Should companies replace human workers with robots? New study takes a closer look

Last year, when The New York Times reported that Amazon’s robotics team’s ultimate goal was to automate 75% of the company’s operations, replacing more than half a million human jobs in an attempt to pass cost savings onto customers, it was a stark reminder of robots’ ever-expanding role in reshaping the American workplace.

Meanwhile, at Hyundai’s auto plant in Georgia, more than 1,000 robots work alongside almost 1,500 human employees.

But as new research involving the Binghamton University School of Management (SOM) found, companies could risk losing their competitive edge by leaning too heavily on replacing human workers with robots, since competitors could easily follow suit. Instead, researchers determined businesses could generate more value by focusing on human-robot collaboration, amplifying their existing human capital into hard-to-imitate resources.

“Simply put, deploying robots in a collaborative manner with humans can alter social dynamics in ways that encourage unit members to feel, act and think together,” the study, published in the Journal of Organizational Behavior, stated. “By leveraging these resources through the deployment of robots in collaborative settings, organizations can not only generate additional economic value from their human capital but also improve their ability to capture a greater share of that value in the competitive market.”

Chou-Yu (Joey) Tsai, SOM Osterhout associate professor of entrepreneurship and the study’s co-author, said researchers initially wanted to explore how an organization’s human-robot interface could affect leadership, but then realized it could be more beneficial to focus on its impact on the organization as a whole.

The study examined the issue from two viewpoints: a substitute view and a complementary view. Both can enhance an organization’s desired outcomes in efficiency and productivity, researchers determined, but those who adopt a complementary view of human-robot collaboration were more likely to foster a greater and more positive sense of commitment among human employees.

“The most successful organizations will find a way to extract the best value from these technologies to achieve their unique goals,” Tsai said. “If you’re focused on going up against other companies by introducing robots to replace some key roles traditionally carried out by human employees, that’s not always the best strategic thinking because your competitors could easily do the same thing.”

Additionally, the study noted that on-the-job learning also remains fundamental for understanding the best ways to implement such changes.

Delegating robots to tasks that potentially offer meaning, autonomy or opportunities for mastery could undermine not only employees’ mental health, researchers said, but also the very efficiency gains employers are striving for.

“Discussion of AI and robots often centers on adoption speed, workplace disruption and job displacement,” said SOM Associate Dean for Faculty Research Rory Eckardt, another co-author on the study. “Our paper shifts attention to complementary integration by considering when these technologies strengthen teamwork and coordination, improve the work environment, and support value creation and competitive advantage.”

One effective example the researchers cited involved members of a company’s research and development team working with robot systems to better analyze complex datasets. Doing so amplifies the team’s effectiveness in achieving results and helps them work together more efficiently, according to the study.

Another example involved hospital staff using surgical robots to achieve higher-definition 3-D visualization, surpassing the limitations of the human hand to perform increasingly delicate medical procedures.

Using this collaborative approach can increase employee loyalty, according to the study, because it shows the company is providing additional support for the work being done.

“When I began my research career in leadership and organization science, I could have never predicted that technology would advance to the point where we’re researching the impact of robots on leadership development and organization effectiveness,” said SOM Dean Shelley Dionne, who co-authored the study. “But now it informs how we think about the future of workforce development and employee performance, no matter what type of organization we consider.”

The study, “Human Capital Robotic Integration and Value Creation for Organizations,” was also co-authored by Jason Marshall from Creighton University in Nebraska, Malte Jung from Cornell University, YoYo Tsung-Yu Hou from National Chengchi University in Taiwan and Biying Yang from South Dakota State University.