HC3031: Technological Change and Its Impact on HRM Activities

This report investigates the profound effects of technological advancements, particularly artificial intelligence (AI) and robotics, on Human Resource Management (HRM) practices and societal structures. It delves into the impact of these technologies across various sectors, including healthcare, accounting, and the hospitality industry, with a specific focus on the professions of doctors, accountants, and hotel managers. The analysis covers current demographics, future trends, and the potential for job displacement versus the creation of new opportunities. The report emphasizes the need for adaptation, training, and a strategic approach to integrating AI and robotics to improve business processes. It also discusses the ethical considerations and societal shifts associated with these technological changes, making recommendations for managers and employees to navigate this evolving landscape. The report is based on the universalistic theory of HRM and includes a situation analysis of selected organizations, future situations of the selected companies and presents findings based on the sources consulted.

Running head: TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
Technological Change and its Impact on HRM Activities
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1TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
Executive Summary
In the upcoming decades, the Artificial Intelligence along with the Robotics trend is deemed to
impact the society in an advantageous manner. Certain jobs where robots will have less impact
have to be concerned regarding people management, creativity along with social interactions.
The society must also change attitude towards artificial intelligence for robotics and it must be
considered as added marketing value. Considering such useful implications of AI and robotics in
several occupations it is recommended that the managers and the employees of all the
occupations must attain regular and adequate training regarding implementation of complex
robots in improve business processes.

2TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
Table of Contents
Introduction......................................................................................................................................3
AI and Robotics Trends Change Impact on Societal Level.........................................................3
Situation Analysis of Selected Organizations..................................................................................6
Current Demographics of Selected Occupations.........................................................................6
Future Situation of Selected Companies......................................................................................9
Conclusion and Recommendations................................................................................................13
References......................................................................................................................................16

3TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
Introduction
Workplaces in the current years are undergoing certain dramatic changes and focused on
same the future represents several challenges along with opportunities in the areas of Human
Resource Management (HRM) and the employees. Technological change specifically the
development of the artificial intelligence (AI) along with new generation robotics that is also
indicated that it might displace current jobs along with recent employment patterns (Boyd and
Holton 2018). Moreover, such trend is deemed to have a considerable impact on the fabric of the
societal level. The objective of the report is to analyze the ways in which changes in the
Artificial Intelligence or Robotics changes has impacts on the society as well as the selected
occupations.
AI and Robotics Trends Change Impact on Societal Level
In the upcoming decades, the Artificial Intelligence along with the Robotics trend is
deemed to impact the society in an advantageous manner. In the 40 to 50 years’ time, the society
is observed to undergo several changes and one significant factor which will impact and
transform several aspects of daily life is the rapid expansion of robotics and AI. This is for the
reason that it is believed smart technologies will have exhaustible power along with exceptional
benefits. Conversely, certain reasechers have also stressed on the disadvantages that might be
imposed by such technological trends (Chiacchio, Petropoulos and Pichler 2018). For instance,
Robots and AI might displace several jobs that can lead to industrial automation because of
which several employees can lose their jobs as robots might replace them. Moreover, the
organizations will prefer implementing such technology vastly in future because of several
advantages associated with them. For instance, implementation of the machine learning

4TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
algorithms along several types of robots within the manufacturing and other business activities
can increase productivity. A report from statista demonstrates that the international automation
market revenue is anticipated to increase more than 4 90 billion in the year 2020 and further over
the 50 years (Church 2018).
Figure 1: Global Automation Market Size
(Source: Dirican 2015)
It has been indicated from the report presented by McKinsey Global Institute that around
800 million employees will be replaced by robotics and AI internationally. Certain jobs where
robots will have less impact have to be concerned regarding people management, creativity along

5TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
with social interactions. The society must also change attitude towards artificial intelligence for
robotics and it must be considered as added marketing value (Foerster-Metz et al. 2018). It has
also been revealed that spending on AI will increase gradually in the upcoming 50 years in
various business sectors that is indicated below.
Figure 1: Spending Trend in the AI and Robotics
(Source: Grove 2018)

6TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
The International Data Corporation estimate an increase in global spending in AI and
Robotics as an increasing number of organizations is introducing solutions that are related with
robotics and AI. Over the years till 2050, three quarters of business applications is deemed to
have algorithms related with artificial intelligence. The sectors that are anticipated to get totally
revolutionized by AI systems include retail, banking, healthcare and discrete manufacturing. In
the future years, the automated use cases that will implement AI and robotics based
technological advancements include consumer service agents, sales processes, diagnostics and
treatment systems and fraud analysis as well as investigation (Ma and Siau 2018).
Situation Analysis of Selected Organizations
The three occupations that are selected in the report includes the profession of doctors,
accountant and hotel manager. In analyzing the technological changes impact on the occupations
selected, universalistic theory of HRM is deemed to be applicable as it facilitates in developing a
linear relationship between human resource practice systems and organizational performance.
This theory ensures that organizational success is measured in terms of indicators such profits,
market shares and sales level after implementation of current technological trends (Stone, Neely
and Lengnick-Hall 2018).
Current Demographics of Selected Occupations
The current demographics of the occupation of “Doctors” in Australia analysis over the
past 40 years is observed to be changing where the number of general practitioners, physicians
and nurses have increased by 40% and such increase is observed to be stable in the ongoing
years. The proportion of female physicians has increased by 52% over the past 20 years
(Wisskirchen et al. 2017).

7TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
Figure 2: Current Demographics of Doctor Occupation
(Source: Yoon and Lee 2018)
The current demographics of accountant occupation in Australia are indicated in the
figure below. Moreover it has also been observed that over the 40 years employment in thus
occupation has observed tremendous change in the form of establishment of tougher rules on
audit and corporate governance. Moreover, over the 20 years, the CPA firms have been observed
to employ 65% more employees in the accounting and taxation profession (Wisskirchen et al.
2017).

8TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
Figure 3: Current Demographics of Accounting Occupation
(Source: Wisskirchen et al. 2017)
The current demographics of hotel manager occupation in Australia are indicated in the
figure below. Moreover, from analysis of the statistical data it has also been observed that there
were several changes in the trends of this occupation over the timespan of 40 years. It has been
gathered from the Australian census data that in the hospitality industry the employment of the
hotel managers has observed an increase by 85% over past 50 years where 42% of recruited
employees were male and 58% were female (Wisskirchen et al. 2017).

9TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
Figure 4: Current Demographics of Hotel Manager Occupation
(Source: Foerster-Metz et al. 2018)
Future Situation of Selected Companies
Future Situation of Doctor Occupation
From analyzing the current demographics of Doctor Occupation it is anticipated that with
growing implementation of AI and robotics technology in the occupation is deemed to impose
several improvements in the business till the year 2060. Foerster-Metz et al. (2018) evidenced
that the medical profession will transform technology due to implementation of various forms of
Artificial Intelligence systems that will be able to diagnose and treat injury and illness much
better than any medical professional can. Robotics technology is deemed to have a huge role in

10TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
replacing the human method of spinal surgery that can facilitate the surgeons in placing screws
in the spines with 99% of accuracy. Moreover, in the future year’s robots are estimated to
diagnose and produce several management plans in oncology treatment where information is
synthesized from several reports, patient records, journals and clinical trials. Doctors are needed
to huge largely in healthcare AI technology because of which the AI in healthcare and life
sciences sphere is anticipated to grow by 50% till the year 2060 (Wisskirchen et al. 2017).
Certain instances have also been found that AI might take place of the radiologists;
robotics can surpass the skills of the surgeons and can replace several jobs in pharma. However,
it has also been evidenced by Foerster-Metz et al. (2018) that implementation of AI technology
along with robotics is also deemed to have a transformative impact on the doctors profession as it
can replace the medical professionals in case they are irresponsible and unprofessional in their
healthcare profession. It has also been evidenced that there are certain areas where doctors
cannot be replaced by AI or robotics technology as empathy cannot be replaced by technology,
doctors follow a non-linear working method that needs creativity along with problem solving
skills that the AI algorithms or robotics cannot have. Moreover, in the future years where it is
supposed that AI and robotics technology will positively transform the healthcare facilities
offered by doctors it can also be deemed that complex digital technologies requires competent
professionals. It has also been claimed by scientists that till the year 2060, AI and robotics
technology can support doctors’ occupation rather than just counting cells (Wisskirchen et al.
2017). Through machine learning, it can support the doctors in performing jobs such as
recognizing complex patterns or structures along with understanding the ways in which cells can
be organized.
Future Situation of Accountants Occupation

11TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
From the statistics represented in the in the current accountants occupation, it has been
gathered that emerging trends of AI and robotics implementation is deemed to major changes in
the accountants role or position over the years till 2060. It has been evidenced that Wisskirchen
et al. (2017) AI technology acts as intelligent machines that are capable to accomplish repetitive
and mundane tasks as it takes time for the human to accomplish the same with increased
accuracy. The introduction of machine learning facilitates the AI platforms in accounting
occasion to observe, analyze and self-learn the data along with the processes in improving
accuracy and performance of accountancy operations. It is also anticipated that implementation
of AI and robotics in the upcoming years is likely to deal with several standard accounting tasks
more efficiently that can transform the role of accountants till the year 2060. Moreover the
statistical data regarding technological trend in the upcoming years indicated that AI
implementation in the accounting occupation is deemed to create more jobs in future than
replacing them that will offer accountants with several option of improving their data analysis.
AI is anticipated to support accountants to improve their services in the future years. For
instance, AI technology with algorithms and robotics are anticipated to improve the accuracy of
data entry along with decrease the liability risks of accountants. Moreover, the emerging
technology will be highly efficient in accounting fraud detection that can add an extra protection
layer for accountants as well as their consumers. Stone, Neely and Lengnick-Hall (2018) have
also evidenced that robotics and AI technology implementation in the accounting occupation can
also facilitate in offering real time data that facilitates the accountants in offering real-tome
solutions. Another impressive technological trend that is deemed to transform accountants’
occupation over the future years is the ability of machine learning to analyze a great amount of
data in short time span, analyze previous successes along with failures for future outcomes

12TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
production. Through implementing such technology the accountants will be able to employ their
training and experience in offering consumers with effective and real business solutions
regarding tax consulting, mergers, business practice and growth options.
Future Situation of Hotel Manager Occupation
The graphical representation of data indicated the current situation of the hotel managers’
occupation. Moreover, it has also been anticipated that AI and robotics technology
implementation in the hospitality industry is deemed to ensure improvements in the business
activities over the upcoming years till 2060. Stone, Neely and Lengnick-Hall (2018) evidenced
that in the upcoming years, robotics and AI technology will transform the hotel service industry
and the occupations of the hotel managers will ease in managing all the hotel operations. It is
deemed that the hotel managers will attain the competitive edge of performing all the operations
of the hotel in a highly effective and organized manner that can further ensure exceptional dining
experiences for the consumers. For instance, the statistical data provided by Stone, Neely and
Lengnick-Hall (2018) it has been gathered that in the Australian hotel occupation, the managers
are anticipated to make several experiments to include robotics system that can take over bar
tendering along with salad making duties and can also perform the operation of delivering food
to the guest rooms. Moreover, the job role of the hotel managers will also get easier till the year
2060 ith exceptional transformation in the hotel industry with technology. For instance, as per
the observed upcoming trend the managers in the hotels will focus on offering automated check-
in through robotics application through facial recognition.
Moreover, the alexia-enabled speakers are also emerging to be placed in the hotel rooms
that can offer exceptional personalized services to guests. Moreover, the occupation of the hotel

13TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
managers will attain advantages of efficiently managing employees and making their jobs easier
through implementing AI and robotics technological trends. This can be in the form of GPS
enabled technologies that can be motorized to clean carts that can make jobs of maids less
physically stressful. Moreover, with the growing trends of implementing such technology by the
hotel managers in their hotel services it is also anticipated that unlike the employees in the fast
food chains and coffee shops that are undergoing automation trends, several hotel workers see a
booming career within the industry. Foerster-Metz et al. (2018) has also revealed that the
managers in the hotel occupations is also anticipated to introduce tech-enabled labor that can
save time for the business operations and can also perform a two-person job like the janitorial
services or manning the front test all night that can be assigned to a single person aided by a
robot.
Conclusion and Recommendations
The objective of the report was to analyze the ways in which changes in the Artificial
Intelligence or Robotics changes has impacts on the society as well as the selected occupations.
The report revealed that Robots and AI might displace several jobs that can lead to industrial
automation because of which several employees can lose their jobs as robots might replace them.
Moreover, the organizations will prefer implementing such technology vastly in future because
of several advantages associated with them. Moreover, it has also been revealed that
implementation of AI technology along with robotics is also deemed to have a transformative
impact on the doctors professional as it can replace the medical professionals in case they are
irresponsible and unprofessional in their healthcare profession. It has also been evidenced that
there are certain areas where doctors cannot be replaced by AI or robotics technology as empathy
cannot be replaced by technology, doctors follow a non-linear working method that needs

14TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
creativity along with problem solving skills that the AI algorithms or robotics cannot have. Over
the years till 2050, three quarters of business applications is deemed to have algorithms related
with artificial intelligence. The sectors that are anticipated to get totally revolutionized by AI
systems include retail, banking, healthcare and discrete manufacturing. In the future years, the
automated use cases that will implement AI and robotics based technological advancements
include consumer service agents, sales processes, diagnosis and treatment systems and fraud
analysis as well as investigation.
It has been gathered from the report that AI and robotics implementation has a drastic
impact on employment and the employees. Moreover, the tasks, jobs and roles of employees
might be at risk with excess use of such technological trend as employees can be replaced by
smart robots the selected occupations as they can easily navigate space, move heavier objects
such as product parts and can perform complex assembling operations effectively. Moreover, it
has also been revealed from the report that AI and robotics can have several useful implications
for the managers and leaders as this can facilitate in evolving the leadership approach and
management styles in the occupations. It has also been revealed that the managers can attain
several advantages from implementation of AI and robotics in the business activities as it can
facilitate the manager in maintaining business efficiency through maintaining low error rate in
comparison to humans. Moreover, implementation of such technology can also facilitate the
managers in maintaining high precision, speed and accuracy in the business processes.
Considering such useful implications of AI and robotics in several occupations it is
recommended that the managers and the employees of all the occupations must attain regular and
adequate training regarding implementation of complex robots in improve business processes.
Attaining better knowledge on implementing robotics and AI systems can facilitate the managers

15TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
and employees in performing specific tasks with increased degree of routine and control that can
enable high safety, productivity and efficiency for teams that can ensure better services for
consumers and society.

16TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
References
Boyd, R. and Holton, R.J., 2018. Technology, innovation, employment and power: Does robotics
and artificial intelligence really mean social transformation?. Journal of Sociology, 54(3),
pp.331-345.
Chiacchio, F., Petropoulos, G. and Pichler, D., 2018. The impact of industrial robots on EU
employment and wages: A local labour market approach. Bruegel.
Church, A., 2018. The Future of C-Suite Potential in the Age of Robotics. People &
Strategy, 41(1), pp.48-50.
Dirican, C., 2015. The impacts of robotics, artificial intelligence on business and
economics. Procedia-Social and Behavioral Sciences, 195, pp.564-573.
Foerster-Metz, U.S., Marquardt, K., Golowko, N., Kompalla, A. and Hell, C., 2018. Digital
Transformation and its Implications on Organizational Behavior. Journal of EU Research in
Business, Article ID, 340873.
Grove, W., 2018, November. Knowledge Management Design, Planetary-scale Computation and
Emergent Organizational Post-Humanism. In ICICKM 2018 15th International Conference on
Intellectual Capital Knowledge Management & Organisational Learning (p. 372). Academic
Conferences and publishing limited.
Ma, Y. and Siau, K.L., 2018. Artificial Intelligence Impacts on Higher Education.
In Proceedings of the Thirteenth Midwest Association for Information Systems Conference (Vol.
42, pp. 1-5).

17TECHNOLOGICAL CHANGE AND ITS IMPACT ON HRM ACTIVITIES
Stone, C.B., Neely, A.R. and Lengnick-Hall, M.L., 2018. Human Resource Management in the
Digital Age: Big Data, HR Analytics and Artificial Intelligence. In Management and
Technological Challenges in the Digital Age (pp. 13-42). CRC Press.
Wisskirchen, G., Biacabe, B.T., Bormann, U., Muntz, A., Niehaus, G., Soler, G.J. and von
Brauchitsch, B., 2017. Artificial intelligence and robotics and their impact on the workplace. IBA
Global Employment Institute, pp.2012-2017.
Yoon, S.N. and Lee, D., 2018. Artificial intelligence and robots in healthcare: What are the
success factors for technology-based service encounters?. International Journal of Healthcare
Management, pp.1-8.