Cause and Effect on Change (3.6.1)

Question 1

What is the formula for Labor productivity?

Answer 1

Total Units of Output/Total Amount of workers

Question 2

What is the formula for Labor Turnover?

Answer 2

(Staff leaving per year/ Average number of staff)x100

Question 3

What is the formula for Absenteeism?

Answer 3

(Days absent per year/ Total number of working days)x100

Question 4

Is change good or bad for a business?

Answer 4

Change is significant for a business and there have been many examples of business failure due to a lack of change. e.g. ToysRus, Blockbuster etc..

Question 5

What are the two different types of change in a business?

Answer 5

Internal and External Change

Question 6

What are examples of internal change?

Answer 6

-Changes in Size
-Transformation Leadership
-New owners
-poor performance

Question 7

What are examples of external change?

Answer 7

-Competition
-PESTLE

Question 8

What is the Advantage and Disadvantage of competitiveness in a business?

Answer 8

Advantage:
-Better quality products leading to increased loyalty

Disadvantage:
-New branding damaging customer reputation

Question 9

What is the Advantage and Disadvantage of productivity in a business?

Answer 9

Advantage:
-Investment in technology improves efficiency

Disadvantage:
-New product lines increase amount of waste

Question 10

What is the Advantage and Disadvantage of Stakeholders in a business?

Answer 10

Advantage:
-New management involves staff in decision-making

Disadvantage:
-New pricing strategy alienates loyal customers

Question 11

What’s a good example of a business that has changed and adapted to sustain market leadership?

Answer 11

Netflix

Question 12

What does success of change depend on?

Answer 12

-Organizational culture
-Size of the organization
-Time and/or speed of change
-Managing resistance to change

Question 13

What is the Advantage and Disadvantage of High Labor productivity?

Answer 13

Advantage:
-The higher the productivity the lower the unit costs, becoming a competitive advantage for the
company

Disadvantage:
-Boosting productivity can involve heavy investment in new technology, training and R+D

Question 14

What is the Advantage and Disadvantage of High Labor Turnover?

Answer 14

Advantage:
-‘New Blood’ can bring fresh ideas and a different skill set that can boost the company

Disadvantage:
-The higher the turnover the greater the threat to culture, efficiency and customer service

Question 15

What is the Advantage and Disadvantage of High Absenteeism?

Answer 15

Advantage:
-Staff may be highly productive but personal circumstances that require time off, so there is no impact on their value to the company

Disadvantage:
-The higher the absenteeism the lower your business may be able to output, holding your business back

Question 16

What is the Trade off of productivity vs Morale?

Answer 16

Hammering down on productivity can damage morale and cause staff to take days off leave