istanbul bilgi university institute of social sciences organizational psychology master's degree

153 Pages·2017·2.11 MB·English

by  Mehmet Cakmak

ISTANBUL BILGI UNIVERSITY
INSTITUTE OF SOCIAL SCIENCES
ORGANIZATIONAL PSYCHOLOGY MASTER’S DEGREE PROGRAM

IMPACTS OF INDUSTRY 4.0 ON LABOUR FORCE AND BUSINESS
ORGANIZATIONS: A QUALITATIVE ANALYSIS OF CONSULTANTS,
EXPERTS AND UNIONS’ INTROSPECTIONS

Mehmet ÇAKMAK
115632009

Asst. Prof. İdil IŞIK

ISTANBUL
2018
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ACKNOWLEDGEMENT

First of all, I would like to express my gratitude to my thesis advisor, Idil Işık,
who helped me in choosing my thesis topic, supported me with her extensive
feedbacks in the process of writing the thesis, and shared her valuable knowledge
with me. She has always been such an inspiration source for me, and it was a
great pleasure to work with her.
I would also like to express my sincerest gratitude to all the participants who
participated to interviews and shared their valuable experiences and thoughts
with me. It was impossible to accomplish this thesis without their contribution.
Their sharing enlarged my horizon and encouraged me to focus on my topic for
the future.
I am also thankful to my managers and colleagues for their invaluable support for
me during my thesis process. I thank them for their patience for the days and
meetings I attended sleepless and late.
I also would like to extend my thanks to my parents, my brother Zülfü, my dear
fellow Alf, and my dear friends Selma Çoban and Nikos Efthimiadis for
supporting me during this process. The emotional support they gave me was
absolutely unique and invaluable.

Thank you.

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TABLE OF CONTENTS

FIGURES...............................................................................................................................................viii
TABLES....................................................................................................................................................ix
ABSTRACT..............................................................................................................................................x
ÖZET...........................................................................................................................................................xi

CHAPTER 1........................................................................................................................................... 1
INTRODUCTION................................................................................................................................1
1.1. CONCEPTUAL BACKGROUND...................................................................................8
1.1.1. The Concept of Industry 4.0.............................................................................................8
1.2. THE MAIN COMPONENTS OF INDUSTRY 4.0……......................................11
1.2.1. Cloud.............................................................................................................................................12
1.2.2. 3D Printers............................................................................................................................... 12
1.2.3. Cyber Security....................................................................................................................... 12
1.2.4. Internet of Things.................................................................................................................13
1.2.5. Innovation..................................................................................................................................14
1.2.6. Artificial Intelligence..........................................................................................................15
1.2.7. Smart Factories......................................................................................................................16
1.3. THEORIES ON HUMAN RESOURCE MANAGEMENT DURING
INDUSTRY 4.0 DEVELOPMENTS.............................................................................17
1.4. INDUSTRY 4.0 - EMPLOYMENT AND JOB PROTECTION................18
1.5. INDUSTRY 4.0 AND WORKER UNIONS..............................................................21
1.6. AIM OF THE STUDY……………………………...............................................................23
1.7. RESEARCH QUESTIONS…………………….................................................................24

CHAPTER 2……………………………………………………..……………………………….…...25
METHOD………………………………………………………………………………………….…...25
2.1. SAMPLE AND PARTICIPANTS 25
.............................................................................................
2.2. INSTRUMENTS 28
…………………………...............................................................................................
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2.3. DATA COLLECTION AND PROCEDURE..................................................................28
2.4. DATA ANALYSIS..................................................................................................................................30

CHAPTER 3 34
...........................................................................................................................................................
RESULTS 34
................................................................................................................................................................
3.1. MAIN THEMES...................................................................................................................... 35
3.1.1. Definition of Industry 4.0.................................................................................................35
3.1.1.1. Automation and Robots…............................................................................................36
3.1.1.2. Digitalization.......................................................................................................................................37
3.1.1.3. Internet of Things.............................................................................................................38
3.1.1.4. More Beneficial Usage of the Internet Infrastructure...............................40
3.1.1.5. Continuous Process......................................................................................................... 40
3.1.1.6. Virtual and Cyber-Physical Systems....................................................................41
3.1.1.7. Changes in Business Models.......................................................................................42
3.1.1.8. Machine Learning.............................................................................................................43
3.1.1.9. Smart Factories..................................................................................................................44
3.1.1.10. Integration of Components Comprising Value Chain............................45
3.1.1.11. Integration Between Machines and Humans................................................46
3.1.2. History of Industrialization............................................................................................46
3.1.2.1. Factors Triggering Industry 4.0..............................................................................47
3.1.2.2. New Era: Industry 4.0....................................................................................................48
3.1.2.3. 1st Industrial Revolution...............................................................................................49
3.1.2.4. 2nd Industrial Revolution.............................................................................................50
3.1.2.5. 3rd Industrial Revolution..............................................................................................50
3.1.2.6. Social Impacts of Industrial Revolution ............................................................51
3.1.3. Industry 4.0-Related Developments In Turkey…..............................................53
3.1.3.1. The positioning of Turkey...........................................................................................53
3.1.3.2. Expected Time Schedule for Turkish Companies’ Transformation.54
3.1.3.3. Digital Developments In Public And Private Sectors.................................55
3.1.3.4. Inadequate Improvements In Organizational And Social
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Infrastructure.........................................................................................................................55
3.1.3.5. Industry 4.0-Oriented Companies in Turkey..................................................56
3.2. INDUSTRY 4.0’ STAKEHOLDERS AND IMPACTS……………………….56
3.2.1. Stakeholders Of Industry 4.0 Transformation Process…………………….56
3.2.1.1. Internal Stakeholder……..………..………….…………………………………..……57
3.2.1.1. External Stakeholders………………………..……………….…………………….…57
3.2.2. Sectors To Be Affected By Industry 4.0………………………………………..…58
3.2.3. Impacts Of Industry 4.0 On Blue-Collar Worker……………………………59
3.2.3.1. Impacts of Industry 4.0 on Employee-Employer Relationships…......60
3. 2.3.2. Change in Blue-Collar Concept………….……………………………………….61
3.2.3.3. Job-Protection/Preservation Problem For Qualified Employees and
Unemployment……………………………………………………………………………62
3.2.4. Role Of Public Institutions In Industry 4.0…….…….………………………....63
3.2.4.1 Support to Educational Institutions…...………………….………..…………….64
3.2.4.2. New Regulation………...…………….…………..……..…….…………………………..64
3.2.4.3. Supporting New Developments with Incentives…..……….………….…….66
3.2.4.4. Training Employees and Employers for Emerging Needs…….…….…66
3.2.5. The Roles Of Unions In Industry 4.0………………….……………….……….….67
3.2.5.1. Increasing Awareness of Employees…………………………………………….67
3.2.5.2. Enlarging Target Population………….…………………………………………....68
3.2.5.3. Industry 4.0 Is Not On The Agenda………………………...……….…………..68
3.2.5.4. Adaptation To New Digital Circumstances…….………….……...………….69
3.2.6. Impact On Employment Of Women……………...…..............................................70
3.2.6.1. Current Situation of Women’s Employment in Turkey…….….............70
3.2.6.2. Positive Discrimination…….…....................................................................................71
3.2.6.3. Encouragement of Women’s Involvement in Business………...……......72
3.2.6.4. Genderless Business Environment………...………….……..….......…………....72
3.2.6.4. Coding Capacity of Women……………..………………..…........………………...73
3.2.7. Industry 4.0 And Employees With Disabilities……………………...…….......73

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3.3. TRANSITION TO INDUSTRY 4.0……………………...………................…………74
3.3.1. Emerging Professions………………………….……………………………………..…..74
3.3.2. Perspectives On Future….……………….…………………..………………………….77
3.3.2.1. Increase in Leisure Time………………...………………………......…….................77
3.3.2.2. Society 5.0.……….…………….….…………….......……………………………..…..…...78
3.3.2.3. Industry 5.0……………..….…….…………………………………….......……………...78
3.3.2.4. Longer Human Lifetime/Slowing Aging Process…………..……………...79
3.3.2.5. Non-Physical Workplaces……………..……………………………….....………....79
3.3.2.6. Grey-Collar Worker Concept……………..…...………….…………….………...79
3.3.2.7. Taxation of Robots……………..…...…………….……………...…….........................80
3.3.3. Existing And Potential Problems In I4.0 Transition Process……..….…80
3.3.3.1. The readiness of Technological Infrastructure………..…………………...80
3.3.3.2. Lack of Capacity in Human Resources Departments………..……….....81
3.3.3.3. Pressure From Bosses For Transformation………….....................................82
3.3.4. Solutions To Problems Of Industry 4.0 Processes...........................................82
3.3.4.1. Education Related Solutions…………..………………………….………...............83
3.3.4.2. Business Process Related Solutions…………….……..………...………..............86
3.3.4.3. Cyber Security Solutions and Private Data Protection……………...…..89
3.3.5. Advantages And Disadvantages Of Industry 4.0 For Companies……..89
3.3.5.1. Disadvantages of Industry 4.0 for Companies…………................…………89
3.3.5.2. Advantages of Industry 4.0 for Companies………...…………...……………92
3.3.6. Misconceptions About Industry 4.0……………………..………..…….…….….…96
3.3.6.1. Immediate Impacts/Changes…………………………………………………….….97
3.3.6.2. Dark Factories……………………………...……………………………………………..97
3.3.6.3. Artificial Intelligence Is Not Robot Technology……………………..…..…97
3.3.6.4. PR and Marketing-Oriented Industry 4.0 Perspectives……………..….98
3.3.6.5. Social Media Is Not Industry 4.0……………………..……….………..………….98
3.3.6.6. No Exact Transition Timeline For Industry 4.0…………….……...………98
3.3.6.7. Neo-Luddism Effect…………...….……………………………………………...….….99
3.3.6.8. Unemployment of Blue-Collar Workers………………………………….……99
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3.4. CONTRIBUTIONS OF FACE-TO-FACE INTERVIEWS AND
SECOND-HAND DATA TO ANALYSIS..……..................................................101
3.4.1. Themes Taken From Face-To-Face Interviews And Second-Hand
Data……………………..…...………….……………...……....................................................102
3.4.2. Themes Just Taken From Second-Hand Data……………………..…...........102
3.4.3. Themes Just Taken From Face-to-Face Interviews…..................................103

CHAPTER 4……………...................................................................................................................104
DISCUSSION……………................................................................................................................104
4.1. ARGUMENT: INDUSTRY 4.0 DEVELOPMENTAL PROCESS.........107
4.1.1. Industry 3.0 And Historical Roots of Industry 4.0..…..................................109
4.1.2. Industry 4.0 Related Attempts in Turkey..….....................................................110
4.1.3. Social and Business-Related Impacts…………………….....................................110
4.1.4. Transformation Problems and Solutions…………………................................112
4.1.5. Future Perspectives……………...…………....................................................................114
4.1.6. Fully Implemented Industry 4.0 Processing…………......................................115
4.1.7. Industry 5.0……………….......…………………….…………………................................115
4.2. IMPLICATIONSTIONS OF THE STUDY………..............................................116
4.3. LIMITATIONS OF THE STUDY……………….......................................................117
4.4. FUTURE RESEARCH…………………….......................................................................117

CONCLUSION……………….........................................................................................................119
REFERENCES……………….......……….......................................................................................120
APPENDICES………………...........................................................................................................135
Ethics Approval Form………………..........................................................................................135
Informed Consent Form (in Turkish)………….................................................................136
Informed Consent Form (in English)…………..................................................................138
Interview Questionnaire (in Turkish)………….................................................................140
Interview Questionnaire (in English)…………..................................................................143
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LIST OF FIGURES

Figure 3.1.2.2. Industrial Revolutions in Production……....………………........49
Figure 4. A Network-Centric Approach…….………………...………...……........106
Figure 4.1. Industry 4.0 Developmental Process Model……...........……........108
Figure 4.1.4. Gartner’s Hyper Cycle Model……....……………...…………........113

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LIST OF TABLES

Table 1.1. Forecasts of Industry 4.0……....……………………………….………...…….......10
Table 2.1. Demographic Information of Face-to-Face Interviewees.………………26
Table 2.1.2. Second Hand Data……....…………………………….……………...…….............27
Table 2.2. Sub-scales Questions of The Questionnaire……….……….……..................28
Table 2.4. Illustration of Open Codes, Sub-Categories, and Main Themes...........33
Table 3.1. Main Themes……....…………………………...………………….………...…….......34
Table 3.1.1. Definition of Industry 4.0……...………….....………………….……….….....35
Table 3.1.2. History of Industrialization…...............…………………….….……...…….....47
Table 3.1.3. Industry 4.0-Related Developments in Turkey……..…...…….................53
Table 3.2.1. Stakeholders of Industry 4.0 Transformation Process…….........……...57
Table 3.2.1.1. Open Codes of Internal Stakeholders….....….……….…………………...57
Table 3.2.1.2. Open Codes of External Stakeholders........……………………………....58
Table 3.2.3. Impacts of Industry 4.0 on Blue-Collars……………………...............…....60
Table 3.2.4. Role of Public Institutions in Industry 4.0…..……………..……...…….....64
Table 3.2.5. The Roles of Unions in Industry 4.0……………...……...…….……….…....67
Table 3.2.6. Industry 4.0's Impact on Employment of Women…………………........70
Table 3.3.1. Emerging Occupations……………………...........................................................74
Table 3.3.2. Sub-Categories of Futuristic Perspective…………………………….…….77
Table 3.3.3.5. Open Codes of Education Related Solutions….….................................83
Table 3.3.3.6. Open Codes of Business Related Solutions….…....................................86
Table 3.3.4.1. Disadvantages of Industry 4.0 for Companies………..………..……....90
Table 3.3.4.2. Advantages of Industry 4.0 for Companies………………………..…....92
Table 3.3.5. Misconceptions about Industry 4.0……………...…………..…….…............96
Table 3.4.1. Mutual Themes……………...…………………………………………………….102
Table 3.4.2. Themes Just Taken From Second-Hand Data…………...…….…….….103
Table 3.4.3. Themes Just Taken From Face-To-Face Interviews…...……….…….103

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