The impact of smart automation on employee performance in samsung display vietnam

ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH --- NGUYỄN ĐỨC MINH THE IMPACT OF SMART AUTOMATION ON EMPLOYEE PERFORMANCE IN SAMSUNG DISPLAY VIETNAM TÁC ĐỘNG CỦA TỰ ĐỘNG HÓA

INTRODUCTION

Rationale of the thesis

The Fourth Industrial Revolution, or Industry 4.0, is defined by the incorporation of cutting-edge technologies and intelligent automation into industrial and manufacturing processes A number of technologies, including robotics, artificial intelligence (AI), and the internet of things (IoT), are key factors in the transition of conventional industrial processes into intelligent, effective, and networked systems Across a range of industries, this revolution has the potential to improve product quality, lower prices, boost productivity, and develop new business models

Intelligent automation, a new form of automation powered by AI, is replacing human cognitive functions in tasks previously performed by humans Unlike traditional automation, intelligent automation allows machines to learn, adapt, and improve over time This concept, also known as smart automation, integrates advanced technologies like AI, IoT, data analytics, and cloud services, and has shown potential for enhancing efficiency and competitiveness in industrial manufacturing.

Samsung Display Vietnam is rapidly adopting advanced technologies like smart automation and robotics, significantly transforming its human resource structure, job requirements, and management practices Understanding the impact of this automation on employee performance is crucial, as it influences work transformation, employee well-being, skill requirements, productivity, organizational performance, decision-making, competitive advantage, and ethical considerations.

Smart automation is driving rapid workplace transformation across various industries Understanding its impact on staff productivity is essential for adapting to these changes and ensuring a smooth transition to new work models.

While AI and automation can improve workplace well-being by reducing repetitive tasks, streamlining processes, and boosting productivity, they can also lead to employee concerns about job security, shifting responsibilities, and the need for new skills Organizations must assess the impact on staff and proactively address potential stressors to support employee well-being.

Skill Requirements: Smart automation may result in changes to the abilities required for various vocations By comprehending the evolving skill requirements and making sure that employees have the abilities necessary to remain competitive and relevant in the labor market, employers can better prepare their staff for the future Productivity and Efficiency: In some activities, automation and artificial intelligence (AI) have the potential to increase productivity and efficiency Organizations can determine which tasks are most suitable for automation by examining their effect on employee performance This will free up employees to concentrate on more intricate and strategic tasks that call for human expertise

Optimizing employee performance and implementing new technologies, especially smart automation, are crucial for organizations seeking to improve overall organizational performance This is because employee and organizational performance are inextricably linked.

Making decisions: Putting smart automation into practice frequently necessitates large financial outlays as well as modifications to organizational procedures Evaluating the effects of these changes on employee performance in-depth enables decision-makers to balance the advantages and disadvantages of the changes and make better decisions

In today's fast-paced business environment, companies leveraging smart automation to support their workforce gain a significant competitive advantage By exploring the impact of automation on worker productivity, organizations can develop more innovative and effective talent management strategies.

Automation and AI raise ethical concerns about algorithmic bias, data privacy, and job displacement Understanding the impact of these concerns on employee performance is crucial for creating a fair and inclusive workplace.

Samsung Display Vietnam (SDV) has embraced Industry 4.0 by implementing automation and AI, transforming into a smart factory This shift has significantly impacted operations, organizational structure, employee performance, and human resource management To reap the benefits of smart automation and navigate its challenges, organizations must analyze its impact on worker performance to foster a profitable and sustainable future for their workforce and business.

Literature review

The rapid rise of Industry 4.0 has spurred research into the impact of intelligent automation on organizational performance A 1997 study by Wong et al examined the effects of intelligent automation on operational performance, labor management effectiveness, worker well-being, and remuneration in 52 Singaporean electronics manufacturers The study found significant positive correlations between all four dimensions, with the largest gains observed in operational performance and worker well-being This research highlighted the importance of skills and training in maximizing automation benefits, emphasizing the need for automation-specific skills.

4 for improving organizational performance, whereas generic skills training is necessary for labor management and worker‘s social well-being

Intelligent automation is transforming human resource management (HRM), shifting from eHRM to a new phase marked by technology-driven changes in all aspects of HRM This shift is driven by the convergence of information technologies and HRM, leading to advancements in workforce management techniques Key areas of focus include mass collaboration, virtual reality, and AI-powered solutions for recruiting, training, and decision-making While these advancements offer cost savings and efficiency, ethical concerns regarding human privacy remain.

[12] Studies on robotic technologies has shown that simple jobs such as welding, painting, assembling associated with un-skilled employees will disappear and be replaced by more technical positions [13], [14]

Another research of impact of automation and digitalization on employment are reviewed in 2 manufacturing sectors, automotive and garments, to explain degree of change in labor activities and how these activities are organized [15] Although automation level of these 2 sectors is totally different (automotive sector is highly automated while the garments sector relies mainly on manual operation), the new technology helps in decreasing product development time and increasing efficiency allowing trial and error before initiating production [16], [17] Jobs are seldom substituted – Atkinson estimated that only one job had been entirely substituted in recent history, which is elevator operator [18]– rather, they are modified with effects on tasks complementarity and skills polarization Finally, the research showed that women are more likely to be affected than men when applying automation and digitalization in production activities

While numerous studies explore smart automation and its organizational impact, its influence on 100% foreign-invested enterprises in developing countries remains unclear Specifically in Vietnam, where Industry 4.0 is rapidly expanding within the FDI sector, there is a dearth of research quantifying this technological revolution's impact on modern manufacturing industries.

This research explores the impact of smart automation on employee performance at Samsung Display Vietnam, a leading OLED manufacturer It examines how automation is transforming the human-machine relationship and its subsequent effects on employee performance By analyzing the advantages and disadvantages of this technological shift, the study proposes solutions to enhance employee capabilities and optimize performance within the company.

Research scope

Samsung has become Vietnam's largest investor, pouring nearly USD 20 billion into the country over the past 15 years Samsung Industrial Complex houses four major factories, including Samsung Display Vietnam (SDV), the world's largest OLED screen manufacturer.

In 2018, the company heavily integrated automation and intelligence technology across its operations, including training, human resource management, and production This makes the company a prime example of how automation technologies impact FDI-related businesses.

The research has been conducted in Laser Technology Department at SDV The department consists of more than 600 employees and is responsible for laser cutting process that is one of most important processes in production line of the company Since the best high-end OLED displays in the world are produced here, most advanced technologies are required to meet the most demanding manufacturing standards with high machining precision and strict quality assurance standards Since 2019, the

The 6 department has undergone a significant technological transformation, embracing advanced technologies like artificial intelligence, big data, and robotics to transition from traditional manufacturing to a smart factory These technological advancements have impacted all aspects of department operations, including organizational structure, human resource management, production methods, and training, ultimately leading to improved employee performance This makes the Laser Technologies department an ideal case study for achieving meaningful and reliable results.

Research objective and questions

The research subject focuses on studying how the integration of smart automation technologies such as AI, IoT, etc affects the employee performance in the field of display manufacturing that is particularly occurred in Samsung Display Vietnam The research helps optimize automation strategies, enhance employee agreement, and create a conducive work environment for improved performance and efficiency Realistic smart factory transformation of the Laser department in SDV with applications of advanced smart automation technologies since 2019 has brought a leap in performance of the department Overall efficiency has increased from 65% to 90% and more than 90% working parameters are digitalized and monitored on cloud system Impacts of new technologies on employee performance, necessary skills and job satisfaction in new working environments are main subjects of our study Corresponding to the research subjects, we pose 2 survey questions as below:

 What is the impact of smart automation on employee performance in the context of large wave of investment on advanced technologies in technical departments in SDV?

 What do employees feel in the context of working environment shifting from conventional factory to small factory in which intelligent automation are applied?

Research methodology

This study applies online question method and interview method to collect data for the research model The sample includes about 600 employees of the Laser

This study focuses on the Technology Department at Samsung Display Vietnam, a department at the forefront of technological innovation within the company We chose this department due to its pioneering role in implementing cutting-edge technologies, driving significant changes in working structures and environments To assess the reliability of the data, we employed reliability analysis Statistical methods including descriptive statistics, paired t-tests, Pearson correlation analysis, and regression analysis were utilized to verify the proposed hypotheses and investigate the relationships between variables.

The thesis consists of 5 chapters In chapter 1, research context, scope and objectives have been introduced Section 2 presents theoretical background of the research including definition of employee performance, its measurement methods using in SDV and main factors affecting the employee performance In section 3, the author explains the quantitative statistical method used as the research methodology Research results are summarized in section 4 Finally, research conclusions and suggestions are mentioned in section 5

THEORETICAL BACKGROUND

Definition of Employee Performance (EP)

Human resources are the backbone of any successful company Employee performance directly impacts a company's success, making it crucial to continuously measure, evaluate, and plan for ways to optimize employee performance By maximizing employee potential, organizations can achieve their goals and thrive in today's competitive market.

Employee performance encompasses how well an employee completes their assigned tasks and conducts themselves at work It essentially measures the quality of their labor, focusing on the completion of their responsibilities and tasks, and ultimately, achieving organizational objectives while adhering to ethical standards and legal requirements.

Employee performance (EP) in industrial production is defined by observable behaviors, actions, and outcomes that can be objectively measured against specific job criteria This includes both quantitative and qualitative aspects, influenced by individual attributes, motivation, and the work environment This definition highlights the scientific approach to measuring performance, considering both results and the behaviors leading to them.

Measurement of Employee Performance

Employee performance is frequently examined using a variety of assessment instruments, questionnaires, and performance measures in scientific research and organizational psychology to give a more thorough knowledge of a person's contributions to an organization Effective labor management necessitates measuring employee performance It assists businesses in evaluating the contributions of their workforce, pinpointing areas in need of development, and making defensible choices about hiring, remuneration, and training There are several methods and tools available to measure employee performance Some of the most common ones are Key Performance Indicators (KPI), Self-Assessments, Managerial Assessments, 360- Degree Feedback, Performance Reviews, Goal Setting and Management, Productivity and Output Metrics, Quality and Accuracy Assessments, Behavioral Assessments, Customer Feedback and Time and Attendance In this research, two main measurement methods using in SDV, which are Key Performance Indicators (KPI) and 360-Degree Feedback, are explained

Key performance indicators (KPIs) are measurable metrics that assess an organization's overall performance Assigning KPIs to teams and individuals allows executives to monitor divisional progress towards organizational goals KPIs serve as objective benchmarks for evaluating employee performance, highlighting strengths and weaknesses while providing opportunities for improvement When employees consistently fail to meet their KPIs, leaders should implement targeted training and performance improvement plans.

The benefit of KPIs in a company‘s growth is summarized in the following points

Key Performance Indicators (KPIs) provide a clear and transparent method for companies to monitor employee performance, informing compensation, discipline, and performance evaluation KPIs promote accountability by providing detailed performance data and supporting analysis This data-driven approach allows for real-time insights into company performance, facilitating well-informed decisions and proactive adjustments based on objective information rather than assumptions.

KPIs empower employees by providing clear benchmarks for success, promoting motivation, and aligning individual efforts with organizational goals By tracking progress against KPIs, employees can identify areas for improvement and receive timely feedback Additionally, performance-based rewards tied to KPIs incentivize employees to strive for excellence and achieve both individual and team targets.

Key Performance Indicators (KPIs) fall into two categories: strategic and tactical Strategic KPIs, focused on goals like profit and market share, are crucial for business growth and success Conversely, tactical KPIs represent smaller, short-term goals that contribute to the overarching strategic objectives, providing clear indicators and specific tasks for immediate effectiveness measurement.

11 performed work In the view of organization's objectives, industry, and specific areas of focus, there are some common types of KPIs as following:

 Financial KPIs: o Revenue: Measures the total income generated by the organization o Profit Margin: Indicates the profitability by comparing net profit to revenue o Cost of Goods Sold (COGS): Measures the cost of producing goods or services o Return on Investment (ROI): Evaluates the return on investment from various projects or initiatives o Earnings Before Interest and Taxes (EBIT): Measures operating profit

Sales and marketing KPIs are essential for measuring success Sales growth tracks revenue increases, while customer acquisition cost measures how much it costs to attract new customers Customer lifetime value estimates the total revenue a customer generates, and lead conversion rate indicates the percentage of leads turning into customers Market share evaluates the company's standing within its industry.

Customer service KPIs are crucial for measuring and improving customer experience Key metrics include customer satisfaction, gauging overall happiness with products or services; Net Promoter Score, reflecting customer loyalty and advocacy; customer support response time, tracking how quickly queries are addressed; first call resolution, assessing the ability to resolve issues on the first interaction; and customer churn rate, indicating the rate at which customers stop using the business's offerings.

 Operational KPIs: o Inventory Turnover: Measures how quickly inventory is sold or used o On-Time Delivery: Evaluates the company's ability to deliver products or services on schedule o Manufacturing Cycle Time: Tracks the time it takes to produce a product o Employee Productivity: Measures the efficiency of the workforce o Equipment Downtime: Calculates the time equipment is not operational

Human Resources (HR) Key Performance Indicators (KPIs) provide valuable insights into workforce health Employee Turnover Rate tracks the percentage of employees leaving the organization, highlighting retention challenges Employee Satisfaction measures happiness and engagement, revealing employee morale Training and Development Costs track investments in employee skill development, reflecting commitment to workforce growth Time to Fill a Vacancy indicates efficiency in the hiring process, while Employee Absenteeism Rate reveals potential health and wellness concerns.

 IT and Technology KPIs: o Uptime Percentage: Measures the availability of IT systems and infrastructure o Response Time: Tracks the time it takes to respond to IT issues or user requests o Bug Fix Rate: Evaluates the speed and effectiveness of addressing software bugs o Website Traffic: Measures the number of visitors to a website o System Downtime: Calculates the time IT systems are not operational

Social media and online marketing success hinge on key performance indicators (KPIs) Social media engagement measures how users interact with your content Click-through rate assesses the effectiveness of your online ads by tracking the percentage of clicks they receive Conversion rate measures the percentage of website visitors who take a desired action, like making a purchase, ultimately indicating the success of your marketing efforts.

13 o Cost Per Click and Cost Per Acquisition: Measures advertising costs o Email Open and Click Rates: Evaluates the success of email marketing campaigns

Choosing the right KPIs is crucial for organizations to monitor performance, achieve strategic objectives, and gain actionable insights for informed decision-making.

KPI building process normally consists of 10 steps:

 Step 1: Master expertise in KPI indicators, understand the functions and tasks of departments, and understand the capabilities of each employee

 Step 2: Analyze and evaluate the strengths and weaknesses of the department and the entire company, thereby establishing basic KPI indicators that need improvement

 Step 3: Go into systemizing KPIs, come up with a list of tasks that need to be done to improve those KPIs

 Step 4: Create a work plan template for small groups and distribute work to groups

 Step 5: Make work plans for employees according to group goals

Regularly assess employee and team performance through weekly or monthly efficiency measurements Adjust performance targets based on individual capacity and motivate employees to reach higher KPIs Utilize current regulations to evaluate KPI exceedance.

 Step 7: Contact the achieved KPI index to proceed with compensation

 Step 8: Redefine key indicators that reflect the work performance of the team and department

 Step 9: Develop specific tests and assessments for each KPI

 Step 10: Measure - adjust - evaluate continuously over time, optimize each KPI over time

A popular KPI model is SMART [23], in which SMART is an acronym used to describe effective Key Performance Indicators (KPIs) SMART KPIs are Specific, Measurable, Achievable, Relevant, and Time-bound When KPIs meet these criteria, they are more likely to be clear, actionable, and successful in driving performance and achieving goals SMART framework means Specific, Measurable, Achievable, Relevant and Time-bound

Factors affect employee performance

In above sections, we have discussed about the definition of employee performance as well as typical methods that are popularly used to quantify the employee performance In this section, we will make an overview of factors that affect employee performance

Employee performance is influenced by a complex interplay of internal and external factors Internal factors include individual traits like age, temperament, physical state, fatigue, and motivation, while external factors encompass the work environment, work hours, rest periods, wages, organizational structure, social dynamics, and family life Understanding these factors is crucial for employers and managers to foster a positive work environment and support employees in reaching their full potential.

Diamantidis and Chatzoglou [19] conducted a recent study on employee performance factors, classifying them based on their relationship with the company/environment and jobs/employees Unlike other research that focuses on a limited number of factors, this study examined over three, providing a comprehensive understanding of the various influences on employee performance.

[28], the authors examine how the workplace and its surroundings, as well as job-

Employee performance is influenced by a wide range of factors, including organizational structure, adaptability, intrinsic motivation, and human resource management (HRM) The research highlights the crucial roles of HRM, work environment, and employee compensation & benefits in determining performance Ineffective HRM can negatively impact the work environment, organizational culture, and ultimately, employee performance.

The strategic approach to managing an organization's most valuable asset—its people—is known as human resource management, or HRM [7] It includes a broad range of initiatives used to draw in, nurture, inspire, and keep workers in order to accomplish company objectives quickly and effectively [10], [11] To fulfill an organization's mission, vision, and objectives, human resource management (HRM) entails arranging, directing, and overseeing its current workforce Recruiting, hiring, training, compensating, keeping, and inspiring staff members are some of its main duties

Human resource management (HRM) plays a critical role in developing employee skills, ultimately aiming to create a highly skilled workforce Through initiatives such as tuition reimbursement programs, on-the-job training, mentorship, and career development opportunities, HRM empowers employees to boost their confidence, competence, and overall capabilities.

HRM also helps to foster a productive workplace culture where company culture and job satisfaction are focused on and employee engagement programs foster an inclusive and collaborative workplace

Human Resources Management (HRM) plays a vital role in protecting employees HR professionals are responsible for managing legal documents, policies, and regulations to ensure employee safety, privacy, and well-being They also educate employees on company policies and enforce them to maintain a secure and ethical work environment.

Here are some key components and functions of HRM

Human Resource Management (HRM) plays a crucial role in identifying staffing needs, attracting qualified candidates through diverse channels, and making informed hiring decisions This process encompasses job analysis, crafting compelling job descriptions, sourcing potential employees, conducting interviews, and ultimately selecting the most suitable candidates.

Human Resource Management (HRM) plays a crucial role in employee development by identifying training needs and implementing programs that enhance skills, knowledge, and abilities This encompasses onboarding new hires, providing ongoing professional development opportunities, leadership training, and specialized workshops.

Performance Management: HRM designs and implements performance appraisal systems to evaluate employee performance against established goals and standards Feedback provided through performance reviews helps employees understand their strengths and areas for improvement and allows for the development of performance improvement plans

Human Resource Management (HRM) plays a vital role in attracting and retaining top talent by designing and administering competitive compensation and benefits packages These packages encompass salary structures, performance-based incentives, bonuses, health insurance, retirement plans, and other employee benefits.

Employee Relations: HRM oversees employee relations to ensure a positive work environment and address any conflicts or issues that may arise This involves handling grievances, mediating disputes, promoting diversity and inclusion, and fostering employee engagement

Labor Relations: In organizations with unions, HRM manages collective bargaining agreements, negotiates with labor unions, and ensures compliance with labor laws and regulations

Legal Compliance: HRM ensures that the organization complies with relevant employment laws and regulations, including those related to discrimination, harassment, labor relations, and workplace safety

Strategic HR planning aligns human resource practices with organizational goals, encompassing workforce planning, succession planning, talent management, and strategic initiatives to drive business growth and sustainability.

HR Information Systems (HRIS): HRM utilizes technology and HRIS to streamline administrative tasks, maintain employee records, track performance metrics, and facilitate data-driven decision-making

Employee Wellness and Work-Life Balance: By providing programs and activities to enhance physical, mental, and emotional health as well as work-life balance, HRM fosters employee well-being

Effective HRM practices are crucial for organizational success by aligning talent with roles, developing necessary skills, and fostering employee motivation Investing in employees enhances their satisfaction and performance, ultimately leading to a skilled, valued workforce that drives the achievement of organizational goals.

Smart automation is revolutionizing Human Resource Management (HRM), streamlining tasks, boosting efficiency, and improving the employee experience This technology significantly impacts HRM in numerous ways, making it a key factor in modern HR practices.

Company performance

Company performance measures how well a company achieves its goals and fulfills its responsibilities to stakeholders This encompasses financial health, strategic direction, and value creation for shareholders, employees, customers, and society Assessing performance involves analyzing quantitative and qualitative metrics like profitability, growth, market position, operational efficiency, risk management, innovation, and ethical standards.

25 regulatory standards By monitoring and evaluating performance metrics, stakeholders can make informed decisions about investing in, working for, or doing business with the company

A company's performance can be greatly impacted by a number of factors [30],

Company performance is influenced by numerous variables, both internal and external, that can fluctuate based on market conditions, industry trends, and specific business factors Some of the most critical variables that often impact company performance include

Leadership and Management: Organizational culture, operational effectiveness, and strategic direction can all be influenced by good leadership and management techniques

Financial Health: A company's capacity to invest, expand, and withstand economic downturns is directly impacted by its financial health, which is measured by a number of important factors, including debt levels, cash flow, profitability, and access to capital

Market Conditions: Economic trends, consumer behavior, industry dynamics, and competitive pressures can all influence demand for a company's products or services and its ability to maintain or expand market share

Innovation and Technology: Companies that innovate and adapt to technological advancements often gain a competitive edge by offering better products, services, or operational processes

Human Capital: Skilled and motivated employees contribute to productivity, innovation, customer satisfaction, and overall company performance

Operational Efficiency: Streamlined processes, effective supply chain management, and optimized resource allocation can improve efficiency, reduce costs, and enhance profitability

Strategic Planning and Execution: Clear strategic goals, effective execution, and agility in responding to market changes are crucial for sustained growth and competitive advantage

Adhering to regulations is crucial for businesses to avoid legal issues, reputational damage, and financial penalties Compliance with laws, rules, and industry standards helps ensure smooth operations and protects a company's ability to perform.

Client Contentment and Brand Image: Attracting and retaining customers and promoting revenue growth require fostering strong customer relationships, providing top-notch goods and services, and upholding a favorable brand reputation

Businesses that prioritize environmental and social responsibility attract investors, enhance their brand image, and mitigate ESG risks.

Political and Geopolitical Aspects: Modifications to trade laws, government policies, geopolitical unrest, and world events can all have a big impact on companies that operate in various industries or locations

Supply Chain Disruptions: Production, distribution, and ultimately the performance of the organization can all be impacted by supply chain disruptions brought on by natural disasters, geopolitical events, or other causes

Companies must comprehend these elements and manage them well in order to overcome obstacles, seize opportunities, and maintain long-term success

Smart automation, the integration of AI and automation, can significantly boost business productivity by streamlining processes, reducing errors, and freeing up employees for more strategic tasks.

Automation technologies enhance operational efficiency by streamlining repetitive tasks, reducing errors, and optimizing processes This leads to improved productivity, lower costs, faster production cycles, and better resource utilization, ultimately boosting overall business performance.

AI-powered automation boosts productivity by handling routine tasks, allowing workers to focus on higher-value activities that demand creativity, critical thinking, and problem-solving This leads to increased efficiency, output, and overall productivity gains.

Quality and Consistency: By reducing variability and errors in manufacturing processes, automation technologies can enhance the quality and consistency of goods or services Artificial intelligence (AI) algorithms are able to continuously evaluate data in order to spot trends, abnormalities, and areas that may be improved This can result in higher-quality products and happier customers

Innovation: AI-powered tools can accelerate the innovation process and help companies stay ahead of competitors in rapidly evolving markets

AI-driven automation enhances customer experience by personalizing interactions, providing tailored recommendations, and offering real-time assistance By implementing automated intelligence in customer service, marketing, and sales, businesses can strengthen customer relationships, boosting loyalty and retention rates.

Automation technologies empower businesses to proactively manage risks by analyzing real-time data to identify and mitigate potential problems before they escalate This proactive approach helps businesses reduce disruptions, safeguard assets, and enhance resilience.

Smart automation empowers businesses to scale efficiently by automating repetitive tasks, enabling them to adapt quickly to changing market demands and seize opportunities This agility allows for profitable growth without the burden of manual labor.

AI-powered analytics, fueled by insights into market trends, customer behavior, and competitive landscapes, empowers strategic decision-making Organizations leverage automated intelligence to analyze complex data, predict outcomes, and make better-informed choices, ultimately enhancing their competitive advantage and driving performance.

Smart automation, when effectively integrated into business operations, can significantly boost efficiency, productivity, innovation, customer satisfaction, and strategic decision-making, ultimately leading to enhanced organizational performance and long-term success.

Smart automation in industrial manufacturing

Applications of advanced technologies in the 4 th Industrial Revolution has rapidly transformed automation in industrial manufacturing from the simple ruled-based system that operates on pre-defined rules and programmed sequences such as the classic Robotic Process Automation (RPA) to smart platform such as Robotics 2.0 [2],

Smart automation, utilizing technologies like AI and IoT, revolutionizes industrial manufacturing by enabling self-regulating and higher-order task automating systems Unlike classic automation systems, which are limited to fixed processes and lack communication capabilities, smart automation offers efficient, faster, and reliable processes capable of handling complex tasks that require decision-making, learning, and problem-solving.

AI is transforming quality control in vision systems, enabling real-time defect detection and improving production rates and consistency Machine learning and autonomous decision-making empower AI to identify various product defects with increasing accuracy, thanks to the vast data collected during mass production This technology not only enhances efficiency but also allows employees to focus on more complex tasks.

Industrial IoT networks connect devices and sensors, providing real-time data for smart factories This data enables machines and systems to communicate, optimizing production processes, managing energy consumption, and reducing waste Key equipment data, like motor torque, temperature, and strain, is readily available for analysis and proactive maintenance.

…are monitored by system Real-time analysis of these data support warning of manufacturing defects, allow real-time adaptation of equipment control and predict equipment failures

Smart automation offers many advantages to employee performance Since repetitive tasks such as data entry, scheduling, and basic customer service inquiries can

AI automates routine tasks, freeing employees for complex and creative work AI-powered learning platforms support continuous skill development and industry updates Instant access to information through AI fosters self-learning IoT automation streamlines workflows, while big data analytics from IoT devices provide actionable insights for improved decision-making.

RESEARCH METHODOLOGY

Research hypotheses

Base on the general theory of fundamental operations of a company described in chapter 2, the author has proposed 6 hypotheses to determine impact of smart automation as below:

 H1: Smart automation has positive impact on HR management of the Technology Department in Samsung Display Vietnam

 H2: Smart automation has positive impact on job security of the Technology Department in Samsung Display Vietnam

 H3: Smart automation has positive impact on company performance of the Technology Department in Samsung Display Vietnam

 H4: Smart automation has positive impact on labor management effectiveness of the Technology Department in Samsung Display Vietnam

 H5: Smart automation has positive impact on job benefits of the Technology Department in Samsung Display Vietnam

 H6: Smart automation has positive impact on employee performance of the Technology Department in Samsung Display Vietnam

Sample and survey administration

The research methodology in our study uses quantitative statistical methods and consists of 3 steps: i Hypothesis proposing; ii Data collection and sampling; iii Data analysis Quantitative statistical methods are mathematical techniques used to analyze numerical data in order to make inferences, identify patterns, and draw conclusions These methods are popular in statistical science Commonly used quantitative statistical methods consist of descriptive statistics, hypothesis testing, regression analysis, analysis of variance (ANOVA), correlation analysis, time series analysis and multivariate analysis

In descriptive statistics, the primary characteristics of a dataset are summed up and described using descriptive statistics This comprises skewness, kurtosis, variance, standard deviation, mean, median, mode, and skewness Using a sample of data, inferential statistics involves drawing conclusions and forecasts about the population This covers methods like regression analysis, confidence intervals, and hypothesis testing

Hypothesis testing helps draw conclusions about a population based on sample data By collecting and analyzing sample data, we can determine if there's enough evidence to reject the null hypothesis Regression analysis helps analyze relationships between variables, contributing to the overall understanding of the data.

ANOVA, short for analysis of variance, is a statistical technique used to compare average values of different groups and determine if statistically significant differences exist between them It helps assess the influence of categorical variables on a continuous outcome variable.

To determine the direction and degree of a relationship different variables, correlation test is utilized The most common measure of correlation is the Pearson correlation coefficient

Temporal trend analysis is a powerful tool for analyzing real-time data like stock indices, prices, and sales figures It utilizes techniques like moving averages, trend analysis, and forecasting to identify patterns and predict future trends.

Multivariate Analysis: Multivariate analysis involves the simultaneous analysis of multiple variables to understand the relationships among them

Quantitative statistical methods excel at testing hypotheses involving multiple constructs, proving particularly valuable when examining existing theories Their rigorous approach, employing scientific data collection and analysis, allows for generalizable findings that can be applied to broader populations.

This study applies online survey method and interview method to collect data for the research model The sample includes 613 employees of the laser technology department Minimum sample size must follow the subject-to-variable (STV) ratio rule given by Hair et al [34] in which the STV ratio must be greater than 5 In our case with 3 main subject questions and around 20 indicators, the minimum size is 100 Our sample size consisting of 613 employees is therefore suitable for reliable survey results

Likert scales, named after psychologist Rensis Likert, are a common tool in survey research, designed to measure attitudes, opinions, and behaviors These scales typically present a sequence of statements or objects, asking respondents to indicate their level of agreement or disagreement on an ordinal scale ranging from "strongly disagree" to "strongly agree."

Likert scales are built on statements or questions that assess specific constructs or topics For instance, "I enjoy reading books" or "The customer service was satisfactory" are examples of statements used in a Likert scale.

When responding to statements, participants are typically presented with a range of options reflecting varying degrees of agreement or disagreement These commonly include "Strongly Disagree," "Disagree," "Neither Agree nor Disagree (Neutral)," and their corresponding positive counterparts.

Each response option is assigned a numerical score, typically on a scale of 1 to 5 or 1 to 7, with higher values representing stronger agreement or endorsement This numerical data allows for the calculation of summary statistics, like means or totals, facilitating data analysis.

Summative or composite scores, calculated by combining numerical values from survey responses, offer a concise overview of respondents' perspectives on the topic being evaluated This method provides researchers with a single score that represents the overall sentiment or attitude towards the subject.

 Reliability and Validity: Likert scales should demonstrate reliability (consistency of measurement) and validity (accuracy of measurement) Reliability can be assessed using techniques such as Cronbach's alpha, which measures internal consistency among scale items Validity can be assessed through various methods, including content validity, construct validity, and criterion validity

Researchers must be mindful of response tendencies like acquiescence bias (agreeing with statements regardless of content) and social desirability bias (responding in a socially acceptable way) To mitigate these biases, use balanced wording in survey items and ensure respondent anonymity.

Likert scales are widely used in research across various fields due to their adaptability and versatility However, like any survey, the accuracy of Likert-scale measurements can be influenced by the phrasing of questions, potentially leading to underreporting of unethical behaviors.

In particular, in this research, the author performs selection and grouping of the individual measures into the six composite measures as below:

 Smart automation (Table 3.1): This is a composite measure comprising the 4 items measuring the level of smart automation that has been applied to SDV recently

Data analysis method

This section details the methodology used to analyze the gathered data, illustrated in Figure 3.2 The initial step focuses on establishing data reliability to ensure trustworthiness, a critical aspect of building data trust within the company and ensuring research quality.

This research utilizes a multi-step approach to analyze findings, beginning with data quality assessment Descriptive statistics (mean, min, max, standard deviation) are then calculated Pairwise t-tests compare automation's impact on six composite measures using Likert Scale scores Pearson correlation analysis examines relationships between seven groups, followed by linear regression for association analysis.

Quantitative research often involves complex factors that require multi-item scales for accurate measurement Instead of directly measuring these unobservable factors, researchers create observable sub-variables to represent their properties This approach, known as "scale reliability," utilizes a set of observable variables to accurately measure and understand the characteristics of the larger, unobservable factor.

Cronbach's Alpha is a statistical tool used to evaluate the internal consistency of a questionnaire or scale It determines if a set of items consistently measure the same underlying concept, helping researchers identify suitable variables for inclusion in their scales.

A substantial positive correlation between the observed variables in a scale is required for internal consistency An index that gauges this internal consistency is called Cronbach's Alpha Higher values of Cronbach's alpha, which range from 0 to 1, denote better internal consistency Level 0 indicates that the observed variables in the group have virtually little association, while level 1 indicates that the observed variables are fully connected with one another In some cases, a negative Cronbach's Alpha coefficient appears beyond the limit range [0,1], at this time the scale is completely unreliable, not unidirectional, the observed variables in the scale are opposite, opposite directions According to [35], a reliable Cronbach's Alpha scale should have a reliability score of 0.7 or above Hair and colleagues (2009) [36] also think that a scale should have a Cronbach's Alpha threshold greater than 0.7 in order to guarantee one-dimensionality and dependability The scale is more dependable the higher the Cronbach's Alpha coefficient

The Corrected Item-Total Correlation, a crucial indicator of scale quality, reflects the relationship between each observed variable and the rest of the scale A higher value suggests a stronger positive connection, indicating a better variable According to Cristobal et al (2007), a Corrected Item-Total Correlation of 0.3 or above is considered a good indicator Conversely, variables with a correlation below 0.3 may warrant removal, as they potentially detract from scale reliability.

Here's how the Cronbach's alpha reliability test works:

Start by choosing a group of items or questions that all aim to measure the same underlying concept or characteristic These items should be related in meaning and designed to assess a single, unified idea.

 Administer Questionnaire: Administer the questionnaire or scale to a sample of participants Each participant responds to all items in the set

 Calculate Covariance: Calculate the covariance between each pair of items Covariance measures how much two variables change together

 Calculate Variance: Calculate the variance of the total scores for all items Variance measures the spread or dispersion of scores around the mean

 Compute Cronbach's Alpha: Use the following formula to compute Cronbach's alpha:

( ∑variance of individual items variance of total scores )

N is the number of items

Variance of individual items is the variance of each item's scores

Variance of total scores is the variance of the total scores across all items

 Interpret Results: Cronbach's alpha values range from 0 to 1 A higher alpha value indicates greater internal consistency among the items Typically, an alpha value of 0.7 or higher is considered acceptable, although the threshold may vary depending on the context and purpose of the scale

 Considerations: It's important to note that Cronbach's alpha assumes that all items are measuring the same underlying construct If the items are not conceptually related or are measuring different constructs, Cronbach's alpha may not be appropriate

Descriptive statistics is a technique that summarizes and presents data using numerical values or visual charts It aims to describe the key features of a dataset, offering insights into its central tendency, dispersion, and distribution This process allows for a more comprehensive understanding of the data collected.

Data analysis involves presenting and summarizing data clearly This includes using statistical methods to understand data properties, trends, and distributions Descriptive statistics, like measures of central tendency (mean, median, mode) and variability (range, variance, standard deviation), summarize key dataset characteristics Data visualization techniques, such as charts, graphs, and plots (pie charts, scatter plots, box plots, histograms), help visualize data patterns and correlations, laying the foundation for further statistical inference and decision-making.

Summary measures provide concise summaries of data distribution and characteristics These measures include percentiles, quartiles, and interquartile range (IQR), which help identify central tendencies and variability in the data

Frequency distributions are charts that show how often different values appear in a dataset They help you see how data is spread out and find common patterns or unusual values.

Measures of association, such as correlation coefficients, are used to quantify the strength and direction of relationships between variables They help assess the degree of association between two or more variables

Data transformation techniques like normalization and standardization modify data scales and distributions to suit analysis needs, enhancing statistical analysis Data summarization condenses large datasets into manageable summaries, highlighting key features and trends while simplifying complexity Unlike descriptive statistics that summarize observed data, inferential statistics utilize probability theory to draw inferences and predictions about populations based on sample data, enabling parameter estimation, hypothesis testing, and prediction.

Statistics play a crucial role in understanding and analyzing data, enabling informed decision-making across various fields This study utilizes key statistical measurements including central tendency (mean, median, mode), dispersion (range, standard deviation, variance, minimum, maximum), and skewness (kurtosis and skewness) These measures provide a foundation for deeper statistical analyses, allowing researchers to draw meaningful inferences from empirical data.

RESULTS AND DISCUSSION

Introduction of Samsung Display Vietnam

Samsung Display Vietnam (SDV), a subsidiary of Samsung Display Co., Ltd., is a leading manufacturer of display panels based in Bac Ninh, Vietnam SDV plays a key role in Samsung's display business, producing panels for various electronic devices, utilizing Vietnam's strong business environment, skilled workforce, and infrastructure to deliver high-quality products globally.

Samsung Display Vietnam Co., Ltd (SDV) project was first licensed on July 1,

Samsung Display Co., Ltd., a Korean investor, established a manufacturing facility in Vietnam in 2014 with an initial investment of $1 billion The project, which specializes in screen production for electronic devices, has seen two subsequent expansions, increasing the total investment to $6.5 billion With this substantial investment, Samsung Display Vietnam is the largest investment project of the Samsung Group in Vietnam, making Samsung the largest foreign investor in both Bac Ninh province and the entire country.

Manufacturing Capabilities: Using state-of-the-art technologies, Samsung

Display Vietnam specializes in producing sophisticated display panels Modern manufacturing techniques and technology are used at the plant to guarantee accuracy, productivity, and quality control all the way through the production cycle The company produces a wide variety of display panels for use in smartphones, tablets, televisions, monitors, and automobile displays These panels include OLED (Organic Light-Emitting Diode), LCD (Liquid Crystal Display), and QLED (Quantum Dot Light-Emitting Diode) panels

Commitment to Innovation: As a leader in the display industry, Samsung Display

Vietnam is committed to innovation and continuous improvement The company

Samsung Display Vietnam is dedicated to innovation, investing heavily in research and development to create new technologies, improve product performance, and cater to changing consumer demands and industry trends This commitment to leading-edge display technology fuels innovation and shapes the future of visual experiences.

Samsung Display Vietnam prioritizes environmental sustainability and corporate social responsibility The company actively implements eco-friendly practices and initiatives, such as energy-efficient manufacturing, waste reduction, and robust recycling programs, to minimize its environmental footprint and promote sustainable manufacturing processes These efforts ensure compliance with environmental regulations and standards.

Samsung Display Vietnam significantly impacts the local economy by generating jobs, supporting local suppliers and businesses, and contributing to economic growth Through collaborations with local stakeholders, the company aims to create shared value and positively impact the communities it operates in.

Samsung Display Vietnam is a crucial player in the global display market, driving innovation and growth through its commitment to superior manufacturing, environmental responsibility, and sustainability The company's dedication to excellence extends beyond its premium display panels, contributing to both the local economy and community while solidifying Samsung's leadership in the worldwide display sector.

Introduction of Laser technology department in SDV

Laser technology department is established in 2018 and responsible for laser material processing in manufacturing of OLED panels This is one of 5 direct production groups in the company

The department has function of shaping materials by using thermal and adiabatic effects based on laser processing High-energy and ultra-fast laser beam is used to

49 realize material cutting process so that OLED panels can be shaped with ultra-high- precision at mm-scale without any damage caused by heating process

The department has main duties as following:

 Perform mass production of OLED displays with high performance, high quality and low cost

 Transfer technologies from development process (in laboratory) to mass- production process of new products

 Research and develop core technologies in the field of laser cutting for OLED displays

4.2.2 Size and human resource structure

The department employs 613 individuals, with a predominantly male workforce (90%) The department's hierarchy is structured with a Director at the helm, followed by Managers, Assistant Managers, Engineers, Shift Leaders, Line Leaders, Technicians, and Operators The HR structure is categorized into two distinct groups.

Direct production is handled by two groups The first group, including shift leaders, line leaders, technicians, and operators, focuses on operating and maintaining equipment The second group, consisting of managers and engineers, tackles more complex tasks like equipment performance analysis and innovation.

The second indirect production (support) group is mainly responsible for supporting task such as purchasing, spare management, finance …

Regarding academic levels, 23% of employees have bachelor‘s degree while 1% have a MSc/PhD degree More details of the human resource structure (ages, experience) are expressed in Table 4.1

Table 4.1Human resource structure Criteria Frequency (people) Ratio (%) Gender

4.2.3 Smart automation in the department

As a technology department, the department has been equipped the most recent technologies including ultra high-speed femto-second laser and ultra-precision robots to achieve capability of manufacturing high-end productions

Along with increasingly fierce competition in the field of semiconductor manufacturing in general and OLED panel production in particular, as well as high- level technical requirements of customers, the development of core technology and application of 4.0 technology is the top key strategy, and has been heavily invested in in recent years Particularly, artificial intelligence (AI), Internet of things (IoT), Big Data … have been recently strongly developed in the department to realize smart factory strategy of the company Most of activities of the department have been changed due to impact of the modern smart automation technologies

Laser processing in manufacturing has undergone a significant transformation, embracing full automation through robots and AI-powered control This smart automation, as depicted in Fig 4.3, has witnessed a surge in adoption, with 98% of the manufacturing process now automated AI-powered vision systems enable real-time defect monitoring and enhanced decision-making, while IoT usage has soared from 40% to 80% These technological advancements have resulted in a remarkable improvement in equipment performance, rising from 60% in 2018 to 90% in 2023, with an error rate of just 0.0001%.

Figure 4.3 Smart automation in Laser department in 2019&2023

Big data analytics in HR allows for comprehensive analysis of employee activities, from relationships and motivation to performance and compliance This data drives improvements in training and development programs, aligning them with individual employee needs and company goals Advanced training in AI, big data, and automation ensures employees are equipped for the demands of Industry 4.0 Furthermore, training programs are developed to enhance general skills, or soft skills, for all employee levels.

Cronbach‘s alpha reliability analysis

To ensure data quality, we conducted a survey of 613 employees, utilizing 52 Likert-scale questions across seven categories We employed Cronbach’s alpha reliability test in SPSS 2.0 to assess the internal consistency and inter-correlation of the collected data before proceeding with further analysis.

4.3.1 Reliability test of Smart automation level in SDV (A1 scale)

The reliability of the smart automation survey group, comprised of four variables (A1-1, A1-2, A1-3, A1-4), was validated through a Cronbach's alpha test, achieving a score of 0.847, exceeding the acceptable threshold of 0.5 The Corrected Item-Total Correlation, indicating the strength of association between each variable and the overall scale, also supports the reliability A good scale generally exhibits a Corrected Item-Total Correlation of 0.3 or higher, according to Cristobal et al (2007), and the observed variables in this survey met this criterion.

Variables with a Corrected Item-Total Correlation coefficient below 0.3 are typically considered for removal A higher Corrected Item-Total Correlation coefficient indicates a stronger relationship between the observed variable and the overall construct, signifying better quality The four variables (A1.1 to A1.4) in Table 4.3 all exhibit Corrected Item-Total Correlation coefficients exceeding 0.3 (0.772, 0.769, 0.654, and 0.732), confirming their suitability as reliable observations.

Table 4.2 Statistics reliability of Smart automation – A1 scale

Table 4.3 Item-Total Statistics reliability of the Smart automation variables

4.3.2 Reliability test of HR management (A2 scale)

The HR management survey group consists of 10 variables A2-1~A2-10 as shown in Table 3.2 We can see in table 4.4 and 4.5 that value of Cronbach‘s alpha is 0.771 greater than 0.5 and corrected items of corresponding variables are greater than 0.3 This means that collected data for this measurement is reliable

Table 4.4 Statistics reliability of HR management – A2 scale

Table 4.5 Item-Total Statistics reliability of HR management

Scale Mean Scale Variance Corrected

4.3.3 Reliability test of Job security (A3 scale)

The Job Security measurement, encompassing seven variables (A3-1 to A3-7), demonstrates strong reliability Table 4.6 and 4.7 reveal a Cronbach's alpha value of 0.876, exceeding the acceptable threshold of 0.5, and corrected item scores greater than 0.3, indicating consistent and reliable data collection for this measurement.

Table 4.6 Statistics reliability of Job security – A3 scale

Table 4.7 Item-Total Statistics reliability of Job security variables

Scale Mean Scale Variance Corrected

4.3.4 Reliability test of Company performance (A4 scale)

The Company performance measurement is comprised of seven variables, A3-1 through A3-7, as detailed in Table 3.3 A reliability analysis using Cronbach's alpha yielded a value of 0.924, exceeding the threshold of 0.5 Furthermore, the corrected item-total correlations for all variables were above 0.3, indicating strong internal consistency and reliable data collection for this measurement.

Table 4.8 Statistics reliability of Company performance – A4 scale

Table 4.9 Item-Total Statistics reliability of Company performance

Scale Mean Scale Variance Corrected

4.3.5 Reliability test of Labor management effectiveness (A5 scale)

The Labor Management Effectiveness measurement, comprised of four variables (A5-1 to A5-4), demonstrates reliability Table 4.10 and 4.11 show a Cronbach's alpha value of 0.667, exceeding the 0.5 threshold, and corrected item values above 0.3, indicating the collected data's reliability.

Table 4.10 Statistics reliability of Labor management effectiveness – A5 scale

Table 4.11 Item-Total Statistics reliability of Labor management effectiveness

Scale Mean Scale Variance Corrected

4.3.6 Reliability test of Employee benefit (A6 scale)

The Employee Benefit Measurement, comprised of variables A6-1 and A6-2, demonstrates reliability based on its Cronbach's alpha value of 0.619, exceeding the threshold of 0.5 Furthermore, the corrected item values for these variables surpass 0.3, indicating a strong internal consistency within the collected data.

Table 4.12 Statistics reliability of Employee benefit – A6 scale

Table 4.13 Item-Total Statistics reliability of Employee benefit

Scale Mean Scale Variance Corrected

4.3.7 Reliability test of Employee performance (A7 scale)

Employee performance is measured using 16 variables (A7-1 to A7-16), as detailed in Table 3.7 The reliability of the collected data is supported by Cronbach's alpha values exceeding 0.5 (0.974) and corrected item-total correlations surpassing 0.3, as shown in Tables 4.14 and 4.15.

Table 4.14 Statistics reliability of Employee performance – A7 scale

Table 4.15 Item-Total Statistics reliability of Employee performance

Scale Mean Scale Variance Corrected

Descriptive statistics summarization

Descriptive statistics of collected data is summarized in the table 4.16 We can see that, except the measurement group A3 (Job security), the remaining groups A1 (Smart

58 automation), A2 (HR management), A4 (Company performance), A5 (Labor management effectiveness), A6 (Employee benefits) and A7 (Employee performance) has mean greater than 4 and standard deviation less than 1 It means that most of employees agree with the following opinions:

 The company has attached great importance to smart automation, and has focused on developing rapidly the new technologies recently

 Smart automation has positive impact on HR management

 Smart automation has positive impact on Company performance

 Smart automation has positive impact on Labor management effectiveness

 Smart automation has positive impact on Employee benefits

 Smart automation has positive impact on Employee performance

The measurement group focusing on job security (A3) exhibited a mean score of approximately 3, with a standard deviation near 1, indicating a balanced distribution of opinions Neutral perspectives were dominant, with employee opinions varying based on education level, age, and job title.

The corresponding statistical frequency of survey answer is summarized in Fig 4.4

N Minimum Maximum Mean Std Deviation

Figure 4.4 Statistical frequency of measurement group A1~A7

Paired-wise t-test analysis

This section analyzes the differences in mean scores across seven organizational performance dimensions using a paired-sample t-test, revealing significant differences between most dimensions (p < 0.05), except for HR management and labor management effectiveness (p = 0.109) Additionally, paired sample correlations show significant correlations (p < 0.05) between all seven dimensions, indicating relationships between these performance areas.

Table 4.17 Pair-wise-t-test of the 7 measurement groups. t- values A1

Table 4.18 Paired sample correlations of the 6 measurement groups

Pair 10 A3 & A4 613 0.461 0 Pair 11 A3 & A5 613 0.549 0 Pair 12 A3 & A6 613 0.565 0 Pair 13 A4 & A5 613 0.566 0 Pair 14 A4 & A6 613 0.547 0 Pair 15 A5 & A6 613 0.867 0 Pair 16 A1 & A7 613 0.403 0 Pair 17 A2 & A7 613 0.498 0 Pair 18 A3 & A7 613 0.566 0 Pair 19 A4 & A7 613 0.788 0 Pair 20 A5 & A7 613 0.572 0 Pair 21 A6 & A7 613 0.512 0

Pearson correlation analysis

A strong positive correlation exists between labor management effectiveness and employee benefits, with a correlation coefficient of 0.867 Additionally, smart automation level in a company significantly correlates with both company performance (0.558) and HR management (0.552), supporting the hypothesis of a positive link between automation and organizational outcomes.

 Improved labor management effectiveness is also significantly associated with improved employee benefits

 Improved smart automation is associated with improved company performance and improved HR management

On the contrary, it is interesting to see that relation between AI and jobs security has lowest correlation (0.181), meaning that impact of AI on job security is low

Table 4.19 Matrix of Pearson correlation between the 7 measurement groups

** Correlation is significant at the 0.01 level (2-tailed).

Linear regression analysis

As explained in the section 3.3, we analyze the relationship between the dependent variable A1 (degree of smart automation applied in the company) with the remaining 5

63 independent variables which are HR management (A2), job security (A3), company performance (A4), Labor management effectiveness(A5) and employee benefits (A6) respectively by using multiple linear regression model:

 a 2 ~ a 7 are the regression parameters (slopes)

 is the error term (the difference between the observed A1 and the predicted A1)

Model summary is shown in table 4.20 R Square= 0.46, and Adjusts R Square 0.455 This means independent variables included in regression analysis affect 46% of dependent variability 64% were due to out-of-model variables and random error The results on the table also showed that Durbin- Watson (DW) values of 1.313 The Durbin-Watson statistic ranges in value from 0 to 4 A value near 2 indicates non- autocorrelation; a value toward 0 indicates positive autocorrelation; a value toward 4 indicates negative autocorrelation The calculated DW values of 1.313 means that positive correlation between variables is observed

Std Error of the Estimate

An ANOVA analysis, presented in Table 4.21, was conducted to determine if a linear relationship exists between the dependent variable A1 and the independent variables A2 through A7 The results revealed a significant p-value of less than 0.05, leading to the rejection of the null hypothesis This indicates a linear relationship between the variables, confirming the suitability of the regression model.

Table 4.22 reveals that the variables A5, A6, and A7 have no significant impact on A1 (smart automation) due to their s-values exceeding 0.05 Conversely, variables A2 to A4, with s-values below 0.05, demonstrate a statistically significant relationship with A1 Positive beta values for these variables indicate a positive influence on A1, while negative values suggest a negative influence.

 Improvement of smart automation leads to positive impact on improvement of HR management (A2, beta=0.466), company performance (A4, beta=0.436)

 Improvement of smart automation leads to reverse impact on improvement of Job security (A3, beta=-0.282)

Squares df Mean Square F Sig

Total 162.710 612 a Dependent Variable: A1 b Predictors: (Constant), A7, A2, A6, A3, A4, A5

Minimum Maximum Mean Std Deviation N

Figure 4.5 Histogram of standard residual

Figure 4.6 Normal P-Plot of Regression standardized residuals.

Hypotheses conclusions

In the research model, the author has performed 52 Likert surveyed questions on

613 employees of Laser technology department in SDV to verify the 6 hypotheses as follow:

 H1: Smart automation has positive impact on HR management

 H2: Smart automation has positive impact on Job security

 H3: Smart automation has positive impact on Company performance

 H4: Smart automation has positive impact on Labor management effectiveness

 H5: Smart automation has positive impact on Employee benefits

 H6: Smart automation has positive impact on Employee performance

Smart automation demonstrates a positive impact on HR management and company performance but negatively affects job security, as confirmed by Cronbach's alpha analysis and regression model findings While smart automation shows significant improvements in labor management effectiveness and employee benefits, these improvements are indirectly linked to the technology, as indicated by s-coefficients exceeding 0.05.

No Hypothesis Sig coefficient Beta Conclusion

1 H1: Smart automation has positive impact on

2 H2: Smart automation has positive impact on

3 H3: Smart automation has positive impact on

4 H4: Smart automation has positive impact on

5 H5: Smart automation has positive impact on

6 H5: Smart automation has positive impact on

CONCLUSION

General conclusions

Industry 4.0's rapid advancements, particularly in smart automation, are transforming industrial production This research focuses on Samsung Display Vietnam, the world's largest OLED display producer and a major FDI in Vietnam with a $6.5 billion investment, ensuring the study's universality and representativeness.

This research examines the impact of smart automation on key operational areas within an industrial company, including HR management, job security, company performance, labor management effectiveness, employee benefits, and employee performance The study found that smart automation directly improves HR management, company performance, and labor management effectiveness Indirectly, these improvements lead to enhanced employee performance and benefits.

Suggestions

While smart automation offers significant benefits across various company operations, the implementation of Industry 4.0 technologies, including high automation, multimedia connectivity, and artificial intelligence, presents challenges in labor management Research highlights employee concerns about job security due to the potential for intelligent technologies to replace their roles This is particularly relevant within SDV's current labor structure, where over 15% of employees perform simple tasks like cleaning, quality monitoring, and security monitoring, making them vulnerable to automation.

Even highly skilled roles like data synthesis, analysis, and report writing are now at risk of automation by AI technologies powered by big data and IoT systems This trend is evident in SDV, where previously human-performed tasks have been successfully transitioned to AI machines.

 Data synthesis: detailed data of each stage of the production chain (equipment operation, product quality ) is collected, analyzed and reported automatically

AI and IoT technology enable real-time monitoring and control of production processes This allows for immediate detection and analysis of product defects, leading to flexible equipment control based on AI insights.

Advanced smart automation significantly impacts labor structures, requiring a shift in workforce strategies To harness the benefits of technology while mitigating job security concerns, organizations should proactively adapt their labor structures.

The rise of automation necessitates a workforce with advanced digital skills like programming, data analysis, and cybersecurity Upskilling and reskilling programs are crucial for ensuring workers have the necessary skills to thrive in the digital economy Continuous learning will be essential for job advancement and employability, making individualized training plans critical for each employee.

Human-Machine Collaboration: Automation technologies will enhance human talents and promote human-machine collaboration, rather than displace humans Human-machine teams will become more prevalent in labor structures; in these teams, humans will concentrate on jobs involving creativity, critical thinking, and emotional intelligence, while robots will undertake monotonous or data-driven tasks By working together, businesses will be able to leverage the capabilities of both people and technology to produce greater results

While digital skills are essential, soft skills like problem-solving, communication, teamwork, and flexibility are becoming increasingly crucial These cognitive and interpersonal skills are vital for effective collaboration, creativity, and customer interaction in an increasingly digital and interconnected world, leading to a greater emphasis on their development in the workforce.

Ethical and Social Considerations: Labor structures will need to handle ethical and social issues, such as job displacement, income inequality, and data privacy, as automation and AI become more commonplace To guarantee that labor structures are inclusive, fair, and equal and that the advantages of technological improvements are distributed across society, businesses and legislators will need to work together

Flexible work arrangements are on the rise, driven by advancements in technology Digital platforms and connectivity facilitate international freelancing, remote work, and on-demand opportunities, leading to a more fluid and decentralized labor landscape with increased non-traditional employment.

Limitation

This research focused on the technology department of SDV, where advanced technologies are heavily utilized However, the impact of smart automation on other departments like manufacturing and support might differ To gain a more comprehensive understanding, further studies comparing the impact across all departments are recommended, ensuring the results are more generalizable and representative.

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This survey aims to gather insights for an MBA thesis exploring the impact of smart automation on employee performance at Samsung Display Vietnam Your participation is crucial to the success of this research project All responses will be kept confidential and used solely for research purposes For any inquiries, please contact us at ***486.

 High-school  College  Bachelor Post-graduate

6 Please write down the last 5 digits of your phone number:………

Please circle the option you think is most appropriate in each statement below The level of agreement increases from 1 (completely disagree) to 5 (completely agree)

I Tự động hóa của doanh nghiệp (Automation commitment)

1 The Board of Directors is committed to making the company a leading technology company in the world

2 I believe in the company's automation development plan

3 The company invests heavily in automation 1 2 3 4 5

4 The company supports the development and implementation of improvement activities

II Quản trị nhân lực (HRM)

1 The company appointment jobs that are suitable to the knowledge, skills, experience and abilities of employees

2 The company creates conditions for employees to have autonomy in their work

3 The company really cares about the lives of its workers

4 The company rewards employees fairly and proportionately for their efforts at work

5 The company is not so concerned with job levels in workplace (title and duty) but with work results

6 Decision making is usually done by senior managers 1 2 3 4 5

7 The company encourages employees' ideas and initiatives regarding automation

8 Managers appreciate and look forward to employees' suggestions and ideas

9 The company strengthens training on automation knowledge and skills for employees

10 The company helps employees develop long-term and stick with the workplace

11 The company regularly provides comments and evaluations to employees about their work results and performance

III Đảm bảo việc làm (Job security)

1 I'm worried that I might lose my job due to automation 1 2 3 4 5

2 I worry about the possibility that my job will be replaced by automation

3 I worry about the future when companies replace humans with automation

4 I worry about the future when the industry I work in replaces humans with automation

5 I am sure I can keep my current job 1 2 3 4 5

6 I believe I can continue to work at the company 1 2 3 4 5

7 The rate of me losing my job is very low 1 2 3 4 5

IV Hiệu suất doanh nghiệp (Company performance)

1 The company reduces unexpected waste due to human 1 2 3 4 5

2 The company improves product quality 1 2 3 4 5

3 The company reduces product completion time (lead time)

4 The company reduces machine downtime and equipment errors (down time)

5 The company responds quickly to changing requests from customers

6 The company increases productivity and reduces product defect rates

7 The company creates competitive advantage 1 2 3 4 5

8 The company manages inventory effectively 1 2 3 4 5

V Hiệu suất sử dụnglao động (labor management effectiveness)

1 Automation will reduce labor costs 1 2 3 4 5

2 Automation will solve the problem of labor shortage 1 2 3 4 5

3 Automation will reduce employee absenteeism 1 2 3 4 5

4 Automation will solve the problem of employee turnover

VII Phúc lợi nhân viên (Employee well-being)

1 Automation gives me job satisfaction 1 2 3 4 5

2 Automation creates better working conditions and working environment

VIII Kết quả làm việc của cá nhân (Employee performance)

1 In recent times, my work performance has been very good

2 The quality of my work has been very good 1 2 3 4 5

3 I often proactively plan to complete work on time 1 2 3 4 5

4 I often pursue work to the end result 1 2 3 4 5

5 I often think about the results I need to achieve when working

6 I have the ability to prioritize work 1 2 3 4 5

7 I usually do good work within time shortest 1 2 3 4 5