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. Note: This guide is only to assist with considerations and does not need to be submitted.
   • 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?
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?

What to Submit

Submit a Word document using double spacing, 12-point Times New Roman font, and one-inch margins. This assignment should be 3–5 pages in length and incorporate references, including course materials, cited in APA format and listed on a separate reference page. 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?
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 U.S. Branch Overview

• U.S. annual profit in 2023: $459,680
• Jump in U.S. annual sales in 2023: 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, 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 Health Reimbursement Arrangement (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, Customer Success [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

1. 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%
2. 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
3. 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%
4. Percentage of employees by gender identity
   Male 30%
   Female 55%
   Non-binary 10%
   Other 5%
5. 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

Module Two Report Rubric