Question 1

Explain any five (5) external trends that a company should examine before any performance

management planning is carried out. Give an example of each type of the trends.

The ability of a company to quickly identify and respond to changes in the external

environment is critical to its stability and profitability. Change is unavoidable, and an

organization's ability to deal with unexpected market mutations can mean the difference

between survival and extinction.

The COVID pandemic is a good example of how external factors can have a significant impact

on organizations. While some were hit harder than others, nearly every business was forced

to evaluate the changing landscape and implement some sort of coping strategy.

The most effective way for a company to prepare for flexibility and adaptability is to create a

framework for conducting an environmental scan. An environmental scan is the methodical

collection, analysis, and interpretation of data about external opportunities and threats.

The five external trends include:

(P)olitical: The extent to which a government can influence the economy and, as a result,

organizations in a particular industry. This includes government policy, political stability, trade

and tax policy, among other things.

(E)conomic: How economic conditions affect supply and demand in a company. This includes

changes in interest and inflation rates, as well as economic growth or decline.

(S)ocial: Emerging trends and patterns in population analytics, demographics, and customer

behavior may indicate changes in customer needs and wants, as well as a need for workplace

change.

(T)echnological: The process by which innovation and development shape a market or

industry. Automation, technology awareness and adoption rates, and new services or products

are all examples of this.

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(S)uppliers: To conduct a thorough external analysis, the company must examine its supply

chain. The supply chain of a company is the system involved in converting raw materials into

finished goods and then carrying finished goods from the supplier to the consumer. The supply

chain includes all logistical issues and steps.

Political

• Government structure and stability

• Press freedom, the rule of law, and levels of bureaucracy and corruption

• Trends in regulation and deregulation

• Employment and social legislation

• Trade and tariff controls, as well as tax policy

• Environmental and consumer protection laws

• Changes in the political environment are likely.

Economic

• Business cycle stage

• Economic growth, inflation, and interest rates, both current and projected

• Labour supply and unemployment

• Costs of labour

• Income distribution and disposable income levels

• Globalization's Impact

• The likely economic impact of technological or other change

• Changes in the economic environment are likely.

Social

• Population growth rate and age distribution

• Population health, education, and social mobility, as well as attitudes toward these

issues

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 • Employment patterns in the population, job market freedom, and work attitudes

• Attitudes of the press, public opinion, social attitudes, and social taboos

• Lifestyle decisions and attitudes toward them

• Changes in Socio-Cultural Conditions

Technological

• The influence of emerging technologies

• Internet impact, reduced communication costs,

• increased remote working

• Research and Development activity

• The Effect of Technology Transfer

Suppliers

If we take into consideration the smartphone supply chain, the following steps are carried out.

Suppliers provide raw materials such as glass, lithium, and aluminium. Manufacturers use

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these raw materials to construct smartphones in factories. The finished phones are then

distributed and sold in retail stores. These retail locations sell the phones to customers.

On the other hand, the supply chain for e-Commerce companies differs from that of traditional

brick and mortar stores. As illustrated in the diagram above, we begin with the e-Commerce

domain. Consumers choose the products they want to buy, and payment is handled by a third-

party payment manager. The chosen products are transported to a warehouse where they are

prepared for shipment. The products are shipped to customers, who return to the same site to

repeat the process. This is the typical supply chain cycle for e-commerce firms like Amazon

or Alibaba.

Question 2

Differentiate the three determinants of performance that allow some people to perform at

higher levels than others with appropriate example.

Campbell (1990) proposed determinants of performance components. Individual differences

in performance are determined by three major factors: declarative knowledge, procedural

knowledge and skill, and motivation.

Declarative knowledge is about the facts, ideas, and principles that guide you while

doing this job, as well as information that may help you achieve what you need from

doing this job.

For instance: there is someone who works as an English teacher. So, what are the declarative

knowledge requirements? Of course, he/she must be familiar with grammar, a wide range of

vocabulary, phonetics, reading and writing skills, and so on.

Procedural knowledge is the understanding of how to carry out job-related tasks. It is

about the abilities required to complete a specific task.

So, for a moment, consider what procedural knowledge is related to the English teacher.

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Examples include teaching and presentation skills, feedback methods, ways to simplify

information, and the ability to use PowerPoint or Prezi. Interpersonal abilities that aid the

teacher in dealing with his students.

Declarative Knowledge Procedural Knowledge

1. It is also referred to as descriptive It is also referred to as interpretive

knowledge. knowledge.

2. While Declarative Knowledge refers Procedural Knowledge refers to knowing

to fundamental understanding of a how to do something.

subject.

3. Declarative Knowledge is more The fact that procedural knowledge is not

widely used. widely used indicates that it is not widely

used.

4. Declarative knowledge is simple to Procedural knowledge is difficult to

communicate. communicate.

5. Declarative Knowledge is primarily Procedural knowledge is typically process

concerned with data. oriented.

Finally, Motivation is concerned with why you are doing this job. What are your

objectives? What drives you to become an English teacher? What are the values you

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hope to instil in others? All of these questions influence the amount of effort you will

expend.

In conclusion, performance is equal to Declarative Knowledge + Procedural Knowledge +

Motivation.

The Bottom Line is

These 3 elements influence performance:

Declarative understanding, or the "WHAT"

Procedural expertise, or knowing "HOW,"

Motivation, or the "WHY,"

Finally, we should keep in mind that these three factors—which affect how well any person

performs—are the cause of any performance issues we may be having with ourself or one of

our employees.

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Reference

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June 28). Retrieved August 27, 2022, from https://www.geeksforgeeks.org/difference-
between-procedural-and-declarative-knowledge/
3. External analysis. Corporate Finance Institute. (2022, February 7). Retrieved August
27, 2022, from
https://corporatefinanceinstitute.com/resources/knowledge/strategy/external-analysis/
4. Goggin, M. (2022, January 4). How to identify external factors that may affect your
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https://www.clearpointstrategy.com/external-factors-that-affect-a-business/
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https://www.healthknowledge.org.uk/public-health-textbook/organisation-
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6. Warda, O. (2018, January 26). 3 factors that shape your performance at work.
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factors-shape-your-performance-work-omar-abdelhakim/
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https://en.wikipedia.org/wiki/Job_performance#:~:text=Individual%20differences%2
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