Exploring the Impact of Automation on Global Business Dynamics

This essay examines the pervasive influence of automation on global business, analyzing its multifaceted impacts on workplaces and employees. It begins by defining automation and highlighting its increasing prevalence across various industries. The study then explores how automation reshapes the workplace, leading to more flexible working arrangements, redefining job roles, and potentially reducing working hours. It also addresses the concerns of employees regarding job security, particularly among older and less-skilled workers. Furthermore, the essay discusses the potential benefits of automation, such as increased efficiency, reduced costs, and enhanced capabilities for professionals. The analysis draws upon case studies and surveys to provide a comprehensive overview of the current and future implications of automation on the global business landscape, emphasizing the need for organizations to strategically manage this technological shift.

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Introduction:
Assessing the performance of the employees and providing feedback on the same is the task
which is considered as challenge by mostly managers, and generally they try to neglect this task.
But, as stated it is one of the most important functions of the management. Managers generally
adopt this psychology on the basis of the rule, that we should not judge other peoples. However,
this is not the case in context of the supervisory role. In supervisory role approach of not being
judgmental is not adopted, and it must be understood by the professionals that when they offer
the feedback, they are not judging the people. In other words, while providing the feedback, they
are only assessing the performance of the employee (Seindenfield, 2007).
It becomes extremely difficult for the managers and supervisors to assess the performance of the
employee, and improve their performance in lieu of the feedback. This process is complex in
nature and also time consuming. For resolving this issue, number of organization choosing to
automate their processes, because this is the tool through which organization can not only
improve their performance but also get rid from the continuous and complex process of assessing
the performance of the employees.
This paper discusses the impact of the automation process in the workplace and especially in the
professional jobs. Structure of the paper includes brief discussion of the automation process,
impact of automation process in the workplace, and impact of automation process on the
workers. Subsequently, brief conclusion is stated which stated the important facts of the paper in
summarize manner.
About automation process:
Automation is considered as the technique, method, or system of operating or controlling the
process through the highly automatic means. In other words, conduct the process through
electronic devices and software, which reduce the human intervention to the minimum is known
as automation.
18th Century witnessed the industrial revolution, and advancement occurred in the technology
change the manner in which work is conducted by the organizations. It is not possible to parallel
the Automation and artificial intelligence (AI) in context of the speed and scale at which changes

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occurred in the workplace. It is necessary for the organizations to ensure that they are able to
handle the challenges and embrace the opportunities that are developed by the automation
process in terms of modern workplace. Planning the appropriate strategy for the purpose of
ensuring the automation process and also for getting its benefits is also an important challenge
for the business organizations (Zaino, 2017).
It must be noted that, automation has to potential to transfer the future jobs and also change the
structure of the labor force. Automation in context of the manufacturing companies decrease the
cost for decades, and making the organizations more competitive by decreasing the amount
required for labor to produce them. Subsequently, advancement in technologies in computing the
power, artificial intelligence, and robotics have created the ability to involve more in other
occupations and systems also, other than manufacturing. The approach that future automation
system might change the jobs and the labor force in the workplace, results in various factors:
 Pros and cons of automation, and its impact on the workplace.
 Jobs suitable for automation and jobs not suitable for automation.
 What happens to the workers who are displaced from the occupations because of the
automation?
Impact of automation:
Now, automation cannot be considered as the future process or technology, because there are
number of business organizations which are using these businesses here and now. As per the
recent case study conducted by The Economist Intelligence Unit (EIU), almost 40% or more
business organization accepted that automation and AI already replacing the humans for some
particular jobs in their industry within the next five years. Study further stated, almost 40% of the
supervisors believe that soon AI or automation process affects their own jobs. These findings are
also stated in the survey, under which 72.2% of the respondents believe that they are expecting
that their business to feel the full impact of the automation in the next five years and other 51.5%
stated that their business already adopted this approach of automation. This section analyzes the
impact of automation on the workplace and also on the employees (JLL, 2017).

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Workplace:
As stated above, automation results in number of changes in the workplace, and some of these
changes are defined below:
Future workplace- maximum number of people believes that automation and AI completely
change the manner in which peoples are currently working in the organization. The biggest
change gets by the automation and AI is the more flexible working arrangements and reduces the
arrangements in context of the former employment. However, it is not the bad approach, but very
few leaders believe that there are number of employees for whom automation and AI will means
less security of the job. However, there are number of leaders who understand that automation of
the process makes some existing tasks and work practices unnecessary. Other important impact
of the automation in the workplace is the reduction in the working hours, and very few leaders
believe contrary to this and stated that automation results in the longer working hours and this
happen because they expect that workers spend more time to understand the technology and
work on it (NCCI, 2017).
Redefinition of jobs: ass per one study, less than 5% of the occupations can be automated
completely by using the current technology. However, almost 60% of the business organizations
accepted that almost 30% or more of their activities are automated. It can be said that,
automation has potential to change the vast majority of the occupations, at least to some degree,
and this will definitely results in the job redefinition and a transformation of business processes.
This can be understood through example; mortgage and loan officers of the organization will
spend less time in the inspection and processing of the rote paperwork and more time in
reviewing the exceptions. This helps them in spend more time on loan application and
entertaining other clients (HRD, 2018).
Therefore, it can be said that as roles and processes of the organization redefined, organization
can get the economic benefits of the automation and these benefits goes beyond the labor
savings. In context of the professional jobs, machines can enlarge the capabilities of the humans
to the high degree, and also intensify the value of the expertise by increasing the work capacity
of the individual and also freeing the employee so that they can focus on that work which is of
higher value. This can also understood through example; there are number of professionals such
as lawyers and chartered accountants who are using the text mining techniques for the purpose of

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reading the thousands of documents, and also for analyzing the documents and review them. In
similar manner, sales organizations use the automation processes for generating the leads and
also for identifying more likely opportunities for cross-selling and upselling, and allowed the
frontline sales persons to interact with the customers and also improving the offers quality by
providing more innovative ideas (Robots, n.d.).
High-wage occupations- conventional wisdoms suggested that low skill and low wage activities
in the organizations are one which is more vulnerable to the automation. Automation process not
only impacts the jobs only but also impacts the work activities, capabilities, and their automat
ability. However, it also affects the wages paid for each occupation. There is also possibility that
activities performed by the individuals in the highest-paid occupations can be automated by
adopting the current technology. For example, it is possible to automate the activities consuming
by the 20% of the CEO’s working time by using the current technology. It also includes the
analyzing reports and processing of data which is useful in the operational decisions, preparing
staff assignments, and reviewing status reports. Numbers of occupations are there which includes
lower wage such as home health aides, landscapers, and maintenance workers, where only small
percentage of the activities could be automated with the current technology (Chui, Manyika &
Miremedi, 2015).
After considering the above facts, it can be said that automation process leave great impact on
the organizations and also provide numerous benefits to the organizations and some of these
benefits are stated below:
 Automation system ensures the effective working in the organizations because it reduces
the errors which are normally done by the workers conducted manual process.
 Automation reduce the working hours of the employees and also saves time in
unnecessary activities because of which employees can focus on more important areas.
 It reduces the unnecessary cost incurred by the organization in the manual proceeding
and provides them competitive advantage over their competitors (Blue, 2013).
Employees:
Till now, automation frames the bad image in the eyes of workers and employees because this
causes serious threat to their jobs. In 2013, professor of oxfords Carl Frey and Michael Osborne

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evaluated that almost 702 workers lost their jobs because of the automation. They further stated
that almost 69 million jobs and almost 47% of the workforces might be lost their jobs because of
the automation process. In 2017, it is reported by the CNBC that almost 65% of the Americans
believed that their industry would suffer because of the automation process but their jobs are not
affected. As per one study only 9% jobs are affected by the automation in the U.S. in the year
2018 but it also creates 2% more new jobs in the industry of the automation. There are number of
apps which are providing fast and personalized experience to the customers, as these apps
conduct the business in all hours and customers feel more comfortable with the apps because
they feel that their personal data is more secured with the apps (ZDnet, 2018).
There are number of leaders who believe that they expect some workers to be more affected by
the automation process as compared to other workers. This can be understood through example,
leaders believe that automation process are going to impact more to the older workers in
comparison of the younger ones. As 64% of them think that, older workers may be extremely
affected or strongly affected, but in context of the younger workers this percentage is only
33.7%. In lieu of skills of the employees, leaders expect that low skill workers get more affected
from the automation process in comparison of the high skill workers. As 74% of them believe
that low skill workers may be extremely affected or strongly affected, but in context of the high
skill workers this percentage is less (JLL, 2017). It must be noted that, middle skill workers are
the only group of workers for which leaders believe that effect on consistent basis. Therefore, it
can be said that all the workers either high skill or low skill and younger or older will be affected
by the automation process in some manner. In lieu of gender, leaders believe that effect of
automation on both male and females are similar in nature.
There are number of individuals who get convinced that automation process takeover the
maximum work done by the humans in next few years and cause threat to their job, but on the
other hand, some believe that their jobs are safe. For example, China is the country which is
considered as the one of the most dominant hubs of manufacturing across the globe and in this
country human forces are replaced by the robots for the purpose of conducted work in the
factories.
However, it not only affects in negative manner to the workforce, but some positive sides of this
automation process on the workforce are also present. Automation process reduces the working

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hours of the workforce by making the things simple and reduces the documentation process, and
because of this it becomes easy for the workers to focus on other important areas. Because of this
customers can get the advantage of cheaper and most effective products and services. This would
happen because of the cost savings of the autonomous robotics which comes in the one-time
investment and basic maintenance charges. Therefore, it can be said that automation process
affects the workforce in both positive and negative manner, but its negative impacts are more
severe in nature (Zulick, 2018)
Conclusion:
After considering the above facts, it can be said that automation process has both pros and cons,
and its components affects the organizations and workforces in both positive and negative
manner. There are mix views in this context, as there are number of persons and leaders who
support this approach, but some other persons completely oppose this approach and stated that it
cause job security threat among the employees. Automation cannot be considered as the future
process or technology, because there are number of business organizations which are using these
businesses here and now. There are number of leaders who understand that automation of the
process makes some existing tasks and work practices unnecessary. Other important impact of
the automation in the workplace is the reduction in the working hours, and very few leaders
believe contrary to this and stated that automation results in the longer working hours and this
happen because they expect that workers spend more time to understand the technology and
work on it.

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fundamentals-of-workplace-automation. Accessed on 1st June 2018.
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