Innovation And HR Development In The Canadian Automobile Industry Amidst COVID-19, Essay.

The Impact of COVID-19 on the Canadian Automobile Industry

All across the world automobile industry is suffering considerable losses since the spread of the COVID-19 pandemic. Closure of borders and lock-down of factories have become the reason for major volatility in the early stages of the pandemic as it left the manufacturers without essential parts. Many of the auto manufacturers in Canada were also forced to shut down their plants not just because of the stringent health and safety protocols but also because of the ongoing shortage of semiconductor chips ("Automotive industry struggles amid ongoing supply chain challenges", 2022). COVID has created a shortage of human resources and has also been the reason behind the supply-chain bottleneck. There has been a drastic decline in production leading to various legal problems, specifically when dealing with unfulfilled contracts. Manufacturers have to react quickly to this changing landscape by investing more in better facilities and being inclined more towards innovative solutions.

Canada has been successful to be the second-largest automotive market in the regions of North America just after the United States ("IBISWorld - Industry Market Research, Reports, and Statistics", 2022). But the recent reports suggest that over the five years, the Car and Automobile Manufacturing Industry in Canada are being anticipated to expand only slightly. It is also being said that sooner the customers will shift from purchasing sedan care to sport utility vehicles (SUVs), light trucks, and crossovers bringing down the industry growth ("IBISWorld - Industry Market Research, Reports, and Statistics", 2022). Production-related labor costs in the Canadian region will probably prove to be undesirable to the major international automakers thus being responsible for a huge capacity shift to Mexico and the United States ("Canada - Automotive", 2022). Thus, there is a need to think about how innovation can be brought into this sector. It is high time to focus on the ways the Canadian Automobile Industry can make it big in the global market.

The literature suggests that there is a crucial link between innovation management and Human Resource Development but then there is not much information as to what measures be taken by firms to bring in proper integration between innovation management and Human Resource Development. Especially, in the Canadian automobile sector, this is something that matters the most because of records and high expectations from customers. The various ways in which innovation management can help the Canadian automobile sector are not clear and the developments or the innovations that can be brought in the Human Resource Department are also not mentioned well. APartfrom this, there is no such link made between the decrease in employment in the automobile sector of Canada during the COVID times. This also has to do much with Human resources and innovation management. It is associated with employment because one of the departments that has much responsibility in hiring employees is the HR department. If this department or sector is not supported and innovations are not brought in, it can be said that there will be a decrease in employment. Thus, employment data will be collected before and during COVID times so that proper ideas can be obtained.

The Need for Innovation in the Canadian Automobile Industry

The research will be important to understand the significance of innovation and human resource development in the automobile sector of Canada. As per the data shared in the background section, it is evident that anticipations have been done that the industry will face a low in the coming days. With the primary and secondary data collected, it can be figured if innovation management and development of HR department in the automobile sector of Canada needs an immediate boost and what are the ways this can be done. The findings will also help to find out how employment has decreased and this decrease can be linked to shortcomings of the HR department as well.

The research will be of much help to readers in general who wants to know-how innovation and human resource development in the business sector can help a business to grow. This will also be of much help to the Canadian businesses who are still thinking as to how they can bring about some changes in terms of innovation and human resource development. They will get to know why they should just plan something big and go for some sort of innovation to better the existing operations. This research will provide much information about how the automobile industry has grown all these years and what exactly are the problems that are being faced. The findings will help realize the link between the decrease in employee development and HR developments and innovation management. It will make the firms realize that without proper connections established between HR developments and innovation management, the condition of employment in the automobile sector cannot be improved.

The purpose of this research is to understand the present situation of the Canadian automobile sector in terms of decreased productivity since COVID-19 and thereafter suggest some ways innovation management be done and HR development fostered to address the decrease in employment in the automobile sector.

Innovation management is defined as the mix of the management of innovation processes and change management. This refers to product, marketing, organizational innovation, and lastly business process. Innovation management is certainly the focal point for many present-day business firms. Innovation management needs to be one of the priorities in the present-day dynamic business environment (Appio et al., 2021). Management and organizational scholars are paying increasing attention to the link existing between digital transformation and innovation management (Frishammar et al. 2019). But still, there is no such compact content been developed on this. It is agreed to and further suggested that innovation management is something much critical with all of the various aspects that are associated with it (Appio et al., 2021). The various aspects that are being mentioned here are the size of firms, contexts, sectors, approaches, and so on.  Innovation has been considered as a process that needs to be managed properly and any compromise done in that respect will certainly result in undesirable results (Leonidou et al., 2020)

As per the research done, gone are the days when the human resources professionals were mainly concerned with the efficient management of the process of employment (Aslam et al., 2020). It has been agreed to and further suggested that the duties of human resource professionals extend far beyond the processes of recruitment and termination (Appio et al., 2021). In the modern-day workplace, there is a term used that is "Strategic HR". This term in itself speaks volumes about the roles and duties o HR. Strategic HR has been defined as managing HR in a way that supports the long-term business goals and associated outcomes of the business (Solaimani, Talab & van der Rhee, 2019). This is going far beyond the traditional administrative duties of HR professionals. Strategic HR means being specific with strategies and ensuring that every strategy that is opted for is instead of the long-term vision and mission of the company.

The Link between Innovation Management and HR Development

As per the research done, organizations that made use of at least one element from each of the seven "high performance" that was investigated in the survey (performance management, training, flexible job assignments, recruitment and selection, performance-related award, communication, and teamwork) were 34 percent more likely to have been successful in their attempt to innovate their business processes (Sheehan, Garavan & Carbery, 2014). There is a significant link between bundled high resource management practices and innovation (Burlacu et al., 2019). It is said that the four major dimensions that are staffing, structure, strategy, and system support all are central to successful innovation. Innovation certainly can be done in the desired way if the right kind of people are given the responsibility to handle the process of innovation or the process of transition to bring about the required innovation. It is added that relationships between HRM and innovation have grown more because almost all firms in the present times are seeking to sustain innovation across a range of products, processes, and services (Chen, Lam & Zhu, 2020). Most of the firms are potentially benefitted from upgrading to their core technologies but those firms that maintain a competitive edge are known to do so by the superior management of their staff. Thus, it can be said that there is a critical link between HRM and innovation.

As per the research done, organizations need to be specific about the strategies when it is the question of bringing about innovation (Shirmohammadi et al., 2021). It is said that strategy is all about making proper choices between various available feasible options (Chen, Lam & Zhu, 2020). It is obvious that with a good strategy, it is much more difficult to achieve long-term success and align the business in a way that a competitive advantage can be obtained. It is also that most of the executives define innovation as a strategic priority and everyone agrees that lack of innovation strategy is a basic problem. The author believes that developing an innovation strategy will not be difficult if it is aligned to the overall business goals (Schmidt, Pohler & Willness, 2018). Development of innovation strategy is about the determination of the objectives and strategic approach to innovation, having adequate knowledge about the market, defining the value proposition, assessing and developing core capabilities,  and lastly establishing innovation techniques and systems. The author opines that innovations in the automobile industry need to be done considering some factors such as educating customers about the various benefits of in-vehicle innovation, innovating with solid user experience (UX) framework, considering global attitudinal differences related to autonomous driving acceptance, and lastly designing the car of the future as a service and not a product (Bogers et al., 2019). These are some of the basic considerations that have to be there when trying to bring innovation in the automobile industry (Dhanabalan et al., 2018). As it is with the various technological advancements such as machine learning and AI, expectations from the automobile industry have grown. Self-driving cars are always in news and this is proof enough that to incorporate the new changes in automobiles, much of the organizational work processes need restructuring (Lin et al., 2018). An organization cannot develop self-driving cars with the same strategies using which it used to develop normal cars. Thus, in all ways, innovation demands change in strategies.

The Significance of Employment Data in the Automobile Sector of Canada

Canada is well-positioned to lead in the design, development, and production of future cars. Canadian companies are showcasing their leadership skills in developing advanced technologies all of which are contributing towards the shaping of the auto industry. It is being said that Canada's strengths in automotive innovation will help Canadians to develop the required skills for good-quality jobs for not just the present but also the future ("Technology and innovation, the future of the Canadian auto sector | EDC", 2022). The country is well-positioned to lead in the design, development, and production of future cars. Some of the Canadian companies are leading the agenda of innovation in the new-age automotive space. This is being done through the QNX Automotive Software Division of Blackberry. Reinventing the driver experience is being focused on with the QNX Automotive Software Division. A compelling innovation strategy is something that creates much more value on a sustainable basis or boosts the competitive strength of a firm ("Technology and innovation, the future of the Canadian auto sector | EDC", 2022). The present-day trends in the automobile industry hint at the fact that there is a need to be specific with the strategies that are to be followed to bring in innovation.  

Production of a vehicle has plunged across the world as the automakers are struggling to get vital computer chips. This is leading to lengthy downtime at the assembly plants and also posing a challenge to the recovery of the economy. In August, light-vehicle production in Canada dropped by a value of 38% as per the data of Wards Intelligence ("Why Canadian auto production is getting hit especially hard", 2022). Now, the shortage in the chip has been a hindrance in front of the output. APartfrom this, there is a scarcity of laborers with over 10,000 jobs in auto manufacturing falling in the category of "yet to return" ("Why Canadian auto production is getting hit especially hard", 2022).  Adding to this are the disruptions in the supply chains and demotivated employees. HR has to step in to raise the morale of employees, work on attrition and help firms in their venture of bringing in innovation.

The Canadian automobile sector is encountering a decrease in employment during the COVID times mainly. Thus, there is a need to figure out how innovation management and HR developments can be enhanced to address the issue of the shortage of workforce.

The literature speaks volumes of the link between innovation management and HR but fails to guide the readers on the steps that need to be taken or the way innovation management should be done in times of crisis as that of COVID-19. The Canadian Automobile sector is facing much trouble and there has been a drastic decrease in production, demanding new ways or innovative solutions that can be brought into the sector. How HR developments can be innovated are not clear. Employment is to be stressed because The secondary data collected needs to be compared and contrasted with the primary data so that the research questions can be addressed well.

The Purpose of the Research

To fill in this gap research will be done following the mixed research method. Some automobile firms of Canada will be approached to be a Partof an online survey consisting of topic-relevant questions. The answers obtained from the respondents and the data collected from the secondary sources will be compared and contrasted to dive into conclusion.

The area of research is surrounding the concepts of innovation management, HR developments, and the automobile sector. The research scope has been narrowed down by considering only the Canadian automobile sector.

The gap that will be addressed is about how innovative solutions mainly directed towards the HR department can be brought into the automobile sector of Canada.

Conducting the research will help me understand how innovation management is directed properly and crucial departments such as HR can help firms handle the atrocities of crisis.

The researcher will get to explore more on the topic and a proper knowledge base will be developed. The entire research process requires patience and this attribute will be fostered in the researcher.

The organizations will realize what steps are needed to be taken to bring in innovation management in crucial departments as HR to address the crisis better.

The society will get compact information about Innovation management, HR developments, crisis handling, and more. The outcomes will help organizations to realize their shortcomings which if rectified can be advantageous to the workers in the automobile sector or any other sector in general.

The objectives of the research areas given below:

1. To figure the present situation of the Canadian automobile sector in terms of employment through the means of proper statistics collected from government reports and various other authentic websites.
2. To find out how innovation management can help the Canadian business sector in general and the automobile sector in specific.
3. To develop a guideline that can be followed by the Human Resources Department to bring in changes in the present situation of the Canadian automobile sector.
4. To come up with some recommendations as to how the Canadian automobile industries incorporate innovation into their existing operations.

The research questions that are to be addressed in the research are:

1. How innovation management can help the Canadian business sector in general and the automobile sector in specific?
2. How employment in the automobile sector has been affected during the COVID times and what HR Department can do to enhance this?

The scope of the research is to consider only the Canadian automobile sector for addressing the research questions and it is reasonable as without specifying a single country, the research area will become broader.

References

Appio, F. P., Frattini, F., Petruzzelli, A. M., & Neirotti, P. (2021). Digital transformation and innovation management: A synthesis of existing research and an agenda for future studies. Journal of Product Innovation Management, 38(1), 4-20..

Aslam, F., Aimin, W., Li, M., & Ur Rehman, K. (2020). Innovation in the era of IoT and industry 5.0: Absolute innovation management (AIM) framework. Information, 11(2), 124.

Automotive industry struggles amid ongoing supply chain challenges. (2022). Retrieved 17 March 2022, from https://www.canadianlawyermag.com/practice-areas/corporate-commercial/automotive-industry-struggles-amid-ongoing-supply-chain-challenges/359602

Bogers, M., Chesbrough, H., Heaton, S., & Teece, D. J. (2019). Strategic management of open innovation: A dynamic capabilities perspective. California Management Review, 62(1), 77-94.

Burlacu, S., Alpopi, C., Mitrit?, M., & Popescu, M. L. (2019). Sustainable e-governance and human resource development. European Journal of Sustainable Development, 8(5), 16-16.

Canada - Automotive. (2022). Retrieved 17 March 2022, from https://www.trade.gov/country-commercial-guides/canada-automotive

Chen, M. Y. C., Lam, L. W., & Zhu, J. N. (2020). Should companies invest in human resource development practices? The role of intellectual capital and organizational performance improvements. Personnel Review.

Dhanabalan, T., Subha, K., Shanthi, R., & Sathish, A. (2018). Factors influencing consumers’ car purchasing decision in Indian automobile industry. International Journal of Mechanical Engineering and Technology, 9(10), 53-63.

Frishammar, J., Richtnér, A., Brattström, A., Magnusson, M., & Björk, J. (2019). Opportunities and challenges in the innovation landscape: Implications for innovation auditing and innovation management. European Management Journal, 37(2), 151-164.

Innovation Management: The Focal Point for Present-day Business Firms

IBISWorld - Industry Market Research, Reports, and Statistics. (2022). Retrieved 17 March 2022, from https://www.ibisworld.com/canada/market-research-reports/car-automobile-manufacturing-industry/

Leonidou, E., Christofi, M., Vrontis, D., & Thrassou, A. (2020). An integrative framework of stakeholder engagement for innovation management and entrepreneurship development. Journal of Business Research, 119, 245-258.

Lin, D., Lee, C. K., Lau, H., & Yang, Y. (2018). Strategic response to Industry 4.0: an empirical investigation on the Chinese automotive industry. Industrial Management & Data Systems.

Schmidt, J. A., Pohler, D., & Willness, C. R. (2018). Strategic HR system differentiation between jobs: The effects on firm performance and employee outcomes. Human Resource Management, 57(1), 65-81.

Sheehan, M., Garavan, T. N., & Carbery, R. (2014). Innovation and human resource development (HRD). European journal of training and development.

Shirmohammadi, M., Hedayati Mehdiabadi, A., Beigi, M., & McLean, G. N. (2021). Mapping human resource development: Visualizing the past, bridging the gaps, and moving toward the future. Human Resource Development Quarterly, 32(2), 197-224.

Solaimani, S., Talab, A. H., & van der Rhee, B. (2019). An integrative view on Lean innovation management. Journal of Business Research, 105, 109-120.

Technology and innovation, the future of the Canadian auto sector | EDC. (2022). Retrieved 17 March 2022, from https://www.edc.ca/en/article/canadian-auto-innovation.html

Why Canadian auto production is getting hit especially hard. (2022). Retrieved 17 March 2022, from https://www.theglobeandmail.com/business/article-vehicle-production-is-plunging-worldwide-its-especially-severe-in/

In this research, secondary data will be used. This data will be collected from journals, books, internet resources and other such authentic sites. The research questions that have been framed can be answered by secondary data and thus this type of data will be used. Database searches will be done here for acquiring the secondary data. For the literature review Partand for research question 1 database such as Google Scholar will be searched. For the 2^nd research question, the Statistics Canada dataset will be used. The link to the data set is as given in the Appendix.

Here, both statistical data, as well as theoretical data, will be collected. Statistical data will be collected from the site mentioned above while theoretical data will be taken from the article, journals, books from Internet sources, and Google Scholar.

Two alternatives for data collection could be conducting interviews and online surveys with some of the automobile companies of Canada. This would have helped the researcher better understand the present scenario. The direct opinions of the professionals from the automobile sector of Canada on innovation management and HR Development would have given in-depth knowledge about the topic.

There will be no research participants involved in the research but certainly, the target audience is the employees of the automobile sector of Canada. This is the reason why the dataset will be included from the site Statistics Canada. The title of the dataset is “Employment and average weekly earnings (including overtime) for all employees in the automotive industry, monthly, seasonally adjusted, Canada”.

From this research, the automobile industries of Canada and in general as well will get benefitted. They will get to know how innovation management can be of help to the Canadian automobile sector and also the way employment has been affected in this sector during the COVID times. Based on this some guidelines or suggestions will be provided for the HR Department which as well will be useful to bring in major changes to the present scenario.

The Changing Role of Human Resource Professionals

The time-series data will be obtained from the site Statistics Canada. For understanding the change or the decrease in the number of employees, data after 2018 and before 2018 will be used. The screenshots are as given below:

From the 2^nd research question, the time series data will be obtained from this website. The 1^st screenshot shows data of Employment for All Employees in the Automobile Sector of Canada in the time range 2016-2018 while the 2^nd shows the same data for the time range 2019 to 2021.

1. Improper referencing can give an impression that the data provided is not reliable.
2. Dataset used can be from an unauthentic source.
3. Articles and journals included may have outdated data misguiding readers.

The biasness here can be in the form of interpretation of the secondary data mainly the theoretical ones. This is because the researcher is totally in support of innovation management and HR developments in times of crisis and maybe this thought can avoid certain negatives of the topic.

The biasness will be addressed by presenting the thoughts and opinions of the authors as it is. Interpretation will be based on proper statistical analysis done on the dataset.

To analyze the stationary data, it will be made nonstationary and then methods such as differencing, log transformation, inverse power transformation, or a combination of both can be made use of (Changyong et al., 2014). Here in this research, a combination of the above-mentioned data analysis methods will be used to address the framed hypothesis. Software packages such as SPSS will be used to carry out the data analysis.

As the topic been taken is a combination of different variables there was no such existing similar work found.

The findings will be validated through proper statistical tests done such as Chi-Square analysis. If the p-value is smaller as compared to the standard alpha value then the null hypothesis will be rejected (Sharpe, 2015). It will be proved that the variables are independent of each other.

H0: Employment in the automobile sector has not decreased in COVID times and there is no requirement of innovation management to enhance the situation.

To test the above-mentioned hypothesis Bayesian approach will be taken. This approach has been chosen as it allows both a natural as well as a principled way to combine prior information with data (Kruschke & Liddell, 2018). In this, there is no such need for a solid decision theoretical framework. Using this approach, past information can be incorporated about a specific parameter, and thereafter a prior distribution is formed for future analysis.

No such similar hypotheses have been tested by other authors.

For the analysis and the forecasting part, IBM SPSS Forecasting will be made use of. With this, the researcher will be able to develop reliable forecasts making use of time-series data. Here mainly for the 2^nd research question this analysis and forecasting will be done. For the 1^st research question, the thematic analysis will be done.

Gantt Chart

(Source: created by author)

Budget

(Source: created by author)

References

Changyong, F. E. N. G., Hongyue, W. A. N. G., Naiji, L. U., Tian, C. H. E. N., Hua, H. E., & Ying, L. U. (2014). Log-transformation and its implications for data analysis. Shanghai archives of psychiatry, 26(2), 105.

Kruschke, J. K., & Liddell, T. M. (2018). The Bayesian New Statistics: Hypothesis testing, estimation, meta-analysis, and power analysis from a Bayesian perspective. Psychonomic bulletin & review, 25(1), 178-206.

Sharpe, D. (2015). Chi-square test is statistically significant: Now what?. Practical Assessment, Research, and Evaluation, 20(1), 8