Response of HRM Functions to Threats and Opportunities from Disruptive Innovations

This report evaluates the response of HRM functions to threats and opportunities from disruptive innovations such as Artificial Intelligence (AI) and 3D Printing Technology. It discusses the implications of these technologies for HR managers and provides recommendations for organizations to play a proactive role in preparing for these disruptive innovations.

Human Resource Management

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Table of Contents
Introduction...............................................................................................................................2
Part A..........................................................................................................................................3
Artificial Intelligence (AI)........................................................................................................3
3D Printing Technology..........................................................................................................4
Part B..........................................................................................................................................5
Response of HRM Functions to Threats and Opportunities from Disruptive Innovations....5
Recommendations.................................................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
In today’s competitive business world, organisations rely on disruptive innovations in
order to generate a competitive advantage in the business because it enables them to
change as per the market conditions. Many incumbents have failed in the market because
challengers rely on disruptive innovations to exploit their customer base and gain a
competitive advantage in the market (Gobble, 2012). These disruptive innovations also
create threats or opportunities for human resource management (HRM) practices which
companies have to take into consideration while implementing HR strategies (King &
Baatartogtokh, 2015). The objective of this report is to evaluate two disruptive innovations
and their potential implications for HR managers. This report will evaluate Artificial
Intelligence and 3D Printing technology as the two disruptive innovations that have
impacted businesses across the globe in the last decade. This report will analyse the
example of Unilever and Boeing along with other corporations to understand how these
disruptive innovations create opportunities and challenges for companies. The second part
of this report will evaluate the HRM functions in responding to the potential threat or
opportunities from the disruptive innovation and their impact on the organisation.
Recommendations will be given for organisations that will assist them in playing a proactive
role to prepare for these disruptive innovations.

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Part A
Artificial Intelligence (AI)
AI is also referred as machine learning in the field of computer science which is
referred to the intelligence demonstrated by machines in contrast to the natural intelligence
which is displayed by human beings and other animals (Russell & Norvig, 2016). AI is
considered as one of the most disruptive innovations of all because of its ability to change
the world. The way people work can be fundamentally shifted through AI because
computers can be used to perform those tasks which usually require human intelligence to
be performed. AI can identify inefficiencies which humans are not capable of which leads to
improvement of the ways in which businesses manage their operations. Similarly,
individuals can also benefit from advanced AI capabilities through personal assistants and
the automation of everyday tasks such as ordering groceries or organising the calendar
(Makridakis, 2017). The possibilities of application of AI technology are endless which can be
used in order to address a major global issue such as climate change since researchers can
predict its effects and find solutions to mitigate its effects. In the healthcare sector, this
technology can improve health practices by sifting through endless data in order to
recognise potential causative factors of a particular disease. AI technology has affected
different aspects of a business such as marketing, hiring, selection, manufacturing, and
others. Online social media sites such as Facebook rely on AI in order to show
recommendations and advertisements to its users based on their interest to ensure that
they are more likely to click on these adverts (Bell, 2018).
Similarly, Google and Apple also use AI to offer personal assistance to their
customers such as Google Now and Siri that help users in following their instructions
through voice such as setting up calendar, making a web search, calling or texting someone
or others (Wallace, 2016). Organisations such as Unilever use AI technology in order to
conduct their HR functions in effective manner. The company uses this technology to recruit
and train thousands of employees from all across the globe. The company has partnered
with Pymetrics which is a firm that is specialised in AI recruitment technology in order to
create its own online platform from which it screens candidates directly from their homes

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through their computer or mobile screens (Marr, 2018a). In this technology, the company
asks them to play a selection of games which measures their aptitude, reasons, logic, and
appetite for risks capabilities. Through its machine learning algorithms, the company
determines whether the candidates meet the required qualification or not. The algorithm of
the company examines the video of candidates while answering these questions to learn
about their body language and natural language and process this data to determine whether
they will be a good choice for the company or not (Feloni, 2017). It shows that corporations
are using these disruptive technologies effectively which enable them to build their HR
capabilities which generates a competitive advantage for them by making sure that the
company hires talented and qualified employees who are right for the job.
3D Printing Technology
3D printing is also referred as additive manufacturing process in which material is
joined under computer control in order to create a three-dimensional objective which is
prepared through adding materials together, typically layer by layer (Vaezi, Saitz & Yang,
2013). This technology is different from traditional manufacturing methods that rely on
subtractive process to create new objectives. In the last decade, this technology has become
popular as the demand for small and complex parts which are produced preciously
increased. The precisions received through a 3D printer cannot be matched by handmade
products since the digital image which is used to create a 3D object contains three-
dimensional details which are not possible to be achieved by a human. Democratisation of
this technology is growing which will rapidly and readily make it accessible to more people
that will completely disruptive the manufacturing industry (Conner et al., 2014). After the
popularity of portable and smaller 3D printers, people will be able to develop their own 3D
printed objectives at their home. The application of this technology can be seen in major
industries such as aerospace, automotive, construction, medial and manufacturing. A good
example is the Boeing Company which is an American multination corporation that is known
for designing, manufacturing and selling airplanes, missiles, satellites, rockets and rotorcraft
(Boeing, 2019).
The corporation relies on additive manufacturing to create parts of airplanes with
high precisions which cannot otherwise be achieved. The corporation invests heavily in this
technology, and it has assisted the company in the past decade to create components for its

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products. The corporation has invested in Digital Alloys which is a Massachusetts-based
additive manufacturing company which assisted Boeing in manufacturing over 60,000 3D
printed parts for flying, defence and commercial products. The corporation has
manufactured 30 different parts for its 787 Dreamliner which include air ducts, hinges, and
others (Boeing, 2018). These parts are difficult to be manufactured by humans, and other
machines cannot achieve the same of precision as additive manufacturing technology.
General Electric also uses this technology to produce fuel nozzles for its new Leap jet
engines. Currently, the corporation has produced over 85,000 of these fuel nozzles and
these finished products are stronger and lighter than compared to those which are
manufactured through the traditional assembly line. General Electric Aviation is also
planned to produce over 100,000 additive parts by 2020 (Catts, 2013).
Part B
Response of HRM Functions to Threats and Opportunities from Disruptive
Innovations
There are various threats and opportunities brought by disruptive innovations which
require that corporations adopt effective business practices to address these challenges and
leverage the benefits of these practices to sustain their future growth in the market.
 Job Loss
One of the key challenges relating to AI and 3D printing technology is that they have the
capabilities to shift the human workforce to a digital workforce where machines will be able
to do the jobs of people. It is an insider threat which affects the organisations due to the
popularity of these disruptive technologies (Hughes, 2014). Machines are highly effective
and efficient than compared to human employees because they did not get tired and they
usually did not make any mistakes. With the adaptation of AI technology, companies will be
able to make critical decisions which generally require human intelligence which reduces
the requirement of human employees. A good example is Uber which is a ride-sharing
application that connects its drivers with customers. The company has become hugely
successful, and it has hired millions of drivers who work with the company to offer its
services to customers.

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However, the company has recently started to invest in AI technology in order to create
autonomous vehicles that drive automatically. Drivers are afraid that this technology will
eliminate their requirement and they will lose their jobs after the implementation of this
technology (Edwards, 2017). It is a major HR problem which the company is facing since its
employees are protesting against this decision. However, the company argues that it will not
eliminate the requirement of drivers; instead, it will result in shifting their jobs. Although the
cars will become autonomous; however, the company will continue to hire them to offer
services to customers during their ride and ensuring that the cars did not malfunction.
Similarly, the 3D printing technology will eliminate the requirement of workers that are
operating in manufacturing industry; however, companies can leverage this technology to
create new jobs for its employees (Man, Poon & Lam, 2013).
 Recruitment Capabilities
The popularity of these technologies resulted in improving the capabilities of companies
to hire talented employees from all across the globe which shows that they can leverage
these technologies to their advantage. As seen by the example of Unilever, companies can
use AI technology in order to hire employees worldwide without having to meet them
personally (Feloni, 2017). Similarly, the 3D printing technology can be used by companies for
creating objectives and materials which are required to train them. The popularity of this
technology will create new jobs for employees and the importance of management of this
technology will increase. For example, PwC has implemented a program for its employees
that are focused on creating the workforce for the future by providing training to employees
on additive manufacturing technology (Vialva, 2018). It shows that the recruitment
capabilities of companies will increase with these technologies which will enable them to
sustain their growth in the market. For example, Boeing has also started hiring new
employees who know how to operate additive manufacturing technology which shows new
recruitment opportunities brought by these technologies (Boeing, 2018).
 Training
Organisations can use AI and 3D printing technology to train their employees in different
ways to improve their capabilities and skill level. AI technology can learn about behaviour,
capabilities, and abilities of employees and suggest different ways which assist companies in

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improving the skills of their employees (Chen, 2017). Unilever is a good example which uses
this technology for recruitment as well as training purpose for its employees (Marr, 2018a).
Similarly, 3D printed objects and materials can be used by employees to practice their craft
before actually using materials which are expensive and precious.
 Skill Gap
A major outer issue with these technologies is that there is a substantial skill gap in both
of these industries which makes it difficult for the HR department to hire qualified and
skilled employees in the company to take advantage of these disruptive technologies. For
example, a report suggested that there are only 300,000 AI professions worldwide, but
millions of AI roles are available in the market (Marr, 2018b). Similarly, in the manufacturing
industry, 2 million additive manufacturing jobs will be unfilled by 2020 as per a report of
Deloitte (Guillot, 2018).
Recommendations
Following are various recommendations which enable companies to play a proactive
role in the organisation to prepare for these disruptive technologies.
 Organisations should increase their investment in research and development (R&D)
process to ensure that they are able to learn about the impact of these disruptive
technologies on their business and how they can effectively use them to their
advantage (Lin & Hsu, 2017).
 Organisations should embrace these technologies rather than shying away from
them to make sure that they prepare their staff to these changes so that they did not
resist these changes.
 Employee engagement is the key to implementation of these technologies in the
company to make sure that employees understand that their jobs are safe and they
will not suffer any negative consequences due to the adoption of these technologies
in the business.
 Companies should provide training and education facilities to their employees to
improve their abilities in order to close the skill gap in relating to the adaptation of
disruptive technologies.

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Conclusion
In conclusion, AI and additive manufacturing are two disruptive technologies which
have created threats and opportunities for businesses in the last decade. Both these
technologies affect the HR functions in companies which enable them to recruit talented
employees and train them to improve their skills. Unilever and Boeing are two major
organisations that have successfully implemented these technologies to their advantage
which enable them to sustain their growth in the market. Recommendations are given for
companies which enable them to be proactive to implement these technologies for their
advantage such as investment in training and education facilities, eliminate employee
resistance and investment in the R&D process. Embracing these disruptive technologies will
ensure organisations, and their HR capabilities remain relevant even in ever-changing
market conditions.

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