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A company adopts new production technology which reduces need for labour and increases demand for skilled technicians. Which change is shown?

Answer and explanation

Correct answer: Change in workforce structure

The direct answer is option D: change in workforce structure. New technology changes how production is done. If machines or improved systems perform more work, the company needs fewer workers for some routine tasks, while it needs more trained technicians to operate, program, repair or supervise the technology. This changes the number, type and skill level of employees, so it is a workforce-structure change. Option A, festival consumption, concerns buying patterns during festivals and is unrelated to staffing. Option B, family size, belongs to the social or demographic environment; technology adoption does not describe the number of family members. Option C, tax payment system, concerns government taxation and compliance, not the skills required in production. Option D correctly describes the movement from some lower-skill labour needs toward higher technical-skill needs. The change may also require training and human-resource planning. Exam cue: when technology changes jobs, skills, or staffing levels, think workforce structure.

Related tags

Business-EnvironmentTechnological-EnvironmentWorkforce-ChangeSkills

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