“In the workplace, automation’s focus on enhancing speed and efficiency — a focus determined by the profit motive rather than by any particular concern for people’s well-being — often has the effect of removing complexity from jobs, diminishing the challenge they present and hence the engagement they promote.”
For the function of underlined ‘diminishing’ above which will be proper parsing below?;
1) present participle leading the participle clause meaning RESULT,
2) present participle, which combines ‘which’ and ‘diminishes’ to make a reduced relative clause.
I understand the clause starting with "diminishing" to be a reduced which-clause functioning as a sentence modifier. The subject of "diminishing" is "the fact that automation's focus on enhancing speed and efficiency often has the effect of removing complexity from jobs." This is what diminishes the challenge jobs present and the engagement they promote.