There is commonly resistance by means of the employees to any scheme of industrial automation. The people are afraid that the introduction of automation will create unemployment.
The committee on automation pointed out that there was no direct retrenchment of labour due to introduction of computer systems. There was decrease within the range of jobs inside the initial stages, but surplus personnel might be adjusted for filling vacancies due to the deaths, retirement and resignation of the retained personnel.
The instantaneous effect of automation is the decrease in the call for operative and clerical personnel. At the same time, a higher quantity of managers are needed to run the automated site.
Automation also creates employment initially with the aid of growing the need for technicians required to design, restore and maintain the brand new machines and secondly, introduction of new trades demanding professional and well-trained employees.
Automation also has a crucial impact on the level of economic improvement to the country. However the introduction of automation is not easy, as it entails the funding of a large amount of capital and spending of running capital for the maintenance of system.