Principles of business and administration - Essay Example

Explain why change happens in a business environment. You should include at least three reasons in your answer. For any business to be successful it must be willing to make changes to best provide the services that are required whilst at the same time being profitable, Businesses must constantly evolve and improve both their produce and manufacturing procedures In order to stay competitive In the global marketplace.

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Management and employees alike must learn to adapt and respond to changes and new challenges. There are two main causes that will make a business make changes, reactive factor and proactive factors. Reactive factor are when external changes occur such as – Political reasons like a new law/legislation has been passed by government and this could have a direct effect on your business.

Economic factors also will play a major role In making changes to the business; these could be anything from consumers buying trends and economic performance to government tax Increases, International exchange rates and interest rate fluctuations. Social awareness is vital when it comes to making business changes as this will massively influence any changes that you put into place, if not researched properly and managed effectively you could make huge mistakes when it comes to advertising and public relations.

By monitoring consumers buying preferences and competitors behavior you will be able to make any changes with the knowledge that they will be relevant. New technology will help a business to be more efficient and competitive and by having the latest/newest technology, that could be what make you stand out over your rivals; you must constantly research new genealogy because all technology has a life cycle and by being contempt with what you currently have could lead to you falling behind in the marketplace.

One helpful way of thinking about the reactive factors influencing change is to use the PEST acronym. Political, Economic, Social, Technology. The other mall reason that will cause a business to make changes is when the company has a desire to improve or has internal demands that must be met, this is called a proactive change and this can be of a financial nature such as – implementing a new way to reduce waste efficiently, or launching a new cutting edge product. But it could also be a way to improve the business moral and wellbeing with changes like refitting communal areas (toilets etc. And enhancement courses such as- first lad training, 1 . Identify the main reasons for reviewing working methods, products and / or services in a business environment. In a business environment nothing stays the same and therefore you must continually review your working methods, products and services to ensure that they are still relevant, suitable and efficient. Companies review their services and products regularly so that they can keep up to date with the expectations of their customers.

This will ensure the company can stay competitive and meet its targets and objectives. If a change has to be made to a service or product that you offer this could mean that related procedures need to be reviewed to ensure they are still correct and efficient. Any successful business will follow the principle continual reviewing of the working methods and services, making changes to improve them, reviewing these changes and then making further changes, by doing this you will always be confident in your product. . When a business is going through change: ) Describe the different types of support that people may need. When a business goes through change it can cause employees to feel unhappy, stressed or anxious this can cause them to be withdrawn and uncooperative when it comes to learning and adapting to the implemented changes Supporting people during change is important as failure to do this could be harmful to the person’s involved and to the business.

Different types of support that can help people during change include: Effective planning of how different people will react to the change. Participation and keeping staff informed of progress or changes. Training or training so all staff members are confident in their new roles or expectations. Encouragement and other supportive behaviors by reassuring, supporting, guidance and by giving praise. Counseling or coaching with staffs that appears unable to deal with the changes or with external issues.

When a business is going through changes it is always better to work as part of a team because it will create camaraderie and with others there you can always ask for assistance or advice if you have a concerns, as a business you should always try make staff work in groups when implementing changes as with this format you will be able o reduce the risk of individuals becoming isolated and it will help to create a framework for mutual support and problem solving.

Section 3 – Understand how to respond to change in a business environment 1 . In relation to your current business environment (or one that you are familiar with): a) Explain why you should respond positively to changes in working methods. As I am familiar with working in a commercial kitchen environment I have to be able to respond positively to change as they happen possibly more often than anywhere else.

For example if the head chef decides to make changes the menus then I have to e able to adapt and make the relevant changes immediately because failure to do this could result in products being made incorrectly and will be returned at cost to the company this would mean that I would have to remake the dish correctly therefore costing me valuable time/resources especially if the restaurant is busy.

If I was to make too many mistakes then this would have a negative impact on the moral of the kitchen and could end up with me being sent out of the kitchen and possibly losing my Job because of my ineptness, on the other hand if the head chef was to see hat I was responding the change positively then he might feel that he could move me onto a more complex station this would give me a confidence boost and encourage me to continue my good work. B) Explain why you should respond positively to changes in products or services.

All companies need to update or change their products from time to time in order to be competitive and all employees including myself have to accept that changes will have to be made to the way in which we work but by being positive to the changes it willingness to learn new methods and techniques that could improve the way that I ark, this will create a positive image of me in my employer’s and fellow colleagues eyes. By adapting the skills that I have acquired I may be able to offer advice on the effectiveness of any changes.

In the long-run this could benefit me by enhancing my career prospects within the company. C) Identify ways of responding positively to change. All business wants staff that can respond positively to change and look out for people who can show that they have a willingness to learn new skills and procedures and those that can apply what they have learned into the workplace. They are the sort of people that will seek out answers and ask questions in order to find solutions to problems/difficulties and find it enjoyable when they have a chance to change and adapt.

They will also be willing to share their knowledge, skills and experience. They will try to help others to adapt to the changes. And by keeping a happy can-do attitude you can prevent yourself from becoming stressed or anxious and this could encourage others to feel more positive.