Assessment 2 Office Management Essay

Submitted By GeaorgeMichael
Words: 1848
Pages: 8

Assessment 2
Nicole Graham


Table of Contents
What is PESTEL? 2
External Factors That May Affect the Future of the Organisation 2
Opportunities and threats 3
Opportunities 3
Threats 3
Changes to be made 4
Resistance to Change 4
Causes of Resistance to Change 4
Impact that these have 4
Ways to Reduce Resistance to Change 5

What is PESTEL?
PESTEL is a method for reviewing the external forces that impact a company. The company will find it hard to control these changes.

P is for Political
E is for Economy
S is for Social
T is for Technology
E is for Environmental
L is for Legal

External Factors That May Affect the Future of the Organisation
P is for Political
Political is seen to be what the government controls, for example tax policy, environmental law, health, education etc. If Labor Law changes this may affect the future of the organisation. At the moment employees are contracted to work 37.5 hours per week, If they was to ever change to work more hours or less hours a week the organisation would need to look at staffing levels and either provide more training, this could be costly to the organisation if they had to take on more staff.

E is for Economy
Economic factors such as economic growth, interest rates, exchange rates and inflation rates can all affect the future of the organisation. Inflation rates are an increase in the general price of goods and services in an economy over a length of time. An organisation would have to keep an eye on this as the goods that they are ordering from a company may be going up in price all of time which means more money is coming from the organisation. They would need to look into this further and shop around to see if they can get better deals elsewhere.

S is for Social
Social factors such as health consciousness, population growth rate, age distribution and emphasis on safety are all major factors that affect the future of the organisation. As population grows there will be a bigger demand for products and supplies form the organisation which means they may need to employ more staff or expand to bigger premises which is a very strategic decision that they will stumble upon.

T is for technology
Technology is to do with the rate of the advances of technology. It will affect the future of the organisation because as technology grows the organisation will have to grow with it, For example windows are now up to windows 8. If the organisation is still using windows 6 some of the computer packages that the organisations buy will only be compatible for windows 8 which will mean they will have to upgrade the whole computer system which can be costly as it will take a lot of time to complete.

E is for Environmental
Environmental changes that affect the future of the organisation is factors such as weather, climate and climate change. It depends on the organisation but if you are running a farming business and it is always raining, they will not be able to get crops cut in time; this will affect their sales and also the quality of the crop.

L is for Legal
Legal factors the affect the future of the organisation are factors such as discrimination law, consumer law, employment law and health and safety law. The health and safety law has got many aspects which the organisation has to follow to ensure they are doing everything correctly this can be very costly to the organisation. They will also need to check regularly in case it updates that they will need to upgrade anything to abide by the law.

Opportunities and threats
An opportunity that the administration department has to expand their organisation would be to look into flexible working hours. One of the administration team has fallen pregnant, it would be hard for her to carry on full time once the baby has arrived due to family commitments, and there are no other working options in place. The organisation should bring in the idea of flexible working hours, this way they can ensure