AOS5 - Implementing Change

Question 1

What is Leadership and why is it important?

Answer 1

Leadership is the ability to influence and motivate individuals to achieve business objectives. Change can be a difficult process for many stakeholders and leadership is important because it can help overcome this resistance.

Question 2

What are some Traits of a Good Leader?

Answer 2

• Good Communication
• Good Listener
• Able to resolve conflicts
• Supportive
• Motivation
• Bind employees

Question 3

What is Responding to KPI’s?

Answer 3

CQ CRISIS
Once a business has reviewed its Key Performance Indicators, thy may wish to implement strategies in response to this review. Some of these strategies include:
• Staff Training – the process of improving an employee’s skills and knowledge.
• Staff Motivation - Motivating employees to work harder towards achieving business objectives
• Change in Management Style/Skill – Influence performance of a business and its culture
• Investing in Technology – the purchasing of technology to be used to achieve business objectives
• Quality of Production – improving the quality of the end product that reaches the consumer
• Cost Cutting – the process reducing costs without having a significant impact on the overall product
• Initiating Lean Production Techniques – minimising waste produced while improving value to consumer
• Redeployment of Resources – the transfer of resources from one place to another in a business (Human, Natural and Capital Resources)

Question 4

Why does a Business need to seek new business opportunities?

Answer 4

Managers will often seek new opportunities to gain new business and grow and expand as a competitor in the industry. Businesses can implement strategies to seek new business opportunities domestically or globally.

Question 5

What are Domestic Opportunities?

Answer 5

Domestic Opportunities are where the business is looking to gain more business within their current country of operating.

Question 6

What is Multiple Branding and its Advantages and Disadvantages ?

Answer 6

where one business sells numerous makes of a product in the same market
A
• Choice in wide variety
• Businesses can hold larger amount of shelf space
D
• Customers may feel the business is only after profits

Question 7

What is Francising and its Advantages and Disadvantages ?

Answer 7

where a business grants someone the rights to commercial activities using the brand of the business
A
• Enables the business to expand while using other people’s money
D
• Loss of control
• Profits are shared

Question 8

What are Government Programs and its Advantages and Disadvantages ?

Answer 8

Where the government provides assistance for businesses that are looking to grow
A
• Allows business to grow therefore employ more staff
• Stimulate the economy
D
• Only funded if grant is accepted

Question 9

What are Global Opportunities?

Answer 9

Global opportunities are where the business is looking to gain more business outside their current country of operations

Question 10

What are Exporting and its Advantages and Disadvantages ?

Answer 10

where a business sends their goods and services to another country for sale
A
•	Open up new markets 
•	Bolster sales
D
•	Extra taxes and legal requirements

Question 11

What are Austrade and its Advantages and Disadvantages ?

Answer 11

The government body that is involved in advancing Australia’s international trade and education as well as investment and tourism
A
• Establishes connections
• Makes use of global trade experts
D
• Costly to set up an agent and distributor

Question 12

What are Develop an online presence and its Advantages and Disadvantages ?

Answer 12

putting the business online can allow the business to attract new customers in locations domestically or globally
A
• Open up new markets
• Worldwide production
D
• Costly
• Requires new distribution channels which the business can trust

Question 13

What is Senge’s Learning Organisation?

Answer 13

The Learning Organisation is a business that is flexible, adaptive and productive, which aims to have a culture where people work together and continually learn to work at their best. These businesses will excel during times of rapid change.

Question 14

What are the Advantages and Disadvantages of Senge’s Learning Organisation?

Answer 14

A
•	Boost creativity
•	Continuously improving
•	Increase in staff motivation and empowerment 
D
•	Requires a cultural change
•	Time Consuming 
•	Large businesses may struggle to share ideas between all members

Question 15

What are the 5 Key Principles to the Learning Organisation?

Answer 15

(SM PTS)
Systems Thinking
Mental Models
Personal Mastery
Team Learning
Shared Vision

Question 16

What is Systems Thinking?

Answer 16

the ability to see the big picture rather than see things in isolation. A manager that is able to demonstrate systems thinking is able to see the interrelationships and connections between the different principles and parts of the business (e.g. Considering how a strategy affects the business as a whole)

Question 17

What is Mental Models?

Answer 17

the deeply ingrained assumptions, generalisations and images of how people understand the world. This is about creating a business culture of openness, inquiry and trust where employees are encouraged to challenge old assumptions in order to feel empowered and create some revolutionary.

Question 18

What is Personal Mastery?

Answer 18

the ability of individuals within the business to undertake continual learning. If a business can provide an environment that allows individuals to learn and follow their passions, Employees will continuously work towards a bigger vision of themselves and the business.

Question 19

What is Team Learning?

Answer 19

the process of aligning and developing the capacities of a team to create the results its members truly desire. This is important as it places emphasis on the team rather than the individual, with a purpose to learn from each other and solve problems quicker

Question 20

What is Shared Vision?

Answer 20

being able to develop a vision that the people within the business believe in. This is important as it creates a common goal that provides focus and energy for learning, whilst enabling the employees to feel empowered and develop a long term desire towards transformation.

Question 21

Why might an Employee resist change?

Answer 21

Employees can often resist change because they feel isolated, fear, frustration and uncertainty. Managing change effectively is crucial to overcome this resistance and ensure the change is successful.

Question 22

What are Low Risk Strategies and the Examples?

Answer 22

Low- risk strategies are long term methods of introducing change that are likely to be well accepted with little resistance.
Communication
Empowerment
Support
Incentives

Question 23

What is Communication as a Low Risk Strategy?

Answer 23

Being open and honest about the change so that employees fully understand the direction of the business and its impact. Allowing employees to voice their concerns and have their questions answered helps to build trust and gains support as employees have a better understanding of the change.

Question 24

What is Empowerment as a Low Risk Strategy?

Answer 24

Involving employees in the change process can assist them to get on board with the change. Allowing them to be involved shows a level of trust in the employees which can help gain support for the change, and are less likely to resist decisions that they have been involved in making.

Question 25

What is Support as a Low Risk Strategy?

Answer 25

All the nurturing activities related to understanding the emotions the employees will feel during the change and providing services to look after them. Whether they lose their job through the change or just find it difficult, they can be supported through training, counselling and consultation

Question 26

What is Incentives as a Low Risk Strategy?

Answer 26

providing a reward to the employee to encourage them to embrace the change. This knowledge that a reward will be generated motivates the employee to continue to embrace change. This can come in many forms, including promotions or bonuses.

Question 27

What are High Risk Strategies and the Examples?

Answer 27

High- risk strategies are short term methods of introducing change likely to be resisted by employees and other stakeholders.
Manipulation
Threat

Question 28

What is Manipulation as a High Risk Strategy?

Answer 28

Gaining support from employees by the selective use of facts or deception. Whilst this strategy can reduce resistance through knowledge of the positives, the negatives might outweigh those positives and cause harm to the morale and culture if the employee finds out.

Question 29

What is Threat as a High Risk Strategy?

Answer 29

• Threat – Forcing employees to embrace the change or receive punishment. Although it can get employees to embrace the change quickly, it can cause resentment and harm relationships. Possible threats include retrenchment, loss of promotion, demotion or loss of working conditions.

Question 30

Evaluate the use of High Risk strategies to overcome resistance in a business rapidly losing money?

Answer 30

High risk strategies have the advantage that they are often very quick and effective in achieving exactly the change that the manager requires in a very short period of time. However, a weakness of using this high-risk strategy is that it can potentially alienate and offend the employees as they feel manipulated or threatened into action which may cause the very resistance the manager was seeking to avoid. In this situation as the business must instantly respond or risk failure, even if the employees resist, the manager must manipulate or threaten them to take the action he or she has decided upon in order to save the business.

Question 31

Why should Lewin’s 3-Step Change Model be used when implementing change?

Answer 31

Change can be very confronting and if handled badly can have some disastrous effects for a business. To avoid these a systematic process, such as Lewin’s 3-Step Change Model, should be implemented when change is imminent

Question 32

What is the Unfreezing Stage and what needs to be considered during this stage of the change model?

Answer 32

The Unfreezing Stage refers to preparing the business for change. During this stage it is important that:
• The business examines the status quo and Identifies what needs to change
• The business creates urgency by demonstrating a need for change
• The business challenges current beliefs that may resist change

Question 33

What is the Changing Stage and what needs to be considered during this stage of the change model?

Answer 33

The Changing Stage refers to when the business is unfrozen and can begin moving towards the desired state. During this stage it is important that:
• Open communication and support are used to help make the change less difficult
• People feel empowered to take and action towards the implementation of the change

Question 34

What is the Refreezing Stage and what needs to be considered during this stage of the change model?

Answer 34

The Refreezing Stage refers to reinforcing the change and anchoring it into the culture for the long term. During this stage it is important that:
• The refreeze is successful to avoid a gradual transition to old ways
• Continuous support and training are provide to help reinforce
• Adjustments are made where necessary

N.T. There is also an argument in the modern day discussion of this theory, that the third step is no longer necessary, as companies should be in a more constant wave of change and never ‘re-freezing’ any aspect of their company.

Question 35

What are Managers and their effect on Stakeholders?

Answer 35

Managers are those that make decisions on the direction of the business and the strategies used to achieve those objectives. Changes from a business can impact managers in a number of ways including:
• Change of management style
• Change of processes that managers need to carry out
• Increase/decrease of roles
• Loss of employment

Question 36

What are Employees and their effect on Stakeholders?

Answer 36

Employees are those that work in the business and are often the ones effected the most by change. Changes from a business can impact employees in a number of ways including:
• Loss of employment through downsizing
• Changes such as new technology can after an employee’s job (good or bad)
• Change may lead to new opportunities and more rewarding work

Question 37

What are Customers and their effect on Stakeholders?

Answer 37

Customers are those that purchase goods or services from a business. Changes from a business can impact customers in a number of ways including:
• Improved quality or lowered price
• Alteration or discontinuation of a product
• Customer loyalty might be taken advantage of, thus forcing them to shop elsewhere

Question 38

What are Suppliers and their effect on Stakeholders?

Answer 38

Suppliers are businesses that provide resources to a business, and when businesses change their operations it can effect suppliers. Changes from a business can impact suppliers in a number of ways including:
• Transition to more socially responsible materials
• Overseas supplier to save money
• Implementation of JIT can impact a supplier significantly

Question 39

What is the General Community and their effect on Stakeholders?

Answer 39

General Community is the people who live in the general area, who are all effected by change. Changes can impact the general community in a number of ways including:
• Offshore businesses can increase unemployment
• Expansion to a new location can stimulate the local economy

Question 40

Why is it important to understand the CSR Considerations in Change?

Answer 40

Businesses need to consider their impact on the environment, on the community, employees and other stakeholders. CSR can be a driving force for businesses to implement change or the business needs to consider CSR when implementing changes.

Question 41

Why should a business consider its CSR when Restructuring/Downsizing?

Answer 41

When a business looks to restructure it should consider the impact on the employees and the community. In doing this, the amount of jobs lost must be taken into account and possible strategies in order to find them new employment.

Question 42

Why should a business consider its CSR in regards to its Suppliers?

Answer 42

When a business is considering its CSR, it must consider where and how they source their materials. Purchasing supplies from local suppliers can ensure they are receiving ongoing support. In addition, a business should consider the working conditions of employees in overseas suppliers.

Question 43

Why should a business consider its CSR when considering Changes in Technology?

Answer 43

Businesses can consider the impact technology will have on employees, in that, an increase in technological advancements can result in a loss of jobs. In addition, the use of technology should be highly considered to ensure that the business is not damaging the environment

Question 44

Why should a business consider its CSR in regard to the Environment?

Answer 44

Businesses should consider the environment when implementing changes. Changes that could increase pollution or can harm wildlife habitats should be considered. The changes they make should improve the impact on environment.

Question 45

Why should a business Review their KPI’s?

Answer 45

Businesses use key performance indicators to evaluate their performance, which in turn can drive a business to implement change. If the KPI’s suggest that the change was successful, then the business can continue to develop on the right path otherwise they must make adjustments.