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Introduction

This case study examines the impact of automation on job displacement, highlighting ethical dilemmas and the effects on various stakeholders, including employees, employers, and society. It discusses options for managing automation's consequences, such as retraining programs and government intervention, each with potential positive and negative outcomes. The conclusion emphasizes the need for a balanced approach to automation that considers workforce reskilling and strategic decision-making to mitigate social impacts.

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VALCO Gaming
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10 views

Introduction

This case study examines the impact of automation on job displacement, highlighting ethical dilemmas and the effects on various stakeholders, including employees, employers, and society. It discusses options for managing automation's consequences, such as retraining programs and government intervention, each with potential positive and negative outcomes. The conclusion emphasizes the need for a balanced approach to automation that considers workforce reskilling and strategic decision-making to mitigate social impacts.

Uploaded by

VALCO Gaming
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction

The rapid advancement of automation and computer technology has significantly transformed the
modern workplace, raising critical ethical and economic questions about the future of employment.
This case study explores the impact of automation on job displacement, focusing on real-life
examples such as Dennis Kriebal, who lost his factory job to a robot, and Sherry Johnson, who
faced similar challenges in the printing industry. According to research by the Center for Business
and Economic Research, approximately 87 percent of manufacturing job losses in the United
States between 2000 and 2010 were due to automation rather than outsourcing or trade. While
automation enhances productivity and drives economic growth, it also creates a dilemma by
rendering many jobs obsolete, disproportionately affecting low-skilled workers. This study
examines the ethical implications of automation, the stakeholders involved, and the strategic
considerations necessary for balancing technological progress with social responsibility. By
analyzing the complex dynamics of job displacement and economic adaptation, this case study
seeks to provide a comprehensive understanding of the future of work in an increasingly automated
world.

1 How does automating jobs pose an ethical dilemma? Who are the stakeholders? Identify
the options that can be taken and the potential consequences of each.

• Ethical Dilemma: Automation poses an ethical dilemma as it enhances productivity


and profitability but also leads to job displacement and social inequality. The moral
conflict lies in balancing technological progress with social responsibility. While
automation boosts efficiency and economic growth, it can lead to significant
unemployment, wage suppression, and economic disparity, especially among low-
skilled workers.

• Stakeholders Involved:

• Employees: Directly impacted by job losses, reduced income, or the need for reskilling.

• Employers: Benefit from cost savings, increased productivity, and competitiveness but
face ethical decisions regarding workforce management.
• Customers: Potentially receive improved products or services at lower costs due to
increased efficiency.

• Society and Communities: Face economic implications like increased unemployment,


social inequality, and potential social unrest.

• Government and Policy Makers: Responsible for regulating automation's impact on


employment and implementing safety nets for displaced workers.

• Options and Potential Consequences:

• Option 1: Full Adoption of Automation Without Intervention

• Consequences:

• Positive: Maximum productivity, cost savings, and increased profitability for businesses.

• Negative: Significant job displacement, increased unemployment, economic inequality,


and social unrest.

• Option 2: Implement Retraining and Reskilling Programs

• Consequences:

• Positive: Smoother workforce transition, reduced unemployment, and empowerment of


workers with new skills.

• Negative: High cost of training programs, time required for skill acquisition, and resistance
to change from employees.

• Option 3: Gradual Implementation of Automation

• Consequences:

• Positive: Allows time for workforce adaptation, minimizing abrupt job losses.

• Negative: Slower productivity gains and potential loss of competitive edge in rapidly
evolving industries.

• Option 4: Government Intervention and Policy Support

• Consequences:
• Positive: Implementation of social safety nets (e.g., unemployment benefits), job creation
in new sectors, and regulation of automation impacts.

• Negative: Increased government spending and taxation, potential political resistance, and
bureaucratic challenges.

• 2 If you were the owner of a factory deciding on whether to acquire robots to perform
certain tasks, what people, organization, and technology factors would you consider?

• People Factors:

o Impact on existing workforce (job losses, reskilling needs)

o Employee morale and acceptance of automation

o Availability of skilled labor to maintain and operate robots

• Organizational Factors:

o Cost-benefit analysis (initial investment vs. long-term savings)

o Integration with current operations and workflows

o Change management strategy to smoothly transition to automation

• Technology Factors:

o Compatibility with existing systems

o Scalability and flexibility for future needs

o Maintenance and cybersecurity requirements

Conclusion:

Automating jobs presents complex ethical dilemmas involving multiple stakeholders,


requiring strategic decision-making and social responsibility. To navigate this challenge, a
balanced approach integrating workforce reskilling, gradual automation, and supportive
government policies is essential. For factory owners, careful consideration of people,
organization, and technology factors will ensure sustainable automation implementation
that maximizes productivity while minimizing negative social impacts.

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