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Table of Contents Page # Acknowledgement Aims and Objectives Methodology esc!i"tion Analysis %val&ation 'ecommendations Concl&sion A""endices +ibliog!

a"hy 1 2 3 # $ 1# 1( 1) 1* 3#

Firstly, it is with gratitude that I recognize God for all the blessings, abilities and privileges - especially physical and mental ones - which have allowed me to both commence and conclude this School Based ssessment! I also wish, secondly, to e"press a sincere appreciation to the teacher of this wonderful sub#ect, $s!! %ithout the driving force of this individual, the completion of this assignment would be a most difficult tas& as she thoroughly guided and mentored me through the various stages of this SB ! 'astly, I ac&nowledge my parents who supported me in all of my endeavours and provided the inspiration and encouragement I needed to fulfil this tas&!

Aims and Objectives

)he Barbados )ransport Board was chosen for this School Based ssessment

because of the great value it has to the Barbadian society and economy! In researching the operations of the Barbados )ransport Board, three main business concepts were e"plored in an effort to assess, analyse and evaluate the firm! )he aim of this SB is* )o investigate the way in which the formation of business ob#ectives affects the )ransport Board+s ability to cope with change and meet financial re,uirements!

)he objectives of this SB are* )o analyse the firm+s ob#ectives! )o determine the overall reaction to change within the business! )o determine how the firm is financed and how it manages its debts!

Thesis ,tatement
-By establishing sound business ob#ectives, a firm is able to successfully implement change and ac,uire the finance necessary for its operations!.

Methodology %m"loyed
Information for this assignment was collected by use of "!ima!y and seconda!y sources! n interview with the Financial 0ontroller of the Barbados )ransport Board, as well as a ,uestionnaire consisting of twenty-three ,uestions, was used as "!ima!y data collection methods)he seconda!y so&!ce of !esea!ch was the )ransport Board+s website, http*11www!transportboard!com! 2n this website, the basic information was gathered such as* 3ear of founding 4umber of buses 'ocations 4umber of terminals .imitations/ In carrying out this e"periment in order to formulate this report on the Barbados )ransport Board, there were a few limitations which impacted on the reasons for employing the methods of data collection used! )he ,uestionnaire could not provide all the information re,uired because, by administering lengthy ,uestionnaires one runs the ris& of several ,uestions being unanswered! Some answers had little relation to the ,uestion being as&ed!

'easons fo! %m"loying these Methods ,uestionnaire would be more suitable for the number of ,uestions being as&ed as well as the number of possibilities listed for each ,uestion!

)he formation of a ,uestionnaire is a more efficient way of ac,uiring precise information! n interview was used for three ,uestions whose answers were unclear when the ,uestionnaire was completed! )his was less time consuming and factored in the verbal interaction that allowed the interviewee to better comprehend the ,uestions being as&ed! )he website was easier to use and more accessible for any additional information which was found to be necessary after the interview and receiving the completed ,uestionnaire!

)he Barbados )ransport Board was formed by an ct of 7arliament on ugust (5, 1866! Its mission is -)o be the principal provider of safe, reliable and efficient transit services and to consistently deliver the highest level of consumer satisfaction to users of public transport in Barbados.! 7rior to 1866, transportation in Barbados was provided by public concessionaires which operated on specific routes! 0urrently, however, the )ransport Board has become a vital part of the economic development of the nation! 'ocated at 9oebuc& Street, Bridgetown, the Board has appro"imately /:5 buses with terminals at three different locations, a central staging depot and one sub-terminal! )he ob#ectives of growth and increased mar&et share are paramount to the organisation+s e"istence! )he ma#or factors that affect change at the Barbados )ransport Board include consultation with employees as well as clear ob#ectives and are impacted by political, economic and social changes! 7assive resistance to change is high among the staff mainly because of a fear of #ob loss and increased wor&load! ;espite this, the firm+s organisational culture allows for and encourages change in a significant way even though feedbac& is not considered a ma#or element in the change process! ;ue to the fact that the firm is subsidized by Government, its main financial re,uirement is for the paying of daily e"penses! %hen capital stoc& of buses needs replacing, the funds are obtained from the Government+s resources!


012 3 +&siness Objectives =ewell >(:::? defines an ob#ective simply as something that we see& to achieve! t the Barbados )ransport Board, the ob#ectives are growth and increased mar&et share! @owever, there are several other ob#ectives, corporate ob#ectives as e"plained in $arcousA et al >(::/?! s shown in )able > ? below! 2b#ectives B"planation Implementation in Barbados )ransport $a"imising organisational profit In the private sector, this is usually a primary ob#ective as it is done in the firm+s effort to survive when threatened in the short-run1! Board )he Barbados )ransport Board is not in the public sector! )herefore, it is funded by Government and see&s to provide a service rather than earn profits! @ence, this ob#ective is not Growth >size of firm? )he motivation behind this goal is the desire to see a firm fulfil its potential and even eliminate competition >horizontal integration?! implemented! )he firm aims to increase the number of buses it owns and eliminate or reduce reliance on route ta"is and 7SCs especially on shorter routes!

In the 7ublic Sector most 7ublic 0orporations replace the profit ma"imization ob#ective with goals of providing essential services!

Increased mar&et share

)he aim is to control as much as the mar&ets as possible by having a mar&eting mi" more successful than that of competitors! )he levels at which sales revenue are determine the salaries and allowances of staff!

s it is a Government owned firm wages are negotiated by )rade Enions rather than sales revenue! Government+s ob#ectives and income tend to determine the level of wages! )he firm has no named shareholders as it is a Government owned firm see&ing to provide a public good(!

$a"imising sales revenue

$a"imising shareholder revenue

)his usually applies to public limited companies which aim to generate increased returns for shareholders through raising prices!

)able > ?* 0orporate ob#ectives and their application to the Barbados )ransport Board!

;ifferent firms will have different needs, aims and ob#ectives, but ob#ectives should be sound! Sound ob#ectives, according to =ewell >(:::? should conform to the ,MA'T criteria as shown in )able >B?!



public good is one that is non-rivalled and non-e"cludable! http*11en!wi&ipedia!org1wi&i17ublicFgood!

,7B0IFI0 MB SE9 B'B AG9BB; 'B'BC 4) TI$B) B'B;

B"actly pertaining to what is needed! Based on performance-measuring criteria that would assess whether or not ob#ectives are being achieved! )he individuals responsible for achieving the ob#ectives gree on them! 7ertaining to the needs of the organisationH capable of being achieved within the time and with the resources available! 0onstructed with an appro"imated period for completion! )able B* )able e"plaining the ,MA'T criteria

2f the five areas used in the criterion, the Barbados )ransport Board only chose relevance to the needs of the organisation, )hough this was the only one chosen, it may be argued that in setting business ob#ectives, they must consider the specificity, measurability and time constraints of the ob#ectives!

Mission ,tatement $ission statements as e"pressed in Stimpson et al >(::D? are attempts to condense the central purpose of a business+ e"istence into one statement! It is a statement of the business+ core aims, phrased in a way to motivate employees and to stimulate interest by outside groups! =ewell >(:::? posits that a well-produced mission statement should do five things! )able >0? below applies these to the Barbados )ransport Board!

2utlines clearly the way ahead 7rovide information and inspiration for employees Identifies what the organisation will be in the future ;efines success 7rovides a statement that

pplication to Barbados )ransport Board

-)o be the principal providerIof public transport in Barbados. -)o be the principal provider ofIhighest level of customer satisfactionI. -)o be the principal provider ofI.

-Ithe highest level ofI. -)o be the principal provider of safe, reliable, and

can be used as a goal or ob#ective

efficient mass transit services and to consistently deliver the highest level of customer satisfaction to users of public transport in Barbados.!

)able 0* )able applying features of a well-produced mission statement to that of the Barbados )ransport Board

0112 3 Change Management =ewell >(:::? outlines some features of organisations which are more receptive to change! Four of these features were used in the ,uestionnaire! )hese included* 1? Fre,uent consultation with employees (? )rust /? 9etraining facilities 5? 0lear ob#ectives Figure 1 shows how each was ran&ed on a scale of 1 to 6 within the Barbados )ransport Board!


Figure 1: Graph showing the levels at which four features of organizations receptive to change are implemented in the Barbados Transport Board. 5 4 3 2

Level of Implementation

1 0 1 2 Feature 3 4

In the Barbados )ransport Board, it is clear that the implementation of three of these features is poor in that the highest level of relevance of the four is three on a scale of one to five!

4at&!e of Change


Stimpson et al >(::D? point out that there are ways that the nature of change may be manifested within a business in its lifetime! )hese changes and their applications to the Barbados )ransport Board are e"plained below in )able >;?!


7olitical and governmental factors affect organisations and stimulate change through shifts in policy encouraging or discouraging control, protection, intervention and regarding financial assistance!

pplication to Barbados )ransport Board

s a Government owned firm, political changes are prevalent in that there will be increased Government intervention in a situation where the firm+s survival is threatened! )here is also protection through subsidies as the Government would see& to lower production costs while stimulating provision and consumption! ;epending on the income, the elasticity of demand for public transport would change because, if income decreases, the ,uantity demanded will increase because public transport is an inferior


)his deals with changes in the e"ternal environment and involves concepts such as demand, supply, ta" rates and income distribution levels!


good! )his refers mainly to the changes In terms of the lifestyle, there in social structure whether it is a change in demographics or the actual lifestyle and culture of society! are fewer young wor&ers as most individuals are see&ing higher education! )herefore, the number of young individuals entering the labour force and hence, being employed at the firm, may very well decline! If the firm were to employ new machines which would ma&e the


dvances in technology can result in improved goods and



maintenance process easier and more efficient, retraining of staff would be necessary so as to ensure this nature of change may be coped with! For e"ample* by replacing conductors with fare bo"es, many employees had to be trained to operate the bo"es efficiently! @ealth and safety laws have been implemented not only for the #ob site but on the vehicles to ensure that a limited number of persons travel on each bus!


)his generally spea&s to regulations and restrictions by Government!

)able ;* )able e"plaining the nature of change and as applied to the Barbados )ransport Board

'eaction and 'esistance to Change =ewell >(:::? outlines the possible reactions to change within the organisation! )he Barbados )ransport Board e"periences all of the reactions from its employees! @owever, acceptance and active resistance are at a minimum, but indifference and passive resistance are very dominant! Bmployees are reluctant to contribute and strictly wor&-to-rule when the change process is occurring! )hese reactions must be a result of underlying issues which =ewell >(:::? also lists! 2f these, five were chosen and ran&ed by a member of the $anagement )eam at the Barbados )ransport Board! )hese included* 1? Fear of #ob loss J (6K (? ;issolution of wor&ing groups J 1/K /? Inability to ad#ust J (6K


5? 'oss of power J <K 6? $isunderstanding of the nature of change J /1K Figure ( demonstrates the e"tent to which each is responsible for the reactions to change in the firm under analysis!

Figure : !ie "hart showing the e#tent to which each factor is responsible for the reaction to change at the Barbados Transport Board

is!onstruing t"e nature of !"ange 31%

#ear of job loss 25%

Loss of power 6% Inability to adjust 25%

Dissolution of working groups 13%

From Figure ( above, it can be seen that a misunderstanding of the nature of change caused the greatest resistance to the change, while loss of power caused the least resistance!

5ays to Ove!come 'esistance to Change =ewell >(:::? e"plains that there are several strategies to overcome change! )he firm being analysed only utilises one of these strategies! $anagement at the Barbados )ransport Board only communicates the need for change to the wor&force! @owever, educating them about the positive aspect of change, having mutual trust,


ensuring there is participation and involvement and getting their support from the inception can help a firm overcome resistance! 4egotiation and agreement through incentives as well as providing counselling and retraining facilities are also resistancecon,uering strategies as outlined by =ewell >(:::?!

01112 6 4eed fo! 7inance Stimpson et al >(::D? state that finance is re,uired for many business activities which can include setting up the business, e"panding, paying for e"penses, research and development and the day-to-day running of the business! )he Barbados )ransport Board only re,uires finance for all of the above but, because of subsidization by Government, these costs are mainly covered by the Government, leaving them only to pay for e"penses! )herefore, management does not have to devote a great deal of concern to sourcing finance because Government covers any deficit which cannot be covered by revenue! )he finance for this firm is usually short-term, that is, one year or less! )his means that it is sourced from ban& overdrafts rather than creditors or debt factoring as they do not apply to the type of business being analysed! $arcousA et al >(::/? define the acid test ratio as a ratio e"amining the business+ li,uidity position by comparing current assets and liabilities, but omits stoc& from the total of current assets since stoc& is the most illi,uid current asset! It is recommended by professionals that the ideal ratio be appro"imately 1*1 to suggest that the firm is meeting short-term payments! )he Barbados )ransport Board+s ratio is less than 1*1 which implies cash flow problems and the inability to cover current costs!


)he Barbados )ransport Board has, in its establishment, created a vision and a main ob#ective to ensure that there is a sense of purpose for its employees and a goal to wor& towards! From the responses given to certain ,uestions on the ,uestionnaire, its ob#ectives are only described as -relevant to the needs of the organisation.! %hen mapped against the S$ 9) criteria, this spells a problem for the organisation! It suggests that there is no way for performance to be measuredH the ob#ectives do not outline e"plicitly what needs to be achieved, how and by what time! 0onversely, it is not possible for an ob#ective, in practice, nor theoretically, to merely be Lrelevant+! ny ob#ective has to be specific, measurable and timetabled! It is possible though, for an ob#ective not to be Lagreed upon+ in that, in many cases, some sta&eholders are unaware of the business+ ob#ectives! lso, the $anagement by 2b#ectives system is not implemented which means that performance gaps may e"ist within the firm as the overall aim is not divided to create specific targets for each department! )his also points out the absence of a hierarchy of ob#ectives so the overall goal cannot be bro&en into strategies and tactics and it is not possible to measure performance! )he firm employs moderate consultation with employees, but &eeps trust at a low level! 9etraining facilities and clear ob#ectives are very low as they were rated 1 out of 6! In analysing and evaluating how this firm manages, leads and copes with change, it can be said that the low implementation of trust, retraining facilities, clear ob#ectives and consultation with employees are somewhat responsible for the firm+s inability to react positively to change! )herefore, when fare bo"es were implemented, because of the lac& of retraining facilities, trust, communication and clear ob#ectives, this change was a difficult one at the firm! )he conductors would have had a negative reaction to the change because it may have been sudden and they feared #ob loss! )he drivers, however, were also reluctant in that they would have to change routines and habits for this change to be implemented successfully!


ll aspects of the nature of change need to be coped with by this government owned organisation but communication is the only medium through which change is promoted! )heir communication system does not allow for feedbac& but ensures that all sta&eholders are briefed! $anagement tries to motivate employees to embrace change through this medium! @owever, overall reaction to change in the business is poor! )his is mainly because of the misunderstanding of the nature of change and various personal insecurities such as fear of #ob loss and the inability to ad#ust! )he firm+s financial re,uirements are met by the Government which owns and subsidises it! )his implies that Government will finance and support any unprofitable operations through ta"ation receipts! )his enables them to pay for short-term any e"penses! )he day-to-day running of the firm, however, is funded by ban& overdrafts! 'osses in this sector are not seen as management+s inability to ma&e sound financial decisions, but are acceptable as costs almost always e"ceed revenue! )his is so because prices are seldom charged to cover costs and ma&e a profit at the same time! Government may impose spending limits if financial deficits are too e"cessive/!


;earden M Foster >188/?


Based on the information gathered in the ,uestionnaire and the comparison of the results to the literature, there are certain recommendations which could be made to the Barbados )ransport Board! It is recommended that ob#ectives be formulated as closely as possible to the S$ 9) criteria and be bro&en down into strategies and tactics for each department within the firm! )his should be done in an effort to ensure that the wor&force is motivated and coordinated! By altering the ob#ectives and motivating the wor&force, the firm should also aim to establish better wor&er-management relations employing trust, delegation, participation and consultation so that when there is a need for change, it may be implemented as successfully as possible by removing the ma#or stressors! )he Barbados )ransport Board should assess any overhead costs li&e advertising or professional labour and ma&e the best of any opportunity to reduce them! It should also sell any assets which are not generating revenue! )hese should be done in an effort to improve the firm+s li,uidity!



fter studying, analysing and evaluating the Barbados )ransport Board, it can be concluded that the establishment of ob#ectives can affect all aspects of the organisation including the ability or inability to cope with change and fulfil financial re,uirements! ll aims were met as the firm+s ob#ectives were analysed, proving that they did not align with the S$ 9) criteria outlined in =ewell >(:::?! )he negative reaction to change was identified as well as the Government as the firm+s main source of finance!

A""endi8 0A2 6 .ite!at&!e 'eview


+&siness Objectives/ Jewell (2000) defines an ob#ective as something that we see& to achieve! n

ob#ective is necessary in order to accomplish a variety of things including determining a strategy and motivating employees! 2b#ectives can come in three forms* strategic, operational and tactical! Strategic ob#ectives relate to the productivity of the firm, which tactical ob#ectives are short-term targets and operational ob#ectives are statements used to define outcomes to be achieved! 2b#ectives should adhere to the ,MA'T criteria! )his simply means that ob#ectives should be* 1? ,pecific J to the organisation+s needs (? Measurable J in terms of using a performance measuring system /? Agreed J persons responsible for achieving ob#ectives have all argeed 5? 'elevant J to the organisation and capable of achievement 6? Timetabled J constructed with a signpost for fulfilment Stimpson & Mohammed (2007) outline several common ob#ectives of the business ranging from increasing mar&et share to concentrating on core activities! )hey e"press that the $anagement by ob#ectives system which is -designed to motivate and coordinate a wor&force by dividing the organisation+s overall aim into specific targets for each divisionI. can cause delegation and motivation to be very effective!

Management of Change/ Marcous et al (2003) provide that -I0hange is a permanent characteristic of business activityIin some cases it can be anticipatedIin others it is une"pected!. Jewell (2000) outlines some e"ternal and internal pressures for change must be identified! )hese were listed as competition, changes in technology, employees+ e"pectations and the financial environment! @owever, in practice, some organisations


will be more receptive to change than others! )his could be as a result of an organisation employing trust, retraining facilities, management-employee consultation and ultimately by establishing clear ob#ectives! Stimpson & Mohammed (2007) e"plain that there are several ways that the Lnature of change+ may be manifested within a business! )hese include* political, economic, social, technological and legal! 7olitical* 7olitical and governmental factors affect organisations and stimulate change through shifts in policy encouraging of discouraging control, protection, intervention and regarding financial assistance! Bconomic* )his deals more so with changes in the e"ternal environment, that is, the interaction between economies in the global mar&et! )his involves concepts such as demand, supply, ta"ation, subsidization and distribution of wealth or income! Social* 0hanges which are caused mainly by changes in social status, lifestyle, culture and even age fall into this category! )echnological* %hen innovation and invention occur, change occurs as well, causing technology to evolve! )his ranges from improved good and services in a mar&et to faster and more efficient ways of completing various organisational processes! 'egal* ny regulations or restrictions placed on an organisation which is bound by the laws of that land are seen as legal changes! Esually, Government would impose such in an effort to ensure fairness in trade, safety and health on the #ob and with the welfare of society in mind!

Reaction and Resistance to Change* (1

Jewell (2000) outlines possible reactions to change within an organisation! 0hange can be handled with* acceptance, indifference, passive resistance or active resistance! cceptance* )his would occur in situations where employees and all parties impacted by the change are enthusiastic about the change being implemented it and are willing to cooperate with management to ensure that it is successful! Indifference* Bmployees may in some cases e"press a lac& of concern and be unresponsive to the changes in progress! )his could be mainly e"ecuted through minimal contribution to organisational activities surrounding the change being implemented! 7assive 9esistance* Some individuals in the wor& environment would resist by being inactive! )hey may tend to present a non-learning attitude to the #ob or strictly wor&to-rule in an attempt to avoid submitting to the change being implemented! ctive 9esistance* Slowing down, absenteeism, sabotaging, intentionally ma&ing errors are attributes of this type of reaction to change! )he change may be viewed as illogical and wor&ers may be upset or offended by the suggested change! )his would result in their resistance!

Change is resisted ecause! Jewell (2000) e"presses that analysing why change occurs is essential! @e outlines organisational barriers include* 1? Structuring inertia J complacency and belief that change will destroy the logic behind current ways of operation (? B"isting power structure J those with little power will feel most threatened by change! If there is no ability to participate or ma&e decisions, one may be more threatened by the change! ((

/? 9esistance by wor& groups J change will negatively impact wor& groups through promotion, demotion or transferral!

Reasons "or resisting change! Fear of change* =ob security is threatened by change and because the nature is not properly communicated to employees, fear plays an integral part in resistance! ;isrupted habits* )he methods used to complete a tas& may need to be revised and the employee may find it difficult or be unwilling to Lbrea& away+ from redundancy! 'oss of control and confidence* )he power an individual has at his1her #ob influences their confidence! %hen manual labour is replaced by machinery or authority is reduced, employees lose control and confidence and would therefore oppose the change! 7oor training* Staff may not be provided with the s&ills needed to deal with new technology and systems! 9edistribution of wor&load* 4ew tas&s, systems and ob#ectives can result in wor&ers feeling as though they have been overburdened with wor& when other colleagues seem to have less! 'ac& of purpose* 0hange tends to leave some people unsure and insecure! If they were e"cluded from the change process and their new role is not defined they may suffer lac& of purpose! Stimpson & Mohammed (2007)

9esistance can derail the change process! )he greater involvement, the greater the probability of acceptance and contribution by wor&ers is! Stimpson & Mohammed (2007) )his resistance must be avoided and can be done by*


1? Increasing urgency! (? Building the team responsible for guiding1leading the change process! /? Bstablishing a vision identifiable by future staff! 5? 0ommunicating and involving as many employees as possible 6? 9emove obstacles to change by encouraging feedbac& and empowering employees! <? 0reate short-term aims that are relatively easy to achieve D? Bncourage determination and persistence! G? $a&e change permanent by recruiting and promoting change leaders! Communication and Change! Good communication plays a vital role in allowing change to be effectively introduced within an organisation! %ith two-way communication absent, the chances of change being delayed and resisted is greater! Stimpson & Mohammed (2007)

4eed fo! 7inance/ Finance is re,uired for several business activities! )hese can include the following* a? Setting up* capital! b? ;ay-to-day finance* ll businesses need wor&ing capital to pay for bills and e"penses and to build up stoc& levels! c? Increasing capital assets* )his is e"pansion and re,uires further finance and can involve higher wor&ing capital needs! d? B"pansion* Finance may be re,uired to by out other firms to increase mar&et share! e? 9esearch and development* part from purchasing assets, an organisation must pay for research and development into new products and even invest in business will need in#ections of cash from owners to purchase

the necessary capital e,uipment and even premises! )his is &nown as start#up


new mar&eting strategies such as overseas mar&ets! Stimpson & Mohammed (2007)

A""endi8 0+2 6 9&estionnai!e





5! 0hec& the appropriate bo"es below which describe your organisation+s ob#ectives! Specific J clearly states re,uirements $easurable Jbased on criteria which measures their efficiency greed J all persons responsible for achieving goals agree 9elevant J to the needs of the organisationH realistic )imetabled J date for fulfilment and completion 2ther, please specify* FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF

6! %hich of the following are some of the ob#ectives of your business enterpriseN 7rofit ma"imisation Growth Increased mar&et share



<! Esing a scale of 1 to 6, with 1 being the least and 6 the greatest, assess the relevance of the following limitations of the above ob#ectives to your firm! $a"imising profits* Focus on profits in the short-term increase competition and threaten long-term survival! FFFF 0onstant changes to price and output in an effort to ma"imise profits deter consumption or decrease demand! FFFF Growth* 9apid e"pansion may cause cash flow problems! FFFFF 'arger businesses can e"perience diseconomies of scale FFFFF

D! ;efinition* $B2 - $anagement by 2b#ectives J )his refers to a system where the ob#ectives of the firm are not only written but used in every day life on the #ob! )he system allows for individuals to compare their performances to the goal and eliminate performance gaps! Is this system implemented in your organisationN 3es 4o

G! In your opinion, does it motivate employeesN 3es 4o


7o! :&estions * to 12, on a scale of 1 to 6, where 1 is the least and 6 the greatest, assess the impact, relevance of the following where your organisation is concerned! 8! %hich of the following e"ist within your firmN Fre,uent consultation with employees FFFF )rust FFFF 9etraining facilities FFFFF 0lear ob#ectives FFFFF

1:! %hich natures of change does your business have to cope withN 7olitical >Government intervention and protection? FFFFFFF Bconomic >the e"ternal economic environment? FFFFFFF Social >societal structure? FFFFFFF )echnological FFFFFFF 'egal >regulations? FFFFFFF

11! %ithin your firm, what are the reactions to changeN cceptance FFFFFF 9esistance >passive? J non-learning behaviour FFFFFF 9esistance >active? J slowing downH sabotage FFFFFF Indifference J lac& of interest, care or concern FFFFFF

1(! %hich of the following do you thin& account for the various reactions to change in your firmN Fear J whether of #ob loss or increased wor& load FFFFFF ;issolution of groups J being sent to a different department FFFFFF


Inability to ad#ust FFFFFF 'oss of power FFFFFFF $isunderstanding the nature of the change FFFFFF


16! On a scale of 1 to #; whe!e 1 is the least and # the g!eatest; ran& the suitability of the following to the communication system implemented in your organisation! Feedbac& to assess change FFFFF Investors and shareholders 24'3 to be briefed on change FFFFF $essages to be as clear and precise as possible FFFFF


1<! In which of these circumstances is finance >capital? re,uired for your firmN B"pansion LBuying out+ other firms )o pay for e"penses 9esearch and development 2ther, please specify* FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF

1D! re your financing needs mainly short-term >1 year or less? or long-term >1 to 6 years?N FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF 1G! %hich of the following ways was start-up capital ac,uiredN 7ersonal savings Ban&s Investments by venture capitalists Government agencies

18! @ow is wor&ing capital ac,uiredN 2verdrafts 0reditors (:! Esing figures from a previous cid )est 9atio, describe the business+ li,uidity!


B"cellent J /*1 and up Good J (*1 Fair J 1*1 7oor J less than 1

A""endi8 0C2 3 ,tatement of 7indings


Mod&le 1/ +&siness Objectives

The aim<vision of this fi!m/ -)he )ransport Board shall be an e"emplary transportation institution, e"hibiting the highest standards of e"cellence and contributing to the social and economic landscape of Barbados and in so doing assist in the sustainable development of the nation.!

The mission statement of this fi!m/ -)o be the principal provider of safe, reliable, and efficient mass transit services and to consistently deliver the highest level of customer satisfaction to users of public transport in Barbados.!

The objectives of this fi!m/ )he ob#ectives are only relevant to the needs of the organisation! )hese include* Growth Increased mar&et share )wo great limitations of their growth ob#ective are that* 9apid e"pansion may cause cash flow problems! s a larger business, they can e"perience diseconomies of scale!

@owever, the $anagement by 2b#ectives system is not implemented in the Barbados )ransport Board!

Mod&le 2/ Management of Change

7acto!s which affect Change/


It was found that all of the following e"isted within the firm but, at different levels! 1? 0onsultation with employees is mode!ate! (? )rust, clear ob#ectives and the presence of retraining facilities are at a ve!y low levelThe nat&!e of Change/ )his business is impacted on by several different factors causing change but, at different levels! 1? 7olitical change - government intervention and protection J has a very high impact on the )ransport Board! (? Bconomic J the state of the e"ternal economy J has a moderate impact on the )ransport Board! /? Social, technological and legal natures of change have very little impact on the )ransport Board!

The !eactions to Change/ %ithin the Barbados )ransport Board, employees react to change in four >5? different ways! 1? cceptance is very low

(? 7assive resistance is high /? ctive resistance is very low

5? Indifference is very high


$anagement believes that there are several reasons for this behaviour by employees! 1? Fear of #ob loss and increased wor& load (? ;issolution of wor& groups /? $isunderstanding of the nature of change 5? 'oss of power 6? Inability to ad#ust lso, communication is the method by which the firm+s organisational culture promotes change! s a result, management motivates employees to see change as positive by* 0larifying intentions Group discussions )he type of communication system implemented in the Barbados )ransport Board allows for* $essages to be clear and precise

It however does not allow for feedbac& to assess the change or for investors and shareholders 24'3 to be briefed on change!

Mod&le 3/ The 4eed fo! 7inance

7inancial 'e:&i!ements/ )he Barbados )ransport Board re,uires finance mainly to pay for e"penses! Such needs are short-term as they last one year or less! ,ta!t3&" and 5o!king Ca"ital/


Start-up capital was ac,uired solely through Government financing! %or&ing capital, however, is ac,uired by overdrafts! %hen assessing the firm+s li,uidity, it was found that its ratio was poor because the firm has less than O1 in assets for every O1 in liabilities!



=ewell, B >(:::?! An 1nteg!ated A""!oach to +&siness ,t&dies ! 7earson Bducation 'imited! $arcousA, I!, Suridge, $ M Gillespie, .evel! 2"ford ;esigns and Illustrations! Singh, P M Stimpson, 7 >(::D?! CAP% Management of +&siness =nit 1! 0ambridge Eniversity 7ress! ;earden, 0 M Foster, $ >188/?! O!ganisational ecision Making! 'ongman! http*11en!wi&ipedia!org1wi&i17ublicFgood 9etrieved pril (1, (::8! >(::/?! +&siness ,t&dies fo! A