Impact of Technological Unemployment on Organizational Performance

The provided assignment discusses the concept of technological unemployment and its implications for businesses. It highlights how automation can lead to increased productivity and efficiency, but also causes job displacement and structural unemployment. The document references various studies and literature to support its arguments, providing a comprehensive understanding of the topic.

Managing Operations
and the Supply Chain

Table of Contents
INTRODUCTION...........................................................................................................................1
TASKS.............................................................................................................................................1
Literature review..........................................................................................................................1
Impact of technological unemployment on Mark and Spencer...................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Managing operations are concerned with controlling and designing the products by utilising
the resources in an efficient manner. The business function is more responsible for coordinating
and planning the activities so that customer’s requirements can be fulfilled. The main aim of
operation management is to convert all raw materials into finished goods so that consumers will
be able to get quality services (Tayur, Ganeshan and Magazine, 2012). This kind of management
is required at all levels of company such as strategic and tactical. In this manner, they can
achieve success in the market area as compare to other rivals. The present report is based on
Mark and Spencer which perform its operations in London, United Kingdom.
Mark and Spencer perform its operations in retail sector which offer their services
throughout the world. It is public limited company which is listed on London stock exchange.
The firm have approx. 959 outlets in different places of country so they have strong base of 13
million customers. Along with this, they have approx. 82,904 employees who are working at the
workplace and offer innovative services. It provides cloths, home products and food items to
their consumers. The retail industry target people on the basis of demographic segmentation. So,
they offer cloths of both men and women in a variety (Stadtler, 2015). Along with this, company
approach their end users through their website and social media sites. The entity is focused on
their technological advancements so that they can achieve competitiveness at the marketplace.
The below mentioned report explain the concept of technological unemployment and how it
affects the number of jobs in the country.
TASKS
Literature review
Automation is kind of process or technique that is used by industries in order to control
and monitor the production system so that products can be delivered to the consumers efficiently.
As per the view point of Rushton, Croucher and Baker (2014) there are some elements which are
included into this process like manufacturing, transportation, utilities and different operations.
Some benefits are also associated with this approach that through this labour work can be saved
and quality work can be improved in an efficient way. Through such kind of enhancement,
number of jobs and their roles are get affected so due to which unemployment is get increased.
When technological advancements are achieved by company the communication barrier between
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different employees can be reduced. There are computerized technologies that help the firm in
performing the operations in more efficient manner. Ashby, Leat and Hudson-Smith (2012)
confronted by that firstly, these kind of advancements are helpful for an enterprise as through
this they will be able to communicate with their other rivals. But after that, these advancements
can have reduced the number of labour from the work environment.
Sodhi, Son and Tang (2012) stated that when people lose their jobs or working
opportunities due to some technological advancements then it causes technological
unemployment. The overall economy of country is also get affected as there is shift from the
demand of manpower to machinery. There are various methods that are used by Mark and
Spencer so that they can save their time and enhance the production to some extent. So, due to
such kind of benefits this unemployment is get created at the workplace. On the other hand, it
has been analysed by Ahi and Searcy (2013) that technology is now substitute of the labour and
this can cause the unemployment. Now, there is no need for more labour as few people can
handle the overall manufacturing process and which results into the low cost of production.
When cost is get decreased then prices are also get decreased so consumers can buy the services
by paying some amount. Through this, the demand can be increased and the retail firm will be
able to attract number of people towards their services.
As technology is an essential factor which can distinguish the modern economy from
traditional one. According to the views of Feldmann (2013) some processes are there which can
be used by business organization so that economy can be improved. These processes are like
discovery, innovation, invention and diffusion. Discovery is the fundamental concept in which
relevant information can be gathered through observation, reasoning and experimentation.
Invention is an approach where products and services are developed on the basis of new ways
which are derived from previous concept. Innovation is used by an enterprise so that useful
goods can be offered to people as per their requirements so that their overall satisfaction level
can be improved. By adopting such concepts, Mark and spencer adopted these in order to
achieve success at the market area as compare to other. The last concept is diffusion, in which
information is related to innovation is spread to other firms so that they can sustain their
competitiveness.
As confronted by Mokyr, Vickers and Ziebarth, (2015) there are several factors that
contribute to firm in order to introduce such technological advancements. Some of these factors
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are like knowledge, training, experience, resources and so on. By using these, the firm will be
able to perform well and introduce more quality and innovative services. It has been explained
by Ford (2013) that the cause which is generated by technology is structural unemployment.
Some companies introduce robot at their work environment on the place of unskilled labour. For
this, they provide training to their workers in computer operations so that their core
competencies can be enhanced and they will be able to deal with robots in an effective manner.
So, in this way they can remain into the same firm and perform their practices into more
successful way. When such type of unemployment is get increased then there are many younger
and older people who get affected and after that they will get a job at less pay. When an
enterprise implements technological advancements then through this they can grab the
opportunities and remove the threats. By adopting different opportunities, success can be
achieved in an effective manner which can lead them towards success.
Source 1: Technological shocks and (un)employment, 2016
On the basis of above graph it can be analysed that technological advancements highly
affect the employment rate in country. When such kind of advancements are low then at that
time unemployment is also low and vice versa. Technology not only affect the employment rate
but also affect the spending level of people.
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Source 2: Alistair B, 2017
Alistair (2017), stated that employment rate is get affected differently in different
industries. There are some industries who adopted innovation and technology then through this
number of jobs and roles are get decreased. It has been concluded that if technology is get
improved and diffused then due to this the level of unemployment get rise by some extent.
Through this, organizational productivity and performance both are get increased in an effective
way. There are different sectors such as manufacturing, banking, hospitality, telecommunication,
retail and so on. In this, when company uses such kind of advancements then labour rate is get
decreased and their time can be saved.
As per the viewpoints of Stiglitz, (2014) high unemployment rate can affect the overall
economy of country. If this level is get rise, then many people are left with job and due to which
a nation will not be able to utilise them efficiently. If resources will not be utilised and
productivity will not be achieved, then maximum output cannot be gained. So, this can also
affect the economic efficiency. The technological progress is get shifts from last decades and it
may affect the way in which they perform their work. If workers are replaced with machines,
then due to this their overall products and factors are get affected in negative manner. Due to
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some artificial intelligence techniques, all employees will be able to enhance their
computerisation skills. Through these characteristics, an individual can perform well at the
workplace. Apart from this, it can be evaluated that technological advancements can affect
employment rate within the country. So, these kind of automation also help the industries in
solving the complex problems. It is very important for firm to ensure the health and safety at
workplace so that their satisfaction level can be improved. Along with this, these kind of
technologies can save the business organization from different kind of cyber-attack.
Furthermore, the competitiveness and quality of work can be improved so that future outcomes
can be improved. In this way, it can be evaluated that unemployment can be increased in nation
due to some technological advancements.
Impact of technological unemployment on Mark and Spencer
When an enterprise adopts technological advancements then this may not increase the
unemployment at workplace but some employees lose their job because they will not cope up
with such kind of advancements (Canova, Lopez‐Salido and Michelacci, 2013). For example, in
1800 there are many people who are doing job into the agricultural field. But when technological
advancements are at boom and people uses machines in their farms so in this unemployment rate
is get enhanced. Along with this, in retail industry they use some advancements in offering their
services and in the work environment. Through some advance computers and machines, overall
production system can be improved so people will be able to get innovative and quality products.
On the other hand, it has been analysed that when consumers will get quality services then
through this overall productivity can be improved so high profitability level can be achieved
(Diamond, 2013).
As per the given scenario jobs are at risk in the country so for this Mark and Spencer can
adopt the technological advancement so that they can recover their expenses by offering the
quality services to consumers. Through this, overall costs can be reduced of manufacturing the
products and due to which prices can be reduced. So, in this way overall profitability can be
increased and high revenues can be generated. If unemployment rate will get increased, then by
hiring the skilled people retail industry will be able to achieve their success and competitiveness.
If labour market is highly skilled then there is no effect of technological advancements on the
company and satisfaction level of the people.
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Mokyr, Vickers and Ziebarth (2015) stated that, if workers in market are flexible then this
may not affect the employment rate in country but if they are not flexible then higher
unemployment rate will increase. Sometimes, these types of changes will not last for long term
as when demand is get increased at the marketplace then need of workers is also get increased.
On the other hand, if such kind of activities are happened then due to this older people are get
affected more than younger. There are some reasons which explain that how this may affect
workers such as, old people who are working in a firm have less knowledge in technological
field so this will be a complex task for them to work in such environment. Along with this, they
will not be able to find out a new job as they have their own home and family. Furthermore,
discrimination can also be performed at work culture so this may affect their satisfaction as well
as motivation level.
As per the view point of Ahi and Searcy (2013) unemployment can be caused due to
some problems like skills, knowledge, experience and so on. As companies can use robot at their
workplace so this can replace human resources. Along with this, firm have to hire employees in
order to handle overall operations effectively which are performed by an enterprise. Mark and
Spencer has to recruit some people with some advanced skills and knowledge so that they can
adopt effective operational activities. On the contrary, technological advancements can also
create some jobs at the market area like program developer, web designer, systematic analytic
and so on. The retail industry should hire these so that they can achieve their specified
objectives in more successful manner. Along with this, the productivity of firm can also be
increased in some specific areas which can help them in achieving success.
Ashby, Leat and Hudson-Smith (2012) says that technological advancements can cause
unemployment at the marketplace as people may lose their job but it is beneficial for a business
organization. There are some positive as well as negative impact of such kind of changes on
firm. Some advantages are there like an enterprise will be able to offer innovative and quality
products to their end users so in this way they can create a strong base of consumers. By
adopting such kind of technology, a firm can secure their confidential data or reports at safe
place. Through this, they will be able to sustain their competitiveness as compare to other rivals
such as Tesco, Sainsbury etc. There are various technological platforms on which people can
communicate with each other so this is beneficial for retail industry as they will be able to
establish a communication with their consumers. Apart from this, it has been stated by Sodhi,
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Son and Tang (2012) that there is limitation for an entity if they will use different kind of
techniques and approaches. Some of these are like if technology has been adopted then industry
has to conduct training and development programs because some people are there who are not
aware about modern technologies. Furthermore, if staff members are suitable for the particular
work environment then they will not be able to perform well and their performance also get
affected.
According to the views of Stadtler (2015) when some innovative or advanced techniques
are adopted by company then for this they have to hire more skilled person because their demand
is get increased as compare to the supply high skill workers. So, in this way wages can also be
improved of the employees as per their work that they performed in order to achieve goals.
Through these, high skill workers the overall economic development can be improved which can
lead them towards success. On the contrary, if an industry adopts such kind of technologies and
they will hire high skilled people then inequality can be rise at the workplace. People who are
performing complex task will get higher wages as compare to other. So, due to this the
dissatisfaction can be increased in an individual. On the basis of this kind of biasness, the
turnover and absenteeism are get enhanced at the workplace. So, in this manner the
unemployment rate can be increased which can affect overall countries economy.
CONCLUSION
On the basis of above carried out analysis, it can be concluded that industries use some
control system in order to enhance their production system and design the policies in more
effective manner. Now companies adopted technological advancements so that cost can be
reduced and demands of products can be increased. Through this, a strong customer base can be
build. Through this, unemployment is caused as individuals lose their job. There are some
positive as well as negative impact of technological unemployment on the organizational
performance. Furthermore, Mark and Spencer has to conduct some training and development
practices so that employment rate can be increased and they will be able to achieve success.
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REFERENCES
Books and Journal
Ahi, P. and Searcy, C., 2013. A comparative literature analysis of definitions for green and
sustainable supply chain management. Journal of Cleaner Production. 52. pp.329-
341.
Ashby, A., Leat, M. and Hudson-Smith, M., 2012. Making connections: a review of supply chain
management and sustainability literature. Supply Chain Management: An
International Journal. 17(5). pp.497-516.
Canova, F., Lopez‐Salido, D. and Michelacci, C., 2013. The ins and outs of unemployment: an
analysis conditional on technology shocks. The Economic Journal. 123(569). pp.515-
539.
Diamond, P., 2013. Cyclical unemployment, structural unemployment. IMF Economic Review.
61(3). pp.410-455.
Feldmann, H., 2013. Technological unemployment in industrial countries. Journal of
Evolutionary Economics. 23(5). pp.1099-1126.
Ford, M., 2013. Could artificial intelligence create an unemployment crisis?. Communications of
the ACM. 56(7). pp.37-39.
Mokyr, J., Vickers, C. and Ziebarth, N.L., 2015. The history of technological anxiety and the
future of economic growth: Is this time different?. The Journal of Economic
Perspectives. 29(3). pp.31-50.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Sodhi, M.S., Son, B.G. and Tang, C.S., 2012. Researchers' perspectives on supply chain risk
management. Production and operations management. 21(1). pp.1-13.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Stiglitz, J.E., 2014. Unemployment and innovation (No. w20670). National Bureau of Economic
Research.
Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain
management (Vol. 17). Springer Science & Business Media.
Online
Alistair B, 2017. Unemployment due to Technology. [Online]. Available through: <
https://townipproject09.wikispaces.com/Unemployment+due+to+Technology>.
[Accessed on 20th July 2017].
Technological shocks and (un)employment. 2012. [Online]. Available through: < http://im-an-
economist.blogspot.in/2012/11/technological-shocks-and-unemployment.html>.
[Accessed 20th July 2017].
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http://www.economicshelp.org/blog/glossary/technological-unemployment/>.
[Accessed on 20th July 2017].
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