business unit 4 aos2

Question 1

leadership

Answer 1

the process of positively influencing, encouraging and motivating individuals to achieve objectives.

Question 2

change management

Answer 2

the process of coordinating and implementing strategies in preparation for an organisation’s transformation.

Question 3

why effective leadership is important

Answer 3

. An effective leader will assist in reducing employee resistance to the change and provide employees with clarity regarding the change, which allows objectives to be met throughout the transformation.

Question 4

During the change, a successful leader will:

Answer 4

• Provide employees with a shared vision and communicate this clearly

Question 5

During the change, a successful leader will:

Answer 5

• Support, guidance, training, reward good performance

Question 6

During the change, a successful leader will:

Answer 6

• Be responsible for driving the change and focus on building positive relationships with employees and stakeholders.

Question 7

Staff Training: the process of providing employees with the knowledge or skills required to perform a particular job or role.
Examples: on-the-job, off-the-job, experienced mentor or co-worker

Answer 7

Number of customer complaints: improved customer service due to improved knowledge of the product through training, which may decrease customer complaints.

Number of workplace accidents: more informed on how to use machinery and equipment and increased productivity, which may reduce number of accidents.

• disadvantage: Financial cost of training

Question 8

Staff Motivation: concerned with how driven employees are to achieve objectives. To improve staff motivation, a business could: performance-related pay, recognition and rewards, offer career development increase loyalty

Answer 8

Rate of productivity growth: employees may be more motivated to work productively, increasing output per unit of input.

Level of staff turnover/rate of staff absenteeism: more motivated to show up to work and may encourage loyalty to the business over extended periods of time.

disadvantages: * Not all employees are motivated by the same kinds of strategies and rewards - eg. extrinsic vs instrinsic rewards

Question 9

Change in Management Styles or Management Skills
Management Style: behaviour or attitude a manager uses when making decisions, directing or motivating staff
Management Skill: abilities or competencies a manager will use to achieve objectives.

Answer 9

Net profit figures/market share:
May be time-sensitive so a manager may need to use a autocratic or persuasive style and use decision-making, leadership and clear communication.

Number of workplace accidents: two-way communication with employees would assist in understanding issues of unsafety in the workplace.

disadvantage: * It may take time for managers to change their style, which may decrease productivity.

Question 10

Increased Investment in Technology
Technology: practical application of science to the development of products to achieve business objectives.

Answer 10

Rate of productivity growth: faster than human labour, improves speed and delivery of output, repetitive tasks can be produced without stoppages. It also means fewer defective products are produced due to increased accuracy.

Net profit figures/Number of Sales: increased profits and sales through improved quality of product, which may also increase their customer base and improve their reputation due to the higher quality products being produced through technology.

disadvantages: May lead to redundancies, which may damage business reputation.

If technology breaks down, it is expensive to fix it and halt production which would decrease productivity.

Question 11

Improving Quality in Production
Improving quality in production involves a manager implementing quality strategies that increase the perceived value of a good service. eg: Quality Control, Quality Assurance, Total Quality Management

Answer 11

Level of wastage: increased accuracy and fewer defective products reduces the level of wastage produced, as a result of using quality strategies such as TQM.

Number of sales/Market Share/Net Profit Figures: obtaining QA accreditation will give a business a reputation for quality and provide a point of comparison to competitors.

disadvantages: * Expensive and time-consuming to implement quality strategies and train employees.

Question 12

Cost Cutting
Involves strategies that aim to reduce business expenses without comprising on quality.
eg. make employees redundant through replacing with technology

Answer 12

Net profit figures: reducing expenses may enable a business to improve their profits.

Level of wastage: decrease wastage due to increased accuracy through use of technology.
disadvantages: * Making employees redundant may damage business reputation.

Question 13

Initiating Lean Production Techniques
Business-wide approach that improves the efficiency and effectiveness of operations by eliminating waste and improving quality in order to increase value for the customer.

eg. aiming for zero defects, Just-in-Time, minimising waste

Answer 13

umber of customer complaints: decreased complaints due to aiming for zero defects and improving quality.
Net profit figures/Rate of Productivity Growth: JIT reduces storage costs which may increase profits, better use of resources.

disadvantage: Workers need to be trained in lean-production techniques, which is time-consuming and costly.

Question 14

Redeployment of Resources
Moving natural, capital or labour resources from one area of the business to another to improve their efficiency and effectiveness.

Eg. natural resources

Answer 14

Number of Workplace Accidents: if employees are redeployed to a different area of the business and no longer have to perform dangerous or repetitive tasks.

Level of Staff Turnover: may decrease level of staff turnover as employees are being redeployed to other areas, rather than being made redundant.
disadvantage: * Workplace accidents may increase if employees are redeployed to a new area and are unfamiliar with the equipment or machinery.

Question 15

Innovation
The process of improving or altering an existing product, or creating a new product.
eg. technology

Answer 15

• Increased accuracy due to eliminating human errors.
• Allows the business to gain a competitive advantage through creating a product which may satisfy customers.

disadvantage: * Employees may be made redundant due to technology

Question 16

Global Sourcing of Inputs
Involves sourcing inputs from overseas suppliers.

Answer 16

• More cost-effective for a business and they may be able to increase profits through access to cheaper labour overseas.

disadvantage: * May harm their reputation if there are poor working conditions

Question 17

Overseas Manufacture
Involves manufacturing a product in an overseas.

Answer 17

• More cost-effective for a business and they may be able to increase profits through access to cheaper labour overseas.

disadvantage: * May harm their reputation if there are poor working conditions

Question 18

Global Outsourcing
When a business process is contracted out to another business overseas (eg. non-core roles or functions, such as customer support, call centre, manufacture)

Answer 18

• More cost-effective for a business and they may be able to increase profits through access to cheaper labour overseas.

disadvantage: * Decreasing jobs available to the local Australian community - may harm reputation

Question 19

Corporate Culture

Answer 19

the values, behaviours, expectations and beliefs shared between employees and managers of a business.

Question 20

Corporate Culture Strategies for Development

Answer 20

• Provide training in line with the desired culture
• Communicate the desired values of the business to employees

Question 21

Senge’s principles
Systems Thinking: the ability to understand the interrelationships between different areas of the business and to evaluate the performance of a business as a whole rather than separate units.

Answer 21

• It involves a manager analysing a business as a whole, rather than separate parts, so they can consider how change in one area of the business may affect the performance of another area.

e.g. Purchasing cheaper materials

Question 22

Senge’s principles
Mental Models: the existing assumptions, generalisations and values held by employees about how a business should act, behave and respond.

Answer 22

• In a learning organisation, employees would be encouraged to challenge these mental models, including old assumptions and mindsets, in order to develop new ways of thinking and be more open to change.

e.g.

Question 23

senge’s principles

Shared Vision: an aspirational description of future goals a business and its members would like to achieve.

Answer 23

• A clearly communicated vision will provide a unified focus for employees, providing motivation to align their efforts to achieve the vision.

e.g.CEO Alan Joyce developed a shared vision of Qantas’s commitment to safety. All Qantas employees are required to regularly complete training programs to ensure that safety is maximised in the business’s operations.

Question 24

senge’s principles
Personal Mastery: a discipline that involves encouraging continuous individual development and a commitment to life-long learning.

Answer 24

• Employees with high levels of personal mastery are committed to self-improvement, and take more initiative and ownership of their work tasks.
• A learning organisation can facilitate this through providing an environment which encourages employees to pursue their own visions.

e.g. Employees at Qantas are provided with opportunities to create and shape their careers. This include employees being supported to take on challenging projects and are provided with training in areas of their choice, such as safety procedures.

Question 25

senge’s principles

Team Learning: encourages individuals to combine their strengths and grow together, and learn from each other to achieve their goals.

Answer 25

• Managers should encourage teamwork and collaboration within a business.
• Employees who work together, solve issues faster and achieve improved results, which may enable a business to achieve its objectives.

e.g. One of Qantas’s core group beliefs is that ‘working together’ in an inclusive manner always delivers the optimal group outcome.

Question 26

Low-Risk Strategy:

Answer 26

method of introducing change that is likely to be accepted with minimal resistance by employees and lead to a positive outcome.

Question 27

Communication:

Answer 27

process of exchanging information between a sender a receiver to produce a required response.

Question 28

communication advantages

Answer 28

Improves trust and working relationships with manager and employees

Employees feel more valued by the business as they are involved in the change process and are able to ask questions and make contributions,

Question 29

communication disadvantages

Answer 29

Process of providing regular, two-way communication can be time-consuming and negatively impact productivity.

Communication has the potential for conflict, which may damage workplace relationships.

Question 30

Empowerment:

Answer 30

process of managers providing employees with increased authority and responsibility during the change process.

making them believe in themselves

Question 31

Empowerment:
advantages 1

Answer 31

Employees feel more valued by the business as they are encouraged to take greater ownership of tasks, which can improve morale and reduce employee resistance to change in both the short and long term.

Question 32

Empowerment:
advantages 2

Answer 32

Empowerment may provide employees with the opportunity to advance their careers, which may increase motivation.

Question 33

empowerment
disadvantages 1

Answer 33

May be time-consuming if an employee is unable to perform an allocated task, which decreases productivity.

Question 34

empowerment
disadvantages

Answer 34

Potential for conflict between employees with differing opinions, which may damage workplace relationships.

Question 35

Support:

Answer 35

provision of guidance and assistance to encourage employees to accept change and adapt to new practices

Question 36

support
advantages

Answer 36

Employees feel more valued by the business as they are considered during the change process, which can improve morale and reduce employee resistance to change in both the short and long term

Question 37

support
disadvantages

Answer 37

Support strategies can be time-consuming and negatively impact the manager’s productivity.

Question 38

Incentives:

Answer 38

where managers provide financial or non-financial rewards to encourage employees to support a change.

Question 39

incentives
advantages

Answer 39

Employees feel more motivated
if they are provided with opportunities to advance their careers or develop more skills, which can improve morale and reduce employee resistance to change in both the short and long term

Question 40

incentives
disadvantages

Answer 40

Incentives may be costly to implement and may be an added expense to the business.

Question 41

High-Risk Strategies

Answer 41

method of introducing change that is likely to increase employee resistance to change in the long term, and lead to negative outcomes.

Question 42

high risk
Manipulation:

Answer 42

management approach where deception is used to influence employees to accept a proposed change by withholding information about the change.

Question 43

high risk
threat:

Answer 43

involves the manager using intimidation or informing an employee that they may face a punishment, if they do not accept the proposed change

Question 44

high risk advantages

Answer 44

Useful when change must occur quickly, or during a crisis, and the manager does not have time to consult employees. As a result, high-risk strategies are effective at reducing employee resistance to change in the short-term.

Question 45

high risk disadvantages

Answer 45

May weaken workplace relationships and negatively impact corporate culture, which often leads to increased resistance from employees in the long term.

Question 46

Differences between Low-Risk and High-Risk Strategies

Answer 46

Low-risk strategies can be used to overcome employee resistance in both the short and long term, whereas high risk strategies tend to only decrease employee resistance in the short term, and have negative impacts on morale and culture in the long term.

Question 47

three step change

Answer 47

used by a business to implement change successfully by breaking down change into three stages: unfreeze, change, and refreeze.

Question 48

unfreeze

Answer 48

prepare employees for the change. business will identify what needs to change, communicate a clear vision for the change and identify driving and restraining forces. The manager will communicate reasons for the change with employees assuring that support is available. increase acceptance of the change and build momentum for the change.

Question 49

change

Answer 49

involves the alteration of the business’ process, policies and practices as the change is implemented. Employees are empowered or supported during the change to alleviate any fears or resistance (eg. providing training, mentoring, etc.).

Question 50

refreeze

Answer 50

This involves putting strategies in place to ensure that the change and new practices and enforced and embedded into the culture of the business in the long term. To sustain the change, the manager could reward or celebrate employees who embraced the change, or rewrite policies or job descriptions.