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Scenario

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.

Prompt

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.

  1. 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?
  2. 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.

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?

Lifestyles

Buying habits

Education level

Emphasis on safety

Religion and beliefs

Health consciousness

Sex distribution

Average disposable
income level

Social classes

Family size
and structure

Minorities

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

Innovation

Research funding

Replacement
technology/solutions

Maturity of
technology

Manufacturing
maturity and
capacity

Information and
communications

Consumer buying
mechanisms/
technology

Technology
legislation

Innovation potential

Technology access,
licensing, patents

Intellectual
property issues

Global
communications

PESTLE Forces Potential Impact: Implication and Importance

Inventions

New discoveries

Research

Rate of obsolescence

Manufacturing
advances

Information
technology

Internet

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

16%

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

Organization Chart