Monday, July 19, 2010

Industrial age Vs Information age systems

Always saw, aged employees in various work places create hindrance to improving work flow, introducing new technology and streamlining the process. Many times they actively/furiously opposed new techniques to improve productivity.

R. Kiyosaki explains clearly why this happens. According to him many places are still using Industrial age practices and ethics that don’t suit Information age practices.

Industrial age system
- Job Security
- One job for life
- Defined benefit pension plans which employer is responsible of.
- Social security and Medicare benefits
- And most important of all : Seniority was an asset.
Which means older one got on the job more the value of him/her to the employer

Information age system
- Require financial security and independence
- People are free agents who can have many professions during their life time.
- Social security and Medicare is uncertain.
- Seniority is a liability because employers are always on the hunt for younger workers with more current technical skills who works for less.

Senior person might have better overall knowledge of how system works in a certain place. But as time passes his/her knowledge gets more and more out dated and he/she becomes less and less productive.
But business has to keep increasing their wages due to seniority. At a certain point senior worker will actively oppose a major process reengineering because it involves new skills/technologies that he/she is now not aware of.

Fascinating... yet has seen more than once.

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