The digitization of the working world and its chances and risks for employees

Table of contents

1. Introduction
1.1 Introduction
1.2 Objectives
1.3 Structure of the paper

2. Theoretical background:
2.1 Overview
2.1.1 Meaning of the term "digitisation"
2.1.2 Meaning of the term "Work 4.0"
2.1.3 Meaning of the term "Big Data"
2.2 Megatrends
2.2.1 Digitalization
2.2.2 Globalisation
2.3 Theories of need
2.4 Flexible working
2.5 Key questions

3 Methodology applied
3.1 Background of the article to be analyzed
3.2 The authors
3.3 Practice-oriented implementation
3.4 Definition of categories

4 Evaluation and results
4.1 Category 1 - "Macroeconomic aspects"
4.2 Category 2 - "Employee Aspects"
4.3 Category 3 - "Technical aspects"

5 Discussion
5.1 Quality criteria
5.2 Practical relevance

6. Conclusion

Bibliography

1. Introduction

1.1 Introduction

In recent years and decades, the world has changed a lot. Borders are disappearing, markets are growing, and globalization is enabling global trade, leading to global competition. There is no end in sight to this trend. On the contrary, the world is becoming increasingly complex and networked. More and more computing power, which is available in ever smaller chips, leads to an acceleration of change and change. Being able to adapt to these ever-changing framework conditions and master the associated challenges has become vital for the survival of companies.

Hardly any other term shapes the professional and working world as much as "digitization". Their impact on the world of work is manifold. It influences automation, changes workflows, the way we communicate and enables completely new employment models. Topics on which there are many different opinions among experts and on which versatile discussions take place. This becomes particularly clear when you look at the result of a search query via Google. For example, the term "digitization" delivers over 13 million hits. The Federal Government has also reacted and, with the White Paper "Work 4.0", has given this topic its deserved importance. The theme of the White Paper is "Thinking work further" and is the result of a broad social dialogue conducted by the Federal Government with experts from the social partners, associations, companies and science. The White Paper provides answers to questions that have been formulated in advance in a Green Paper. It shows which opportunities come with digitization, in which direction things can develop and which challenges have to be mastered. Areas of tension are also identified and design tasks are formulated. What is certain is that digitization is in full swing and the discussion about it is far from over.

1.2 Objectives

The subject of this work is the investigation of digitization in the world of work and its effects. In the following, it is important to take a closer look at the opportunities and risks of digitization and to examine its influence on companies in more detail.

Particular attention is paid to the employees and their needs. The aim is to work out to what extent digitization influences their work and how companies can use digitization to respond to these needs. For this purpose, theoretical models are explained and possibilities of influence are shown.

The aim of the work is to formulate a recommendation for action for companies based on the effects of digitization on the world of work, which describes which things companies should consider on the way to digitization.

1.3 Structure of the paper

In the first part of the thesis, a first overview of the relevance of the topic "digitization" and its significance is clarified. In the second part of the thesis, the theoretical foundations of digitization are explained. This includes the definition of relevant terms and the classification of digitization as a megatrend. In the further course of the chapter, relevant theoretical models with regard to the needs of employees as well as various forms of flexible working are explained in order to be able to outline opportunities and risks for employees caused by digitization. This is followed by a derivation of the key questions with which the qualitative data analysis is carried out in the third part of the work. The evaluation and results with regard to the individual categories in the fourth part of the work are followed by a discussion in the fifth. In the sixth and final chapter, the author concludes on the importance of digitization for the world of work on the basis of the previous analysis of the report of the Hans Böckler Foundation.

2. Theoretical background:

2.1 Overview

As already mentioned in 1.3, relevant terms are to be explained in this chapter. Chapter 2.2 provides a detailed consideration of globalization and digitization as megatrends in order to get an impression of the importance and effects of digitization. Furthermore, in Chapter 2.3, well-known theories of need are intended to provide an understanding of how digitization affects the well-being of employees. Chapter 2.4 focuses on making work more flexible as a factor that is influenced by digitization, but at the same time has a major influence on the quality of life of employees.

2.1.1 Meaning of the term "digitisation"

When researching the topic of digitization, it is noticeable that many authors pursue different definition approaches. They all share the processing of information with technical aids. In the following, some of them will be presented in more detail. However, a complete representation of the topic is not claimed due to its complexity.

After cook digitalization has already begun with analog technological forms of communication. This includes, for example, Morse code, which has been used, among other things, in telegraph technology. Accordingly, digitization is a technical term "that refers to the conversion of analog into discrete data, i.e. into values within a tiered value system or stock that are clearly separable from each other." ¹ Other authors such as courtier and Schlotmann define digitization as a change in work equipment, i.e. the disappearance of analog information processing and information processing, in favor of digital information and processing chains. ² although Schlotmann does not focus on digitizing the data - for example by scanning - but rather on the digital further processing of it. ³ This is also in the sense of Haack, which describes digitization as a measure that accelerates processes and results and thus makes them more profitable. This is achieved, for example, by the fact that information is available at any time and anywhere and recurring and regulated processes can be automated using machines. ⁴ The degree of maturity of a company with regard to its digitization is determined by Schlotmann as the proportion of digitally available information that is available for systems and machines in processable form. ⁵ In the following, digitization should therefore be understood as a conversion from analog to digital and semi-automated data processing.

2.1.2 Meaning of the term "Work 4.0"

The term "Work 4.0" follows on from the discussion about the fourth industrial revolution (Industry 4.0), but focuses on forms of work and working conditions - not only in the industrial sector, but in the entire world of work. ⁶ If "Work 1.0" was still understood as the beginning of industrial society, "Work 2.0" followed with the beginning of mass production and the beginning of the welfare state. What followed was the period of consolidation of the welfare state and workers' rights based on the social market economy. This is followed by the digital transformation to "Work 4.0", which is characterized by a flexibilization of work. ⁷

2.1.3 Meaning of the term "Big Data"

"Big data refers to large amounts of data that originate from areas such as the Internet and mobile communications, the financial industry, the energy industry, healthcare and transport and from sources such as intelligent agents, social media, credit and customer cards, smart metering systems, assistance devices, surveillance cameras as well as aircraft and vehicles, and which are stored, processed and evaluated with special solutions." ⁸ This volume of data has reached an unmanageable extent and is constantly increasing. This opens up previously unknown possibilities. In this way, the economy expects "new insights into prospects and customers, their risk potential and their purchasing behavior, and generates personal profiles. It tries to optimize and make production more flexible and to bring innovations better into the markets through forecasting." ⁹ "Big data" is a major challenge for data protection, as it is often unclear to those affected which data exists at all and who is responsible for it. In addition, the duplication of data is very simple and difficult to control.

2.2 Megatrends

The term "trend" is understood to mean a change movement or a process of change in a certain direction. Trends are diagnosed in a wide variety of areas of life, be it in the economy, politics or the consumer world. Due to this versatility, trends are classified differently and anchored cognitively. A trend makes loud Horx only then "sense" if one considers it in its respective environmental and reference system. ¹⁰ Trends "[...] exist, however, in a surrounding continuity medium ("the world"), in which waves of continuous, cyclical change prevail. In a rough simplification, the meta-historical process can be understood as a layering of cyclic oscillations in which the individual levels each perform different time swings." ¹¹

The longest continuous, cyclical trends are to be diagnosed at the level of nature. Here, upswings and downturns of species and ecologies take place at intervals of millions of years. One level higher are forms of civilization that change in the century or millennium cycle. Basic technological cycles, better known as Kondratyev cycles, have a rhythm of about 50 years. These include the beginning of industrialization, the invention of the railway, electrical engineering and later single-purpose automation as well as information and communication technology. Business cycles oscillate in a basic rhythm of about 12 years and can be diagnosed in the entire global economy. Zeitgeist and market cycles behave predominantly analogously to innovation product cycles and mostly have a duration of about 5-6 years. Significantly more unpredictable than the above-mentioned cycles are those of the product and fashion waves. Horx attests to their unpredictable character. The duration of these waves rarely exceeds half a year and thus corresponds to a "season". ¹² A cycle goes through the phases of expansion (upswing), boom (boom), recession (downturn) and finally the depression (economic downturn).

A megatrend is when a trend has a half-life of at least 50 years, the trend has a global impact and on all areas of life, as is the case, for example, with Kondratyev cycles. Naisbitt also describes megatrends as "blockbusters" of change. ¹³ A description that certainly applies to digitization and globalization. The importance of digitization becomes clear when one considers the work of the Federal Ministry of Labour and Social Affairs (BMAS), which in its white paper "Work 4.0" - in addition to demographic and cultural change - has named globalization and digitization as the most important trends when it comes to the influence on the future design of the world of work. ¹⁴ In the following, the focus is on the trends of digitization and globalization.

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¹ Koch, G. (2017): p. 14

² cf. Hofmann, J. (2018): p. 14

³ cf. Schlotmann, R. (2018): p. 14

⁴ cf. Haack, C. (2018): p. 9f.

⁵ cf. Schlotmann, R. (2018): p. 14

⁶ cf. BMAS (2017): p. 4ff.

⁷ cf. Bendel, O. (2018a): Online on the Internet & Günther, J., Böglmüller, M. (2015): p. 14

⁸ Bendel, O. (2018b): Online on the Internet.

⁹ Bendel, O. (2018b): Online on the Internet.

¹⁰ cf. Horx, M. (2013): Online on the Internet.

¹¹ Horx, M. (2013): Online on the Internet.

¹² cf. Horx, M. (2013): Online on the Internet.

¹³ cf. Naisbitt, J. (1982): p. 217f.

¹⁴ cf. BAMS (2017): p. 14