IJRR

International Journal of Research and Review

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Year: 2025 | Month: August | Volume: 12 | Issue: 8 | Pages: 418-426

DOI: https://doi.org/10.52403/ijrr.20250849

Automation as an Answer to the Shortage of Skilled Labour and Cost Pressure

Tobias Oberdieck, PhD1, Enrico Moch, PhD2

1CEO, Grand Edu GmbH, Department of Economics, Germany
2Academic Director, Department of Economics, Grand Edu Research School, Germany

Corresponding Author: Dr. Tobias Oberdieck

ABSTRACT

This study assessed the capacity of automation to address skilled labor shortages and increasing cost pressure. The objective was to identify the organizational conditions that enable automation to produce measurable improvements in efficiency. A systematic review of recent research combined with OECD data from 2023 to 2025 was conducted to evaluate the interaction between technological implementation and governance structures. The analysis showed that automation achieved significant productivity gains only when embedded in clearly defined workflows supported by transparent decision-making and explicit responsibilities. Organizations with structured processes demonstrated stable operational improvements, while those lacking institutional clarity encountered delays, friction and failed implementations. The results confirmed that automation did not establish order independently but amplified existing organizational structures. Two central conclusions were drawn. First, automation enhanced performance when it reinforced institutional stability rather than merely digitizing existing procedures. Second, governance with clear accountability and adaptive management was a prerequisite for sustainable success. The study concluded that automation acted as a test of organizational readiness. Its effectiveness depended on leadership commitment, process consistency and structural clarity. Without these elements, automation intensified weaknesses instead of delivering relief.

Keywords: Organizational Behavior, Labor Productivity, Public Sector Management, Human Capital, Technological Change

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