5G and H Flashcards
low and high risk strategies
what are Low-risk strategies
Measured management approaches that gradually encourage employees to accept and participate in business change.
what are high-risk strategies
Autocratic management approaches used to influence employees to quickly accept and follow a business change
(extra) High-risk strategies are autocratic in nature as they involve employees having a low level of involvement with decision-making, and there is often little transparency regarding the business change.
What are the Low-risk strategies
-Communication(n.)
-Empowerment(n.)
-Support(n.)
-Incentive(n.)
What are the high-risk strategies
-Threat(n.)
-Manipulation(n.)
Low-risk strategies on Business success
Low-risk strategies= short term pain long term gain.= May cost time and resources to implement in short term, but ultimately is very beneficial in preparing a business for change and implementing successful change.
High-risk strategies on Business success
high-risk strategies= short term gain, long term gain.= we will achieve what we wanted to achieve, but the morale and distrust builds and has more negative long-term connotations associated with it.
what is communication as a low risk strat
involves managers openly and honestly transferring information to employees, and listening to their feedback so that employees are fully aware of the reasons for, and impacts of an upcoming change.
what is empowerment as a low risk strat
involves managers providing employees with increased responsibility and authority during times of change. You [[delegate]] employees [[decision making power]]
what is support as a low risk strat
involves managers providing employees with assistance as they move from current to new practices. they providing support services to employees, to allow them to feel that they are a part of the decision of change.
what are incentives as a low risk strat
involves managers providing financial or non-financial rewards to encourage employees to support change. Offering a financial or non financial reward to increase an employees desire to change
what are threats as a high risk strat
involves forcing employees to follow a proposed change by stating that they may or will cause harm to them if they fail to do so.
what is manipulation as a high risk strat
involves influencing employees to support a proposed change by providing incomplete and deceptive information about the transformation
why is communication(n.) important in business change.
Preferable communication method=
-quickly
-clearly
-personably and with respect
-allow employees the opportunity for feedback, and where possible, contribution to the decision-making process.
-when notified of change employees= surprise factor is gone
-know how and why behind change=feel part of whole process and embrace it far more
why is Empowerment(n.)important in business change.
-as employees more involved in change process=more likely to be invested in its success.
-giving employees skills, resources, authority and opportunity, holding them responsible and accountable for the outcomes of the actions=contribute to increase performance and satisfaction
-involving employees in decision making process in relation to change, giving tasks and responsibilities to enact change=
:build employee commitment
:build employee motivation
:enhances change chances of being successful
why is Support(n.)important in business change.
:nurturing activities= to understanding the emotions of employees feel during change= provide services to look after them.
Examples of support=
-Relying on inter-personal skills
-Counselling
-Mentoring
-discussion forums
-Mediation
why is Incentive(n.)important in business change.
-employees=motivated to embrace change= because they know that they will receive a reward when they preform as requested.
Examples of incentives=
-Pay bonuses
-Gift cards
-Promotional opportunites
-Paid vacations
-On-site health and wellbeing programs
-Verbal acknowledgement from leadership
-‘Employee of the month’
why is Threat(n.)important in business change.
-unethical + immoral + illegal(if it forms part of an unfair dismissal claim)
-associated with managers who favour a more autocratic management style
This strategy involves=
-generally exploiting the typical fears held by employees
-providing incomplete information
-Providing deceptive information
=influencing employees to support a proposed change
why is Manipulation(n.)important in business change.
-persuading or coercing employee to do what you want them to do=
:without giving full or most accurate picture of situation
:Putting them in position they are less likely to disagree
This strategy involves=
-selectively presenting information and details to distort employees’ understanding of an upcoming transformation.
-managers leaving out details,
-distorting the facts
-making the change seem more beneficial than it actually is
=influencing employees to support a proposed change
communication(n.) examples
Communication=one way to two way, or two way to one way
Communication examples=
:Emails=one way
:meetings=two way
:public announcement=two ways
Support(n.) examples
-Relying on inter-personal skills(possible n.)
-Counselling(possible n.)
-Mentoring(possible n.)
-discussion forums(possible n.)
-Mediation(possible n.)
Incentive(n.) examples
-Pay bonuses(possible n.)
-Gift cards(possible n.)
-Promotional opportunities(possible n.)
-Paid vacations(possible n.)
-On-site health and wellbeing programs(possible n.)
-Verbal acknowledgement from leadership(possible n.)
-‘Employee of the month’ (possible n.)
Threat(n.) examples
- dismissal
- poor employer references
- loss of promotion.
advantages of low risk strategies
Strengths
· Preserves employee morale
· Maintains commitment to the business
· Maintains motivation
. Reduces resistance
Advantages
-Business=
* Communication, empowerment, and support all result in a higher chance of change being successful in the long term due to increased trust and cohesion between managers and employees.
-Employee=
* Support and communication can effectively reduce employees’ fear and stress levels related to change.
* Incentives and empowerment can provide employees with opportunities to advance their careers.
* Low-risk strategies can make employees feel valued by the business.
-Time=
* Low-risk strategies can be useful for businesses where the change will take a long time to introduce (several months or years) as they are more sustainable approaches.
-Money=
* If employees feel valued by the business and trust their manager, they are more likely to stay at the business, reducing costs associated with hiring new employees.
* If employees embrace the change and want it to be successful, the change may be implemented more efficiently, potentially reducing expenses incurred such as having to retrain employees to learn different skills.
disadvantages of low risk strategies
Weaknesses
· Can take longer to initiate change
. May require additional expenses and time to implement support, counselling, etc.
Disadvantages
-Business=
* Empowerment may result in tasks being carried out in a way that management did not intend if employees are inexperienced, leading to decrease in quality or efficiency
* Incentives could be seen as bribes if not executed properly.
-Time=
* All low-risk strategies are not useful in crisis situations as they take a longer period of time to be effective
-Money=
* Incentives lead to financial expenses for the business, which can therefore reduce overall profit.
Advantages of high risk strategies
Strengths
· Ensures that change is implemented quickly and matches exactly what the manager requires
. Useful in crisis situations
Advantages
-Business=
* Change is implemented in a way that the manager desires as there is no employee input.
-Time=
* High-risk strategies are effective in crisis situations where change must occur rapidly.
-Money=
* The initial implementation of high-risk strategies can be relatively inexpensive for the business.
disadvantages of high risk strategies
Weaknesses
· Potential for fear, resentment, reaction
· Motivation could decrease
· Distrust between management and staff could build
· Can actually lead to greater resistance, i.e. through staff turnover, strikes
Disadvantages
-Business=
* Implementing these strategies may lead to the development of a negative corporate culture in the future, due to long-term distrust.
* The relationship between management and employees is compromised.
-Employee=
* Employees may be fearful of losing their job and believe they are easily replaceable
* There may be low morale in the workplace, and employees are more likely to leave or be absent from work.
-Time=
* These strategies are usually only effective in the short term as employees are unlikely to follow change, under such harsh conditions, over long periods of time.
-Money=
* The expense of replacing employees may increase as these methods can increase staff turnover due to decreased employee satisfaction and loyalty.
Compare low risk and high risk strategies
Low-risk strategies create a supportive environment for employees during the change process and are a gradual management approach that requires the business to have suitable time and resources to reduce resistance to change.
