Substitutability of automated teller machines for tellers: with special reference to Bank of Ceylon

Thilini Saparamadu
2014 Sri Lanka Journal of Economic Research  
Surrogating technology for human beings is a widely discussed topic in today's turbulent environment that has its own advantages and disadvantages. This study empirically explores the impact of Automated Teller Machines on the employment of the Bank of Ceylon, Sri Lanka. The research has been conducted using annual secondary data from 1990 to 2011, gathered from the Bank of Ceylon. The study employs the Constant Elasticity of Substitution production function in identifying the degree of
more » ... tability between tellers and Automated Teller Machines. The results of the study confirmed that there is a negative relationship between cost per Automated Teller Machine to the cost per teller and number of automated teller machines to the number of tellers. Further it is indicated that there is a substitutability of 26 percent between Automated Teller Machines and tellers. The research findings indicate that replacing human tellers by Automated Teller Machines has led to a reduction of job opportunities at the Bank of Ceylon and suggest policy recommendations regarding the efficient reallocation of employees in the bank. Abstract Economic incentives that motivate, and the constraints and negative perceptions that impede, firms operating in a bottled drinking water manufacturing industry in Sri Lanka to adopt an enhanced food safety and quality meta system such as Hazard Analysis and Critical Control Points (HACCP), are examined using Discriminant Analysis. The outcome suggests that firms' response towards adoption of the HACCP is influenced by both market-based (sales, reputation, efficiency) and regulatory (existing, anticipated, judicial) incentives; yet, prevailing constraints at the level of firm (financial, technical) and negative perceptions of decision makers (awareness, hard work) hinder their propensity to adopt such systems.
doi:10.4038/sljer.v2i1.98 fatcat:wntc7tce3rgatcxd2kmaevmo2y