Information Technology is the reason behind unemployment in business organizations.
Information technology (IT) refers to the use of computer technology to manage the information. The field of IT is encompasses with the storage, all the computer software and hardware, infrastructures and processes to create, process, store, secure exchange all form of electronic information.
After the introduction of the computers, the business industry had changed forever. Using hardware and software of computers, businesses use information technology to become more efficient and effective. They use information technology in a number of different department including human resources, finance, production and security. By using the information technology, businesses have ability to view changes in the global markets far faster than they usually do. They purchases software packages and hardware which help them to do the work in an effective manner.
Information technology also helps the business to keep up with the supply and demand as consumers grow more anxious to have their items instantly. Amazon, Ali Baba and Daraz are the best example of the information technology as they receive orders from their websites and at the same time there website will send that order to their suppliers.
In the latest research, corporate leaders and mainstream economists show that the rising unemployment figures represent short-term “adjustments” to powerful market-driven forces that are speeding the global economy in the new direction. They hold the promise that they will convert this present world with the new world of high-tech with automatic production, booming global commerce, and unparallel material abundance. In the United States, Fortune magazine found those corporations are eliminating more than 2 million jobs annually.
The pattern of becoming more competent in the information technology in this industrialization world. Even though the developing countries are facing increasing in the technological unemployment as transactional companies are building state of the art high- tech of production facilities and information system, letting go to the employees which are neither updated with the information technology nor they wants to accept the computerize system in their work.
This world is become habitual about the computerized and automatic machines and equipments, that’s why the company wants to become more sufficient and efficient by using information system. The company wants to maximize their productivity to reach the demand of their consumer, as well as to capture more market share in this competitive market. Thus to minimize the cost production as well as administration and selling, organization uses information technology like accounting packages, analytics, asset management software, business relationship management, customer relationship management, communication tools, ecommerce, factory automation, information security, inventory management, marketing automation and mass customization etc.
The management of the companies always wants to maximize the profit and minimize their expense and overheads due to which they apply downsizing process and fire many of the employees. When where there was any new information technology introduces in the company’s most of the time the management will do the downsizing process which increases the employment of the company. And employment redundancy also increase when the company wants to safe the training and development cost because of new technology wants training to be operates.
An example of unemployment caused by the implementation of information systems is of utility companies of the U.S.A. named Pacific Gas and Electric Company (PG&E). PG&E every day places approximately twelve hundreds ‘old fashioned’ meters with new digital meters that can collect information without human help. In 2013 a meter reader who manually records numbers earns just less than $70,000USD, this represent a significant cost saving for the utility providers. Over a period of just six years the number of meter reader in the New York department was reduce from fifty to sixty.
The International Business Machines Corporation (IBM) is one of the known companies. In the early 1990s, IBM’s core mainframe business was becoming obsolete with the emergence of the personal computer and the client server. To shift the company to focus on provides integrated solution for their customers. The CEO Louis Gerstner set aside $8.9 billion which is one of the biggest financial charges incorporate history at that point. At this point the company downsizes their 60,000 employees.
In 1993 General Motors president John F. Smith Jr. announced plans to put into use changes in production practices that could eliminate as many as 90,000 auto jobs, or one third of its (all the workers in a company or country), by the late 1990s. These new cuts come on top of the 250,000 jobs GM had already eliminated since 1978. Other worldwide automakers are also re-making their operations and eliminating thousands of workers. By 1995 industry analysts (describe a possible future event) that German automakers could eliminate as many as one in seven jobs. This in a country where 10 percent of the (all the workers in a company or country) is either in the automotive industry or services it.
Thus it the fact information technology is having a strong impact on the unemployment of the nation as well as in the world wide.