BMG8064 Organisational Management

Lecturer: Dr. Chew Kok Wai

Assignment 2: The Fourth Industrial
Revolution - Future of Jobs (30%)

Student Name: Nithya Rajasagaran

Student ID: 1191402785
Q1: Description of the Fourth Industrial Revolution.
Definition of Industrial Revolution: Describes the historical process of change from
traditional economy (agrarian & handicraft economy) to an industrialized economy
dominated by industry and machine manufacturing. This rapid change begun in Britain in
the 18th century and later spread to other parts of the world.

Industry Revolution: This term was popularized by English economic historian Arnold
Toynbee (1852–83) to describe Britain’s economic development from 1760 to 1840.

ti o n :
tr i a l Revo l u
Indus
1st
• Industry Revolution begun.
• Industrialized manufacturing of
textile from homes to factories
with the introduction of iron,
coal & steam power.
• Origin: Britain.
• combustion engine that was
Created job opportunities and
skilled workers to operate steam
engines /machines
1760 to 1830
R HAV
A
HOW F
2nd
• The expansion of electricity,
•
petroleum & steel.
Steel production made it
possible for rail lines to be built
at competitive costs, which
further spread transportation.
• Public electricity led to the
invention of the telephone and
light bulbs.
• Introduction of internal
powered by gas & air.
• Mass production , assembly line
powered by electricity.
1870-1914
COM E.
E WE
4th
3rd
• Introduction of IoT and AI.
• First smart factory with fully
computerized programs to
•
•
Digital revolution begun
Automation & digitization with the •
reduced manhours.
Cloud technology
use of computers • Advancement of
• The invention of the Internet. telecommunication –
introduction of 4G,fiber optics
• Discovery of nuclear energy
which enabled faster internet.
• Opportunities for research in
• Machines replacing routine jobs.
space expedition & biotechnology
• • Requirement for upskilling to stay
IT systems enabled better
relevant.
connectivity and communication.
Late 1900 2014 onwards
Fourth Industrial Revolution
Trends of the future: 2025 and beyond

The 4th Industrial Revolution is the existing and developing environment, •10% of people will be wearing clothes
whereby the advancement of technology such as Internet of Things (IoT), connected to the internet
Artificial Intelligence (AI), robotic & virtual reality are changing the way •80% will have unlimited (sponsored)
people live and work. backup space in the cloud
•There will be one trillion sensors connected
The integration of these technologies into manufacturing practices is known to the internet
as Industry 4.0. (Schwab, K. (2017). •80% of the world’s population will have
Internet presence
•The first automobile entirely produced with
Job Front Up-Skills Required Jobs that beat robots
a 3D printer
Jobs with these three • Complex problem solving • Creative endeavors— •90% of world’s population will own a smart
qualities are most likely to • Critical thinking everything from scientific phone
be automated: • Creativity discovery to creative
• Coordinating machines writing and •90% of world’s population will have
• Repetitive • Emotional intelligence entrepreneurship internet access
• Based on program/rules • Judgement and decision • Social interaction—robots •10% of all vehicles on the roads will be
• Involve limited or well- making just don’t have the kind of
defined physicality • Service orientation emotional intelligence that driverless
• Negotiation humans do •More than 50% of home appliances will be
• Cognitive flexibility • Physical dexterity and connected to internet
mobility
•More rides will be made on shared cars
than on private cars
Source: World Economic Forum 2020
Brown-Martin, G. (2014).
Q2: Key findings from the report entitled “The Future of Jobs
Report 2020” by the World Economic Forum.
By 2025, the capabilities of machines and algorithms will be more
broadly employed than in previous years, and the work hours
performed by machines will match the time spent working by human
beings.

The entry of advanced technologies can cause displacements of jobs for

the lower income group up to 85million people.

Employment rate for essential services went up triple fold In August

2020. The importance of the healthcare sector was given utmost priority
after realizing that the collapse of health leads to the worst catastrophe
in the Global Economy. In two months the COVID-19 pandemic has
destroyed more jobs than the Great Recession did in two years.
Employers are willing to train employees to ensure they
are kept abreast with the ever growing and evolving
technology.

The public sector needs to provide stronger support for

reskilling and upskilling for at-risk or displaced workers.

There will be a huge gap In the skills set, especially when

the younger generation is moving towards technology
challenged trainings and jobs.
Despite the current economic downturn, the large majority of
employers recognize the value of human capital investment.

It is now urgent to enact a Global Reset towards a socio-

economic system that is more fair, sustainable and equitable,
one where social mobility is reinvigorated, social cohesion
restored, and economic prosperity is compatible with a
healthy planet.

Cloud computing is the new hard disk and many companies

have converted their conventional filing and storage to cloud,
and reducing the production of hard disk globally, putting at
least 100 of thousands out of job, risking loss of data and
breach of cyber security.
Q3: Based on literature review, what are the jobs and skills in
Malaysia that will be affected by the Fourth Industrial
Revolution?
Malaysia has been preparing for the grand embrace of 4.0 ever since the inception of the first smart factory in 2014. Since then, the government has been
strategizing (Moreira, 2019) to prepare the industries with the big change that was evolving fast. With the manufacturing sector given priority first (Moreira,
2019), a list of challenges were identified to overcome (Ling, 2020) before we fully transform into 4.0.

Challenges Justification

Time Factor Companies require an average of 10 years to fully digitalize, set up and test. Many of whom, do
not want to shut down their production for this purpose, causing further delays.

Financial High capital investment for new machines, systems and programming. Even if the factory cuts
their employment by half.

Ambiguous concept of Industry Lack of awareness leads to unpreparedness, leading to loss of business and losing competitive
4.0 advantage.

Technology Uncertainty on cost and benefit from Industry 4.0 technologies. Immature development on
technologies would cause the risks of wrong data collection, wrong data interpretation and
wrong data disclosure.

Talent Need to constant training and upskilling in order to function well with the new system. Many
employees are reluctant with change.

Cyber-security High investment in developing computational intelligence to identify digital security threats.

Scalability Varies on architectures, design principles, and system models with the complexity can have
obstacles on multiple level data transferring and networking, data processing and management,
and service provisioning.
To address the challenges, the Former Prime Minister Datuk Seri Najib Tun Razak launched the Malaysian Productivity Blueprint on 8th
May 2017 (Moreira,2019). They are known as the five strategic thrusts.

1. Increase the number of high-skilled workers in Malaysia’s workforce and at the same time tighten up entry of low-
skilled workers into the workforce in order to meet the demands of the future economy.

2. Strengthen the readiness of enterprises to exploit technology and the advantages of digital (such as Industry 4.0).

3. Reduce reliance on non-critical subsidies and link financial assistance and regulatory liberalization efforts to
productivity outcomes and reposition industry towards an emphasis on higher value-add segments of the value
chain.

4. Address regulatory constraints and develop a robust accountability system to ensure effective implementation of
regulatory reviews.

5. Embed a productivity culture nationwide and drive productivity performance through an effective government
mechanism.
Jobs that are most likely to be affected by the challenges of Industry Revolution 4.0 are as below
for Malaysia.

Source: Future of Jobs, 2020)

Skills that are most likely to be affected by the challenges of Industry Revolution 4.0 are as below
for Malaysia.

Source: Future of Jobs, 2020)

Q4: If you are a Manager of an organization where its
employees’ jobs and skills are affected by the Fourth
Industrial Revolution, what would be your recommendations
to handle this issue?
The Fourth Industrial Revolution has evolved rapidly in the last 2 years when many companies were forced to operate remotely amidst
the rise of the Covid-19 pandemic. For employees to continue to stay relevant in their job, company and industry, they are required to
embrace change as it comes. My recommendations as a Manager would be as below:

Creating awareness of Fourth IR

Educate employees on what Fourth IR is, its objectives, impact

and how it would change our lives.

Upskilling & Reskilling

Advise them to get certification in computing, programing and

IoT so that they continue to stay relevant in the industries.

Re-structuring
I would have them to alternate jobs within the same
organization so that they have a feel of how fourth IR would
impact various departments.
For those whose jobs have been replace with automation and digitalization:

Expand their knowledge & experience

Look for jobs that have lower risk in being automated or

replaced by robots.

Positive Intelligence
Ensuring that employees maintain calm during this difficult
time and always speak up when they have problems. (Mental
health awareness).
REFERENCE

1. Schwab, K. (2017). The fourth industrial revolution. Currency.

2. Brown-Martin, G. (2014). Learning {re} imagined: How the connected society is transforming learning. Bloomsbury
Publishing.
3. Lee, K., Wong, C. Y., Intarakumnerd, P., & Limapornvanich, C. (2020). Is the Fourth Industrial Revolution a window
of opportunity for upgrading or reinforcing the middle-income trap? Asian model of development in Southeast
Asia. Journal of Economic Policy Reform, 23(4), 408-425.
4. CHARLES MOREIRA, (2019) MALAYSIA’S INDUSTRY 4.0 JOURNEY – WHAT AND WHY
5. The Future of Jobs Report , 2020. World Economic Forum.
THANK YOU