th e r a ilr o a d in d u s tr y .
H arold Farlow C r a ig . A d m in isterin g a Conversion to E le c tr o n ic
A ccou n tin g; A Case Study o f A Large O f f i c e .
D iv is io n o f R esearch ,
Graduate Sch ool o f B u sin ess A d m in istra tio n , Harvard U n iv e r s ity ,
B oston , M a s s ., 1 9 5 5 .
22l* p p .
Management p o lic ie s in i n s t a lli n g new o f f i c e equipment in a l i f e
in su ran ce company. Employee a ttitu d e s and a d ju stm e n ts.




Q
h
E f f e c t s o f M echanization and Automation in O f f i c e s : I .
n a tio n a l Labor Review, February I 9 6 0 , pp. 1 5 U -1 7 3 .)
Based on ILO R ep o rt.

(Tn I n t e r ­

Covers e f f e c t s on employment.

J . Douglas E l l i o t . W i l l E le c t r o n ic s Make People O b so le te ? (In The
Impact o f Computers on O f f i c e Management, O ff i c e Management
S e r ie s , N o. 1 3 6 .) (New Y ork , American Management A s s o c ia t io n ,
1 9 5 7 .)
p p . U 7 -6 0 .)
M isco n cep tion s concerning th e e f f e c t s o f e le c t r o n ic data p r o c e ssin g
on jo b s e c u r i t y .
Employee r e la t i o n s problem s a t a la r g e u t i l i t y
company.
E s ta b lis h in g an In te g r a te d D a ta -P ro c e ssin g System .
(New Y ork ,
American Management A s s o c ia t io n , 1 9 5 6 ) .
pp. 1 0 0 -1 1 8 .
S p e c ia l
Report No. 1 1 .
Human problems in v o lv e d i n c o n v ertin g to in te g r a te d data p r o c e s s in g .
S e le c t i n g , t r a i n i n g , and e v a lu a tin g em ployees.
P o t e n t ia l o f o ld e r
employees f o r IDP j o b s .
C h arles E . G inder. Why Autom ation?
(W illow Grove, P a ., N a tio n a l
O ff ic e Management A s s o c ia t io n , 1 9 5 9 )*
Report on survey o f uses o f e le c t r o n ic and in te g r a te d data p r o c e ss­
in g .
In c lu d e s b ib lio g r a p h y on o f f i c e autom ation.
Eugene Jacobson, et.al., Employee Attitudes Toward Technological

Change in a Medium Sized Insurance Company, (in Journal of
Applied Psychology, December 1 9 5 9 ,) pp. 3ii9-35U .
Study o f the in tr o d u c tio n o f a computer.
Man and A utom ation. Report o f the P ro c e e d in g s-o f a Conference
sponsored by the S o c ie t y f o r A pp lied Anthropology a t Y ale
U n iv e r s it y , December 2 7 - 2 8 , 1 9 5 5 .
(New Haven, Y a le U n iv e r s it y ,
1 9 5 6 ).
Papers by F loyd C . Mann, J . A . L i t t e l , S y lv ia C a r te r , and W a lte r
H. Johnson and Kenneth G. Van Auken on e x p e rie n ce s in in trod u cin g
e le c t r o n ic d a ta p ro c e ssin g in o f f i c e s .
Men, M achines, and Methods in the Modem O f f i c e .
(New Y ork , American
Management A s s o c ia t io n , 1 9 5 8 ) . Management Report No. 6 .
Papers hy H. W. P r e n t is , J r . , Devereux C. J osep h s, and V i r g i l K.
Rowland, on problems o f g a in in g employee support through b e t t e r
c ommunic a t i o n s .




85

Floyd C. Mann and Lawrence K. Williams. Organizational Impact of
White-Collar Automation. In Proceedings of Eleventh Annual
Meeting of Industrial Relations Research Association Chicago,
IRRA, 1 9 5 8 .
Effects of electronic data processing on industrial relations and
personnel.
Pioneering in Electronic Data Processing. (New York, American
Management Association, 1 9 5 6 ) . Special Report No. 9*
Papers by F. J. Porter, Jr. and Wesley S. Bagby, on problems of
reassigning, training, and selecting personnel in a public utility
and insurance company.
Georgina M » Sm ith.
.
O ffic e Automation and W h ite -C o lla r Employment.
(New Brunswick, Rutgers U n iv e r s it y , I n s t i t u t e o f Management and
Labor R e la t io n s , 1 9 5 9 ) , B u l l . 6, 26 p p .

Covers employment effects and new working conditions.
Jack Stieber, Automation and the White-Collar Worker. (In Personnel
Magazine, November-December, 1 9 5 7 , pp. 8 - 1 7 . ) (Also reprinted
by the Labor and Industrial Research Center, Michigan State
University, 1 9 5 7 -5 8 Reprint Series.)
Effect of office automation on employment, occupational distri­
bution, job opportunities, employee attitudes, unionization, and
management. Comments on research findings from several case studies.
Robert E . S l a t e r .
Thinking Ahead: How Near I s th e Automatic O f f i c e ?
(In Harvard B u siness Review, M a r c h -A p r il, 1 9 5 8 , p . 27 f f . )

Personnel and organizational problems associated with automating
clerical functions. Problems of employee training, job evaluation,
and salary administration. Planning the change— reorganizing work
procedures and the physical plant.
C.

Edward Weber. Impact of Electronic Data Processing on Clerical
Skills. (In Personnel Administration, January-February, 1 9 5 9 ,
p. 20).
Two case studies of offices in industrial plants.

B.

Special Problems of Older Office Employees
Earning Opportunities for Older Workers, (Ann Arbor, University of
Michigan Press, 1 9 5 5 ) .
Papers by Helen H. Randall and John W. Travis on employer attitudes
toward utilization of older office employees.




86
Employment o f O ld er Workers in O f f i c e and P r o fe s s io n a l O ccupations*
Age B a r rie r s t o Employment.
(I n P roceedings o f the O lder Worker
C onference—*1958, sponsored by th e Commonwealth o f P en n sylvan ia,
Department o f Labor and In d u stry a t P h ila d e lp h ia , P a ., Hay 1 5 -1 6 ,
1 9 5 8 .)
(H a rrisb u rg , Department o f Labor and In d u s tr y , 1 9 5 8 ) ,
p p . 1 2 0 -1 3 0 .
Panel d is c u s s io n on th e o p p o r tu n itie s f o r , and o b s t a c le s t o , the
employment o f o ld e r workers in o f f i c e and p r o fe s s io n a l o cc u p a tio n s.
H ir in g O lder W ork ers.
1 9 5 7 .)

(New Y ork , O f f i c e E x e cu tiv e s A s s o c ia t io n ,

Survey o f h ir in g p r a c t ic e s in r e la t io n t o o ld e r c l e r i c a l workers in
New York C i t y . A t t it u d e s on perform ance, tu rn o v e r, a b sen teeism .
M ilto n M. Mand e l l .
R e c r u itin g and S e le c t in g O ff ic e Employees.
(New Y ork, American Management A s s o c ia t io n , 1 9 5 6 .)
175 p p .,
Research Report N o. 7 .
D e sc rip tio n o f o f f i c e o c c u p a tio n s.
s e le c t i n g a t a l l l e v e l s .
The New F r o n tie r s o f A g in g .
P r e s s , 1 9 5 7 .)

Problems o f r e c r u itin g and

(Ann A rbor, The U n iv e rsity o f Michigan

Papers by Warner Bloomberg, J r . and James S te m on im p lic a tio n s o f
automation f o r s e c u r it y o f o ld e r w orkers.
Waino W. Suojanen.
S u p erv isin g O lder C l e r i c a l W ork ers.
P e rso n n el, May-June, 1 9 5 8 , p p . 1 6 - 2 1 .)

(In

Problems o f su p e rv isio n r e s u lt in g from an in c r e a s in g p rop ortion o f
o ld e r c l e r i c a l em ployees. Need t o reev a lu a te t r a d i t i o n a l methods o f
s u p e r v is io n .
Suggests jo b r o ta tio n and jo b enlargement a s a r e l i e f
t o jo b boredom.




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TRENDS IN OUTPUT PER MAN-HOUR IN THE PRIVATE ECONOMY, 1 9 0 9 -1 9 5 8 ( B u l l . 1 2 ^ 9 ,
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Indexes o f output per man-hour, output, and employment in major sectors.
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CO PARATIVE JOB P R O M N E BY AGE:
M
EFR AC
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OFFICE W R E S (B u ll. 1273, i 960 ,
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A CASE STUDY OF A COMPANY MANUFACTURING ELECTRONIC EQUIPMENT.

T E IN
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A CASE STU Y OF A LA G M C A IZE B ERY (BLS Report 109) •
D
R E E H N D AK
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* U .S. G O V E R N M E N T P R IN T IN G O F F IC E : 1960 0 — 5 5 1 4 0 2


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