Kaplan Business School: BUS111 Problem Analysis Report on Automation

This report provides a problem analysis of the increasing automation in the Australian workforce. It begins by outlining the present situation, highlighting the growing use of machines and their impact on job displacement. The core problem identified is the rising unemployment rates caused by machines replacing human workers. The report explores potential solutions, including retraining displaced workers, reallocating employees to other available jobs, and considering the creation of new job opportunities through technological advancements. The most salient solution proposed is retraining employees to fit into other positions in the industry when displaced, emphasizing the importance of preparing for an inevitable future. The report concludes by advocating for the re-skilling of employees to adapt to the changing world and maintain a balance between humans and machines in the workforce. The analysis uses the 4Ps writing framework which includes Present Situation, Problem, Possible Solutions and Proposal.

1
Running head: PROBLEM ANALYSIS
Problem analysis
Institution
Student
Course
Date

PROBLEM ANALYSIS 2
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
Technology innovation is a process that cannot simply be stopped or evaded. However, some solutions
can be implemented to reduce unemployment cases;

PROBLEM ANALYSIS 3
1. One solution that companies could implement is to re-train displaced workers to fit into another
human-driven workforce. Since they have proper knowledge and experience, they could be re-
trained to apply their skills in other sectors that have not been automated. An example is Amazon
that has established programs that offer training to its employees and allows them to look for jobs
outside Amazon. Firms should also provide opportunities for employees who are at risk of getting
displaced to diversify their skills and abilities thus reducing the risk of remaining unemployed
after losing their current jobs. This would greatly reduce the unemployment rates in the
Australian economy.
2. A second solution is for companies to move the affected employees to other available jobs in the
market. Instead of workers learning new skills, they could be moved to other workplaces and
utilize their existing skills. A displaced employee in one firm could be of help to another firm
where the latter lacks the particular labor force. These mostly include the less privileged
institutions in the society such as elderly care groups and institutions for people with special
needs. Contrary to the fact that this will provide job security and avoid unemployment cases,
these jobs often pay very low amounts and are not reliable.
3. Technological innovations can sometimes create new job opportunities in the economy. As the
robots and automated machines work on tasks that require programming or technology skills and
management of businesses, humans will work mainly on the jobs that require creativity,
communication and reasoning skills. A prime example is the VisiCalc spreadsheet software that
was developed for accounting purposes; besides displacing 400,000 workers in the industry, it did
create more than 600,000 new positions (Garima Jajoo, 2019). However, one cannot be certain of
what these future technological changes will bring and whether they will be at risk of losing their
job or not. It is therefore not advisable to rely on technological innovations as a source of a new
job but rather take precautions.

PROBLEM ANALYSIS 4
Proposal
The most salient solution is to re-train employees to fit in other positions in the industry when displaced.
This provides a long term solution to the problem of unemployment caused by automation. Besides, it
allows a mutual relationship between humans and machines where they can work alongside each other
thus improving productivity. Solution two is not feasible as the job is not well paying and cannot be relied
upon fully. Solution three is not a feasible one as one cannot predict the future. It works on the
assumption that the prevalent changes in technology will increase job opportunities which, in most cases,
is not always the case. Regardless of whether it replaces one's job or makes it easier, the use of
computerized machines is an inevitable future that has to be embraced and taken positively. Re-skilling
employees are, therefore, the best action to take for them to stay prepared and fit for the changing world.
References

PROBLEM ANALYSIS 5
Blake Morgan, 2018. Robots Will Take Our Jobs And We Need A Plan: 4 Scenarios For The
Future. [Online] Available at: https://www.forbes.com/sites/blakemorgan/2018/09/05/robots-
will-take-our-jobs-and-we-need-a-plan-4-scenarios-for-the-future/#1c503a376db4 [Accessed 05
September 2018].
Garima Jajoo, 2019. Job Automation and Unemployment. [Online] Available at:
https://towardsdatascience.com/job-automation-and-unemployment-a7cedfc1b517 [Accessed 24
April 2019].
REBECCA J. ROSEN, 2015. The Atlantic. [Online] Available at:
https://www.theatlantic.com/business/archive/2015/09/jobs-automation-technological-
unemployment-history/403576/ [Accessed 3 September 2015].
TOM WARD, 2017. The Solution to Automation in the Workforce Could Be Retraining. [Online]
Available at: https://futurism.com/solution-automation-workforce-retraining [Accessed 16 July
2017].
Zeira, J. & Hideki Nakamura, 2018. Automation and unemployment: Help is on the way.
Research-based policy analysis and commentary from leading economists, pp.57-60.