New Technologies of Internet Employment: Reducing Costs With an Economic Value Model
Keywords:
Internet Employment Technologies, The Economic Value of the Order, Human Resource Management, Optimal Costs of Investment, Communication Technology
Abstract
This paper focuses on examining the effect of applying the classical model of the economic value of the order on the employment activities of human resources in an organization. Initially, based on the classical model, the economic value of the order is modeled and the value of unique costs of employment activities such as human resource management and related coordination is obtained. Thereafter, the status in the two cases before and after the implementation of this technology is compared and this situation is analyzed by providing a numerical example. The optimal costs of investment are increasing rapidly. On the other hand, the development of efficient technologies in the employment system has caused the total number of employees to be hired to always be higher than the minimum required level set in this model. Investment in this area has declined. The result shows that with the implementation of this technology, due to the reduction of existing costs, on the one hand, the economic value of order decreases and on the other hand increases the total optimal profit.
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References
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31. Michaels, G. (2015). Robots at Work. London: CEP Discussion Paper No 1335.
32. Mickoleit, A. (2014). Social Media Use by Governments: A Policy Primer to Discuss Trends, Identify Policy Opportunities and Guide Decision Makers”. OECD Working Papers on Public Governance, 26, OECD Publishing. http://dx.doi.org/10.5.1787jxrcmghmk0s-en.
33. Mokyr, J., Vickers, C., & Ziebarth, N. (2015). The History of Technological Anxiety and the Future of Economic Growth: Is this Time Different?. Journal of Economic Perspectives, Vol. 29, No. 3, pp. 31-50. https://doi.org/10.1257/jep.29.3.31
34. Peters, B., Dachs, B., Dünser, M., Hud, M., Köhler, C., & Rammer, C. (2014). Firm Growth, Innovation and the Business Cycle. Background Report for the 2014 Competitiveness Report, Mannheim.
35. Van Ark, B., Erumban, A., Corrado, C., & Levanon, G. (2016). Navigating the New Digital Economy: Driving Digital Growth and Productivity from Installation to Deployment. Conference Board, New York.
36. Piroșcă, G. I., Șerban-Oprescu, G. L., Badea, L., Stanef-Puică, M. R., & Valdebenito, C. R. (2021). Digitalization and Labor Market—A Perspective within the Framework of Pandemic Crisis. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 2843-2857.
2. Arntz, M., Gregory, T., & Zierahn, U. (2016). The Risk of Automation for Jobs in OECD Countries: A Comparative Analysis. Paris: OECD Social, Employment and Migration Working Papers, 189. https://doi.org/10.1787/5jlz9h56dvq7-en.
3. Autor, D. (2015). Why are there still so many Jobs? The History and Future of Workplace Automation. Journal of Economic Perspectives, 29, No. 3, pp. 7-30.
4. Berlingieri, G., Blanchenay, P., & Criscuolo, C. (2017). The Great Divergence(s). Science, Technology and Industry Policy Papers, 2017, OECD Publishing, Paris, forthcoming. https://doi.org/10.1787/23074957.
5. Bessen, J. (2015). Learning by doing: the real connection between innovation, wages, and wealth. New Haven: Yale University Press. https://doi.org/10.5860/choice.191886
6. Bowles–Bruegel, J., & Brussels (2014). The computerisation of European jobs. Brussels: Breughel. http://bruegel.org/07.2014/the-computerisation-of-european-jobs/
7. Brynjolfsson, E., & McAfee, A. (2014). The Second Machine Age: Work, progress, and prosperity in a time of brilliant technologies. New York, London: Norton Publishers.
8. Butzin, A., Davis, A., Domanski, D., Dhondt, S., & Howaldt, J. (2014). Theoretical Approaches to Social Innovation – A Critical Literature Review. Deliverable of the project "Social Innovation: Driving force for Social Change (SIDrive) funded by the EU Framework Programme. Dortmund: Sozialforschungsstelle. http://resolver.tudelft.nl/uuid:b03c046f-54f4-46e7-91ff-155cdc2acff1.
9. Çalışkan, H. K. (2015). Technological Change and Economic Growth. Procedia - Social and Behavioral Sciences, 195, 649-654. https://doi.org/10.1016/j.sbspro.2015.06.174.
10. Cooper, S., Skelton, A. C. H., Owen, A., Densley-Tingley, D., & Allwood, J. M. (2016). A multi-method approach for analysing the potential employment impacts of material efficiency. Resources, Conservation and Recycling, 109, 54-66.
11. DeStefano, T., De Backer, K., & Moussiegt, L. (2017). Determinants of digital technology use by companies. OECD Science, Technology and Industry Policy Papers. https://doi.org/10.1787/a9b53784-en.
12. European Commission (2016). Science, Research and Innovation performance of the EU 2016. Brussles: DG Research and Innovation.
13. European Commission (2017). In-Depth Interim Evaluation of Horizon 2020. Brussels: Commsion Staff Working Document SWD, 221, 222 final.
14. Ford, M. (2015). Rise of the Robots: Technology and the Threat of Mass Unemployment. New York: Basic Books.
15. Frey, C. B., & Osborne, M. A. (2017). The future of employment: How susceptible are jobs to computerisation?. Technological Forecasting and Social Change, 114, 254-280. https://doi.org/10.1016/j.techfore.2016.08.019.
16. Friedman, G. (2014). Workers without employers: shadow corporations and the rise of the gig economy. Review of Keynesian Economics, 2: 171-188.
17. Goos, M., Manning, A., & Salomons, A. (2014). Explaining Job Polarization: Routine-Biased Technological Change and Offshoring. The American Economic Review, 104(8), 2509-2526.
18. Greenan, N., & Guellec, D. (2000). Technological Innovation and Employment Reallocation. Labour, 14(4), 547-590.
19. Wang, H., Ding, L., Guan, R., & Xia, Y. (2020). Effects of advancing internet technology on Chinese employment: a spatial study of inter-industry spillovers. Technological Forecasting and Social Change, 161, 120259.
20. Bertschek, I., Cerquera, D., & Klein, G. J. (2013). More bits–more bucks? Measuring the impact of broadband internet on firm performance. Information Economics and Policy, 25(3), 190-203.
21. Martínez-Caro, E., Cegarra-Navarro, J. G., & Alfonso-Ruiz, F. J. (2020). Digital technologies and firm performance: The role of digital organisational culture. Technological Forecasting and Social Change, 154, 119962.
22. Norris, L. (2020). The spatial implications of rural business digitalization: case studies from Wales. Regional Studies, Regional Science, 7(1), 499-510.
23. Tranos, E., Kitsos, T., & Ortega-Argilés, R. (2021). Digital economy in the UK: regional productivity effects of early adoption. Regional Studies, 55(12), 1924-1938.
24. What the Future of Work Will Mean for Jobs, Skills, and Wages: Jobs Lost, Jobs Gained | McKinsey. Available online: https://www.mckinsey.com/featured-insights/future-of-work/jobs-lost-jobs-gained-what-the-future-of-work-will-mean-for-jobs-skills-and-wages (accessed on 23 July 2021)
25. Harrison, R., Jaumandreu, J., Mairesse, J., & Peters, B. (2014). Does Innovation Stimulate Employment? A Firm-Level Analysis Using Comparable Micro-Data From Four European Countries. International Journal of Industrial Organization, 36(C), 29-43.
26. Heckman, J., Pinto, R., & Savelyev, P. (2013). Understanding the Mechanisms Through Which an Influential Early Childhood Program Boosted Adult Outcomes. The American Economic Review, 103(6), 2052-2086.
27. Jäger, A., Moll, C., Som, O., Zenker, C., Kinkel, S., & Lichtner, R. (2015). Analysis of the impact of robotic systems on employment in the European Union. Brussels: European Commission, Directorate-General of Communications Networks, Content & Technology.
28. Kenney, M., & Zysman, J. (2016). The Rise of the Platform Economy. Issues in Science and Technology, 32(2), 61-69.
29. Marcolin, L., Miroudot, S., & Squicciarini, M. (2016). Routine Jobs, Employment and Technological Innovation in Global Value Chains. OECD Science, Technology and Industry Working Papers, 01.2016, OECD Publishing.
30. McGowan, M. A., Andrews, D., & Millot, V. (2017). The Walking Dead?: Zombie Firms and Productivity Performance in OECD Countries. OECD Economics Department Working Papers, 1372, OECD Publishing, Paris. http://dx.doi.org/10.180.1787d80ad-en.
31. Michaels, G. (2015). Robots at Work. London: CEP Discussion Paper No 1335.
32. Mickoleit, A. (2014). Social Media Use by Governments: A Policy Primer to Discuss Trends, Identify Policy Opportunities and Guide Decision Makers”. OECD Working Papers on Public Governance, 26, OECD Publishing. http://dx.doi.org/10.5.1787jxrcmghmk0s-en.
33. Mokyr, J., Vickers, C., & Ziebarth, N. (2015). The History of Technological Anxiety and the Future of Economic Growth: Is this Time Different?. Journal of Economic Perspectives, Vol. 29, No. 3, pp. 31-50. https://doi.org/10.1257/jep.29.3.31
34. Peters, B., Dachs, B., Dünser, M., Hud, M., Köhler, C., & Rammer, C. (2014). Firm Growth, Innovation and the Business Cycle. Background Report for the 2014 Competitiveness Report, Mannheim.
35. Van Ark, B., Erumban, A., Corrado, C., & Levanon, G. (2016). Navigating the New Digital Economy: Driving Digital Growth and Productivity from Installation to Deployment. Conference Board, New York.
36. Piroșcă, G. I., Șerban-Oprescu, G. L., Badea, L., Stanef-Puică, M. R., & Valdebenito, C. R. (2021). Digitalization and Labor Market—A Perspective within the Framework of Pandemic Crisis. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 2843-2857.
Published
2022-05-31
How to Cite
Yami, S. (2022). New Technologies of Internet Employment: Reducing Costs With an Economic Value Model. European Scientific Journal, ESJ, 18(15), 40. https://doi.org/10.19044/esj.2022.v18n15p40
Section
ESJ Social Sciences
Copyright (c) 2022 Shirin Yami
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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