16 Jun Effective change plans are created by understanding several external factors influencing an organization, including p olitical, e conomic, s ocial, t echno
Effective change plans are created by understanding several external factors influencing an organization, including p olitical, e conomic, s ocial, t echnological, l egal, and e nvironmental, or PESTLE, forces. Experienced executives carefully examine PESTLE forces to identify major opportunities and threats and then adjust their organizational change strategies accordingly.
Previously, you informed the VP about potential reasons why an organization fails to change and suggested ways to avoid them. Now, you have been asked to analyze the situation and recommend a change management plan to the VP. As part of your analysis, you need to evaluate and report to the VP about workforce change readiness and external forces that may affect the change management processes in the organization.
Identify social and technological factors that can affect change readiness in an organization. Consider how these factors may influence the employees at the U.S. branch of the Singaporean software solutions provider. Then, write a report explaining your analysis to the VP.
Specifically, you must address the following criteria.
- Explain how social factors influence the change requirement of the organization.
- Use the PESTLE Forces Guide to identify social factors and refer to the U.S. Branch Overview for data about the U.S. branch.
- Which social factors will significantly influence the change requirements of the U.S. unit’s workforce?
- How will social factors influence change readiness in the workforce?
- How will you visually present and emphasize social factors depicted through demographic data?
- Explain how technological factors influence the change requirement of the organization.
- Use the PESTLE Forces Guide to identify technological factors and refer to the U.S. Branch Overview for data about the U.S. branch.
- Which technology factors will significantly influence workforce planning and training requirements?
- How will technology factors influence change readiness in the workforce?
- How will you visually present and emphasize technological factors depicted through demographic data?
Guidelines for Submission
Submit a Word document using double spacing, 12-point Times New Roman font, and one-inch margins. This assignment should be 1–2 pages in length and include references cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.
PESTLE Forces Guide
PESTLE Forces Potential Impact: Implication and Importance ● High (H)
● Medium (M) ● Low (L) ● Undetermined (U)
Time Frame: ● 6–12 months ● 12–24 months ● 24+ months
Type: ● Positive ● Negative ● Unknown
Impact: ● Increasing ● Unchanged ● Decreasing ● Unknown
Relative Importance: ● Critical ● Important ● Unimportant ● Unknown
Political Political factors determine the extent to which government and government policy may impact an organization or a specific industry.
✖ Economic Economic factors consider the various aspects of the economy and how the outlook on each area could impact your business.
✖ Social What is the population's growth rate and age profile? How is this likely to change? Are generational shifts in attitude likely to affect what you are doing? What employment patterns, job market trends, and attitudes toward work can you observe? Are these different for different age groups? What social attitudes and social taboos could affect your business? Have there been recent sociocultural changes that might affect this? How do religious beliefs and lifestyle choices affect the population? Are any other sociocultural factors likely to drive change for your business?
Emphasis on safety
Religion and beliefs
Average disposable income level
Family size and structure
Attitudes toward saving and investing
PESTLE Forces Potential Impact: Implication and Importance Attitudes toward green or ecological products
Attitudes toward renewable energy
Population growth rate
Immigration and emigration rates
Age distribution and life expectancy rates
Attitudes toward imported products and services
Attitudes toward work, career, leisure, and retirement
Attitudes toward customer service and product quality
Technology Are there any new technologies that you could be using? Are there any new technologies on the horizon that could radically affect your work or your industry? Do any of your competitors have access to new technologies that could redefine their products? How have infrastructure changes affected work patterns (for example, levels of remote working)? Are there existing technological hubs that you could work with or learn from? Are there any other technological factors that you should consider?
Competing technology development
Maturity of technology
Manufacturing maturity and capacity
Information and communications
Consumer buying mechanisms/ technology
Technology access, licensing, patents
Intellectual property issues
PESTLE Forces Potential Impact: Implication and Importance
Rate of obsolescence
Legal Legal factors pertain to any legal forces that define business operation and compliance.
✖ Environmental Environmental factors concern the ecological impacts on business.
MBA 687: US Branch Overview
• U.S. annual profit in 2020: $459,680 • Jump in U.S. annual sales in 2020 7.8% • Labor cost 30% of total revenue ($1M) • Benefits accounted for 29.9% of total employer costs for an employee's
compensation o Benefits include paid leave, supplemental pay, insurance, retirement, and
savings plans and legally required payments like FICA. o As mandated by the Affordable Care Act (ACA), companies with more
than 50 full-time employees must offer a company health plan or pay a tax penalty.
o Medical and HRA cost $41,160 annually. Delaware Small Business Data
# of small businesses in DE 82,212 # of small business employees in DE 187,556 % of employees working in small business 46.9% % of small business profitability in the United States 40% % of small business CEOs concerned about growing revenues 23% Average turnover small business (voluntary) 45% Average call center turnover (voluntary) 30-40% Average tenure of an employee in the United States 4.2 years % of small business owners concerned about recruiting and retaining talent
Engagement Employee Net Promoter Score (eNPS): -10
• An eNPS score can range anywhere from -100 to 100 New Hire 90-Day Failure Rate: 46% of newly hired employees fail within 12 months
• Total turnover rate: 28.8% • Of all employee turnover, 70% is voluntary • Retirements account for 1% • Older individuals tend to stay at the same job for longer periods than
younger employees o High-Tech Industry Turnover: 20.9% o Services Industry Turnover: 20.9% o Average call center turnover (voluntary): 30–40% o Average small business turnover (voluntary): 45%
Potential Causes of Turnover • Low company morale • Lack of opportunities for training and career growth • Work-life imbalance • Poor management or leadership practices • Poor communications
Employee turnover costs a company 21% of the employee's salary. The replacement cost per employee is $4,100 per employee. Demographics 1. Years of service with the job role
• Executive Leadership (VP): 7 years • Manager (Director/Manager, Accounting, Sales, CS): 3.33 years average • Lead Specialist/Key Expert (Coordinators/Team Leaders-Payroll, CS, Shipping
and Receiving): 1.76 years average • Senior Level Specialist (Business Development Executive, Executive Office
Administrator, Senior CS Specialist, Senior Sales Account Specialist): 1.26 years average
• Mid-Level Specialist (CS Specialist II, Business Development Specialist), 1.0 years
• Entry Level Specialist (CS Specialist I, Accounting Specialist, AR and AP, Office Specialist I, Sales Account Specialist I): 0.75 years average
2. Years of service with this branch
Less than 1: 52.5% of respondents 1–2: 27.5% of respondents 3–5: 15% of respondents 6–10: 2.5% 11–15: 0 16+: 0 Prefer not to answer: 2.5%
3. Years of service by age group
Ages 20–24: 1.2 years Ages 25–34: 1.4 years Ages 35–44: 3.9 years Ages 45–54: 4.1 years Ages 55–64: 4.7 years Ages 65+ 0.0 years
4. Percentage of employees by age group
Ages 20–24: 45% Ages 25–34: 35% Ages 35–44: 10% Ages 45–54: 5% Ages 55–64: 5% Ages 65+ 0%
5. Percentage of employees by gender identity
Male 30% Female 55% Non-binary 10% Other 5%
6. Race/ethnic identification
African American or Black: 60% of respondents Hispanic or Latino/a/x: 12.5% of respondents Anglo American or White: 12.5% of respondents Asian: 5% of respondents American Indian or Pacific Islander: 0 Multiracial or Other: 7.5% of respondents Prefer not to answer: 2.5% of respondents