Module 4: Factors influencing workforce management, motivation and performance and change management

Change management

Nothing stays the same and every business will face changes. Often, the most successful businesses are those that can respond effectively.

Change can have a big impact on businesses. Rapid change will add to the need for research so that businesses can respond effectively. Product lifecycles may shorten as customer tastes change and technology means new products can come to market.

External factors influencing change

There are a number of external factors that can affect change, such as changes in customer behaviour, technological changes, changes in the economy and natural events. Click on the examples below to find out more.

Changes in customer tastes or behaviour

Changes in customer tastes can happen quickly or over time. This will lead to changes in the demand for different goods.

For example, young people in the UK are moving away from drinking alcohol.

Pause for thought

Click on the link to read the article:

Alcohol: Going sober in my 20s has dramatically changed my life

How might a reduction in alcohol consumption affect drinks companies?

Technological changes

Technology is changing rapidly and businesses must respond to this if they are to remain successful and survive. For example, there has been a huge change in recent years in the way people shop. Online shopping has increased significantly and businesses that have been unable to adapt have faced huge challenges. Artificial Intelligence (AI) technology has also enabled companies to create a huge range of goods and services, from cleaning robots to 'chatbots', to self-driving cars.

Pause for thought

Watch the video:

What would have happened if Apple hadn't made these changes?

Internal factors affecting change

Internally, new plans, growth, workforce structure and strategic decisions can all lead to changes within the business.

You can learn more about change management here:

Change management