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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 implementing an automated system is the cost of purchasing new equipment. This upfront investment is essential to acquire the necessary technology that can replace the existing labor-intensive processes.
Step 2
Outline TWO management skills that could be used in implementing this change.
Answer
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Strategic Thinking: This skill allows managers to plan and implement the automation process in alignment with the company's overall goals, ensuring that the transition is beneficial for the organization.
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Communication Skills: Effective communication is crucial during the change process to convey the benefits of automation to staff and address any concerns they may have, fostering a supportive environment.
Step 3
Discuss ONE reason for possible staff resistance to this change.
Answer
One reason for potential staff resistance is the fear of job loss. Employees may worry that the introduction of an automated system could eliminate their roles, leading to anxiety and pushback against the change. This apprehension can be exacerbated if there is a lack of clear communication from management about how automation will impact staffing.