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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 CONTENTS—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 UO 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 U5 years 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 . . . . . 7 k0 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 81.5 Posting, check in g, and main taining rec ords ............. 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 .1 100.0 7• 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 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. o.k — — 8 lk .1 — 9 10 E lectronic data proc essing Sepa rated 15.1 1A 1.8 15.0 — -- 7 .3 lf.9 2.3 — 3A *.5 8.3 5.7 O.k 3.5 1.7 1.5 A 17-9 «... 1.8 A .6 A 12.6 85.3 2.9 -- — 8.8 1.1 72.9 2.2 •7 1 6 .1 3-6 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-I49 ............................... 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* *40 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 —a ll part o f a management training pro 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 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 1+1+3 253 285 122 6 Female.......... Under 25 ...... 25-31+......... 35-U1+......... 1+5-51+......... 55-6U #... #....„ 65 and over .... 1.1+99 580 1+11+ 271+ 181 1+8 2 1/ Employees in electronic data-processing positions All employees New hires (including new hires) 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 " 71+ 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; Ij2 percent of the employees 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 : V I. a. 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 . 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. 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. Qh 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. PUBLICATIONS ON PRODUCTIVITY AND TECHNOLOGICAL DEVELOPMENTS 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 , 1 9 5 9 ) , *+7 PP*, 50 c e n t s . Indexes o f output per man-hour, output, and employment in major sectors. Analysis o f trends and fa ctors a ffectin g changes. Notes on data. COMPARATIVE JOB PERFORMANCE BY AGE: 36 p p . , 30 c e n t s . OFFICE WORKERS (B u ll. 1273, i 960) , Compares th e job performance o f s i x age grou p s, in clu d in g output per man-hour, a cc u ra cy , and c o n s is te n c y o f perform ance. Covers 6 ,0 0 0 employees in in d u stry and government. PRODUCTIVITY: A BIBLIOGRAPHY ( B u l l . 12 2 6 , 1 9 5 7 ) , 182 p p ., $ 1 . Covers n e a r ly 900 r e fe r e n c e s t o a r t i c l e s , b o o k s, p a p e r s, pam ph lets, and r e p o r ts on p r o d u c tiv it y measurement, f a c t o r s a f f e c t i n g p r o d u c tiv it y and s i g n i f ica n c e o f p r o d u c t iv it y changes. STUDIES OF AUTOMATIC TECHNOLOGY: (The fo llo w in g p u b lic a tio n s are f r e e . See note below .) Series o f case studies o f plants introducing automation. Describes changes and im plications fo r produ ctivity, employment, occupational require ments and industrial rela tion s. A CASE STUDY OF A COMPANY MANUFACTURING ELECTRONIC EQUIPMENT. THE INTRODUCTION OF AN ELECTRONIC COMPUTER IN A LARGE INSURANCE COMPANY. A CASE STUDY OF A LARGE MECHANIZED BAKERY (BLS Report 109) • A CASE STUDY OF A MODERNIZED PETROLEUM REFINERY (BLS Report 120). A CASE STUDY OF AN AUTOMATIC AIRLINE RESERVATION SYSTEM (BLS Report 137) • P u b lic a tio n s may be purchased from th e Superintendent o f Documents, Washington 2 5 , D .C . Free p u b lic a tio n s are a v a ila b le from the Bureau o f Labor S t a t i s t i c s , U .S . Department o f Labor, Washington 2 5 , D .C . * 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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