Problem Analysis On Technological Innovation

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Running head: PROBLEM ANALYSIS
Problem analysis
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PROBLEM ANALYSIS
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Present Situation
The use of machines is a technological innovation greatly increasing in Australia that is replacing humans
in the workforce. This automation involves the use of computers or computerized machines such as
robots to play the role of human workers. Reports from McKinsey's research show that 45% of jobs done
by humans can be automated (Blake Morgan, 2018). Most companies are actually implementing
machines in their job activities rather than humans due to the fact that machines make work faster, easier
and are generally more efficient. Onereach, in his research also reports that 80% of managerial directors
believe that artificial intelligence is of much importance as it improves work efficiency and cuts
production costs (Zeira & Hideki Nakamura, 2018). However, despite improving industrial
productivity to higher levels, the use of machines has various drawbacks.
Problem
The main problem coming along with automation is the loss of employees’ jobs causing the increased
unemployment rates in Australia. Many people are losing their jobs to machines as machines can perform
tasks more efficiently in terms of the quality and quantity of work they do. Taking an example of
Amazon, it has reduced its human workforce by over 80,000 replacing them with more than 100,000
warehouse robots (REBECCA J. ROSEN, 2015). These technological innovations are causing
unpredictable shifts in the economy leaving workers at the fear of losing their jobs. According to
Onereach, artificial intelligence is one of the biggest threats to both white-collar and blue-collar job
markets in Australia. He reports that 80% of professional managers believe that automation improves
work efficiency despite the drawbacks it brings (TOM WARD, 2017). It is, therefore, the role of
company managers to take precaution measures to curb unemployment caused to their workers.
Possible solutions