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Business & Technological Change

Technological Change

Technology determines the way in which work is done — that is, what equipment is used and how the work is organized.
Throughout history there has always been technological change. However, we live in a period of rapid technological innovation, so students of business must be particularly aware of this.
During the course of one's lifetime, one can expect that there will be radical changes in the way in which work is organized.
The effects of technological change may include
1 Creating different working patterns. For example, people may work from home rather than go to an office.
2 Bringing about greater productivity and efficiency.
3 Creating new products and markets for those products. For example, the invention of the videocamera.
4 Creating new and more flexible manufacturing processes. For example, the impact on the manufacturing process of computer aided design.
5 Creating changes in the structure of the labour market. For example, creating a demand for computer programmes, and reducing demand for unskilled manual labour.
6 Hence, creating new employment opportunities in some sectors of the labour market and reducing those in others. Creating jobs and destroying jobs. Hence, causing changes in the structure of the labour market.
7 Creating improved means of communication. For example, communication by mobile phones and by the Internet.
8 Creating products that have shorter life-spans.

Planning for Change

In other words, the impact of new technology on society is immense. Businesses should plan for change. They should consider, among other things
1 The reaction of employees to technological change
2 The training required to adapt employees to technological change
3 The expected benefits of change.