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IMPACT OF ROBOTICS ON MANAGEMENT & SOCIETY

Pavani K.V.V.L.N

A STUDY ON THE VARIOUS EMPLOYEE RELATED FACTORS LEADING TO ATTRITION IN BPO INDUSTRY AND ESTABLISHING THE DEGREE OF ASSOCIATION BETWEEN THESE FACTORS AND ATTRITION RATE

Deepak Kumar

www.theinternationaljournal.org > RJSITM: Volume: 01, Number:05, March-2012 Page 1

ABSTRACT

Today's manufacturers in numerous industries are gaining

rapid increases in productivity by taking advantage of

automation technologies. One of these automation

technologies, robotics, is a key factor leading the way in the

twenty-first century. Firmly established as a critical

manufacturing technology, robotics is gaining acceptance by

the workforce, garnering praise for its reliability, and being

utilized more extensively in medium and small companies,

This is all about the robotics how it impacts on the

management and society, we can find a brief history of

robotics as many observers view this as a significant factor

in Japan's emergence as a global manufacturing power. In

the early 1980s, 70 percent of robot orders were for use in

the automotive industry. The current usage of industrial

robots, the automakers and automotive-related industries

are moving away from hard automation in favor of flexible

automation. How robotics are used in the senior

management level The recommendations are based on the

experience of robot implementers and users who have

integrated industrial robots into their manufacturing

strategy and their factory operations. The future of robotics

where it stands in the entire global environment, we can

also observe the laws of robotics, social issues, Productivity

and Capital Formation, international impacts and other

applications. Thus, this paper has been focused on Robotics

and its impact on management and society particularly in

the senior management level of industry.

KEY WORDS; IMPACT, ROBOTICS ,MANAGEMENT

,SOCIETY, PRODUCT, PROCESS, PRODUCTIVITY,

TECHNOLOGY, INDUSTRY.

INTRODUCTION:

Today's manufacturers in numerous industries are gaining

rapid increases in productivity by taking advantage of

automation technologies. One of these automation

technologies, robotics, is a key factor leading the way in the

twenty-first century. Firmly established as a critical

manufacturing technology, robotics is gaining acceptance by

the workforce, garnering praise for its reliability, and being

utilized more extensively in medium and small companies.

As manufacturing assembly has grown increasingly

complex, the need for new and expanded capabilities,

particularly in automated assembly systems, has become

evident. As components get smaller, as in micro-

manufacturing, it is required that greater precision, more

flexibility and higher throughput are achieved. Manual

assembly no longer suffices for a great many of

manufacturing's current requirements. Functions formerly

performed by humans, especially difficult, dangerous,

monotonous, or tedious tasks, are now often assumed by

robots or other mechanical devices that can be operated by

humans or computers. Robots can take the place of humans

in extreme settings or life threatening situations involving

nuclear contaminants, corrosive chemicals, or poisonous

fumes.

While the automotive industry is the largest market for robot

manufacturers, other industries are increasing their use of

robotics. According to reports from the Robotics Industries

Association, industries such as semiconductors and

electronics, metals, plastics and rubber, food and consumer

goods, life sciences and pharmaceuticals, and aerospace are

all finding ways that their services can be enhanced and

improved through robotics.

Some of these manufacturers are also improving the quality

of their products by using robots with powerful machine-

vision inspection equipment or by linking their robots to

statistical process control systems. Robot fixtures can move

quickly and fluidly without sacrificing accuracy. Servo-

driven positioners can be programmed to handle more than

one model on the same line, something especially important

to lean organizations. This programmability also allows its

users to set up the systems again and again for different

applications. In most cases, converting robots from one

application to another can be completed with minimal

downtime, requiring only programming changes. Benefits

include reduced capital expenses (you don't have to buy new

fixtures for new applications), floor space requirements,

lead-time, component expenses, and training investment.

A BRIEF HISTORY OF ROBOTICS

Despite the fact that robotics technology was developed in

the United States, Japan became the first nation to actually

embrace robotics; many observers view this as a significant

factor in Japan's emergence as a global manufacturing

power. Today Japan is not only one of the major users of

manufacturing robotics but it is also the dominant

manufacturer of industrial robots.

In the early 1980s, 70 percent of robot orders were for use in

the automotive industry. During this time, robot

manufacturers simultaneously improved their reliability and

performance and sought to lessen their dependence on the

automotive industry by focusing on specific niche markets.

By concentrating on applications other than spot welding,

Impact of Robotics on Management & Society

Dr. A. Chandra Mohan, Professor, Management Studies, SRM School of management

SRM University, Chennai-603203, INDIA

Mrs.P.V.V.L.N.Pavani is Research Scholar and Consultant of Management Studies,

Visakhapatnam, Andhra Pradesh, INDIA


painting, and dispensing, the robotics industry was able to

develop products that could successfully handle not only

assembly, but also material handling and material removal.

Spot welding, which for a long time was the major

application of robotics, eventually was eclipsed by materials

handling. This was a clear indication that the robotics

industry was indeed becoming less dependent on the

automotive industry, since materials handling is used in a

wide and varied range of industries. Additionally, non-

manufacturing applications started to become viable in such

areas as security, health care, environmental cleanup, and

space and undersea exploration.

Advances in robot control technology, simulation, and

offline programming made robots easier to program,

maintain, and use. Simulation use allowed for the discovery

of potential problems before the robots were actually

installed.

CURRENT USE OF INDUSTRIAL ROBOTS

Though less dependent on the automotive industry than in

the past, the robotics industry still finds its widest

application in that market. However, driven by the need for

increased manufacturing efficiency, the automakers and

automotive-related industries are moving away from hard

automation in favor of flexible automation. Analysts predict

greater use of robots for assembly, paint systems, final trim,

and parts transfer in the automotive industry. Realistic robot

simulation is making an impact by integrating vehicle

design and engineering into manufacturing.

One reason for increased practicality of robots is the

availability to control machinery and systems through

personal or laptop computers. According to Waurzyniak,

some advances in computer-guided systems are robots with

force sensing capabilities and 3-D and 2-D vision-guidance

capabilities. NASA is using sophisticated computer-guided

robot controllers for its Space Shuttle Endeavor and the

Mars landing craft. Each of these systems utilize computer

control of some sort, ranging from simple machine-specific

tracking, to shop-wide data collection across a variety of

machinery and instruments, to galactic monitoring and

control in a unique, outer space environment.

The Robotic Industries Association reports that an estimated

144,000 industrial robots are in use in the United States in

2004, up from 82,000 in 1998. In 2004, North American

manufacturers purchased 14, 838 robots, valued at nearly $1

billion, a 20 percent increase from 2003 and the industry's

second best unit total ever. There has been a 152 percent

increase in new robots ordered and a 78 percent increase in

revenue in 2004 as well.

The key factors driving this growth in robotics are mass

customization of electronic goods (specifically

communications equipment), the miniaturization of

electronic goods and their internal components, and the re-

standardization of the semiconductor industry. The food and

beverage industry is also in the midst of an equipment-

spending boom in an effort to improve operating

efficiencies. Robot installations for such tasks as packaging,

palletizing, and filling are expected to see continued growth.

In addition, increases are anticipated in the aerospace,

appliance, and non-manufacturing markets.

Robotics for Senior Management

These guidelines for senior management have been prepared

by the Robotic Industries Association to provide a better

understanding of industrial robot technology and to describe

the impact of industrial robots on a company's operations

and strategies.

The recommendations are based on the experience of robot

implementers and users who have integrated industrial

robots into their manufacturing strategy and their factory

operations.

The Opportunity

Leaders in most industries consider industrial robots as key

elements in their manufacturing and business strategies.

Robots are no longer considered only as replacements for

workers in the factory. Senior management recognizes that

potential benefits impact all aspects of manufacturing --

productivity, flexibility, quality, time to market -- and that

robots can give them the competitive edge necessary for

survival.

The Robotics Industry:

Now in its fifth decade, industrial robot technology is still

underutilized and misunderstood.

The Robotic Industries Association defines the industrial

robot as: "A reprogrammable, multi-functional machine

designed to manipulate material, parts, tools or specialized

devices through variable programmed motions for the

performance of a variety of tasks."

Robots are capable of performing a wide variety of tasks,

such as: material handling, spot welding, arc welding,

assembly, dispensing, material removal, coating and

inspection.

Robots are used in many industries including: automotive,

semiconductor, electronics, aerospace, food and beverage,

pharmaceutical, consumer goods, plastics, construction and

medical devices. They are used in industrialized countries


worldwide, especially in the United States, Japan, Germany,

England, France, Singapore, Korea, Canada, Taiwan and

Mexico.

RIA is a trade association whose mission is to improve the

competitiveness of the North American manufacturing and

service sectors through promotion and enhancement of

robotics and related automation. RIA members include

leading North American robot suppliers, integrators, users

and technology developers. Activities include sponsoring

trade shows, workshops and conferences; playing an active

role in establishing industry standards; publishing and

distributing robotics information; reporting statistics; and

representing the robotics industry to government, industry,

academia and the media.

The Need for Commitment

Senior management must be the champion of robotics.

Implementing industrial robots requires total company

commitment, championed by senior management. It is their

responsibility to:

Establish and state the overall objectives of robot

implementation, as both a manufacturing strategy and an

overall business strategy.

Develop policies and issue statements on:

economic and other justification for robot

implementation

long-term commitment to the robot implementation

program

handling of displaced workers

Be highly visible as champions, to:

overcome middle management inertia

support the efforts of the robotics implementation

teams

provide resources as well as moral support

The Learning Process

Management must establish the climate essential to the

learning process. The implementation of robotics requires

an open, supportive environment. Senior management can

enhance the chances for success by:

Assigning people to the robotics team who are

interested in new techniques and welcome change.

Beginning with simple applications.

Defining the parameters of the project, and

avoiding the temptation to expand.

Being supportive and avoiding the punitive

pressures which inhibit the learning process.

Being patient.

Planning for replication so that the business can

profit from the learning curve

The Implementation Process

Success in implementing robots requires a systematic

approach. The successful implementation of industrial

robots is best accomplished through a systematic, multi-step

process, which a robotic systems integrator can help you

with. The sequence of steps for robot implementation is as

follows:

Initial Survey -- review all factory operations, and

develop a shopping list of potential applications.

Qualification -- reduce the shopping list to

practicality, considering technical feasibility and

justification potential.

Prioritization and Selection -- determine which

application to start with and what order to follow

with the others.

Justification -- develop economic and other

rationale to support the decision to implement.

Application Engineering -- do all of the

engineering up to and including the final

specification and selection of the particular robot to

be used, the basic configuration of the workplace

and a detailed description of the robot's task.

System Engineering -- develop the total

manufacturing system into which the robot will be

integrated and all of the related changes to

equipment, process and product.

Final Implementation -- prepare the site and

people, install and program the robot system, start

up and monitor afterward

Justification

Justification for industrial robots must consider both

economic and non-economic issues. The implementation of

robots requires significant resources -- money, time, people

and management attention. The returns must be measured

in terms of overall benefits to the company, not simply by

payback period or return on investment. Following are

elements of the costs and benefits of robots:

Initial Costs:

The system and related components (robots, end

effectors, tooling, etc.)

facilities, equipment revisions and rearrangements

application engineering

process and product changes

training and transfers

installation

launching

Continuing Costs:

cost of capital

taxes and insurance

maintenance labor, supplies and spare parts

energy

training

Benefits:

improved quality and reliability

increased productivity

stronger competitive position

increased flexibility

decreased time to market

safety and potential cost of disability

savings on scrap and rework

reduced direct labor costs and related expenses


lower indirect costs

depreciation

advancement of technology

Human Factors

Senior management must be aware of and sensitive to

employee concerns about robots. The impact of robots will

be felt plant-wide. Senior management must be aware that

employee concerns are related to their functions and are not

all alike:

Production management -- interested in the robot's

contribution to solving productivity, quality and

work force problems, but not necessarily its

contribution to profits.

Production supervision -- concerned with keeping

the lines running and interested in backup plans

and maintenance support. Must have answers to

workers' questions about displacement, safety and

the future.

Skilled trade workers -- may need upgrading of

basic skills. Need specialized training and proper

tools to keep the robot systems operating.

Direct and indirect labor -- fear possible loss of

employment. Need clear policy statement

regarding displacement and opportunities for

retraining and reassignment.

Administrative and staff -- need definition of their

responsibilities and recognition of their importance

to successful implementation.

Conclusion

Industrial robots can be significant factors in the

improvement of productivity, quality, profitability and,

indeed, survival and should be an integral part of every

manufacturing and business strategy. Successful

implementation of industrial robots is not easy. To

encourage success, it is up to senior management to provide

the vision to see how vital robotics technology is to

manufacturing today and in the future, the climate and

resources necessary for implementation and the motivation

to make it happen.

THE FUTURE OF ROBOTICS

To some, the future of robotics has never looked brighter.

Production of bipedal robots that mimic human movement

are being created around the globe. Honda Motor

Company's ASIMO (Advanced Step in Innovative Mobility)

robot is considered the world's most advanced humanoid

robot. It can climb stairs, kick, walk, talk, dance and even

communicate and interact via its voice and facial

recognition systems. Honda plans to one day market the

robot as an assisted-living companion for the disabled or

elderly.

Other robots that simulate human movement have been

created at Cornell University, Massachusetts Institute of

Technology (MIT), and Holland's Delft University of

Technology. In a March 2005 article in Machine Design, the

creators of the three robots describe the mechanics utilized

in their designs and detail how their robots use less energy

than ASIMO, although they do not have the range of

capabilities of the ASIMO robot. These variations in

mobility indicate promise and potential in a variety of

robotic applications for the future.

Chip Walter's article, "You, robot", discusses renowned

robotics researcher, Hans Moravec, Carnegie Mellon

University scientist and cofounder of the university's

Robotics Institute. Moravec is known for his longstanding

prediction that super-robots that can perceive, intuit, adapt,

think, and even simulate feelings, much like humans, will be

practicable before the year 2050. His confidence in his

predictions led him to open his own robotics firm in 2003,

the Seegrid Corporation, to assist him in fulfilling his

claims. His path toward that vision is to start simply—to

create mobile carts with software and vision systems that

can be 'taught' to follow paths and navigate independently.

Moravec believes that machines will evolve in small steps,

eventually reaching the levels of human intelligence and

movement. His bedrock belief, on which he bases his

technology, is "… if robots are going to succeed, the world

cannot be adapted to them; they have to adapt to the world,

just like the rest of us."

Stuart Brown reports that navigation technologies such as

the global positioning system (GPS) are allowing industrial

robots to move around in the world. GPS in conjunction

with inertial navigation systems (INS) and the booming field

of silicon micro-electromechanical systems (MEMS) are

impacting robotics from simple automated lawn mowers to

complex airplane control systems. Robotics are reaching the

micro-level with the exploration of robotic water 'insects'

equipped with biomechanical sensors that could be used as

environmental monitors. The current prototype weighs less

than a gram and draws power from ultra-thin electrical

wires. An affordable and time-saving alternative to locating

gas leaks has been developed in a pipe-inspecting robot

crawler; equipped with multiple joints and video cameras, it

easily navigates sharp turns and narrow pipes while

projecting images of pipe integrity to a monitor. Plans for

the future include a sensor that will detect corrosion and

cracks in the pipes that do not appear in the video images.

Robots have come of age. While they were initially used for

fairly simple tasks such as welding and spray-painting

automobiles, these machines have increased tremendously

in ability over the last decade, reaching further and broader

than simple auto applications. Robotics will remain vital in

the decades to come due to expanding scientific fields and

increasing demand for more affordable and sophisticated

methods of accomplishing common tasks.


• Imagine what life will be like if we had robots around us

that could take on our everyday choirs? It would be like

having Rosie from The Jetsons around to clean our house

everyday, cut the grass, etc. Sounds nice huh, but that’s a

long way off in the future…isn’t it? Not Really. Robots

already have a huge impact in society today. Did you know

that robots affect your life everyday? If you drive a car, it

was probably assembled using industrial robots. If you have

a computer, many of its components were created using

robots. So how long have robots been around? We can trace

robots back to as early as 1495 when Leonardo da Vinci

designed a robotic knight that used pulleys and gears to

perform simple motions, such as sitting up and standing.

The first industrial robot was bought by General Motors

Corporation from Joseph Engelberger. This robot performed

loading and unloading duties in an environment that was

hot, dirty and dangerous for humans. This first industrial

robot was bought 45 years ago. We’ve come a long way

since then. Today we have robots that can do way more than

just sit, stand, load and unload. iRobot® has developed

robots that will vacuum your carpet or clean your floor for

you. You just set the schedule and the robot will dismount

from its charging station, clean your floor, then go back and

charge itself. Friendly Robotics® even has a few

Robomowers on the market. These Robomowers are

electronic robot lawnmowers. They stay on a charging

station, then when its time to cut your grass they unhook

themselves, cut the grass, then go back to their charger.

Robots today can do more than just simple household tasks.

Sony released a robotic dog called the Aibo in 1999. The

Aibo went through a few versions before being taken off the

market in March 2006. The final version of the Aibo can

recognize its owner by voice or video recognition. It can

charge itself, play with its ball or bone, it will even get

jealous if its owner is home and doesn’t show it any

attention. These ―entertainment robots‖ are the beginning of

retail artificial intelligence.The military has robotic aircrafts

that can take off, fly routine missions across the globe, and

land themselves. Law enforcement robots are used in

dangerous situations to secure explosive devices. One day

we’ll have robots that go around our house, like Rosie,

cleaning the floors, ironing our cloths, and cutting our grass.

The technology is already here, it’s just waiting for us to

take hold of it. Who knows, someday we may even have

robots that are small enough to be injected in our bodies to

help repair illness or injury and prevent dangerous surgeries.

Laws of Robotics Popular science fiction writer Isaac Asimov created

the Three Laws of Robotics:

1 A robot must not injure a human being or,

through inaction, allow a human being to come to

harm.

2 A robot must always obey orders given to it by a

human being, except where it would conflict with

the first law.

3 A robot must protect it's own existence, except

where it would conflict with the first or second law.

Social Issues

In addition to the technology and market issues above, the

workshop panel identified a number of social impacts. This

list is provided in appendix A. Many of the issues on the list

were offered without much comment and, as would be

expected, the panel members differed in their opinions of

the priority

of the various issues and their importance to the Federal

Government.Combining the workshop results with other

information collected and evaluated interms of

congressional interests, OTA identified

Five sets of issues.

l. Productivity and capital formation

–Labor

–Unemployment, displacement, or job shifting

–Positive or negative effects on the quality of working

environment (such as exposure to

Hazards, job boredom, and employer/employee relations)

Education and training.

–Need for technological specialists

–Need for a technologically literate work force

—Need for retraining workers International impacts

–Import/export of robotics technology

–Contribution to economic competitiveness other

applications

–Military

–Space

–Oceans

Each of these sets of issues is discussed briefly below.

Productivity and Capital Formation

As stated in the introduction, much of the literature on

robotics contains reference to the contribution robotics can

be expected to make toward improving industrial

productivity.Since a major national concern is the

strengthening of U.S. industry, it is important to examine

this question. No answers were agreed on by the workshop

participants. However, some experts did warn about making

simplistic assumptions that exaggerate the importance of

robotics, by itself, in improving productivity.

Two reasons were offered:

1.Robotics is only one part of a wide array of technologies

available to automate manufacturing and to increase

industrial productivity.

2.Productivity is a subtle and complex concept with several

definitions and measurements. (This is developed in some

detail in the paper by Gold Furthermore, even after some

specific definition is chosen, industrial productivity depends

on many factors that interact with one another.

It is difficult, hence, to attribute productivity improvements

to any single technology. These warnings do not suggest

that robotics is not an important production technology.Most

experts seem to feel that it is.

However, they stated that there are dangers inherent in

taking an overly narrow definition of the technology when

assessing impacts on industrial productivity. While most

applications of robots to date have been made by large

http://www.clark.net/pub/edseiler/WWW/asimov_FAQ.html


firms, the future diffusion of robotics and related

technologies can also affect small businesses in several

ways. For example, there are likely to be many new business

opportunities for small firms to develop and produce

software and specialized types of equipment. Secondly, it

can be argued that robotics and flexible automation may in

some cases lower the minimum scale for efficient

production, and therefore that new manufacturing

opportunities could be created for small businesses.

Third, the adoption of robotics and related technologies by

large firms may foreclose some manufacturing opportunities

for small firms that cannot afford to invest in new

equipment. This situation frequently arises when major

equipment technologies change. Capital formation is

another issue that was raised in the workshop and is

discussed in the appended Lustgarten paper. The important

questions seemed to be whether there would be adequate

capital for three purposes:

1. To fund the modernization of industrial plants for the use

of automation technology. The financial need would be

particularly great if it were necessary to rebuild entire plants

in order to make the most effective use of robotics.

2. To fund the construction and expansion of plants to

produce robots in quantities. necessary to have a significant

economic impact. To fund entrepreneurs who wish to

develop new types of robots for new applications. The

importance of the availability of this type of capital depends

on how important it is that the technology be pushed

forward rapidly. No one in the workshop expressed the view

that lack of capital is an important impediment to the growth

of the robotics industry or to the expansion of the use of

robots in manufacturing. However, some panelists observed

that a tax policy that encourages such investment would be

an important stimulus. There was some disagreement about

the availability of private capital to fund R&D. Robot

manufacturers maintained that they were investing large

amounts of money in R&D. Other experts suggested that

these expenditures were principally aimed at short-term

product development and adapting existing products to

specific tasks. There was a difference of opinion about the

definition of R&D and concerning the amount of emphasis

that needs to be placed on long term research v. short-term

product development.

Labor

Unemployment is an issue that is constantly raised in

discussions about the social impact of robots, but that seems

in this context not to be well understood as yet or even to

have been widely studied by labor economists in the United

States. The discussion at the workshop reflected a wide

variety of opinion about the effects on jobs, differences that

seemed to be confounded by a number of conceptual

problems. The effects of new technology on the relative

proportion of machinery to workers (the capital-labor ratio)

in a

given industry. The extent of change in prices and

production volumes for U.S. firms once the new technology

is in use. The supply of qualified workers with specific job

skills in a given industry.

Productivity improvements resulting from fall because of

productivity improvements, the use of robotics and related

technologies which, by definition, enable fewer workers to

can affect labor in a number of ways. These produce a given

volume of product. U.S. emeffects depend on factors such as

the follow- ployment in a given industry may remaining:

constant or rise, however, if productivity improvements are

combined with increases in production volume. Effective

labor compensation may rise or fall if poductivity

improvements lead to shorter workweeks and/or new

product prices, depending in

large part on production volume and profitability. Finally,

average wage levels will change with changes in the

necessary mix of worker skills resulting from the

implementation of robotics and related technologies.

Definitions of unemployment, like those of productivity,

require distinctions between short-term and persistent job

loss, or between true unemployment (job loss) and

displacement (job shift).For some time, most experts in the

United States have argued that more jobs are created by new

technology than are eliminated.However, if these jobs are in

different industries and/or require different skills, the effect

on an individual who has been replaced by automation can

be traumatic. Production and servicing of robots and related

technologies will create new jobs. The number of jobs

created and the rate at which they appear will depend both

on the growth rate of the robot industry and the degree to

which robot manufacture and repair are, themselves,

automated. Additionally, the effects of modern

microelectronics will be to lower cost, improve

performance,and widen the availability of automation

technology substantially. Negative

impact on employment that, in the past,has been small

enough to be insignificant or undetectable may be much

larger in the future.

In order to assess the effects of automation on future

employment levels, a baseline must be established against

which job loss or gain can be measured. This baseline could

be a simple extrapolation of current trends.But it may also

need to be adjusted to reflect two other effects:

l. Virtual employment, domestic jobs that were not explicitly

eliminated, but that would have existed were robots not

installed.Virtual unemployment, domestic jobs that would

have-been lost if the plant had not responded to domestic

and international competition by automating.As the case

with productivity, it is difficult to attribute employment

effects to any single component of an entire range of

improvements in the manufacturing process, in this case

robotics. Any examination of the effects of robots on jobs

would need to consider,at least in part, a much broader

context of automation technology. There seemed to be two

principal sets of questions concerning unemployment. These

questions are different in their focus, in their implication for

Federal policy, and in the data collection necessary to

analyze them:


Will the United States experience a long-term rise in the real

unemployment rate due to the introduction of robotics and

other automation? If so, will these effects be differentially

severe by geographical location, social class, education

level, race, sex, or other characteristics?What might be the

employment penalty of not automating? Will the use of

robots create displacement effects over the next decade? In

what ways will these effects be specific to particular

industry classes, geographical locations, or types of jobs?

How will they effect labor/management

negotiations?Quality of working environment is another

issue that was identified. If robots are employed principally

for jobs that are unpleasant or dangerous and if the new jobs

created by robotics are better, the quality of worklife will

improve. Productivity increases may also, in the longer

term, result in a shorter, more flexibly scheduled

workweek.New forms of computer-based automation may

in many cases relieve job boredom and resulting worker

dissatisfaction that many management experts have been

concerned with Workers may be able to make use of more

complex skills and perform a greater variety of tasks. For

instance, they may be able to follow the assembly of a

product from beginning to end and assume greater

individual responsibility for the quality of the result.The

human working environment can also be improved by

segregating processes that create hazardous working

conditions (such as heat or exposure to chemicals) from the

section of the factory occupied by humans, and staffing

them with robots. Furthermore, equipping a worker with a

robot helper for strenuous activities not only eases job

stress, but opens up employment opportunities to those who

have physical handicaps or other limitations.Whether these

benefits are realized depends,in part, on the particular ways

in which industry uses the technology. Many labor experts

are concerned that some uses of robots will produce effects

on the working environment that will not be so salutary.

For example, some argue that one long-term effect of

robotics may be to ―deskill‖ labor, requiring less ability on

the part of humans as they are incorporated into a

mechanized environment. Some labor experts and others

have also expressed concern that automation provides

increased opportunities for employer surveillance of

employees. Some unions also fear that automation could be

used by employers to ―downgrade‖ jobs that require

working with automated systems, or that robots might be

targeted first.

Education and Training

A number of education and training issues are raised by

robotics. Some of them will be addressed in the current

OTA assessment of the impact of information technology on

education,in the context of vocational education and

industrial training.According to the workshop

participants,there is a shortage of trained technical experts in

the field of robotics. If there is to be any significant

expansion in the pace of automation including robotics,

many more computer scientists, engineers, software

programers, and technicians will be needed in the next

decade. A shortage already exists in many fields of

engineering and science. It seems to be particularly critical

in areas of computer software design and programing,

according to findings of the recently released National

Information System study by OTA . Hence,the issue is not

peculiarly unique to robotics technology, at least in the case

of very highly skilled jobs.At the same time,replace

unionized jobs the use of robots has already created some

new technical jobs.

A few programs have been started at the community college

level to train workers in robot

installation, programming, and maintenance. Some

participants and observers suggested that there was a need

for a more technologically literate work force, one that has a

basic understanding of technology and mathematics. In their

view, improved technological literacy would provide the

following benefits:

1.To the extent that workers would be expected to instruct,

oversee the operation of, or repair robot units, they would

need some basic understanding of computers and systems,

both mechanical and electrical.

2.A technologically literate work force would be less likely

to resist the introduction of robots and other automation

technology.

3. A knowledgeable, technologically skilled worker would

be easier to retrain for some other job, somewhere else in

the plant. One observer at the workshop suggested that the

reason the Japanese work force seemed to welcome robots

in their plants was the high level of technological literacy

reported for the average Japanese employee. This

characteristic, accordingly, would give the employer greater

latitude in finding another and possibly even more skilled

job for a displaced worker. If the introduction of robotics

into a plant is not to result in unemployment, a program of

retraining displaced workers to take on new jobs may be

necessary. Retraining may also be required for those

workers who remain, for their existing jobs will change in

form and function even if their job title remains the same.

International Impacts

Concern about economic competition in this technology

from Europe and Japan was repeated often. Panelists

pointed to large investments abroad both for research and

development and for encouraging the use of robots. This

potential competition exists on two levels:

1) Developing and selling robotics technology, itself, and

2) Using robots to produce goods more competitively (for

example automobiles).

Some experts felt that the directions of robotics-related

research were significantly different between the United

States and other nations, notably Japan. U.S. researchers

emphasize software and highly flexible systems while many

foreign laboratories are concentrating on hardware. No one

maintained that the foreign state of the art in robotics was

superior to that in the United States. ―Technological leads‖

are hard, in general, to either prove or disprove. There was a

general feeling that the utilization of robots was further


advanced in several nations (possibly including the Soviet

Union) compared to the United States.

The issue of international competition creates conflicts in

import/export policy. Controls might be placed on exports

of industrial robots either for national security reasons or to

limit foreign access to domestic high technology that

increases the competitiveness of U.S. firms. However, such

controls also deny U.S. robot manufacturers access to

foreign markets. Even if the total international market in

robots, per se, were to remain relatively small, robot

technology would be a vital component in the much larger

international market for sales of complete automated

factories. Some issues of export controls are examined in the

context of East/West trade in a recent OTA study.

Other Applications

Some panelists and other consultants ex- or even impossible

for a human to enter or pressed concern that an examination

of the survive, there may be future uses of robots impacts of

robotics not be restricted only to that represent new

opportunities. applications to traditional industrial

automation. because of their ability to work in For example,

several defense applications environments that are

hazardous, difficult, were mentioned. While there is work

on direct military applications of robots, much of the interest

on the part of the defense community in robotics is focused

on manufacturing. Improved productivity in the

manufacture of weapons and associated military hardware

could offer significant savings to the defense budget.

Flexible, automated factories, even those not normally

involved in military production, could be more easily and

quickly mobilized in times of national crisis. The National

Aeronautics and Space Administration is exploring the

expanded use of robots for such tasks as planetary

exploration, repairing satellites in space, and aiding mining

expeditions. Some researchers are interested in the use of

robots for ocean exploration and seabed mining. These

examples suggest that, depending on the capabilities of

robots in the next decade, there may be important

applications that are not now imagined. The nature of these

new capabilities, and hence of the applications, will depend

in part on Federal policies in such broad areas as R&D,

technical education, and reindustrialization.

Bibliography:

Web address:

www.robotics.org

nighthacks.com/roller/jag/entry/congratulations_to_barn2_r

obotics

www.robots-dreams.com/.../bruno-maisonnier-of-

aldebaran-robotics

engineeringbook.net/articles/the-future-of-robotics-on-

combat-fields

www.evolution.com/about/management.masn

BOOKS:

Artificial Life and Robotics.

Springer Handbook of Robotics.

PIC Robotics by John Iovine.

Robotics Demystified by Edwin Wise.

http://www.robotics.org/

http://www.robots-dreams.com/.../bruno-maisonnier-of-aldebaran-robotics

http://www.robots-dreams.com/.../bruno-maisonnier-of-aldebaran-robotics


I. ABSTRACT:

Call centers and outsourcing have become the main

components of globalization and is a result of unparalleled

scientific and technological development throughout the

world. Because of the vast employment opportunities

provided by the Call Centers and Business Process

Outsourcing (BPO), they are called the sunshine industries.

Today India is the hub of BPO because of the availability of

cheap and qualified workforce, state of the art technology,

booming IT and telecommunication sectors and its unique

geographical location. But the alarming rate of employee

turnover in the Call Centers and other BPO sectors has

become a stumbling block for the growth of this sector. In

India, the average attrition rate in the BPO sector is

approximately 30-35 percent. Keeping low attrition levels is

a major challenge as the demand outstrips the supply of

employees by a big margin. The sample size of 209

employees working in Call Centers / BPO’s, of Coimbatore,

have been used to establish the degree of association. The

objectives of the study are to focus on the employee related

factors for increasing attrition rate in BPO’s / Call Centers

in India and find out the degree of association between these

factors and attrition rate. Based on this study various

strategies are suggested to control the increasing attrition

rate in BPOs / Call Centre. The major findings of the study

are that a majority of employees who have moved from one

company to another company in the field of Call Center /

BPO industry belong to the age group of 25-30 years. Lack

of safety for female employees and more career

opportunities elsewhere are the topmost reasons for the

employees to quit their jobs.

Keywords: Globalization, Attrition and Recruitment.

II.INTRODUCTION:

Call Centers and Business Processing Outsourcing (BPO’s)

are the new mantras of global business scenario. They are

called sunshine industries as they provide job opportunities

and generate revenues in India. Outsourcing is the

byproduct of this change. In general, when a company

decides to focus on its core business and outsource its non-

core operations such as customer care, finance, payment

services, human resources, insurance claims etc it is called

business outsourcing. Of late, BPO has emerged as a

popular competitive strategy for multinationals in many

developing countries and is creating good opportunities for

the educated, talented, unemployed youth in countries like

India and China. Outsourcing broadly refers to the transfer

of an activity or operation and day-to-day management of

business process to an external service provider. In India,

the average attrition rate in the BPO sector is approximately

30 to 35 percent. Keeping low the attrition levels is a major

challenge as the demand outstrips the supply of good agents

by a big margin. Further, the salary growth plan for each

employee is not well defined. All this encourages poaching

by other companies who can offer a higher salary.

III.REVIEW OF LITERATURE:

Karthik. D and Rao U. S [1] identified how companies can

add value to the existing processes being outsourced and be

more efficient. Nitin Aggarwal (2005) examined the key

organizational challenge facing the BPO companies in India.

There was consensus on attrition being the foremost

challenge facing the BPO companies resulting in more cost

of attrition, recruitment, lost productivity, training and lost

knowledge. Bhaskara Rao V. K [2] identified how day-by-

day BPO industries are raising all around in India. BPO has

emerged as a popular competitive strategy for multinationals

in many developing countries and are creating good

opportunities for the educated. Kulkarni P K and Gujarati

[3] examined career opportunities in the BPO industry. They

express that BPO industry offers good money, professional

status, job satisfaction and intellectual challenge.

Mohammed Ghazi Shahmawaz [4] mentioned some

occupational stressors; low salary, low time, low normative

commitment, work schedule, relationship etc. in call centres

and BPO industries. Adilakhmi P [5] analyzed segment

attrition data, spending time during recruitment, build a

value proposition and make line managers equally

responsible. Abirami Devi and Ranjitham D [6] identified

high attrition rate as the biggest challenge faced by IT

sector. Nayanathara [7] stated that the multibillion dollar

A Study on the various Employee related factors

leading to attrition in BPO Industry and establishing

the degree of association between these factors and

attrition rate

Mr. Deepak Kumar, Faculty, Department of Industrial Engineering & Management, DSCE,

Bangalore, Karnataka-560078, India

Dr. H. Ramakrishna Professor & Head, Department of Industrial Engineering & Management,

DSCE, Bangalore-78, India

Ms.V.Kripa M. Tech Student, Department of Industrial Engineering & Management, DSCE,

Bangalore, Karnataka-78, India


BPO industry racking its brains to solve the crisis, a

complicated one that could prove to be disastrous in the long

run. Brand building has become the panacea for the attrition

problem. Sanjeev [8] mentioned that, “the daily experience

is of repetitive, intensive and stressful work, based upon

Taylor principles, which frequently results in employee

“burnout”.

IV.OBJECTIVES OF THE PAPER:

The following are the objectives of the study:

1. To review theoretically the problems of attrition in BPO

firms and Call centres.

2. To analyze and develop relationship between personal

factors and level of satisfaction of the respondents.

3. To offer suggestions for minimizing the attrition rate in

BPO firms and Call centres.

V.RESEARCH METHODOLOGY:

In line with the objectives, this research is empirical and

descriptive in nature as it is aimed to find out the reasons

and the causes for the increasing attrition rate in Call

Centers / BPOs. The sample size for the study is 209

respondents from BPO and Call centre employees. The

study is based upon the research and sampling data

available. District of Tamil Nadu at various IT / BPO

Industries. A number of prestigious IT units have already

established their foot prints in the city. The study being

empirical in nature would require immense database and

therefore the analysis is based on primary data and

secondary collected. Questionnaire was used for collecting

data from Call Center / BPO employers and employees.

Interview schedules were used as a primary data tool. The

secondary data sources include published books, articles,

newspapers, and reports of the various consultancy firms,

published and unpublished research work of various

institutions. In conducting this study, a sample unit was

selected from Coimbatore Call Centers / BPO Industries and

the information was obtained from 209 employees.

Statistical tools such Rank Order, Chi square Test were used

to establish the association.

VI.ANALYSIS AND INTERPRETATION OF THE

DATA:

The results of the analysis of the data available are presented

in table 1.The majority of the respondents i.e. 43.54% have

joined for good salary 37.32% have joined for Bright

Career. Prospects, 15.31% have joined because they liked

the working environment, 2.39% have joined as part time

shift and the rest of respondents i.e. 1.44% have joined for

the reasons of make shift job. Thus, it is inferred that

majority of the respondents i.e. 43.54% have joined Call

center / BPO Industry for good salary. The result of the chi

– square test in table 2 indicates that the calculated value

(0.477) is less than the table value (5.991) at 5 per cent level

of significance for 2 degrees of freedom. Hence the null

hypothesis is accepted. The association between the gender

of the respondents and their level of satisfaction towards

attrition rate is not significant. It can be concluded that the

association between the gender of the respondents and their

level of satisfaction towards attrition rate is not significant.

Gender and Level of Satisfaction towards Attrition Rate:

The result of the chi – square test in table 2 indicates that the

calculated value (0.477) is less than the table value (5.991)

at 5 per cent level of significance for 2 degrees of freedom.

Hence the null hypothesis is accepted. The association

between the gender of the respondents and their level of

satisfaction towards attrition rate is not significant. It can be

concluded that the association between the gender of the

respondents and their level of satisfaction towards attrition

rate is not significant.

Age and Level of Satisfaction towards Attrition Rate:


calculated value (67.472) is greater than the table value

(9.488) at 5 per cent level of significance for 4 degree of

freedom. Hence the null hypothesis is rejected. The

association between the age group of the respondents and

their level of satisfaction towards attrition rate is significant.

It can, therefore be concluded that the association between

the two is significant.

Educational Status and Level of Satisfaction towards

Attrition Rate:




freedom. Hence, the null hypothesis is rejected. The

association between the educational status of the

respondents and their level of satisfaction towards attrition

rate is significant. It can, therefore, be concluded that the

association between the two is significant.

Monthly Income and Level of Satisfaction towards

Attrition Rate:

The result of the chi-square test in table 5 indicates that the



freedom. Hence the null hypothesis is rejected. The

association between the Monthly Income of the respondents

and their level of satisfaction towards attrition rate is

significant. It can, therefore, be concluded that the

association between the two is significant.

VII.FINDINGS:

1. Majority of the respondents i.e. 43.54% have

joined Call centre /BPO for good salary package.


2. The association between the gender of the

respondents and their level of satisfaction towards

attrition rate is not significant.

3. The association between the age group of the

respondents and their level of satisfaction towards

attrition rate is significant.

4. The association between the educational status of

the respondents and their level of satisfaction

towards attrition rate is significant.

5. The association between the Monthly Income of

the respondents and their level of satisfaction

towards attrition rate is significant.

VIII. SUGGESTIONS:

1. The age at which employees join the Call Centres /

BPO industries has a positive effect on the average

tenure of employees in an organization. Employees

taken in at a comparatively lower age have a higher

propensity to leave the job. It, therefore, requires an

effective recruitment and selection strategy.

2. The educational status of the respondents has a

positive effect on the tenurity of employees in the

organisation. Employees taken with higher

educational qualification tends to leave the job with

good prospects coming their way. So it is wise for

the HR department only to recruit graduates or

under graduates.

3. The monthly income has a also a positive effect on

the tenurity of employees in the organisation. And

also due to increasing inflation in Indian economy,

it is advisable to provide a good renumeration to

the employees to meet their personal needs.

IX. CONCLUSION:

Call centre is the latest buzzword on the Indian business

scenario. Its economic rationale is well established but

people off late have started questioning its human

implications. The growth of ITES and BPO companies is

enormous; they provide substantial employment

opportunities. The attrition rate causes substantial loss to the

company as discussed earlier. This means, the company

needs to solve this problem by adopting a suitable strategy

to reduce attrition rate in future. Human Resource practices

play a vital role in the organization. The main function of

the HR is to find the right person, for the right job at the

right time. But, it is very difficult to find the person who can

stay with the organization for a long time especially in ITES

and BPO companies. There is a need to identify the people

with a mind-set who would stick with the organization for a

long period. They must adopt the best HR practices which

help to identify the right persons and also help to retain

them in the organization. Diversification in terms of age,

experience, qualification, family background, culture etc,

brings more innovativeness to the organization. The

company could provide employment to the categories like

physically challenged people, youngsters from rural areas,

housewives, etc. BPO is likely to continue under all kinds of

circumstances. The companies around the world have

become habitual in moving their BPO work to India. The

future of BPO industry appears to be bright and shining and

has been in great demand in India because of low costs and

educated workforce.

X.REFERENCES:

[1] Karthik. D and Rao U. S, (2004), “Strategies for entering

high value added BPO services”, IBAT Journal of

Management, Vol. 1, No. 1, January 2004, pp. 157 – 168.

[2] Baskara Rao. V. K “Growth of BPO and Call Centers in

India”, HRD Times, April 2006, Vol. 8, No.4, pp.14-15.

[3] Kulakarni P. K and Gujarati, “Career opportunities in

BPO”, MBA Review Vol. V, No. VIII, August 2006.

[4] Mohammed Ghazi Shahnawaz “Occupational stress in

call centers Myth or Reality”, Abhigyam, Vol. XXIV, No.3,

October – December 2006, pp. 30-38.

[5] Adilakshmi P, “Employee Attrition Critical Issues” HRD

Times, Vol.11, No.7, Sept 2006, pp.11-13.

[6] Abirami Devi K and Ranjitham D, “Attrition Rate way

to control”, MBA Review Vol. VI, Issues II,

February2007.

[7] Nayanathara (2007), “Indian BPO industry”, Chille

Breeze, July 2007.

[8] Sanjeev (2008), “Stress, Human Issues in Call Centers

and BPO industry”, January 2008.


TABLE 1:

REASONS STATED FOR JOINING A CALL CENTRE/BPO INDUSTRY

Sl. no Reasons Number of Respondents Percentage

1. Good salary 91 43.54

2. Working environment 32 15.31

3. Bright career prospects 78 37.32

4. Part time job 5 2.39

5. Make shift job 3 1.44

TOTAL 209 100

TABLE 2:

GENDER AND LEVEL OF SATISFACTION TOWARDS ATTRITION RATE

Sl. no Gender Level of satisfaction Total

Low Medium High

1. Male 27(58.7) 55(55.6) 39(60.9) 121

2. Female 19(41.3) 44(44.4) 25(39.1) 88

Total 46 99 64 209

Factor Calculated value Table value Degree of freedom Remarks

Gender 0.477 5.991 2 Not significant

TABLE 3:

AGE AND LEVEL OF SATISFACTION TOWARDS ATTRITION RATE

Sl. No Gender Level of satisfaction Total

Low Medium High

1. Below 30 years 12(26.1) 47(47.5) 59(92.2) 118

2. 31-40 years 29(63.0) 28(28.3) 3(4.7) 60

3. Above 40 years 5(10.9) 24(24.2) 2(3.1) 31

Total 46 99 64 209

Factor Calculated value Table value Degrees of freedom Remarks

Age 67.472 9.488 4 Significant at 5%level

TABLE 4:

EDUCATIONAL STATUS AND LEVEL OF SATISFACTION TOWARDS ATTRITION RATE

Sl.no Gender Level of satisfaction Total

Low Medium High

1. Graduates 14(30.4) 63(63.6) 28(43.8) 105

2. Post graduates 13(28.3) 23(23.2) 36(56.3) 72

3. Diploma 19(41.3) 13(13.1) 0 32

Total 46 99 64 209


Educational

qualification

51.027 9.488 4 Significant at 5%level


TABLE 5:

MONTHLY INCOME AND LEVEL OF SATISFACTION TOWARDS ATTRITION RATE

Sl. no Gender Level of satisfaction Total

Low Medium High

1. Below Rs 10000 5(10.9) 11(11.1) 35(54.7) 51

2. Rs 10001-20000 36(78.3) 67(67.7) 18(28.1) 121

3. Above 20000 5(10.9) 21(21.2) 11(17.2) 37

Total 46 99 64 209


Monthly income 51.315 9.488 4 Significant at 5%

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