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A business has decided to replace its labour-intensive manufacturing process with a new automated system - HSC - SSCE Business Studies - Question 21 - 2001 - Paper 1
Question 21
A business has decided to replace its labour-intensive manufacturing process with a new automated system. (a) Identify ONE financial cost associated with this chang... show full transcript
Worked Solution & Example Answer:A business has decided to replace its labour-intensive manufacturing process with a new automated system - HSC - SSCE Business Studies - Question 21 - 2001 - Paper 1
Step 1
Identify ONE financial cost associated with this change.
Answer
One significant financial cost associated with this change is the initial investment in new equipment. This will include purchasing the automated machinery, installation costs, and any required training for staff to operate the new system effectively.
Step 2
Outline TWO management skills that could be used in implementing this change.
Answer
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Communication Skills: Effective communication is crucial to convey the benefits of the change to all employees and to address any concerns they may have.
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Strategic Thinking: Management must utilize strategic thinking skills to plan the integration of the new automated system and to align it with the overall goals of the organization.
Step 3
Discuss ONE reason for possible staff resistance to this change.
Answer
One primary reason for possible staff resistance to this change is the fear of job loss. Employees may worry that automation will reduce the need for their roles, leading to anxiety and reluctance to embrace the new system.