AN AGE OF SECURITY 1

Age of Security

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An Age of Security

During the 1950s and 1960's it was referred to as "an age of security." It was when World

War II had reshuffled the world economic order with the aftermath of the war. Economies

around the world were shaken and shrunk during this time. However, the post-industrial

economy brought changes over time. Workers and businesses were affected in equal measures.

The factor that led to the 1950s and 1960s being called an age of security was the peak of

mass production, the collapse of the industrial economy, and the social contract. World War II

changed plundered most economies of the world, shrinking their GDP. Mass production was at

its peak during this period. Generally, products were produced in large quantities through

improved technology. Social contracts also took the lead in employment in the economy. During

this period, jobs were more secure, well paid, and employers got peace and increased

productivity.

However, tremendous change has occurred within production and employment. The

shareholder value model, weakened government intervention, and increased competition came

into play. The production economy changed to market capitalism rather than central planning.

The forces of supply and demand coupled with consumers' choice determined which product to

manufacture.

First factor for change in the age of security was the social transformation of the labor

force (Arabandi. n.d). Before, workers used to have standardized employment contracts where

they worked full-time for a single employer. However, during economic transformation, workers

lost their terms in their labor contract. Workers' contracts became flexible and were adjusted

according to market conditions. Furthermore, workers bargained individually, increasing salary

discrepancies within the organization and occupation.

AN AGE OF SECURITY 3

The second change in the factors of the age of security is mass production. Mass

production experienced foreign competition and advancement in technology (Arabandi. n.d).

Business, therefore, no longer depends on mass production techniques but adjusted production

with consumers' demands using just-in-time technology. Production and labor costs were

reduced while increasing profits.

Lastly, Business changed their focus from profit maximization to shareholders' value

model. Businesses focus on cost reduction to improve the organization's profit margin, which

will give the best return to shareholders (Arabandi. n.d). The change in employment contracts

and production aims to create more shareholder value in the long run. Shareholder value

maximization has become a central core function to management in current business operations.

In conclusion, the 1950s and 1960s were an age of security where workers enjoyed

standardized contracts and fair pay. It was also characterized by mass production and reshuffle

the global economic order. However, the age of security has seized to exist with economic

transformation, which has introduced liberalism, social change, advanced technology, and

increased competition.
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References

Bhavani Arabandi. (n.d) Globalization, Flexibility and New Workplace Culture in the United

States and India.