Business Studies

Topics: Management, Business, Introduction Pages: 3 (849 words) Published: September 23, 2013
‘Technology causes businesses as many problems as it solves.’ Discuss

Firms are now moving from labour intensive production to more high tech, computerized capital intensive production. According to ‘technology is the purposeful application of information in the design, production, and utilization of goods and services and in the organization of human activities.’ Introducing technology into businesses has many benefits such as however, there are drawbacks. These drawbacks include; costs, labour relations, reliability, data protection and management.

With the introduction of technology comes cost. These costs will be associated with maintaining the new technology introduced. Furthermore, training of employees to use the technology will also be costly and time consuming. More so, training employees could also lead them to leave the business in order to start up a new business because of the training given by management. Therefore, making the productivity level of the business down. If more technologies are changing then more training will be needed and this could lead to further employees leaving their jobs. Also redundancy costs will be increased if staffs are being replaced by technology. For example, in the US the manufacturing industry alone over 2.7 million jobs have been lost since 2001.

As we have seen above cost leads to unemployment due to technology. Labour relations can be damaged due to poor introduction of technology. This will lead to employees to feel that their health and safety is in danger. This is due to not informing them on how to use the technology and not telling them about the health risk associated with the new technology. Jobs will be lost as a result and this now will put a strain on government to care for the welfare of these unemployment workers. Employees may feel that job security may be lost due to the employees losing their jobs. That is employees feel that management does not care about their...
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