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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

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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.

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Answer

One significant financial cost associated with this change is the cost of purchasing new equipment. This includes expenses related to the acquisition and installation of automated systems, which can be substantial.

Step 2

Outline TWO management skills that could be used in implementing this change.

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Answer

  1. Leadership Skills: Effective leaders are crucial in guiding the team through the transition to automation, helping to manage resistance and ensure buy-in from employees.

  2. Strategic Thinking Skills: Managers need to plan and anticipate potential challenges during implementation, aligning the change with the long-term goals of the organization.

Step 3

Discuss ONE reason for possible staff resistance to this change.

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Answer

One reason for possible staff resistance to this change is the fear of job loss. Employees may feel threatened by the automation of processes that could eliminate their roles, leading to anxiety and pushback against the new system.

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