Technological Advancements Impact on HRM in the Automobile Industry

This report delves into the profound impact of technological advancements, specifically automation and 3D printing, on Human Resource Management (HRM) practices within the automobile industry. It examines how these technologies are reshaping job roles, influencing recruitment and selection strategies, and necessitating changes in training programs and performance management approaches. The report analyzes the challenges faced by HR managers, workers, and other stakeholders, including job displacement and the need for upskilling. It further proposes strategic recommendations for addressing these challenges, focusing on the role of firms, industry bodies, managers, and workers in navigating this evolving landscape. The analysis highlights the critical need for HR professionals to adapt their practices to effectively manage the workforce in an increasingly technologically driven environment, ensuring both organizational success and employee well-being. The report emphasizes the importance of proactive strategies to mitigate negative impacts and capitalize on the opportunities presented by technological innovation, providing insights for future research and practical application within the field.

Running head: TECHNOLOGICAL ADVANCEMENTS AND HRM
TECHNOLOGICAL ADVANCEMENTS AND ITS IMPLICATIONS FOR HRM: AN
ANALYSIS OF THE AUTOMOBILE INDUSTRY
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................2
Background......................................................................................................................................2
Issues Analysis.................................................................................................................................5
Strategies..........................................................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
As stated by Dodgson (2018), the business prospects of the different business
corporations depends substantially on the effectiveness or the ease with which they are being
able to integrate or incorporate the diverse emerging technologies within the spectrum of their
business operations. Chang, Liao and Wu (2017) are of the viewpoint that it is no longer
sufficient for the business corporations to merely rely on the value proposition of the products or
the services offered by them rather the adequate usage of modern technology had become basic
requirement for the attainment of competitive advantage. More importantly, in the particular
context of the automobile industry it had been seen that the extensive usage of the different kinds
of emerging or disruptive technologies have not only improved the quality of automobiles which
are being manufactured presently but also significantly lowered down the operations cost of the
corporations and thereby enhanced their profitability as well (Glaister et al., 2018). However, at
the same time it had been seen that the usage of these technologies had reduced the labor
requirements of the concerned industry since the majority of the work is being performed
through automation (Cullinane & Cushen, 2019). This in turn had affected the work of the HR
professionals within the concerned industry and also the manner in which they perform their job
roles of recruitment and selection, training, performance management, HR planning and others.
The purpose of this report is to undertake an analysis of the future of work in the automobile
industry in the face of the emergence of the different technologies, especially automation taking
into account its implications for Human Resource Management (HRM).

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Background
Parry and Battista (2019) are of the viewpoint that the automobile industry is heavily
reliant on the adequate usage of the different emerging technologies or for that matter the
disruptive technologies for the manufacture of the automobiles that the corporations related to
the same offer. Adding to this, Trotta and Garengo (2017) have noted that the usage of the
different innovative technologies within the automobile industry also becomes important because
of the complex as well as physically demanding work that the workers related to the same are
required to perform. For instance, prior to innovation of 3D Printing and other similar
technologies, it was seen that the automobile designers used to manually design the different
automobiles on paper. However, this not only used to take a substantial amount of time but also a
minor mistake on the part of the automobile designers would make the manufacture of the
concerned automobile vehicle a very problematic one for the other workers involved in the
manufacture of the same (Strohmeier, 2018). More importantly, they were required to have the
ability to draw with clarity and also have the capability of representing their automobile designs
in an effective manner on paper.
In this connection, it needs to be said that the automobile designers these days do not
have face these issues since they have the option to take the help of AutoCAD, Rhino, 3Ds Max,
Blender and other similar software for designing the automobiles (Meyer & Xin, 2018).
Furthermore, the usage of the above mentioned software reduces the human errors and also
makes it very easy to manufacture automobiles on the basis of the design created through the
usage of the different 3D Software (Cullinane & Cushen, 2019). At this particular juncture
mention needs to be made of the different automobile manufacturing corporations like BMW,
Audi and others which in the present through the adequate usage of the disruptive technology of

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3D Printing and the above mentioned software had been able to significantly improve the design
of the automobiles offered by them (Forbes.com, 2020). This in turn had not only helped them to
earn the satisfaction or for that matter the loyalty of their customers but also contributed
significantly towards the enhancement of their profitability as well.
As discussed by Chaudhary (2019), the emergence as well as the extensive usage of the
different disruptive technologies like robotics, internet of things and others had also affected the
other workers of the automobile manufacturing corporations like automobile technicians, car
mechanics and others. Adding to this, Tatoglu, Glaister and Demirbag (2016) have noted that the
different workers of the automobile industry like automobile technicians, car mechanics and
others over the years had been relying on physical labor for the manufacture as well as the
serving of the diverse vehicles. As a matter of fact, they were required to have basic technical as
well as mechanical skills so as to be able to perform their job roles in the best possible manner in
the corporations that they worked in. However, the major issues associated with this is that it was
not only time consuming, the chances of human error was higher, the corporations needed to hire
a large number of workers for the manufacture of the vehicles but it also enhanced the operations
cost of the automobile manufacturing corporations and thus reduced their profitability (Ogbeibu
et al., 2019).
In this context, it needs to be said that the automobile corporations presently have the
opportunity to overcome these issues through the adequate usage of the disruptive technology of
automation for the manufacture as well as the delivery of the automobiles. For example, the
usage of automation had reduced the number of workers required by the automobile
corporations, time need for the manufacture of the automobiles, reduced human errors, reduced
their operations cost and also enhanced their profitability as well (Tregaskis & Almond, 2017).

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This in turn is one of the most important reasons why the leading automobile manufacturing
corporations of the world like Tesla, Volkswagen and others are taking the help of the disruptive
technology of automation. For instance, in the last few years, it had been seen that the
automobile manufacturing corporation, Tesla had been able to substantially overcome the
manufacturing defects that its customers were complaining about regarding the vehicles offered
by it through the adequate usage of the disruptive technology of automation (Forbes.com, 2020).
As a matter of fact, the usage of automation had helped the concerned corporation to overcome
the human errors which were one of the most reasons for the different manufacturing defects
experienced by the customers and this in turn had to not only improve the quality of the electric
cars offered by it but also to enhance its profitability as well.
Issues Analysis
According to Campaignlive.co.uk (2020), “In 2018, 10-15 disruptive technologies sit on
the horizon to usher in ‘Industry 4.0’ or the fourth industrial revolution…..many disruptive
technologies that individually and collectively will change the economy, society, jobs, and the
workplace”. Another article of Forbes.com (2020) states that as per an estimate more than 60%
of the workers related to the automobile industry or roughly around 11.3 million people are
expected to lose their jobs because of the extensive usage of the different disruptive technologies
by the automobile corporations. As discussed above, the emergence of the disruptive
technologies of 3D Printing and automation had directly affected the job roles of the automobile
designers and the automobile technicians or the cars mechanics respectively within the
automobile industry. For instance, they would have to forsake the traditional methods that they
used earlier and take the help of these technologies for the completion of their job roles. More
importantly, they would also be required to enhance their skill sets by learning the adequate

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usage of different disruptive technologies so as to be able to perform as per the expectations of
the corporation that they work for (Ng, Hamid & Yusof, 2017).
This increased reliance of the automobile corporations on the different disruptive
technologies is likely to have important implications for the human resource management
practices which are being used by their HRM teams. As a matter of fact, they would not only
have to terminate a significant number of their workers but also influence the remaining workers
to learn the adequate usage of the disruptive technologies. This in turn would require the HR
professionals related to the concerned corporations to substantially modify or for that matter
change the recruitment and selection strategy, training, performance management, HR planning
and other job roles which they had been performing over the years within the automobile
corporations (Pestonjee & Mehta, 2016). As a matter of fact, earlier the HR professionals related
to the automobile corporations while hiring the automobile technicians or the car mechanics used
to check whether or not the candidates had adequate amount of technical or mechanical skills
and on the basis of this jobs were being offered to them (Scavarda et al., 2019). On the other
hand, while recruiting or selecting the automobile designers, the HR professionals ensured the
fact that the candidates possessed adequate amount of drawing skills, had the ability to express
the automobile designs on paper with clarity and others (Dibben et al., 2016). However,
presently because of the extensive usage of the disruptive technologies by the automobile
corporations it seen that the criteria that the HR professionals take into account for the recruiting
and selecting the automobile designers, automobile technicians or the car mechanics and others
have undergone a significant amount of change (Khanna & Sharma, 2017). For instance, while
recruiting the automobile designers, the HR professionals need to ensure the fact that they have
adequate knowledge of the differed 3D Printing Software whereas while recruiting the

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automobile technicians or the car mechanics, the HR professionals need to ensure they have
adequate knowledge of the disruptive technology of automation.
Chang, Liao and Wu (2017) are of the viewpoint that in the face of the extensive usage of
the different disruptive technologies, the training programs which are being conducted within the
automobile corporations had also undergone a substantial amount of change. Adding to this,
Uhrin, Bruque-Cámara and Moyano-Fuentes (2017) have noted that unlike the earlier times
wherein the focus of the training programs was on the development of the mechanic skills of the
workers, presently it is seen that the focus of these training programs is on the development of
the technical skills of the workers. More importantly, within the spectrum of the automobile
industry it is seen that different kinds of advanced training programs, workshops and others are
being frequently organized so as to enable the workers to learn about the recent advancement or
the technological developments that are taking place within the concerned industry (Chaudhary,
2019). In addition to these, it had been seen that the performance management approach used by
the HRM team of the automobile corporations had also undergone a change in the recent times.
As a matter of fact, the most important thing which is being taken into account in the process of
performance management is the effectiveness or the ease with which the workers are being able
to use the disruptive technologies for the attainment of the organizational goals or objectives.
Strategies
Parry and Battista (2019) have expressed the idea that the extensive usage of the different
disruptive technologies had affected all the major stakeholders like the workers, automobile
corporations, government and others who are associated with the automobile industry. Adding to
this, Meyer and Xin (2018) have noted that the workers related to the automobile industry are the

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most important stakeholders whom the emergence and the usage of the disruptive technologies is
likely to affect. For instance, many of the workers stand to lose they jobs in the face of usage of
automation, 3D Printing and the other disruptive technologies by the automobile corporations
and would also have to acquire the important skill sets that would enable them to make the most
of these disruptive technologies (Strohmeier, 2018). The next important stakeholder whom these
disruptive technologies are likely to affect are the automobile corporations since they would have
to make important changes in the operations or the manufacturing process used by them and also
offer the required training to their workers so as to help them to effectively utilize these
disruptive technologies (Ogbeibu et al., 2019). Lastly, the governmental bodies are also likely to
get affected by the usage of these disruptive technologies by the automobile corporations since it
would not only enhance the amount of tax money, tariff and other subsidies that they would get
from the automobile corporations but also because of termination of the numerous workers the
unemployment rate of the nations would also increase and thereby adversely affect their national
economy as well (Scavarda et al., 2019).
In the face of these aspects, it becomes important for the above mentioned stakeholders,
namely, the workers related to the automobile industry, the automobile corporations, government
and others to take the help of different strategies to mitigate the negative connotations of the
same. For instance, the workers would have to acquire new skill sets, especially related to the
adequate usage of the disruptive technologies of automation, 3D Printing and others so as to be
able to work effectively within the concerned industry. This can be done by them by way of
undertaking vocational training, personal and professional development programs, skill
development programs, professional workshops and others. Furthermore, the automobile
corporations and the HRM team related to them would have to change the recruitment and

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selection, training, performance management and other approaches used by them as well. For
example, the HR professionals need to focus on recruiting the candidates who have knowledge
and also skills for the effective usage of the disruptive technologies. In addition to these, they
would also have to modify their training programs and performance management approach
wherein focus needs to be given to the inculcation as well as the effective usage of the disruptive
technologies that are needed for the completion of the different job roles. Lastly, the government
in order to cope up with the problem of unemployment on the score of the expected high
employee redundancy within the automobile industry needs to create new jobs so that this would
not adversely affect or for that matter slow down their economic growth.
Conclusion
To conclude, the automobile industry is presently embracing the different disruptive
technologies which in turn had enhanced the efficiency of their organization and also helped
them to earn amount of profitability as well. However, at the same time it had been seen that this
had enhanced the employee redundancy or employee turnover within the concerned industry and
the HRM teams also had been forced to change their recruitment and selection, performance
management, training and other approaches. This has important implications for the HRM teams
within the automobile industry. For instance, the focus of these approaches presently used by the
HR professionals within the industry under discussion here is to enhance the acceptance as well
as the widespread usage of the disruptive technologies by the workers so as to help the
automobile corporations to derive the maximum benefit from the same and thereby help them to
attain their business or organizational goals. However, there is a scope for future research since
research needs to conducted to understand not only the effectiveness of the different disruptive
technologies within the automobile industry but also the exact skill sets that the workers require

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to use these technologies. In addition to these, research also needs to be conducted to understand
the manner in which the negative connotations of the usage of these technologies can be
minimized while maximizing the benefits from the usage of the same.
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