How does automating jobs pose an ethical dilemma? Who are the stakeholders? Identify the options that can be taken and the potential consequences of each.If you were the owner of a factory deciding on whether to acquire robots to perform certain tsks, what people, organization, and technology factors would you consider? Chapter 4 Ethical and Social Issues in Information Systems 149hard-hit, although nationally the effects of robots aresmaller because jobs were created in other places.The new jobs created by technology are not neces-sarily in the places losing jobs, such as the Rust Belt.Those forced out of a job by robots generally do nothave the skills or mobility to assume the new jobscreated by automation.Automation is not just affecting manual labor andfactory jobs. Computers are now capable of takingover certain kinds of white collar and service-sectorwork, including X-ray analysis and sifting throughdocuments. Job opportunities are shrinking slightlyfor medical technicians, supervisors, and even law-yers. Work that requires creativity, management,information technology skills, or personal caregivingis least at risk.According to Boston University economist JamesBessen, the problem is not mass unemployment; it'stransitioning people from one job to another. Peopleneed to learn new skills to work in the new economy.When the United States moved from an agrarian toan industrialized economy, high school educationexpanded rapidly. By 1951 the average American had6.2 more years of education than someone born 75years earlier. Additional education enabled peopleto do new kinds of jobs in factories, hospitals, andschools.Sources: William Wilkes, "How the World's Biggest Companies AreFine-Tuning the Robot Revolution," Wall Street Journal, May 14, 2018;James Manyika and Michael Spence, "The False Choice BetweenAutomation and Jobs," Harvard Business Review, February 5, 2018;Andrew Hobbs, "Automation Will Replace 9 Percent of U.S. Jobs in2018," Internet of Business, February 16, 2018; Patrick Gillespie, "Riseof the Machines: Fear Robots, Not China or Mexico," CNN Money,January 30, 2017; Claire Cain Miller, "Evidence That Robots Are Win-ning the Race for American Jobs," New York Times, March 28, 2017;"The Long-Term Jobs Killer Is Not China, It's Automation," New YorkTimes, December 21, 2016; "A Darker Theme in Obama's Farewell:Automation Can Divide Us," New York Times, January 12, 2017; SteveLohr, "Robots Will Take Jobs, But Not as Fast as Some Fear," New YorkTimes, January 12, 2017; Michael Chui, James Manyika, and MehdiMiremadi, "Where Machines Could Replace Humans-and WhereThey Can't (Yet)," McKinsey Quarterly, July 2016; Stephen Gold, "TheFuture of Automation-and Your Job," Industry Week, January 18,2016; and Christopher Mims, "Automation Can Actually Create MoreJobs," Wall Street Journal, December 11, 2016.CASE STUDY QUESTIONS1. How does automating jobs pose an ethical2. If you were the owner of a factory deciding ondilemma? Who are the stakeholders? Identify the whether to acquire robots to perform certain tasks,options that can be taken and the potential conse-what people, organization, and technology factorsquences of each.youconsider?would INTERACTIVE SESSION ORGANIZATIONSWill Automation Kill Jobs?Dennis Kriebal of Youngstown, Ohio, had been a su-pervisor at an aluminum extrusion factory, where hepunched out parts for cars and tractors. Six years ago,he lost his job to a robot, and since then has beendoing odd jobs to keep afloat. Sherry Johnson usedto work for the local newspaper in Marietta, Geor-gia, feeding paper into printing machines and layingout pages. She lost this job as well as others makingmedical equipment and working in inventory andfiling to automation.These situations illustrate the negative impactof computer technology on jobs. Far more U.S. jobshave been lost to robots and automation than totrade with China, Mexico, or any other country.According to a study by the Center for Business andEconomic Research at Ball State University, about87 percent of manufacturing job losses between2000 and 2010 stemmed from factories becomingmore efficient through automation and bettertechnology. Only 13 percent of job losses weredue to trade. For example, the U.S. steel industrylost 400,000 jobs between 1962 and 2005. A studyby the American Economic Review found that steelshipments did not decline, but fewer people wereneeded to do the same amount of work as before,with major productivity gains from using minimills (small plants that make specialty steel fromscrap iron).A November 2015 McKinsey Global Institute re-port by Michael Chui, James Manyika, and MehdiMiremadi examined 2,000 distinct types of workactivities in 800 occupations. The authors foundthat 45 percent of these work activities could beautomated by 2055 using technologies that cur-rently exist. About 51 percent of the work activitiesAmericans perform involve predictable and routinephysical work, data collection, and data process-ing. All of these tasks are ripe for some degree ofautomation. No one knows exactly how many U.S.jobs will be lost or how soon, but the researchersestimate that from 9 to 47 percent of jobs couldeventually be affected and perhaps 5 percent of jobseliminated entirely. These changes shouldn't leadto mass unemployment because automation couldincrease global productivity by 0.8 percent to 1.4percent annually over the next 50 years and createmany new jobs.plemsAccording to a study by MIT labor economistDavid Autor, automation advances up to this pointhave not eliminated most jobs. Sometimes ma-chines do replace humans, as in agriculture andmanufacturing, but not across an entire economy.Productivity gains from workforce automationhave increased the demand for goods and services,in turn increasing the demand for new forms oflabor. Jobs that have not been eliminated by au-tomation are often enhanced by it. For example,since BMW's Spartanburg, South Carolina, plantautomated many routine production tasks overthe past decade, it has more than doubled its an-nual car production to more than 400,000 units.The Spartanburg labor force has grown from 4,200workers to 10,000, and they handle vastly morecomplex autos. (Cars that once had 3,000 partsnow have 15,000.)The positive and negative impacts of technologyare not delivered in an equal way. All the new jobscreated by automation are not necessarily betterjobs. There have been increases in high-paying jobs(such as accountants) but also in low-paying jobssuch as food service workers and home health aides.Disappearing factory jobs have been largely replacedby new jobs in the service sector but often at lowerwages.Manufacturing jobs have been the hardest hitby robots and automation. There are more than 5million fewer jobs in manufacturing today than in2000. According to a study by economists DaronAcemoglu of MIT and Pascual Restrepo of BostonUniversity, for every robot per thousand workers, upto six workers lost their jobs and wages fell as muchas 0.75 percent. Acemoglu and Restrepo found verylittle employment increase in other occupations tooffset job losses in manufacturing. That increasecould eventually happen, but right now there arelarge numbers of people out of work in the UnitedStates, especially blue-collar men and women with-out college degrees. These researchers also found in-dustrial robots were to blame for as many as 670,000manufacturing jobs lost between 1990 and 2007,and this number will rise going forward becausethe number of industrial robots is predicted to qua-druple. Acemoglu and Restrepo noted that a specificlocal economy, such as Detroit, could be especially

Question

How does automating jobs pose an ethical dilemma? Who are the stakeholders? Identify the options that can be taken and the potential consequences of each.If you were the owner of a factory deciding on whether to acquire robots to perform certain tsks, what people, organization, and technology factors would you consider? Chapter 4 Ethical and Social Issues in Information Systems 149hard-hit, although nationally the effects of robots aresmaller because jobs were created in other places.The new jobs created by technology are not neces-sarily in the places losing jobs, such as the Rust Belt.Those forced out of a job by robots generally do nothave the skills or mobility to assume the new jobscreated by automation.Automation is not just affecting manual labor andfactory jobs. Computers are now capable of takingover certain kinds of white collar and service-sectorwork, including X-ray analysis and sifting throughdocuments. Job opportunities are shrinking slightlyfor medical technicians, supervisors, and even law-yers. Work that requires creativity, management,information technology skills, or personal caregivingis least at risk.According to Boston University economist JamesBessen, the problem is not mass unemployment; it'stransitioning people from one job to another. Peopleneed to learn new skills to work in the new economy.When the United States moved from an agrarian toan industrialized economy, high school educationexpanded rapidly. By 1951 the average American had6.2 more years of education than someone born 75years earlier. Additional education enabled peopleto do new kinds of jobs in factories, hospitals, andschools.Sources: William Wilkes, &#34;How the World's Biggest Companies AreFine-Tuning the Robot Revolution,&#34; Wall Street Journal, May 14, 2018;James Manyika and Michael Spence, &#34;The False Choice BetweenAutomation and Jobs,&#34; Harvard Business Review, February 5, 2018;Andrew Hobbs, &#34;Automation Will Replace 9 Percent of U.S. Jobs in2018,&#34; Internet of Business, February 16, 2018; Patrick Gillespie, &#34;Riseof the Machines: Fear Robots, Not China or Mexico,&#34; CNN Money,January 30, 2017; Claire Cain Miller, &#34;Evidence That Robots Are Win-ning the Race for American Jobs,&#34; New York Times, March 28, 2017;&#34;The Long-Term Jobs Killer Is Not China, It's Automation,&#34; New YorkTimes, December 21, 2016; &#34;A Darker Theme in Obama's Farewell:Automation Can Divide Us,&#34; New York Times, January 12, 2017; SteveLohr, &#34;Robots Will Take Jobs, But Not as Fast as Some Fear,&#34; New YorkTimes, January 12, 2017; Michael Chui, James Manyika, and MehdiMiremadi, &#34;Where Machines Could Replace Humans-and WhereThey Can't (Yet),&#34; McKinsey Quarterly, July 2016; Stephen Gold, &#34;TheFuture of Automation-and Your Job,&#34; Industry Week, January 18,2016; and Christopher Mims, &#34;Automation Can Actually Create MoreJobs,&#34; Wall Street Journal, December 11, 2016.CASE STUDY QUESTIONS1. How does automating jobs pose an ethical2. If you were the owner of a factory deciding ondilemma? Who are the stakeholders? Identify the whether to acquire robots to perform certain tasks,options that can be taken and the potential conse-what people, organization, and technology factorsquences of each.youconsider?would INTERACTIVE SESSION ORGANIZATIONSWill Automation Kill Jobs?Dennis Kriebal of Youngstown, Ohio, had been a su-pervisor at an aluminum extrusion factory, where hepunched out parts for cars and tractors. Six years ago,he lost his job to a robot, and since then has beendoing odd jobs to keep afloat. Sherry Johnson usedto work for the local newspaper in Marietta, Geor-gia, feeding paper into printing machines and layingout pages. She lost this job as well as others makingmedical equipment and working in inventory andfiling to automation.These situations illustrate the negative impactof computer technology on jobs. Far more U.S. jobshave been lost to robots and automation than totrade with China, Mexico, or any other country.According to a study by the Center for Business andEconomic Research at Ball State University, about87 percent of manufacturing job losses between2000 and 2010 stemmed from factories becomingmore efficient through automation and bettertechnology. Only 13 percent of job losses weredue to trade. For example, the U.S. steel industrylost 400,000 jobs between 1962 and 2005. A studyby the American Economic Review found that steelshipments did not decline, but fewer people wereneeded to do the same amount of work as before,with major productivity gains from using minimills (small plants that make specialty steel fromscrap iron).A November 2015 McKinsey Global Institute re-port by Michael Chui, James Manyika, and MehdiMiremadi examined 2,000 distinct types of workactivities in 800 occupations. The authors foundthat 45 percent of these work activities could beautomated by 2055 using technologies that cur-rently exist. About 51 percent of the work activitiesAmericans perform involve predictable and routinephysical work, data collection, and data process-ing. All of these tasks are ripe for some degree ofautomation. No one knows exactly how many U.S.jobs will be lost or how soon, but the researchersestimate that from 9 to 47 percent of jobs couldeventually be affected and perhaps 5 percent of jobseliminated entirely. These changes shouldn't leadto mass unemployment because automation couldincrease global productivity by 0.8 percent to 1.4percent annually over the next 50 years and createmany new jobs.plemsAccording to a study by MIT labor economistDavid Autor, automation advances up to this pointhave not eliminated most jobs. Sometimes ma-chines do replace humans, as in agriculture andmanufacturing, but not across an entire economy.Productivity gains from workforce automationhave increased the demand for goods and services,in turn increasing the demand for new forms oflabor. Jobs that have not been eliminated by au-tomation are often enhanced by it. For example,since BMW's Spartanburg, South Carolina, plantautomated many routine production tasks overthe past decade, it has more than doubled its an-nual car production to more than 400,000 units.The Spartanburg labor force has grown from 4,200workers to 10,000, and they handle vastly morecomplex autos. (Cars that once had 3,000 partsnow have 15,000.)The positive and negative impacts of technologyare not delivered in an equal way. All the new jobscreated by automation are not necessarily betterjobs. There have been increases in high-paying jobs(such as accountants) but also in low-paying jobssuch as food service workers and home health aides.Disappearing factory jobs have been largely replacedby new jobs in the service sector but often at lowerwages.Manufacturing jobs have been the hardest hitby robots and automation. There are more than 5million fewer jobs in manufacturing today than in2000. According to a study by economists DaronAcemoglu of MIT and Pascual Restrepo of BostonUniversity, for every robot per thousand workers, upto six workers lost their jobs and wages fell as muchas 0.75 percent. Acemoglu and Restrepo found verylittle employment increase in other occupations tooffset job losses in manufacturing. That increasecould eventually happen, but right now there arelarge numbers of people out of work in the UnitedStates, especially blue-collar men and women with-out college degrees. These researchers also found in-dustrial robots were to blame for as many as 670,000manufacturing jobs lost between 1990 and 2007,and this number will rise going forward becausethe number of industrial robots is predicted to qua-druple. Acemoglu and Restrepo noted that a specificlocal economy, such as Detroit, could be especially

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