The Critical Analysis of the Impact of Automation on Employment Opportunities in India

M Pavan Rao^*
*Correspondence: Dr. M Pavan Rao, Department of Business Administration and Legislative Law (Hons), Loyola Institute of Business Administration, Tamil Nadu, Chennai, India, Email:

Keywords

Qualitative • Impact • Professional • Economy • Occupation

Introduction

Employment misfortunes because of mechanization have turned into a reason for worry as of late. Different reports of the multilateral offices, for example, the World Bank Group and the International Labour Organization have forewarned the created nations, including India, to take proper strategy measures to limit the unfriendly effects of mechanization on openings for work. [1,2]. It is against this setting, it is appropriate to comprehend what is computerization, the positive and negative effects of mechanization and the conceivable arrangements previously the Legislature [1]. An organization that resorts to automation offers products and enterprises at lower costs than customary suppliers. The decreased costs hold the expansion under check and result in more investment funds by people and organizations [3]. The expanded reserve funds will be used as the capital by the business, which will prompt the production of more occupations [3,4]. Automation raises effectiveness and profitability [4]. This standard applies to open, private and non-benefit areas alike [5]. For example, a report discharged by the World Bank Group in 2016, Digital Dividends, reasoned that e-obtainment activities by the Indian government helped in infusing more challenge into the procedure by expanding the likelihood that the triumphant bidder originates from outside the undertaking's locale bringing about the progressively subjective framework [6]. The better socio- economic foundation dependably draws in greater venture, creation and greater business openings [6,7]. Under typical conditions, computerization happens to lessen costs by a firm.

A decrease in costs prompts more benefits [1]. Increment in benefits guarantees more assets for advancement and research by organizations, which thusly lead to the improvement of new innovations and subsequently, more employments [8]. Automation lessens bureaucratic prudence and diminishes open doors for trivial debasement in support-based frameworks. Decrease in debasement prompts enhanced simplicity of working together conditions, which will additionally prompt more ventures and more openings for work [1,2]. Regardless of the previously mentioned positive effects, computerization isn't without a lot of reactions. Coming up next are a portion of the antagonistic effects of mechanization on the making of employments in the nation [1-3]. The real analysis against the mechanization of procedures is layoffs. This is all the more so in the lower and center dimension because of the low range of abilities required and less human-tohuman communication of workers. Other than losing a current occupation, computerization likewise makes difficulties for people in the progress to new employments, particularly when the aptitude needs of new employments are unique in relation to those of the old employments [4].

According to the International Studies Association (ISA), mechanization is characterized as the creation and utilization of innovation to screen and control the generation and conveyance of items and administrations [5]. Robotization is spread crosswise over various fragments of the economy, for example, fabricating, transportation, utilities, barrier, administrations, and so forth. Presentation of driverless metros in Delhi, the news of cutbacks in enormous IT organizations like Cognizant, Infosys, and Tech Mahindra because of mechanization, the danger to work openings from data and correspondence advances, man-made brainpower and mechanical technology in substance, managing an account, pharmaceuticals, sustenance and refreshments, coordination and security areas indicate the effect of computerization on business situation in the nation [9].

According to the World Bank Group's report, 66% of all occupations could be defenseless to computerization in creating nations in coming decades [10]. Nonetheless, boundaries to innovation appropriation bring down wages, and a higher predominance of occupations dependent on manual expertise in India imply that computerization is probably going to be slower and less broad contrasted with different nations [11]. The significant test before India is to discover employments for its working-age populace which is conjecture to increment from the present 740 million to 1.3 billion by 2050 [12]. Then again, work creation isn't required to ascend to 18 million by 2018. It is against this setting, the accompanying advances should be taken to limit the unfriendly effects of computerization on work openings [13]. India's height in the World Bank's Ease of Doing Business positioning a year ago is a generous underwriting of the administration's endeavours to achieve beneficial changes to the nation's perplexing yet energetic economy [14]. Likewise essential to note is that India is the main nation in South Asia, and furthermore from in the midst of the BRICS (Brazil, Russia, India, China and South Africa) gathering to include among the most enhanced economies, while correspondingly being perceived as one of the best five reformers in the appraisal this year [15]. Every one of these achievements is a smooth declaration of the way that India has, throughout the most recent decade, united her situation as the place where there are interminable chances, which is obvious with organizations from crosswise over created just as creating economies working unremittingly to build up their impression here and gain by the unfurling development story [16].

Indeed, even a fast take a gander at overall EXIM (Export and Import) information for 2017 a similar way with India outpacing China in BRICS exchange development with the world, while at the same time empowering the BRICS to outpace the worldwide normal. To have the capacity to comprehend the noteworthiness of this measurement, one must understand that the five BRICS accomplices together contribute about one-fourth of worldwide monetary yield and half of world financial development. In what could present genuine difficulties to Indian policymakers in the coming years, the developing utilization of innovation in financial exercises, [17]. Undermines to slaughter a huge number of employments. In addition, India's data innovation (IT) part, which has been giving employments to millions, is anticipated to confront immense occupation slices as organizations send robots to do low-talented work [18]. A US-based HfS Research anticipated that India's IT administrations industry will lose 6.4 lakh "low-gifted" employments to computerization in the following five years, measuring the degree of likely torment out of the blue, however Indian industry specialists point to the opposite side of the coin the making of new occupations in expansive numbers [8]. IT consultancy firm, Accenture has said savvy machines entering the business as once huge mob throughout the following couple of years will give associations an extraordinary chance to release the genuine capability of their workforce of things to come [19]. In the IT ventures, as well as in the assembling, nourishment area and now keeping the money; robots are there to remain. In August 2016 HDFC declared that it would before long have a robot in any case, in one of its branches [9]. It will fill in as security just as an assistant. As indicated by a report by Citi Bank, "Around 30% of all employments inside banks would be fired because of expanded robotization in different managing account administrations." [20]. Profitability and exactness are the terms that are related to robots as though they are a relief to work misfortune to a large number of people [10]. Individuals aren't prepared to lose the employment of a security individual and afterward proceed to wind up the administrator of the robot that got them to let go. What will happen to these untalented individuals in an economy like our own? The World Bank has cautioned of huge occupation cuts in India in the coming years. Research dependent on World Bank information has anticipated that the extent of employments undermined via computerization in India is 69%, while it is 77% in China and 85% in Ethiopia. "In the event that this is valid, and on the off chance that these nations will lose these numerous positions, we, need to comprehend what ways to financial development will be accessible for these nations and after that adjust our way to deal with the foundation in like manner," World Bank President Jim Yong Kim has said ‘Man-made brainpower is assuming control quickly and with an impact that is difficult to overlook’.

The day when schools and educators will be supplanted by a machine isn't far. There are advanced babysitters in a hurry. There will be advanced drivers and handymen soon as well. The main aim of the study analyses the positive and negative impacts of automation on job opportunities. The objectives of the study are to analyze automation on employment, to explain the impacts on employment opportunities in India and to find the automation could be a help to India's growth [21].

Objectives

Primary objective: Too critical analysis of the impact of automation on employment opportunities in India.

Secondary objective: To explain the employment opportunities in India.

Hypothesis

Null hypothesis: There is no significant independent variable relationship between employment and automation.

Alternative hypothesis: There is significant independent variable relationship between employment and automation.

Materials and Methods

This research follows a non-doctrinal type of research and the sampling method used in this survey is the random sampling method. This study used both primary and secondary data. The secondary data used from government documents, unpublished thesis, websites, journals etc. The primary data was collected from the respondents using a simple random sampling method with a structured questionnaire. Independent variables such as age, gender, educational qualification, occupation, marital status, monthly family income, monthly expenditure etc. were also collected. The current paper is based on the stratified random method of sampling and the sample size is limited to 1568 and the survey is taken in Chennai only and most importantly the survey was made in an authenticated way for appropriate results and also tries to reveal the actual truths regarding these issues. This paper also includes various secondary sources to get through the current issue, but the results will be focused mainly on the primary data.

Review of literature

1. John M Larsen Jr and W A Owens Jr 1965: Discusses the variation in both the attitudes and effectiveness of employee groups as a function of the quality of supervision, tenure, education, the ages of the group members, the dynamic interplay of individual personalities and the emerging social aspects of the job. The requirement of anonymity usually dictates that only group criteria can be obtained and the outcome is a heavy preponderance of group studies. Thus, in providing an individual criterion of satisfaction, it might then be possible to investigate both betweengroup and within-group satisfaction in an interesting and current theoretical frame. Development) demonstrated a moderating influence on the goal setting-satisfaction relationships. An unexpected finding was that there was a significant decrease in perceived managerial behaviour on the Goal Clarity and Planning factor over the 21 months. However, a significant increase occurred in the Feedback and Evaluation factor.

2. Edward E. Lawler III and Richard J. Hackman 1971: Did research on “corporate profits and employee satisfaction”. The authors examined the notion that executives would rather maximize their profits rather than invest in their employee’s job satisfaction. They discuss how the simplification of many work processes, while intended to improve an organization's profits, often results in a lack of satisfaction on the employee's end. The breaking down of work into small tasks makes the worker's job repetitive and easily replaceable. While this process is designed to improve quality it also results in a decrease in morale. The authors examined how it is actually not profitable for companies to continue to use these practices because of the costs related to turnover, absenteeism and the eventual drop in product quality.

3. Kahn 1972: Mentioned that job content, supervision, physical work conditions and possibly organization structure is amongst the highly probable causes of satisfaction and satisfaction in the workplace. In the automotive industry, jobs are standardized and have a narrow range, as designed according to scientific management principles. Scientific management, as by Frederick Taylor, uses research and experimentation to determine the most efficient way to perform jobs and organizes workers into specialized and standardized jobs

4. GopaBasu 1973: Observes in her research study that ‘Motivation in Industry’ is concerned not with the task of getting workers to do assigned jobs but with the task of enlisting their co-operation and loyalty when they have already identified themselves with the organization.

5. Donald P Schwab and Marc J Wallace Jr 1974: Examined many aspects of job satisfaction investigated in recent years; satisfaction with pay appears to be most deserving of additional study. Employee satisfaction with pay should be of particular importance to organizations if for no other reason than that pay constitutes a substantial-often the major-cost of doing business. Despite its importance, however, considerable controversy has surrounded discussions of satisfaction with pay, and only recently have we begun to learn something about the personal and organizational factors associated with pay satisfaction. This study examines six personal and organizational correlates of pay satisfaction of both male and female nonexempt employees in a large firm manufacturing durable consumer goods. In general, the results indicate that although satisfaction with pay is related to several variables the vast majority of the variance in pay satisfaction is not explained by the variables used in this study.

6. Gene Milbourn Jr and J D Dunn 1976: Article presents a study that aims to assist operating managers of small organizations in determining the need for conducting audits of employee attitudes, selecting an appropriate questionnaire to gather attitudinal data, and interpreting and using the information collected to improve managerial practices and organizational functioning. Job satisfaction is a feeling an employee has about his work, pay, promotional opportunities, supervisor, and co-workers. More specifically, it is the "pleasurable emotional state resulting from the appraisal of one's job as achieving or facilitating the achievement of one's job values. Managerial policies and practices determine the level of worker satisfaction/dissatisfaction toward each of the five component dimensions. The abbreviated scheme above shows that managers are responsible for designing or creating a work environment where employees are able to be satisfied and productive. A managerial policy on promotion, for example, is seen to affect both job satisfactions with promotion and employee performance.

7. Richard D Arvey, H Dudley Dewhirst and Edward M Brown 1978: Examined two hundred and forty-five working-level scientists and engineers participated in a longitudinal study in which their managers had been trained in a Management by Objectives program. Subjects completed two questionnaires, the latter being completed 21 months after the first designed to assess perceptions of their managers' goal-setting behaviour along four dimensions derived using factor analytic procedures (Goal Clarity and Planning, Subordinate Freedom, Feedback and Evaluation, Participation in Goal Setting) and their reported intrinsic, extrinsic and total satisfaction. Dynamic correlations were computed between changes in the goal-setting factors and changes in the satisfaction variables and significant positive relationships were observed. In addition, results indicated that job task (research vs. development) demonstrated a moderating influence on the goalsetting- satisfaction relationships. An unexpected finding was that there was a significant decrease in perceived managerial behavior on the Goal Clarity and Planning factor over the 21 months. However, a significant increase occurred in the Feedback and Evaluation factor.

8. Philip 1979: Has pointed out that to increase an employee’s motivation; the management must get the employees to perceive that he will achieve higher satisfaction at a higher effort level.

9. Hemavathi 1990: Has in her doctoral research found that job security is the chief motivator of employees in the Govt. and public sector?

10. Sinha 1991: In his study on Employee Recognition specifies recognition as a positive public acknowledgement of a person’s abilities and efforts. He thinks of it as a powerful achievement motivator through the enhancement of the self-worth of employees.

11. Unni krishnan 1992: Has observed that qualified employees should be properly motivated by giving them higher grade promotion and increment.

12. Pushpa 1993: Observes that most of the industrial atmosphere is dominated by males, most of them are middle-aged and above. This indicates a lack of initiative and vitality. Proper motivation on the part of the management will be a remedy to this.

13. Jits Chandran 1994: Found that motivated people are in a constant state of tension. This tension is relieved by drives towards activity and outcome that is meant to reduce or re-live such tension. The greater the tension, the more activity will be needed to bring about relief and hence higher the motivation.

14. Anil Kumar 1995: Indicates that in order to motivate the workers to increase their efficiency the management should adopt measures to evaluate the merit of the workers and make them feel that their merit is appreciated by the management.

15. Rama Devi 1996: Has suggested that motivation by rewards and recognition is essential for increasing staff productivity.

16. Biswajeet Pattanayak 1997: Explains that motivation is will-to-do and is individual-oriented. If the individual does not feel inclined to engage himself in the work behaviour he will not put in adequate efforts to perform well.

17. Davar 1998: Reports those motivational factors are fruitful only if practised with a sincere attitude of helpfulness and not as gimmicks for getting the subordinates to perform better. The sincerity of purpose alone can ultimately succeed.

18. Michael 1999: Pointed that a work culture that provides adequate job satisfaction to the employees, opportunities for their career advancement, and organizational climate that provides a sense of belonging may provide motivation to the employees in the days to come.

19. Kreitner, Kinicki and Buelens, 1999: Thus, people are fitted into jobs and are expected to adjust accordingly, which doesn’t allow room for self-expression and results in alienation and frustration in the workplace. There is no independence and The freedom allowed in doing the job, therefore the employees’ need for self- esteem is not satisfied, as outlined in Maslow’s hierarchy of needs theory. This diminishes the sense of achievement as the job is limited to a particular repetitive the operation, depriving the person of the opportunity to see a job through to its final.

20. Subba Rao and VSP Rao 2000: Has opined that organization and individual should develop and progress simultaneously for their survival and attainment As stated by Doughty 2000, today, within the HR software market there are a myriad of HR systems, payroll, training administration, 360-degree feedback, psychological testing and competency software tools operating in their own software features Evidence suggests that most organizations fail to recognize that nearly all software on the market today is at the foundation level of e-HR. In the views of McMahan, Snell, Gerhard and Wright 2001, HR functions can become critical partners in driving success, but to do so requires HR to change its focus, its role and its delivery systems. E-HRM (Electronic Human Resource Management) refers to the processing and transmission of digitized information used in HRM, including text, sound and visual images, from one computer to another electronic device. E-HRM has the potential to change all traditional human resource management functions the human resource management. A function has changed dramatically over time evolving.

Methodology

Research method: Empirical and doctrinal research

Sampling method: Random sampling method

Sampling size: 50

Sampling frame: Mult-choice, scalar questions

Independent variables: Age, gender, qualifications

Dependent variables:

1) Whether can a government employee file an RTI?

2) Is there any fee for getting information?

Statistics: Chi-square tests, co-relations, data analysis, percentage/ chi-square analysis etc.

Analysis and discussion

Analysis: In the age frequency table, the frequency ratio is constantly total 1568 valid and the percentage 100.0 as the same to all percent. In this age group around 50 respondents within the group age group, the total percentage is 100.0% (Table 1).

In the gender frequency table, the frequency ratio is constantly total 1568 valid and the percentage 100.0 as the same to all percent. In this age group around 50 respondents within the group age group, the total percentage is 100.0% (Table 2).

Results

In the table age of the respondents with regarding the view on how many jobs will automation in India. In this age group around 50 respondents within the group age group the total percentage is 100.0%.

Hypothesis: chi-square test table explain the hypothesis of 0 cells (0.0%) have an expected count of less than 5. The minimum expected count of the significant value of Pearson chi-square is below than 0.05 of .000 it is an alternative hypothesis of the study (Tables 3a-3c).

In the table age of the respondents with regarding the view on what percentage of jobs will be automated. In this age group around 50 respondents within the group age group, the total percentage is 100.0%.

Hypothesis: chi-square test table explain the hypothesis of 0 cells (0.0%) have an expected count less than 5. The minimum expected count of the significant value of Pearson chi-square is below than 0.05 of .000 it is an alternative hypothesis of the study (Tables 4a-4c).

In the table gender of the respondents with regarding the view on how many jobs will be automated. In this gender group around 50 respondents within the group gender group, the total percentage is 100.0%.

Hypothesis: chi-square test table explain the hypothesis of 0 cells (0.0%) have an expected count less than 5. The minimum expected count of the significant value of Pearson chi-square is below than 0.05 of .000 it is an alternative hypothesis of the study (Tables 5a-5c).

In the table gender of the respondents with regarding the view on what percentage of jobs will automate. In this age group around 50 respondents within the group gender group, the total percentage is 100.0%.

Hypothesis: chi-square test table explain the hypothesis of 0 cells (0.0%) have an expected count of less than 5. The minimum expected count of the significant value of Pearson hi-square is below than 0.05 of .000 it is an alternative hypothesis of the study (Tables 6a-6c).

Discussion

The phenomenal responsibility of the present Government of India to truly address the requirement for work age is a hopeful chance to actualize methodologies for producing full work in the nation. This report, which expands upon work done by the International Commission on Peace and Food in the mid-1990s, affirms the possibility to create adequate business open doors for every single new participant to the workforce just as to retain the present quantities of jobless and underemployed. It incorporates methodologies and approach suggestions intended to augment the viability of the Government's as of late proposed activities for work age and country flourishing. Execution of these proposals will be adequate to create 100 million extra work and independent work openings.

While numerous formal investigations have been set up to survey the development and work potential in India’s formal private division, less consideration has been given to the conditions and procedures to advance quick extension and employment creation in the rustic and casual segments. This report centers around techniques to expand work openings in India's casual division, with accentuation on farming, agro-industry, rustic administrations and related occupations. The report comprises three sections: a review of work in India, a field-tested strategy containing explicit suggestions for implementation, and a point by point talk of business openings and methodologies in farming.

Conclusion

As the world's seventh biggest economy and has the world's second most noteworthy populace, India still needs to accomplish such a large number of things for making the world's best human asset. As indicated by the financial survey, 40 half individuals are as yet performing agricultural based exercises making masked joblessness which is contributing just 16%-17% to the GDP of India. In the mechanical area, however, there is a little measure of populace contributing yet not to its incredible degree. Anyway, the recently risen administration segment includes just 25%-30% of individuals which adds to around 55%-60% in the GDP. Along these lines unmistakably we have to move no. of individuals working in 'agriculture' area to 'Industry' and 'administration' segment.

Despite a huge deluge of youth into the workforce, joblessness isn't rising significantly. This demonstrates the Indian economy is producing countless work openings by regular procedures that are not all around archived or comprehended. A comprehension of these procedures is will help the detailing of compelling systems to quicken work age and dispose of the rest of joblessness and underemployment in the economy. On the off chance that the oblivious procedure of business age can accomplish this much, without a doubt a cognizant comprehension and application can achieve far higher rates of occupation development.

Findings

The report contends that the India work drive experiences an extreme deficiency of employable aptitudes at all dimensions and that escalated advancement of professional abilities will go about as an amazing boost for business and independent work age. Notwithstanding Farm Schools to confer propelled abilities underway horticulture, the report prescribes setting up a system of government-confirmed, provincial professional organizations giving preparing and confirmation in several professional aptitudes not secured by the ITIs. So as to balance the deficiency of qualified coaches and the expenses of imitating foundations all through the nation, the report advocates the production of a national system of 'Occupation Shops' connected to the Rural Information Centres and offering broadcast interactive media preparing programs and mechanized professional preparing programs.

Suggestions

While the quantity of business openings is rising pretty much as required to keep pace with the development of the workforce, the sort and nature of these open doors do not coordinate the desires for some informed activity searchers, which reflects deficiencies both in the kind of work produced and sort of training being conferred to youth. Amusingly, in spite of the flooding number of alumni, numerous organizations report trouble in enrolling instructed people with the required work abilities to take care of the development in demand for business process re-appropriating, car segment creation and numerous different fields.

References

1. OECD. “India: Employment in Tourism.” (2012).
2. Jose, AV. “Employment Trends in India: Some Issues for Investigation. In: Work and Health in India. Martin Hyde, Holendro Singh Chungkham, Laishram Ladusingh (eds), Oxford, United Kingdom. 13 (2017): 67.
3. Ghose, Ajit K. "Labour, employment and economic growth in India."  In: Service-led Growth and Employment in India. K. V ramaswamy (eds), New Delhi, India. (2015): 57-90.
4. Goldar, Bishwanath and Suresh Chand Aggarwal. “In Labour, Employment and Economic Growth in India.” In: Gender Discrimination in Manufacturing Employment in India. K. V. Ramaswamy (eds), New Delhi, India  (2015): 181-218.
5. Chakrabarti, Anjan. “Employment and Labour Market in North-East India." In: Changing trajectories of economic growth and employment in North-East India: An empirical assessment. Virginius Xaxa, Debdulal Sinha and Rajdeep Singha (eds), New Delhi, India. (2018): 39-72.
6. Borah, Bornali. “Women’s Employment in North-East India.” In: Employment and Labour Market in North-East India, 52 (2018): 102-47.
7. Panda, Bhagirathi. “Rural Non-Farm Employment in North-East India.” (2018): 319-344.
8. Mariappan, K. “Employment Policy and Labour Welfare in India.” New Delhi: New Century Publications, India, (2011).
9. Cooke, Fang Lee. “Research Handbook of Comparative Employment Relations.” Cheltenham: Edward Elgar Publishing, United Kingdom, (2011).
10. Pendse, DR. “A Marginal Employment Subsidy for India.” London: Palgrave Macmillan, United Kingdom 1 (1983): 325-331.
11. International Labour Office. “Automation in Developing Countries: Round-Table Discussion on the Manpower Problems Associated with the Introduction of Automation and Advanced Technology in Developing Countries.” 1972.
12. Moore, Phoebe V, Martin Upchurch and Xanthe Whittaker. 2017. “Humans and Machines at Work: Monitoring, Surveillance and Automation in Contemporary Capitalism.” Springer, (2018).
13. Ford, Martin R. “The Lights in the Tunnel: Automation, Accelerating Technology and the Economy of the    Future.” South Carolina: Create Space Independent Publishing, United States, (2009).
14. Jesuthasan, Ravin and John Boudreau. “Reinventing Jobs: A 4-Step Approach for Applying Automation to Work.”Boston: Harvard Business Press, United States, (2018).
15. Rifkin, Jeremy. “The End of Work: The Decline of the Global Labor Force and the Dawn of the Post-Market Era.” New York:  Tarcher, United States, (2004).
16. Graeber, David. “Jobs: A Theory.” City of Westminster: Allen Lane, United Kingdom, (2018).
17.  Brady, Michael, L A Gerhardt and H F Davidson. “Robotics and Artificial Intelligence.” Berlin: Springer Science and Business Media, Germany, (2012).
18. Karmarkar, Uday. “Will You Survive the Services Revolution?” Harv Bus Rev 82 (2004): 100-107.
19. Bhattarai, Madhusudan, P K Viswanathan, Rudra N Mishra, and Cynthia Bantilan. “Employment Guarantee Programme and Dynamics of Rural Transformation in India: Challenges and Opportunities.” Singapore: Springer, Singapore, (2018).
20.  Mitra, Arup.  “Technology Import and Industrial Employment: India and Other Developing Countries.” In: Insights into Inclusive Growth, Employment and Wellbeing in India. (2012): 125-147.
21. OECD “OECD Tourism Trends and Policies 2010.” In: India: Employment in Tourism. (2010).