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BUSI 1475 - Management in a Critical Context

University of Greenwich (UoG) FPT University, Ho Chi Minh/BUSI1475


BA (Hons) Business Management

Threats and opportunities in digital era: skilled tech workers


and labor workforces

Labor workforces in digital era

Course: BUSI1475 - Management in Critical Context

Coursework: Essay Deadline: 24/03/2023

Lecturer/Supervisor: Huynh Ai Van

Student name: Luu Ngoc Phuong Student ID: 001262634


BUSI 1475 - Management in a Critical Context

Table of Contents
I. Introduction.....................................................................................................................3
II. Globalisation...................................................................................................................3
III. Technology......................................................................................................................6
IV. Conflict and co-operation.................................................................................................9
V. Discussion/Conclusion....................................................................................................11
VI. References.....................................................................................................................12
VII. Appendix.......................................................................................................................16
BUSI 1475 - Management in a Critical Context

I. Introduction
The global virus pandemic has had a significant impact on the working world. In addition to the
threat to public health, the economic and social disruption poses a long-term threat to the
livelihoods and well-being of millions. As a result, an important thing that needs action is
businesses' focus on addressing the human side of the crisis. The company must adhere to
workplace health and safety practices, ensure access to decent work, and protect labor rights in
all industries. Recently, one of the BBC articles published titled "Skilled tech workers snapped
up despite downturn" (written on the 16th of December 2022). This article deals with the
growth of skilled tech workers despite the downturn of the economy. Besides, the status of
human resources and changes in the working environment at enterprises, especially in the
technology field, are also described in detail in this article. The essay will make judgments and
assessments based on globalization, technology, conflict, and cooperation. Firstly, the topic of
human resources in general and "skilled tech workers" in particular will explore more broadly
globally, considering globalization is dividing human resources; how to change demand and
industry trends. For the development of technology, whether people received more
opportunities and benefits in work or were entirely replaced by technology. Finally, there are
assessments of how skilled tech conflicts or problems have been and are going on. Apart from
that, this essay points out a general view about changing the labor market and some synthesis
or discussion of the author.

II. Globalisation
'Globalization is a supercomplex series of multicentric, multiscalar, multi-temporal, multiform,
and multicausal processes that reflect by multiple geographies rather than a single global
geographic region' (Dicken, 2015; p7).

triển khai ý về multi: di dời đến nhiều chỗ làm việc


(tác giả nói gì về global, global labour market -> đoạn 2 tập trung labour demand (topic
sentences)
BUSI 1475 - Management in a Critical Context

Globalization promotes economic growth and reduces unemployment and inequality, increasing
productivity and labor demand by encouraging countries to trade (Kilic, 2015; Dritsakis, 2014,
cited in Raji, 2020). However, from a part of the perspective that is human resources (HR),
globalization is a significant cause of labour market worries. It leads to adjustments to service,
manufacturing, and 'knowledge' jobs (Dicken et al., 2015). Many people believe that reversing
globalization will reverse the changes in trade, offshoring, and immigration caused by increasing
global integration and changing economic structures (Wu, 2022). Specialists in economics have
long known that opening up to international trade can have significant consequences for labour
markets, but trade accounts for only a tiny fraction of layoffs and other labour markets
(Freeman, 1995; Di Tella and Rodrik, 2020). Specifically, Acemoglu et al. (2016) estimated that
the unemployment rate in the manufacturing sector accounted for only 10% of the China trade
shock and nearly 20% when added with indirect effects. The remaining 80% comes from
different types of labour market shocks as non-trade, demand shifts, innovative technology, and
international outsourcing (Di Tella and Rodrik, 2020).

However, BBC news had shown that after the downturn caused by the Covid 19, tech workers
had to look for new jobs when the wave of layoffs in big technology companies (such as
Amazon, Google, Microsoft, Facebook, and Instagram) occurred mass spread around the world.
Moreover, companies tend to be reluctant to expand their workforce and will instead turn to
temporary tech workers (Silverberg, 2022). This news presents how the market shock from the
pandemic has changed the labor demand and initiated the division of labor and industry.

Based on Dicken (2015), the global division of labor emerged and grew more pronounced with
industrialization over 300 years. Indeed, as time passes, this structure becomes more
complicated in detail and changes in the context of geography, demographic, industry, and
culture.
Notably, in demographic factors, Burgmann (2016) argues that each generation takes another
distance, which allows for a change in the structure and division of labor. Specifically, it can be
BUSI 1475 - Management in a Critical Context

seen most clearly in the outbreak of remote work caused by the pandemic in 2019, most Gen Z
(75%) and Millennials (76%) but Gen X (only 64%) want to work from home some days and go
into the office some others day or work at home full-time (Silverberg, 2022; Tracy Brower,
2022). It shows that the working relationship for generations has shifted from full-time to part-
time, temporary, or merely short-term contracts (McKee-Ryan, 2021). The new forms of work in
the "gig economy" and high-profile layoffs force companies to redefine the "office" definition
physically and symbolically. Now it is not just about looking at the workspace but also about
how the organization will develop, deliver the culture, and plan for face-to-face and virtual
experiences for the hybrid working of employees (Jancourt, 2020; Tracy Brower, 2022).

Globalization significantly impacts labor market outcomes, associated with increasing and
changing demand for labor forces in skills, policies, minimum wages, mandatory benefits,
environment, working patterns, and on and on (Rama, 2003). Draper and Manders (1996)
argued that labor demand has shifted from low-skilled or unskilled toward high-skilled. With the
globalization of the economy, research and development has turned more toward innovative
activities. As a result, the demand for highly skilled labor tends to increase the rate of unskilled
labor, accelerating creative destruction and frictional unemployment (Raji, 2020). In addition,
globalization leads to two opposing views on the unemployment rate.

On the one hand, as society develops, people's living standards, education, and needs all
increase. As a result, unemployment is likely to rise when there is a mismatch in skills
requirements or a higher standard for hiring that leads to the layoffs of unskilled workers.
Furthermore, many sectors globally, such as construction, retail, and hospitality, have cut jobs,
and demand for workers in the sector tends to be more skilled (in particular, technology) is
increasing. Any positive development in globalization promotes economic unemployment
growth (Raiji, 2020). On the other hand, Autor et al. (2017) demonstrated that global exposure
is associated with a higher unemployment equilibrium. Large firms with highly productive are
better able to dominate and control the market. Moreover, it creates more job opportunities
when they approach globalization, dealing with human mobility in small companies with low
BUSI 1475 - Management in a Critical Context

productivity. As a result, the large firm can reduce the labor ratio to the income gap between
sectors and decrease income inequality and unemployment within economies.

Society is increasingly developed and has passed through typical historical societal periods such
as hunting-gathering, agriculture, industry, Fordism, service, and post-industrial. Especially in
the information society, machines have gradually replaced manual workers, but job growth in
other industries is still expanding (especially the IT industry) (van den Besselaar, 1997).
Seemingly, it creates sustainable opportunities for skilled tech workers in today's information
society.

III. Technology
Accessing, adapting, and deploying modern and innovative technologies are the driving forces
of a country in promoting its knowledge-based economic growth and development strategy.
Technological change is estimated to have caused at least half of the decline in the share of
employment in advanced economies (Lawrence, Roberts, and King, 2017). The main change is
automation which focuses on digital systems or robots replacing human actions (Norton, 2017).
This shift is due to the penetration and rapid change of information and communication
technology (ICT) and a high proportion of easily automated jobs (Hanclova et al., 2015;
Lawrence, Roberts, and King, 2017). Technological change brings many advantages and
disadvantages and leads to conflicting opinions in the labor force. Spencer (2018) believes that
automation reduces working time and distribution work more evenly for everyone, not only in
technology labor but in any field. It helps to overcome the anomaly between overworked
people and unemployment for others. However, automation also leads to unequal workforce
adjustments across companies and industries. Typically during Covid19, technology companies
like Amazon and Shopify prospered while other businesses and sectors (such as restaurants,
hotels, and catering) struggled. Furthermore, the number of tech workers is still growing, and
there are job opportunities despite the downturn. In contrast, 72% of food service workers in
the UK, around 80% of staff in the hospitality and tourism industry in the UK, Canada, and the
BUSI 1475 - Management in a Critical Context

United States fell into a state of hiring cessation, reduced working time, or layoffs (Silverberg,
2022; OECD, 2021).

Technology is not only a computer or relying on a PC or an internet connection to support


people's work requirements and personal needs. Technology has been converted to a system of
digitization, miniaturization, artificial intelligence (AI), cloud computing, and more to create
faster completion of work and communication anywhere and at any time (Friedman, 2005). An
important of changing the context is that AI applications can perform muti-tasks in today's labor
market. Therefore, workers throughout the labor market may need to upgrade their skills
regularly to adapt to changing requirements and demand for labor (Norton, 2017). That is why
tech workers with high skills in automation, AI, and cloud technology do not faze in the wave of
heavy layoffs. Tech workers have more opportunities for other sectors' labor while collecting
and processing data are mentioned by more and more businesses to learn more about their
customers and organize better (Silverberg, 2022). Specifically, from 2018 to 2021, the US led the
way with a 116% increase in ads for data engineers as job postings reached 24%. Furthermore,
other countries (like Canada, France, Italy, the UK, and Singapore) make up 6-12% of all
vacancies posted online, and this is steadily increasing (OECD, 2021). It means that technology
creates a big gap between the high and slow skilled or increased unemployment rate for an
unskilled workers in the technology sector as well as other sectors.

Determinists' view states that technology is an enabling or facilitating agent for economic
transformation (Kerr, 1960).

According to Raji (2020), globalization and technology are a bi-causal relationship; globalization
and technology promote back and forth in decreasing the unemployment process, income, and
gender inequality that drive economic growth and transformation.
BUSI 1475 - Management in a Critical Context

As mentioned in the globalization section, globalization has promoted the division of labor
between generations and industries. Therefore, for technological innovation, this division is
even more pronounced. For example, we can see that Gen Y is the first wave of the digital
generation, and Gen Z was born in a highly developed digital era. Therefore, they have a high
level of digital literacy; they easily and quickly absorb the use of new tools and equipment in IT.
On the other hand, generation X was born in a context that witnessed the birth of home
computers, the development of video games, and the Internet as a tool for social and
commercial purposes (McCrindle, 2021). As a result, each generation approaches technology
differently, creating a gap in norms, mindsets, and behaviors in their work and life (Bencsik,
2016).

Technological change continues to create more jobs than it destroys,

Especially, in today's workforce, the development of technology is transforming the workplace


and is a factor dividing generations into organizations (Topuzovska and Borota, 2020).

Topuzovska, M. and Borota, M. (2020). Managing Millennials in the African Workplace: What
the Millennials Need. Journal of Organizational Psychology, 20(2).

Because of the outstanding development of technology, specialization is Gen Z, and they have
more opportunities to study, exchange, and experience more internationally. Therefore, Gen Z
desires and aspirations for more challenging jobs, leading to higher requirements in choosing
their jobs. It is a fact that just a few years ago, the promise of high salaries, innovative work
culture, and outstanding benefits from a technology company was a "Golden ticket" for
Millennial job seekers. In the opposite case, Gen Zs delayed with the negatives and their
growing concerns about the ethics of specific activities in the tech sector (Stahl, 2021). Until
now, Gen Z's decision to choose a job is not just about salary anymore but also a process of
evaluation and selection about culture, ethical issues, working environment, and the
sustainable development of an enterprise.
BUSI 1475 - Management in a Critical Context

An empirical study by Basid and Atmaja (2022) demonstrates the characteristics of the Gen Z
workforce for factors that improve the "gig economy" through a survey of 273 respondents in
Bandar Lampung city of Indonesia. The rapid development of technology has changed the world
of work, causing the emergence of new types of work, such as freelancers, translators, and
more part-time or contract workers. Specifically, in the Global economy index and Badan Pusat
Statistika (BPS) data in 2019, the number of freelancers has increased by more than half
compared to existing job types in the US and UK. Moreover, there are signs of an increase in this
ratio in other countries. However, the acceleration of digital transformation in Indonesia is
relatively slow and only begins to accelerate at the end of 2020. Besides, Generation Z workers
make up the majority of the population in Bandar Lampung City, and their entry into the world
of work has brought about dramatic changes in the employment structure in Indonesia. Gen Z
can access the internet and technology quickly, so it is natural for Bandar Lampung City to
experience the development of a gig economy. Freelancers, celebrities, part-timers, and
contract workers in small and medium businesses started to appear more and contributed Rp
471 billion to the economy by Bandar Lampung (Basid and Atmaja, 2022).

All in all, Gen Z's rapid adaptation to technological developments brings diversity, breakthrough
innovation, and positive changes to businesses and the economy compared to other
generations. A notable adaptation is that businesses increasingly focus on their responsibilities
to society when corporate participation in CSR is one of the job selection criteria of gen Z
(Bieleń and Kubiczek, 2020). Besides, technology is also the cause of division, changing needs,
and trends for human resources between regions and industries. Based on Appendix 1,
technological differences create a significant gap between manufacturing and service sectors in
job growth in European countries (Veugelers, 2013). For regions worldwide, the technological
frontier has a disparity between the company in the high-income and developing country
BUSI 1475 - Management in a Critical Context

contexts. Companies with more capabilities and technological sophistication are more
productive and resilient (World Bank, 2022).

IV. Conflict and co-operation


Industrial conflict refers to the total spectrum of attitudes and behaviors expressing opposition
and divergent orientations between individual owners and managers and working people and
their organizations (Kornhauser, Dubin, and Ross, 1954). Conflict is inevitable because complex
issues' branching and ambiguous nature seem to give rise to incompatibilities between task-
related and people-oriented team members (Janssen, Van De Vliert, and Veenstra, 1999).
According to BBC news, a significant fact is that businesses are reluctant to expand their
workforce but will instead turn to temporary technology workers after the Covid-19 shock in the
market (Silverberg, 2022). In addition, globalization and technological development have
increased the number of temporary or contract workers (Basid and Atmaja, 2022). Therefore, it
will quickly provoke conflicts about employment conditions, rights, and working contract laws
among employees, unions, and managers in the same organization. Not only in technology
companies but also in other sectors, there are conflicts between regular workers and contract
workers. A typical example of contract workers at a main Korean auto company being
discriminated against by store managers or unions is becoming victims to protect the interests
of regular workers. Furthermore, contract workers are mistreated and have apparent status
differences in a work environment, and they are in a superior-subordinate relationship rather
than a co-worker with central employees. As a result, frequent conflicts arise between workers
and unions when each individual is only interested in interests, and often the ones who quit will
be the contract workers (Byoung-Hoo and Frenkel, 2004).

Since the second half of the 20th century, private life and the composition of families have also
changed substantially. In the past few years of the 21st century, diversity in families and
workplace organizations has increased (Bianchi & Milkie, 2010). Hence, work-life conflict, work-
life balance, and work-family conflict terms gradually appear in the working environment.
Greenhaus and Beutell (1985) argue that work-life conflict arises from the incompatibility of
BUSI 1475 - Management in a Critical Context

simultaneous pressures from the work and personal sectors in certain respects. As the wave of
layoffs took place globally after the COVID epidemic, it increased anxiety and pressure on
employees about their job positions, living costs, and health. In particular, the generational
difference between management and employees in skills and retention, values, motivation, and
working style preferences is also a factor causing conflicts in the workplace (Gabrielova and
Buchko, 2022).

Gabriela and Buchko (2022) provide a case study on the relationship between superiors and
subordinates among millennials and Gen Z. Although these two generations have many
similarities in sharing work values such as work-life balance, work-family harmony, achievement,
a supportive environment, and career development through regular feedback, some important
points cause conflict between them. Take the case of work-life balance, Millennials are also
looking for flexible schedules that provide a better work-life balance, but they are more focused
on their personal lives than their careers. Meanwhile, work-life balance is the most significant
factor for Generation Z when choosing a job. Gen Z's willingness to complete a task and then
consider the individual will be greater than millennials, due to a distinct difference in work
priorities (Gabrielova and Buchko, 2022). Consequently, Gen Z is valued more highly by the
organization for its performance, thereby causing envy, win or loss, and the crowding out of
managers toward employees. As for teamwork, Adecco (2016; cited in Gabrielova and Buchko
2022: 495) indicates that Generation Z prefers working independently and tends to shy away
from participating in teamwork. By contrast, millennials prefer teamwork because they have
faith in partnerships, cooperation, and relationships and are loyal to the group rather than the
organization (Casey, 2015; cited in Gabrielova and Buchko 2022: 495). Therefore, these two
generations are likely to have conflicts in the process of communication as well as support each
other during the implementation of projects. For this reason, managers or the company must
have a solution to how these two generations work less together but still ensure the outcome of
the work is at the highest level.
BUSI 1475 - Management in a Critical Context

Cooperation is the interactive behavior of helping, supporting, absorbing the opinions and
perspectives of others, and simultaneously working toward consensus on the group's goals and
interests (King, Hebl, and Beal, 2009). With many technological changes and innovations around
the globe today, it is increasing the contradictions in human resources regarding gender and
income inequality, labor division, generational differences in personality, and countless other
aspects. Therefore, cooperation is essential to take advantage of new technologies in the most
optimal way for the development goals of the organization and the country. Technology
cooperation enhances through business-to-business partnerships. In addition, cooperation can
enhance through the connection with research institutions, local and national governments,
NGOs, and intergovernmental organizations that will strengthen the capacity to adapt,
disseminate and sustainably use new technologies (UNIDO, 2002). According to news sources,
the European Union is currently struggling with a shortage of about 1.8 million ICT
professionals, with both skills shortages and low qualifications. While the pandemic increased
the demand for cybersecurity skills, a global cybersecurity workforce gap is more than 2.72
million positions. In addition, businesses will still require technology resources and software
development projects (Hazy, 2022; Silverberg, 2022). Thus, Codecool and the Software
Development Academy (SDA) have joined hands to create better digital skills and a sourcing
powerhouse in Central Europe. It will keep growing and consolidate its position in the
technological world as it enters new markets. The merger could settle the global battle for
digital talent among coders and programmers. At the same time, upskilling employees and
employers helps to reduce the gap between high-skilled and low-skilled tech workers or fill the
recruitment gap (Hazy, 2022).

V. Discussion/Conclusion
In term labor workforce, the good link between economic globalization and technological
innovation helps improve economic growth by reducing the escalation of the unemployment
rate and income inequality (Raji, 2020). However, this relationship also causes mixed flows. On
the one hand, globalization and technology make human resources more differentiated, more
demands for both workers and employers, and increase unemployment or inequality. In view of
BUSI 1475 - Management in a Critical Context

the fact, low-skilled or unskilled workers seem to be replaced and eliminated by high-skilled
workers, technology motorbike taxis overwhelm traditional motorbike taxis, the IT field has the
appearance of women, and so on (BBC new, 2023; Forbes, 2023). On the other hand,
globalization makes people's lives and works more convenient, and access to knowledge and
cultural flows of countries more easily. Technology enhances the digital infrastructure which
allows labor to participate in global work platforms (Norton, 2017). Therefore, it is not as
significant to oppose or defend this innovation as that the labour should focus on developing
skills for themselves in the most comprehensive way to respond and adapt quickly to the
change of today's market.

Not only the technology industry and most industries today deploy and apply technology quite
a lot in the "information society".
BUSI 1475 - Management in a Critical Context

VI. References
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Dicken (2015) Global Shift: Mapping the Changing Contours of the World Economy. 7th edition,
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Hazy, F. (2022). Codecool and SDA merge to become a European digital skilling and sourcing
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OECD (2021). "An assessment of the impact of covid-19 on job and skills demand using online
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Stahl, A. (2021). How Gen-Z Is Bringing A Fresh Perspective To The World Of Work. [online]
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van den Besselaar, P. (1997) “The future of employment in the Information Society: A
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Wu, N. (2022). Misattributed blame? Attitudes toward globalization in the age of automation.
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Fukuyama's thesis is that globalization is the development of society moving towards free
markets and is driven by human agencies, selecting interests of some stakeholders, or economic
imperialism (Fukuyama, 1992).

VII. Appendix
Appendix A
BUSI 1475 - Management in a Critical Context

Source: (European Commission 2016), p. 301

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