unit 4 outcome 1 Flashcards
(42 cards)
what is force field analysis
theory is a model that determines if businesses should proceed with a proposed change. This model identifies and examines factors which promote or hinder the change from being successful.
the theory helps businesses identify factors which influence change. The model has two key principles: driving forces and restraining forces.
driving force
are factors within or outside the business’s environment which promote change.
restraining forces
Restraining forces are factors within or outside the business’s environment which resist change.
force field analysis process
Step 1: Identify need for change
Businesses face internal or external pressures to change. What must be altered to fulfil business objectives and reduce these pressures?
Step 2: Identify driving forces
Which internal and external factors promote the proposed change?
Step 3: Identify restraining forces
Which factors resist the proposed change?
Step 4: Assign scores
Determine the strength of each driving and restraining force by assigning numerical scores that are based on their level of influence on the proposed change.
Step 5: Analyse and apply
add up all scores of the driving forces compared to the total restraining forces. if driving forces exceed restraining forces successful change is likely. if they do not change is unlikely to successful and therefore they would need to implement strategies to overcome restraining forces.
advantages of force field analysis
Businesses can examine if a proposed change will be successful.businesses can save money by implementing change where success is likely. can also save time by promoting main driving forces and limiting lain restraining forces.
disadvantages of force field analysis
Employees may be unhappy if driving forces exceed restraining forces and change still occurs.Can be time-consuming, especially if a business must go ahead with a change. For example, a change is required for legislation.
what is business change
occurs when a business is altered to a new or modified form. change can involve moving some aspect of the business form one point to a new. it happens because a business have pressure that they need to adapt to. the pressure can come from inside or outside the business. change can be planned or unplanned. business must continue to adapt to that change to meet their objectives. their ability to maintain change will increasingly determine competitive advantage survival.
proactive approach
involves a business changing to avoid future problems or take advantage of future opportunities. using KPI’s to identify problems before they occur then ensuring that appropriate policies are put in place.
reactive approach
involves a business changing in response to a situation. decisions or changes that are made as a result of a given situation occurring. observing the actions of competitors then seeking to implement similar processes to ensure that the business remains competitive.
what are key performance indicators
criteria that measure how efficient and effective
a business is at achieving different objectives. All businesses seek to optimise their performance. Therefore, it is essential for a business to be constantly reviewing their performance.KPIs provide data that can measure how well a business is performing in different areas. If performance is unsatisfactory in certain areas, this may indicate a need for change. After a business change has been implemented, managers can then use KPIs to evaluate the success of the change
what are the KPIs
percentage of market share net profit figures number of sales number of customer complaints rate of stuff absenteeism level of staff turnover number of workplace accidents rate of productivity growth level of wastage
percentage of market share
measures a business’s proportion of total sales in a specific
industry, expressed as a percentage.
Percentage of market share = A business’s total sales ($) × 100 Total sales in the business’s industry
highlights how well a business is performing within their industry. A high percentage of market share shows that the business has a large share of total industry sales relative to competitors. A low percentage of market share shows that the business has a small share of total industry sales.
net profit figures
are calculated by deducting total expenses incurred from total revenues
earned over a period of time.
Net profit figure = Total revenue – Total expenses
It is essential for all businesses to make a profit to survive and grow. A manager may examine a business’s net profit figure to assess whether expenses are too high or revenue is too low. high = business is performing well financially. low = expenses are to hight or sales have decreased
number of sales
is the amount of goods and services sold by a business within a
specific time period. A manager may examine the number of sales to assess how well the business’s goods and services are selling. high = customers are satisfied with the quality and price. low = they are dissatisfied
number of customer complaints
is the amount of customers who have notified
the business of their dissatisfaction. A manager may examine the number of customer complaints at a business to assess the level of customer satisfaction. low = customers are satisfied. high = customers are not satisfied
rate of staff absenteeism
is the average number of days employees are not present when
scheduled to be at work, for a specific period of time.
Rates of staff absenteeism = Total number of days all staff are absent for a period of time Total number of staff
A human resource manager would examine the rates of staff absenteeism as an indicator of staff morale. A high rate of staff absenteeism often indicates that employees are less motivated and are not completely satisfied with their working conditions. high can be disruptive and expensive. low rates of staff absenteeism indicate that employees are highly motivated which improves productivity.
Staff morale is the collected attitudes, satisfaction and overall outlook that employees have of the workplace. Staff morale can influence a business’s productivity, workplace safety, attendance and staff turnover.
level of staff turnover
is the percentage of employees that leave a business in a year and
have to be replaced.
Level of staff turnover = Total number of staff leaving in a year × 100 Total number of staff required.
A human resource manager can also measure staff turnover to examine staff morale. high = employees are dissatisfied with management styles pay or working conditions. low = shows that current employees are satisfied with their working conditions.
number of workplace accidents
measures the amount of injuries and unsafe incidents that occur at a work location over a period of time.A human resources manager is concerned with the number of workplace accidents occurring at a business since it is their responsibility to ensure the safety and wellbeing of employees. high.= reflects an unsafe workplace which can affect stuff morale and increase rate of staff absenteeism. l
level of wastage
is the amount of inputs and outputs that are discarded
during the production process.
An operations manager would be concerned with a high level of waste at any stage of the production process.
high = increase amount of raw materials or time required to produce a product and expenses.
rate of productivity growth
is the increase in outputs produced from a given
level of inputs over time. The level of productivity is how much a business can produce given a certain level of inputs. In contrast, the rate of productivity growth is the increase in the level of productivity from year to year.
high = shows growth its improved on its efficiency from the year before. low = slower rate of growth.
mangers as a driving force
Managers can take two forms within a business. In some cases, the manager is also the owner. In others, the manager is separate to the owner. In both cases, the primary focus of a manager is to ensure that the business is achieving its objectives.
employees as a driving force
The role of employees is vital as employees are responsible for achieving the business’s objectives. Employees help achieve business objectives by completing work tasks to meet the needs of the business. In return for their contribution to the business, employees have their own expectations. These include competitive wages, supportive working conditions, and training. As such, any proposed change that can improve the working conditions of employees will see them become a driving force.
pursuit of profit ad a driving force
one of the main objectives of all businesses is to make a profit. This is one of the main reasons for a business’s existence. Consequently, opportunities to improve financial performance will often encourage a business to change. Additionally, this will make a business better able to fulfil its obligations, such as providing a return to shareholders.
reduction of costs as a driving force
Businesses always seek to be as efficient and effective as possible. Strategies that reduce wastage or improve productivity can reduce a business’s costs and improve its profitability as often this will lead to an increase in a business’s net profit margin. cheaper suppliers or move locations to benefit from cheaper rent
