1 AIT Asian Institute of Technology

The impact of global technological change on textile and garment workers :a comparative study of Bangladesh and Thailand

AuthorIslam, Nazrul
Call NumberAIT Diss no.SM-02-02
Subject(s)Textile workers--Effect of technological innovations on--Bangladesh
Clothing workers--Effect of technological innovations on--Thailand

NoteA dissertation submitted in partial fulfillment of the requirements for the A ward of the Degree of Doctor of Philosophy, School of Management
PublisherAsian Institute of Technology
AbstractTextile and ga1ment companies in developing countries use labor-intensive technologies because of low cost labor supply. The manufacturing technology of these companies has been changing towards more sophisticated and capital-intensive production from the development of new technology and the change in customers demands. This change in technology has decreased job security, job satisfaction and deteriorated work relations. This study analyses the relationship of job security, job satisfaction, and work relations with the overall impact of technological change. The impact of the change on workers in Bangladesh and Thailand was examined separately and compared. The overall impact on workers is defined in socio-economic terms. It includes economic factors such as, income, benefits and social concerns, such as, family, or status. Technological change refers to adapting a machine or manufacturing process that is new to the working environment and is more advanced compared to that used previously. Both workers and managers were surveyed to examine their views on the impact of technological change. The sample included 610 workers and 229 managers from textile and ga1ment companies in Bangladesh and Thailand. A set of variables related to job security, job satisfaction, and work relations was developed to measure the various impacts (Slem and Levi, 1995). The results show that the job security of Bangladeshi workers is negatively affected by technological change through increased work pressure, demands for newer skills, growing frustration and higher uncertainty. The positive influence of the change on job satisfaction includes work satisfaction, sala1y increases, improvement of task significance, better promotion, and better worker relations. Unfair pay, increased goal ambiguity and bureaucracy have a negative effect on job satisfaction. Increased training and skill development, fewer assignments, reduced conflict, and limited downsizing improves work relations. Work satisfaction, task significance, goal clarity, benefits are significantly related to the overall impact of technological change. Job security is found less important on the overall impact of technological change of Bangladeshi workers. The job security of Thai workers is positively affected by the technological change through decreased frustration. Increased skill demand is a negative influence. The positive associations for job satisfaction include fair pay, good worker relations, better job advancement, and quality supervision. Work relations are positively affected by the change through more training and skill development. Job security, job satisfaction, and work relations is positively associated with the overall impact of technological change on Thai workers. On the negative side, worker frustration, relocation of workers, and downsizing have a significant correlation with the overall impact of the change. Goal clarity, better benefits, job advancement and worker support are positively related to the change. Bangladeshi workers significantly differ with Thai workers regarding work pressure, uncertainty, skill demands and frustration. Bangladeshi workers are more negative to these impacts compared to Thai workers. Both groups strongly perceive that the change increased skill demands, extra work, and compelled them to learn about new and advanced machines. The significant differences between the workers in job satisfaction include fair pay, work satisfaction, task significance, goal clarity, benefits, promotion, and co-worker relations. Bangladeshi workers strongly believe that the pay is unfair because it is quite lower than the standard. Thai workers do not have a problem with pay. Bangladeshi workers are less positive to benefit increases than the Thai workers. They are less satisfied with the work because of their low ability to adapt new machines and the negative feelings on pay. Workers strongly believe that the change made their jobs more significant. Bangladeshi workers are more positive to the increased task significance compared to Thai workers. Workers are highly concerned about the increase of bureaucratic rules and procedures in their companies because it often blocks good efforts. They like their coworkers. Bangladeshi workers are more positive to the improvement of co-worker relations compared to Thai workers. Although, Bangladeshi supervisors are competent in directing workers they are unfair. They show little attention to the feelings of subordinates. Thai workers believe that their supervisors are quite competent and fair. Work relations are significantly different between the two groups. The differences are in training and development, conflicts, and downsizing. Both groups have anxiousness about the new and advanced machines. Bangladeshi workers are more positive to the increased training and skill development compared to Thai workers. They do not think that technological change increased conflicts and eliminated jobs from the company. Thai workers also believe that the change did not increase conflicts. However, they believe that the change did increase downsizing of lower skilled jobs. Bangladeshi workers emphasize that the change results in strikes, while Thai workers do not. Worker motivations, labor-management relations, settlement of disputes, and availability of skilled workers are the major problems faced by Bangladeshi managers after the change. Thai managers encountered problems concerned with high skill demands for the workers and availability of skilled and unskilled workers. The more incentive pay, more worker motivation and the fewer problems in labor-management relations will lead to a higher positive impact on Bangladeshi workers. While, more worker motivation, better performance of workers, less skill demands, more recognition and less formal performance appraisal will result in a more positive impact on Thai workers. The approaches suggested in this study require companies to improve management styles, human resource development (HRD), job design, and organizational strategy in the change process. They need change the orientation from low cost to high value. This can facilitate the introduction of new and advanced technologies in labor-intensive companies of developing countries. Although, a better change process will be difficult to manage but it can increase the positive impact of technological change on workers in a rapidly competitive textile and garment industry with an eroding competitiveness of labor.
Year2002
TypeDissertation
SchoolSchool of Management
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Swierczek, Fredric William;Swierczek, Fredric William;
Examination Committee(s)Amin, A.T.M. Nurul;Truong Quang;Sushil;
Scholarship Donor(s)Government of The Netherlands (TCDC);
DegreeThesis (Ph.D.) - Asian Institute of Technology, 2002


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