Technological change

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

David Farnham,1999 says due to ICT unit cost of coordination have reduced significantly and economics of scale have been changed. ICT technology reduces the time needed for coordination of activities and reduces time needed for specific operations. More over computer technology lower the communication costs. Improving technologies, such as transportation and communications, have enabled companies to expand themselves into global markets. This competitive environment organisation has more pressure for profit. They find it is much cheaper to send work to contract overseas where the labour cost is low.

This competitive world most businesses are in pressure to operate it business to provide its service round the clock and year round.i.e.24 x 365 service. Using the advantages offered by information technology such as global networks and the capacity to reroute telephone calls the same job can be done in Delhi as well as London. So businesses find locations to done this kind of operation where it can be done cheap concern of cheap labour. As concluded by David Needle,(2000) where the job involves telephone sales and telephone information, it matters little where the jobs are located.

A call centre is sometimes defined as a telephone based shared service centre for specific customer activities and are used for number of customer related functions like marketing, selling, information dispensing, advice, technical support etc. According to Davis,(1999) in 1997 it was estimated that there were 3500 call centres in UK alone, employing 163000 people(David Needle, 2000;pg:84). If these entire jobs go to overseas there will be a question mark for these employees.

British business is facing increasing pressure to move jobs to abroad to cut costs. According to online business news nherald report, more than one half of the companies the CBI surveyed said pressure to move business overseas. More over the report says although this had cost jobs, the economy had been able to replace jobs elsewhere. But job created in Britain tended to be for skilled and graduate degree workers.

Also with in 10 years Britain has no work for unskilled workers. The impact of new technology has been shown to vary according to the type of job. In general the demand for unskilled has fallen while that for skilled labour has risen. According to Wilkinson , (1986) the introduction of computer controlled manufacturing equipment shifted work from the craft jobs on the shop floor to computer programmers and analysts( David Needle, 2000 ; pg:84). Many acknowledged that job loses could be felt in firms by not employing new technology and thus losing competitive edge and market sharing.


Business exits to make profits. There is no need for business to act ethically with their stakeholders because the responsibility of the business in not to act ethically but to make money. According to Friedman, (1970) the only responsibility of business is to use its resource as efficiently as possible and undertake its business to profits with in rules of the game. For him this means free competition, with out deception and fraud.

Here he meant moral responsibility as a rule of the game. But there are some Moral responsibilities in the business which are duty to the people in the business such as managers to workers, duties to their customers and suppliers, duties to environment and society and duty to the group which owes the business. As concluded in David Farnham, 1999 major issue facing by organisations are expectation of stakeholders.

And he adds customer expects effective supply of goods and service, creditors and suppliers want timely payment, community wants jobs and safe environment and government want employment for its people and to fulfil laws and taxation rules. In some cases organisations can’t full fill the above expectations when technology drives the changes in organisation. The history of technological innovation over the past years tells us that new does not destroy the old, rather it transform it. Technological change is benefit to every one. Problems occur only because the changing process is poorly managed. According to Wood Hall,(1996) “the worst thing government can do is try to slow down the process of transformation through regulation or protectio0nism. It may save some people from pain. But they will depress living standards and employment growth fro the country as whole” (David Needle, 2000; pg: 86).

Tagged In :

Get help with your homework

Haven't found the Essay You Want? Get your custom essay sample For Only $13.90/page

Sarah from CollectifbdpHi there, would you like to get such a paper? How about receiving a customized one?

Check it out