ACCA Strategic Professional · Strategic Business Leader · Machine learning, AI and robotics
Orlan Manufacturing plans to automate its warehouse with robots and RPA, which will make 120 roles redundant. The CEO asks how to manage the change responsibly. Which action best reflects stakeholder and change considerations?
The best action is to engage employees and unions early, explain why automation is happening, and offer retraining or redeployment. This manages resistance, supports ethical and socially responsible conduct, and recognises that staff are key stakeholders in the change.
- AEngage employees and unions early, communicate the rationale, and offer retraining and redeployment where possibleCorrect
- BAnnounce the redundancies on implementation day to avoid resistance building
- CIgnore employee reaction because automation is a purely technical decision
- DDelay all communication until the robots are fully operational
Explanation
Automation affects employees as a high-interest stakeholder group. Early engagement, clear communication and retraining reduce resistance and support ethical, socially responsible change. Late or no communication raises resistance and reputational risk.
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