Impact of Automation on Organisation in Retaining the Employees

Teesside University, Middlesbrough, United Kingdom
Afreen Sultana (W9115061)
MSc International Management (Applied)
Dissertation
Project: Impact of automation on organisation in retaining the employees.
Under:
Module Leader: Maryam Shadman-Pajouh
Supervisor: Sharmin Shobnom
School of Business Management

Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.1 Research background.............................................................................................................4
1.2 Problem statement.................................................................................................................4
1.3 Research aims and objectives................................................................................................5
1.4 Research questions.................................................................................................................5
1.5 Research rational...................................................................................................................6
1.6 Research structure..................................................................................................................6
2. Literature Review........................................................................................................................7
2.1 Literature Overview...............................................................................................................7
2.2 Concept of Automation..........................................................................................................7
2.3 Impact of Automation on Employee Redundancy.................................................................9
2.4 Impact of Automation on Employee Retention...................................................................11
2.5 The Struggle of the Challenges the Employee retention is Facing Because Of Automation
...................................................................................................................................................13
2.6 The Steps Taken by Organizations to Avoid Making People Redundant...........................14
2.7 Analyzing How Automation Can Help the Retain Employees...........................................16
2.8 How Automation creates Difficulties for the Employees....................................................17
2.9 Applicable Training for Employees That Can Help to Adjust Themselves with the
Automation System...................................................................................................................18
2.10 Conceptual Model of Literature.........................................................................................20
3. Methodology..............................................................................................................................20
3.1 Introduction..........................................................................................................................20
3.2 Research Philosophy............................................................................................................21
3.3 Research Method.................................................................................................................22
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3.4 Research Design..................................................................................................................22
3.5 Research Approach..............................................................................................................23
3.6 Research Strategy................................................................................................................23
3.7 Data Type and Collection....................................................................................................24
3.7.1 Data Type......................................................................................................................24
3.7.2 Collection Method........................................................................................................25
3.8 Sampling Strategy................................................................................................................25
3.9 Data Analysis.......................................................................................................................26
3.10 Ethical Considerations.......................................................................................................26
3.11 Summary............................................................................................................................27
3.12 Limitation..........................................................................................................................27
4.1 Chapter Overview................................................................................................................27
4.2 Thematic Analysis...............................................................................................................28
4.3 Secondary Theoretical Analysis..........................................................................................30
4.3.1 Evidence-based benefits of automation and its influence behind rising trend of
automation integration...........................................................................................................30
4.3.2 Increasing instances of automation leading to employee workforce limitations and
recruitment reductions...........................................................................................................32
4.3.3 Strategic approaches integrated by businesses to retain employees with automation..33
References......................................................................................................................................34
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Chapter 1: Introduction
1.1 Research background
In the era of global business, the automation system in the operational procedure is a prior factor
that enables organisations to boost their performance. In the emerging competitive business
automation system is an advanced technology that can evolve the overall system of industry in
apex parameter. It has been seen that the automation system is driving the wheel of the operating
system but it has an effect on employee turnover (Bessen, 2019). In the developing countries, the
different industries have adapted the automation system for improving their placement at the
global level. Due to this fact, it has been seen that in the several industries automation system is
has developed the workplace of the employees. The incorporation of the IT system has enabled
the company to enlarge its periphery in the global world (Wollschlaeger, Sauter and Jasperneite,
2017). The adaptation of IT is enriched the capability of the employees that can potent the
platform of a corporate firm. In the context of a corporate world, there are various automation
systems for advanced technological system.
Advanced automation works as a valuable asset that can provoke the authority to ensure their
employees with proper training. The notion of the authority is to retain their employees in their
workplace that help to build their strength. Such kind matter, the authority and management of
the company have to stable and provided standard conceptual methods of training that make
them safe and secure in the workplace (Halawi and Haydar, 2018). A standard training among
them helps to encourage and adapt them with the automation services. IT companies use
automated systems to improve efficiency, as robots, software tools and artificial intelligence are
the most essential issue of operating. Over time, the machines have learned to use logic and
streamline the professional system.
1.2 Problem statement
The research could face such kind of considerable facts based on the various views about what
are the effective aspects that can evolve the process the retention. Regarding this matter, it is an
important factor to evolve the training system for the employees. The training module set by the
employees has to be through a proper measurement that can enable the employees to refine
themselves in a proper way. In the era of the modern business platform, the IT industry has
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adapted several advanced automation systems that can make them advanced in every area
(Pereira et al., 2018). Therefore, it can develop the parameter of the several areas that build a
potential image of the company.
This particular report has been identified as the developing areas of the IT sector as well as how
the employees adjust to this fact. On the other hand, in this thesis paper, the utilization of the
advanced technological automation system has been described. Besides all of these, the effective
paths about the retention of the employees are also critically evaluated in this research. The
appropriate and potent areas of the training have to stand as a prior focus on this research paper.
Additionally, this paper is found out the impact of the automation system on unemployment. The
drastic changes in the IT industry for the involvement of an automation system elevate the rate of
unemployment.
1.3 Research aims and objectives
This research aims to evaluate how an automation system in the organization can retain
employees in the workplace. On the other hand, this research paper tends to aim at effective
ways of training for the employees that can help them to adapt themselves to the advanced
automation system.
I. To understand the development of automation in the IT industry and how these
approaches help evolve social and economic growth.
II. To find out the causes that eliminate the role of human activity
III. To analyse how organisations provide the appropriate training to their employees that
make them comfortable with the automation system
IV. To grant applicable recommendation for future development to reduce unemployment
and social deprivation
1.4 Research questions
Q1. What are the development areas for automation system in the IT industry?
Q2. How much kind of development affect social and economic growth?
Q3. How automation system eliminates human activities in the workplace?
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Q4. What is the effective mode of training that can evolve the efficiency of the employees to
adopt the advanced automation system?
Q5. Which are the effective paths that can work as an effective recommendation for future
development?
1.5 Research rational
The advanced automation system has a broad context that can evolve the performance of the
organizations. Such kind of advanced system can build diverse performances of the company
through the standard path. In the era of globalization, the IT industry has adopted several
effective technological systems that can enlarge the business effectively. Due to this matter, the
automation system affects the employee segment (Ramaswamy, 2018). It has been seen that
several companies in the IT industry have adapted this advanced system of automation which
reduce human activities in the workplace. The advanced technological automation tools
sometimes are a big challenge to adapt for the employees.
Standard training is a driving factor that accelerates the wheels of the automation system easily.
In the competitive global market recently almost every IT companies are used as an automation
system to provide surplus performances. Now, this research is focused on the effectiveness of the
automation system on the employees. Rather than it, this research paper is tending to identify the
prompt paths for adequate training for the employees that can help to adjust themselves to the
automation system (Vermeulen et al., 2018). Another aspect is that for the automation system the
backdated employees are not able to hold their positions in their workplace. Due to this matter,
this particular thesis paper also concerns the probable appropriate requirements that will
beneficial for future improvisation of such kind issues.
1.6 Research structure
There is a great deal of confidence in the entire research framework. A research study can only
be fully appreciated if the process is successfully designed and structured. Current research has
been divided into five main sections; their importance is provided below:
I. The first part of the thesis is the introduction, a short discussion of the topic as a whole.
The fundamental concept and meaning of the analysis are analysed in this chapter. The
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research context and aim, goals and goals, research issues and reasons for research and
relevance are divided.
II. The second chapter of the paper discusses literature with the views of academic
newspapers, magazines and archive publications in mind.
III. The selected methods of analysis have been discussed in the third chapter. The approach
covers many aspects of the processes and methods of collection, sampling and
interpretation of the data.
IV. The fourth chapter of the study, the results, contains the conclusions explaining the
findings of the research. This chapter thus presents the actual results of the study.
V. The fifth chapter is a thorough analysis of the findings of the defined aims and goals
listed in the introductory section to check whether the research has been effective.
VI. The final chapter of the report provides an understanding of the complete work highlights
and includes workable recommendations to be made in the selected domain.
2. Literature Review
2.1 Literature Overview
In the following chapter, a comprehensive embassy on the concepts of automation is
contextualised. Exploration of particular themes such as the concept of automation, its ties to
redundancy, retention, challenges, their solutions and particular difficulties raised concerning the
technology is being carried out.
2.2 Concept of Automation
According to the statement of McClure (2018), when most people hear the word “automation,”
they portray gigantic robotic arms that assemble a vehicle on a mounting line. While this is not
the entire concept of automation, it represents industrial automation best. Industrial automation
means the use of control systems (such as machines or robots), which manage complex human
processes and machinery. In practice, industrial automation actually replaces human beings in
general, and that is why it is common with employees today.
Yet this thought according to Peper (2017), particularly as prominent public figures generally
refer to automation as a “new wave” of technology, may be a little misleading. The first
automated production line to rationalize the production of motor cars, Henry Ford launched in
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1913 (over 100 years ago). Naturally, this production line was not as advanced as today. But the
truth remains that factory automation is definitely nothing new in particular. In reality as per
Gutiérrez et al. (n.d) (even at the beginning of the 1900s), the advent of industrial automation
opened up a new age of value of employee intellectual property. In comparison, mitigated human
error not only considerably optimized productivity through industrial robotics, but also preserved
workers’ jobs for a long time. This transition has the advantage of eliminating a large amount of
manual labour, resulting in increased efficiency in terms of energy and material savings, as well
as improved consistency, performance, and precision. But what automation has actually done is a
change in the operator’s position from manual to supervisory supervision (Bughinet al., 2018).
As a consequence, they execute analytical or emotional activities such as diagnosis, preparation,
and problem-solving instead of executing tasks such as triggering manual switches and
implementing operating procedures according to Chui, George and Miremadi (2017).
Automation technologies should be built and applied in a manner that provides the best possible
match for both human and computer capacities, advantages, and drawbacks. Belloc et al. (2020)
offer a short and simplified description of automation, claiming that automation is described as
the use of electronics and computer-controlled equipment to take care of processes. According to
Lander, Nielsen and Lauritsen (2016), the purpose of automation is to improve productivity and
accuracy. Automation, on the other hand, eliminates labour in the vast majority of situations.
Indeed, economists, today fear that emerging technologies could drive up unemployment rates
dramatically in the future. Robotic production lines are increasingly taking over roles
traditionally done by humans in several production plants today. Manufacturing is the process of
transforming raw materials and parts into completed products on a wide scale, typically in a
warehouse. Automation includes several main components, processes, and work functions in
nearly all sectors, according to Sorells (2018). Manufacturing, transportation, plant maintenance,
and services are also impacted. Furthermore, national defence programs are getting more and
more integrated. Integration, implementation, sourcing, servicing, and even promotion and
distribution are all areas where automation is used today in manufacturing. As a result,
automation, in its most basic form, corresponds to the idea of replacing manual activities with
technology and computer-controlled equipment. Software applications, for example, have
replaced manual typewriters, file cabinets, and paper appointment books (Manyika et al., 2017).
Since robotic arms pick cartridges from a stacker and transfer them to the drives, tape and disk
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