Ch 7

Question 1

Define change

Answer 1

is any alteration in the internal or external environments

Question 2

Define organisational change + explain

Answer 2

is the adoption of a new idea or behavior by an organisation
i.e. – modifying corporate culture, changed organisational structure, changed selection processes, developed different work practices.
Organisations must be dynamic and able to adjust to a constantly evolving environment.
Change pressures are factors that drive an organisation to adopt and implement

Question 3

Explain managing change

Answer 3

Ability to adapt and manage change can determine an organisations ability to survive and develop a competitive advantage. Proactive managers initiate change rather than simply reacting to events.
Anticipate and adjust to changing circumstances. Reactive managers wait for a change to occur and then respond to it. Passively swept along, or caught unprepared for change.
Change must occur at a pace that allows the organisation to absorb and integrate into its operations.
Change entails risk and requires strong leadership skills + responsive management structures
Poorly managed change results in employee resistance, anxiety, tension, lost productivity, and unmet objectives.
Long-term survival of an organisation depends on ability of managers to scan the environment, predict future trends, and exploit change

Question 4

Define proactive

Answer 4

To be proactive is to initiate change rather than simply react to events

Question 5

Define reactive

Answer 5

Is to wait for a Change to occur and then respond to it

Question 6

Explain the internal environment change pressures

Answer 6

The dynamic nature of the internal + external (operating) environments as a source of change:
Sources of change refers to where the change comes from, which includes from both internal and external (operating) environments
Internal Environmental Change Pressures:

Poor Financial Performance:
Occurs when an organisation is not delivering an ideal amount of profits.
Powerful driving force for change.
Organisations obliged to change practices to improve financial performance.

Crises:
All organisations face a crisis, and responding to the crisis requires decision_making by management to reduce the disruption to the organisation.
Response to crisis will differentiate organisations.

Innovation:
Desire to develop new and improved ways of doing things.
Innovating successfully results in exponentially improved financial performance.

Corporate Culture:
Inappropriate or negative cultures can have adverse effect on productivity and competitiveness and must be changed.
Can be difficult to change as usually formed over many years (long-term).
If culture impedes success, it must be changed.

Policies:
Outdated, inappropriate, and nonexistent policies are pressure to change.
Internal change results from development and implementation of policies.

Management Styles:
Styles that do not allow for maximum productivity and effectiveness can be pressure to change.

Employees:
Often demand change, which must be catered for as they are a necessity to success of organisation.
i.e – changing employment conditions to allow for more flexible conditions

Question 7

Explain the sources of change in a operating environment

Answer 7

Customers:
Change in consumer tastes and expectations must be addressed to satisfy the customers’ needs.
Customers purchase the goods and services sold by an organisation and must be catered for to ensure long-term profitability.

Suppliers:
Factors affecting ability to provide inputs can be pressure to change.
Organisations should constantly be looking for new and backup suppliers, even when
they are satisfied with present suppliers.
This ensures the organisation is less vulnerable to supply difficulties.

Competitors
Activities of competition must be monitored to determine the effect they may be having on the marketplace.
This allows for an appropriate change to respond to competitors’ movement in the market to ensure they do not increase their market share or develop a competitive advantage.
Organisation with knowledge of competitors actions can modify existing business activities and plan for new ones in line or better than that of competitors.

Creditors and Financial Institutions
Changing in credit terms and availability and cost of credit can be pressure for change.
For example, if the cost of credit is increasing, the business may have to rely less on loans and use capital to finance investments or purchase of assets.

Investors
Favour organisations that are profitable, well managed, and ethically and socially responsible.
Pressures organisation into becoming desirable to investors to gain access to their capital from increased investments.

Interest Groups
Aim to directly influence the behaviors of the organisation.
Trade Unions aim to improve employees’ wages and working conditions, and can influence change in these areas.
Consumer groups aim to protect people from corporate abuse, such as unsafe products and misleading advertising.
The can bring about change in areas such as marketing techniques, and operational procedures.

Question 8

The dynamic nature of the external Macro environment as a source of change

Answer 8

Economic forces:
The state of the economy will affect business and necessitate change.
For example; a recession will result in reduced spending and the business may have to respond with downsizing the workforce.

Legislative Pressures
Change in laws and government policy can pressure change.
For example, complying with Fair Work Act 2009 that required businesses to meet
Minimum employment requirements.

Political Pressures
Current and potential influences from political pressures.
For example, pressure by the government to lower bank account fees.

Technological Forces
Adopt appropriate technology to remain competitive both locally and globally.
Slow adoption of technology will lead to organisation falling behind competitors, and
Competitors developing a competitive advantage over the organisation.
i.e – Australian retailers creating online websites to remain competitive against overseas retailers.

Global Forces
Globalisation results in the world operating in a single market and increased competition for all local businesses.
This requires increased competitiveness by local businesses to continue to compete in the market.
Must implement change to reduce costs to compete against cheaper imported goods.

Geographic Pressures
Exporting to markets close in proximity to Australia creates opportunity to expand, and many responsibilities associated with expansion.
For example, businesses need to deal with laws and regulations in the offshore locations, and retraining local staff and training offshore staff.

Social Pressures
Changes in community attitudes and values, preferences and lifestyles will affect purchasing habits and organisation will need to cater to changes.
i.e –Australian retailers to cater to online shopping due to new trend towards it. Environmental Pressures
Community increasing awareness and concerns about environmental issues requiring changes to meet societies needs. i.e – Increased pressure for low emissions to combat climate change

Question 9

Define recession

Answer 9

is a contraction in the level of economic activity resulting in reduced spending, rising unemployment and slow rate of economic growth

Question 10

Define emissions trading scheme

Answer 10

regulates the buying and selling of permits to emit greenhouse gases. A permit allows emissions up to a prescribed cap or limit. Large emitters either choose to buy extra permits or invest in technologies that control emissions. If limits are exceeded penelties are imposed

Question 11

Define the force field analysis

Answer 11

outlines the process of determining which forces drive and which resist a proposed change

Question 12

Explain the 4 stages of force field change

Answer 12

Four stages of the force-field analysis:

1. Defining the target of change.
2. Identifying the forces that act to drive and those that act to restrain.
3. Analyzing the forces that can be changed.
4. Developing an action plan about what can be changed.

Managers implementing change must conduct a force field analysis to identify and balance the driving and restraining forces.
Driving forces are those that support a proposed change. Including the internal and external environmental change pressures.
Restraining forces are those forces that work against the change.
The status quo is the current conditions, the result of the two forces pulling in opposite directions.
When driving forces are dominant, the change is more likely to be successful.

Question 13

Define driving forces

Answer 13

Are those forces that support change

Question 14

Define restraining forces

Answer 14

Are those forces that work against Change

Question 15

Explain the benefits of driving forces for change

Answer 15

Positive culture leads to employees to be more accepting of change and have a positive view toward the change.
Positive relationships between employees and management will make employees more trusting of management and will be more likely to take risks associated with change if they believe management care about their wellbeing.
Consultative or participative management style that allows employee input in decision-making that makes it more likely employees will accept the change.
Organisations can plan ahead and put strategies in place ahead of time.
High productivity means the organisation can easily modify operations to accommodate change.

Question 16

Explain potential restraining forces impeding change

Answer 16

Management:
Managers may:
Make fast decisions that are poorly timed and unclear.
Be indecisive and delay making a decision creating uncertainty.
Both resulting in lost confidence in decision-making abilities of management.
Changes that threaten jobs usually face strong resistance.
i.e – Restructuring usually involves removing middle management positions

Employees:
any changes to an organisaiton and it’soperating environment and it’s procedures will eventually impact on the levek and type of staffing
Many HR management consultants argue that staffing considerations are one of the most entrenched reasons for employees to resist change
Employees may also resist change because they are worried that they can not adapt to the new procedures, which threaten established work routines – this is made worse if training Is not provided

Time:
Poor timing could be due to insufficient time provided not allowing employees to think about the change, accept the change, and then implement it.
An organisation may invest in change only to find they spent too long implementing the change and the external environments changed so much that the change is no longer effective.

Competitors:
Organisations may fear initiating major change when a competitor dominates the market because they fear it will be a waste of time and resources. Instead, they settle with their current market share and operational procedures.
The barriers to change and competition may be perceived as too high.

Low Productivity:
Existing operational procedures and work patterns may be effected initially when change is implemented which can create mistrust and suspicion among employees, which will ultimately decrease productivity at least for the short term. Fear of reduction in productivity can make organisations hesitant to embrace change.
Change can impact people through the loss of security, lack of control, fear of the unknown, and uncertainty about the future, which can lead to low morale and in turn low productivity. This is worsened if there is poor leadership and management during times of changeover

Question 17

Define organisational inertia

Answer 17

Refers to an unenthusiastic response from management to a proposed change

Question 18

Managers may resist change because it requires them to go out of their comfort zones as they desire a safe and predictable status quo.
Why may organisational inertia occur?

Answer 18

Legislation:
Significant change to the legal framework in which Australian organisations operate require compliance and can act as a restraining force.
Legislation may place restrictions on certain operational practices and procedures.

Costs:
The financial cost of implementation may impede change. Organisations must conduct a cost benefit analysis to determine whether the costs are worth the benefit gained, even if the organisation has sufficient finances.
The main financial costs of change include:

1. Purchasing new equipment: cost of new technology, buildings, or equipment.
2. Redundancy payments: employees who lose their job as a result of the change are entitled to financial compensation.
3. Re-training the workforce: employees must be retrained as new technology is introduced.
4. Re-organizing facilities layout: when new equipment is installed, the layout of the plant may require reorganization to improve efficiency.

Question 19

Causes of restraining forces

Answer 19

Organisational Barriers to Change
Organisational inertia – lack of/unenthusiastic response by management to proposed change.
Existing power structures – a system of authority in an organisation that can prevent change from happening if power structures are not in favour of the change occurring.
Resistance from work groups – groups of workers who regularly work together may all reject the change. If work groups reject the change, there will be no way for it to be successfully implemented.
Failure of pervious change initiatives – if change has failed in the past, the organisation will be less likely to initiate change due to fear of further failure.

Individual Barriers to Change
Tradition and set ways – including loyalty to existing relationships, failure to accept need for change, and preference for existing arrangements.
Fear of loss – of power, income, skills, the unknown, redundancy, and inability to adapt.

Reasons for Resistance
Self interest – narrow scope on the benefits of change and largely focused on implications to the individual. Misunderstanding – as a result of communication problems and inadequate information.
Low tolerance – of change as a result of insecurity. Different assessment of the situation – where the advantages and reasons for change may be disputed.

Question 20

Define change management process

Answer 20

is the sequence of steps that a member would follow for the successful implementation and adoption of change

For successful change to occur, the manager must take into account all elements, including:
Visible (obvious) factors – i.e: policies, uniforms, procedures.
Non-visible (hidden) factors – i.e – peoples aspirations, beliefs, feelings, corporate culture, personalities of employees involved

Question 21

Kotter’s process

Answer 21

Establish a sense of urgency
For change to be successful, it is helpful is the whole organisation sees the need for the change.
Develop a sense of urgency to spark the initial motivation to get things moving.
Examine the current market opportunities and threats and analyase the organisations competitive position – this will highlight the impending crises or impending opportunities

2. Form a powerful coalition (guiding group)
   Establish a team of people to act as a facilitator theu should have relevant authority, recognition and respect within the organisation
   Convince people that the change is necessary, including the need for strong leadership and visible support from key people in the organisation.
   Establish team of facilitators with relevant authority, recognition and respect.
   A facilitator is someone who helps people achieve an objective by providing unobtrusive assistance.
3. Create a vision for change
   Provide employees with a clear, shared sense of direction that will allow them to achieve a common objective, without a vision there is no cooperation and commitment – making adopting change impossible
   Link the ideas and reasons for change occurring to an overall vision that people can easily grasp and remember.
   Allow people to understand why you are asking them to do something.
   Directives for change to occur can be easily seen when people can see why the change must occur.
4. Communicate the vision
   Share the vision with those affected.
   Use many methods of communication to ensure many people hear the message.
   Explain advantages of change to assist people go along with the change.
   Communicate the vision freely and powerfully, embedded within everything that the organisation does.
5. Remove obstacles
   Recognize that personal involvement through participation tends to defuse both rational and irrational fears about change
   People who are apart of the opportunity to be activity involved in the change process generally develop a sense of ownership
   Obstacles that may impede progress need to be removed.
   Allow staff to get busy and achieve the benefits that have been promoted.
   Opportunity for involvement develops sense of ownership over change.
   Training and development may be necessary if new skills required.
6. Create short term wins
   Recognise that most employees want to feel their contributions have been worth the effort and are recognised and appreciated.
   Recognition + rewards should be given throughout the change process to encourage further risk taking and reinforce the positive aspect of embracing change
   Give the organisation a taste of victory early in the change.
   Show results within a short period that allows staff to see benefits of change.
   Without short-term wins, critics may hurt progress.
7. Build on the change
   As the change process proceeds assemble the benefits attained into the organisations operations procedures and systems
   Modify existing procedures and policies that no longer match the changed system
   Victory declared too early can lead projects to failing.
   Real change runs deep and quick wins are only the beginning of what needs to be done to achieve long-term change.
   Rewriting or altering existing policies to be inline with the change could achieve this.
8. institutionalize the changes /Anchor the Change in Corporate Culture
   Make a clear statement that shows the connections between new procedures and success of th organisation
   Make the change stick by making it part of the core of the organisation.
   The values behind the vision and the change must show in day-to-day work.
   This could be achieved by showing the link between the future success of the organisation, and the change that was made

Question 22

Explain strategies for effective change management:

Answer 22

Either low risk or high risk strategies
Low risk Strategies
Low risk strategies are those that can assist to the effective implementation of change and upon failure have little or no change of negatively affecting working relationships.
Low risk strategies to be successful rely on communication, employee involvement, support, and negotiation.
Advantage: Low-rise strategies will have no negative effect on working relationships upon their failure.
Disadvantage: Low-rise strategies are only effective if used over a long period of time and will have little effect on reducing resistance or ensuring the success of change if used in the short-term.

Involvement (or Participation)
Empower employees to make decisions regarding the change.
Empower employees to be involved in the change process as it is occurring.

Two way Communication
Ensure employees fully understand the reasons for change.

Negotiation
Establish agreements or deals with employees and unions to gain support over changes.

Support
Reduce stress associated with change by supporting employees through provision of necessary resources to implement the change.
Support employees with any issues they may have regarding the change.

Question 23

Explain how low risk strategies reduce resistance to change

Answer 23

Offer support – reducing anxiety + stress
Build trust amongst employees
Make sure the changes are reasonable
Specify the nature of the change
Allow employees to participate in the change process
Provide constant feedback
Make communication 2 way not just about and down
Provide training and support

Question 24

Explain ‘identifying the need for change’

Answer 24

An effective manager will always be scanning the environment, attempting to understand factors that will have an impact on the organisation
In this way the manager may better understand trends and predict future changes
Achieving such a vision requires a ‘holistic’ view of the word and a understanding of the potential impact on the organisation of a Varity of factors

Question 25

Explain ‘setting achievable objectives’

Answer 25

If a change is detected in an organisations external environment that may have a major impact on it’s activities, the organisation management may have to recesses the organisational objectives
For change to be managed affectively any new objectives must be achievable – this means that objectives must be attainable and realistic
Unrealistic objectives will only cause pessimism among employees and damage relationships between employees and supervisors

Question 26

Explain creating a culture for change - encouraging work

Answer 26

For employees and managers to be prepared to take such risks, the business culture needs to be supportive
One method to assist in this process is for the organisation to identify individuals who could act as supportive ‘change agents’ – such people fulfill a crucial role in helping to establish a positive and supportive workplace culture
Change agents may include members of the management team, employees of the business or outside consultants
Effective teams have open communication channels that assist in the transfer of information; they also develop a strong sense of identity between team members and offer a supportive environment that reduces fear of change
When teams work well, staff turn over and absenteeism will reduce, change is more readily accommodated and productivity tends to rise

Question 27

Define change agents

Answer 27

is a person or group who acts as catalysts, assuming responsibility for managing the change process

Question 28

Explain managing change effectively - high risk strategies

Answer 28

They are considered high risk because their failure may generate negative outcomes
High-risk strategies are those that can quickly remove resistance to change and upon failure can have a permanent negative effect on employee relations.
High-risk strategies can be used to quickly remove resistance.
Any gains made by high-risk strategies may be outweighed by instability within the organisation.
Advantage: Can quickly reduce resistance to change if quick change is necessary.
Disadvantage: Failure of a high_risk strategy can have a permanent negative effect on working relationships.

Question 29

Define and explain manipulation * high risk strategy

Answer 29

Manipulation - is the skillful or devious exertion of influence over someone to get them to do what you want.

Exerting undue influence over an employee that may be deceptive to get them to behave a certain way.
Some regard manipulation as skilful while others argue that it is unethical.
i.e – introducing technology and selling the benefits of the technology, but hiding the
fact that its introduction will result in forced redundancies.

Question 30

Define and explain coopation * high risk

Answer 30

Cooptation - involves the selection of an influential person among the potential resistors to be involved in the development and implementation of the change process.
Role is symbolic and carries little authority as the influential person has little input in the change process. They are only involved to the point where they cannot claim they were not consulted.
This tactic can backfire if the individual realises what is being done and feels used.
Some regard cooptation as unethical

Question 31

Explain a threat * high risk strategy

Answer 31

Use of power to get change resistors to conform, which usually involves a direct or indirect threat, such as loss of promotion, transfer, overtime, or termination.
i.e – Accept new work practises or four jobs will be lost.
People may appear to be compliant on the surface but may be resentful underneath which can lead to increased resistance.
This can also lead to industrial sabotage, grievance complaints, compensation claims, and industrial disputes.
The threat tactic may be used in some situations that require a speedy response, but constantly relying on it may affect future change.

Question 32

Explain how an autocratic management style can ask as a high risk strategy

Answer 32

Provides little or no opportunity for employee input.
Likely to lead to resistance to any decisions made due to no input by employees.
If employees do not input into the decision-making, they are less likely to accept the final decision made

Question 33

Define cooperate social responsibility

Answer 33

involves managing organisational processes in order to produce an overall positive impact on the community

Question 34

Define triple bottom line

Answer 34

Refers to the social economic and environmental performance of an organisation

Question 35

Define ecological sustainability

Answer 35

Occurs when economic growth meets the needs of the present population without endangering the ability of future generations to met their own needs

Question 36

Explain cooperate social responsibility

Answer 36

During the past 20 years there has been growing pressure on organisations to improve their ‘cooperate social responsibility’. The heart of the cooperate social responsibility is adopting a ‘triple bottom line’ approach monitoring changes against this standard. Ecological sustainability, enforces organisations to manages their waste and use of resources encouraging them to find more efficient methods

Question 37

Explain change management strategies

Answer 37

Some examples of change management strategies to meet cooperate social responsibility include:
The social conscience of responsible managers has led them to adopt policies of conservation, recycling and restoration e.g environmental policies
Organisations evaluate the full environmental effects of their operations. This can be done by preparing a ‘sustainability report’ that details how the organisations practices and operations affect society + the environment
The production process may need to be modified to bring them into line with ecologically sustainable practices

Question 38

Define a sustainability report

Answer 38

is a comprehensive report of what the business has done, and is doing with regard to social issues that affect it

Question 39

Define business ethics and explain

Answer 39

refers to the application of moral standards to organisational behavior

Some examples of change management strategies to uphold business ethics include the following:
Manager should encourage standards of honesty and integrity and expect ethical behavior from all employees
Stakeholders must be dealt with honestly and fairly
The organisation should avoid using misleading or deceptive product descriptions
Employees should be provided with a safe working environment their confidential personal information and discrimination abolished
A cooperate code of conduct should be implemented as it provides internal stakeholders with clear ethical standards to uphold

Question 40

Define cooperate code of conduct

Answer 40

A set of ethical standards for managers and employees to uphold

Question 41

Define global manager and explain globalisation

Answer 41

pursues organisational objectives in international settings and, therefore, is required to conduct business in numerous countries with different cultures

Some examples of change management strategies in response to Globalisation:
Global manager need to have a good understanding of how Globalisation will influence their organisation
Global managers must thrive on the unexpected, communicate quickly and effectively and intergrade technology into their work practices
In order to compete internationally, organisations may re-structure, outsource non-core functions or subcontract production, or re-locate production to other countries
Fostering cultural diversity should be given a high priority because it brings benefits including enhanced creativity, easier penetration of new markets by employees who identify with the culture, and an equal employment environment

Question 42

Define global economy

Answer 42

is the world economy and refers to the economic activity going on in the world. It includes the flow of all trade, finance, technology, labour and investment. Consequently, it is the total economic activity within and between countries

Question 43

Define a merger

Answer 43

Is a combination of two companies to form a new company

Question 44

Define aquisition

Answer 44

Is the purchase of one company by another with no new compmay being formed

Question 45

Explain mergers and acquisitions

Answer 45

Strategies for dealing effectively with a change as a result of a merger + acquisition:
The newly formed organisation may experience a ‘culture crash’ Many organisations first undertake a type of cooperate culture of both organisations before they merge
Gaps are identified between the way both organisations conduct their business and risk and costs associated with these gaps are identified. Policies + practices may have been written to ensure there is uniformity in the way the newly formed organisation does business
Strong leadership and management is crucial for the ‘marriage’ or the two organisations
Manager should adopt a similar consistent management style to assist with the transition

Question 46

Explain technological development

Answer 46

Technological development refers to the fast_paced improvements in equipment, machinery and other technology that allows organisations to operate more efficiently and effectively, as well as allowing consumers to access more content and services faster and more efficiently.
Technological development is the application of new tools or innovative processes to production of goods or services.
The increased use of technology will change the way employees conduct their activities.

Strategies for dealing effectively with a change as a result technological development include:
Analyse effects of technology – how technology may affect other aspects of the organisation, such as job designs, health and safety, motivation, and remuneration.
Identify and restraining forces that may impede the change.
Acquire new skills – train and develop people in organisation to be able to use technology.
The organisation may need to recruit new employees with appropriate skills.
Manage redundancies – implementation of technology will likely make some jobs redundant, which must be managed by human resources

Question 47

Explain legislative compliance

Answer 47

Strategies for dealing effectively with a change as a result legislative compliance
Due to escalating compliance costs, an accurate method of record keeping must be established
Manager do not have skilled lawyers but they should be fimalir with the laws that regulate the activites and those of the organisation, especially the trade of practices act, the environmental protection act and the corporations law
Ongoing training must be provided to manager and employees, so that they are fully aware of their legal obligations

Question 48

Explain privatisation

Answer 48

Privatized organisations change their legal and managerial structure – from government business enterprise to public companies – consequently the cooperate culture will undergo a radical change
Strategies for dealing effectively with a change as a result from privatization:
Manager + especially the HR unit will have to create a new cooperate culture – this might involve changes to the mission statement, organisation strategies and objectives
The HR unit will be required to employ people who fit in with the new organisational culture and deal with those employees who may be retrenched
Changes to employees remuneration packages will have to be implemented by the HR unit
Manager in the new organisation will have to adopt management styles that reflect the cooperate culture of the new organisation

Question 49

Explain the role of leadership in change management

Answer 49

Kotter’s proposed model of effective change management is based on:

1. Thorough preparation and planning.
2. Clear communication.
3. Cooperative participation with all stakeholders.

Leadership must be used to successfully integrate these elements into change.
Leadership is the process of positively influencing and encouraging individuals to setand achieve objectives.
“Management is coping with complexity. In contrast, leadership is coping with change.” – Professor John Kotter
Manager must support employees as they move through change.
During negotiation, there may be temporary setbacks that will result in failure of leadership. This is why organisations need the skills of managers and leaders to successfully manage change.

Question 50

Explain the role of leadership in detail

Answer 50

This refers to the leadership qualities of interpersonal skills, informational skills, and decision-making skills.
Apply these skills to change and ensuring its success, as well as removing resistance.

Interpersonal Skills
Interpersonal skills refer to having people and social skills to be able to empathies, understand, and relate to others.
Liaising or dealing with people.
Care for employees’ wellbeing – which will result in employees that are more
prepared to accept risks involved with change.
Employee focused – will be effective and assist in building high-performance teams that attain objectives. On the other hand, task focused managers are more concerned with deadlines and display characteristics of a manager, not a leader.
Empathy and listening skills – assist in discovering and responding to any resistance to change.

Informational Skills
Informational skills refer to gathering and communicating relevant information to the businesses practices and having required knowledge to be able to recognise problems and find solutions.
Support and trust employees – which will assist with dealing with any resistance to change.
High expectations of employees – including abilities to initiate and implement change process. Will result in people more willing to embrace change.

Decision Making Skills
Decision making skills refer to identifying the possible options that can be taken and then choosing the most appropriate option that will achieve organisational objectives, as well as being able to assess the possible risk with each possible decision.

Be proactive – diagnose current situation and predict future situation.
Able to make the best decisions regarding the change and reducing resistance to the change and ensuring its success

Question 51

Define transformational chose

Answer 51

Often results in a complete restructured Troughout the whole organisation

Transformed organisations have different (often flatter) management structures, new work systems and procedures, greater use of technology, and an altered corporate culture.

Question 52

Define incremental change

Answer 52

Results in minor chases,musically only involving a few employees

Question 53

Possible impact of can age on the internal environment of LSO

Answer 53

Either transformational change or incremental change

Question 54

Define structure chnage

Answer 54

refers to changes in an organisations structure.
The aim of structural changes:
Streamline organisational operations (inc. coordination and control).
Improve efficiency.
Empower employees to make their own decisions.

Question 55

Main structural changers in Australian organisations

Answer 55

Outsourcing
Outsourcing - is the contracting of some organisational operations to outside suppliers.

Rearranging workforces to employ minimum full_time staff, and as many casual or external contractors outside the organisation to work to reduce labour costs.
This allows an organisation to lower its costs and survive in a global marketplace.
Beneficial because it allows organisations to produce its goods or supply its service more efficiently than before.
However, it is detrimental because job losses within the organisation occur to make room for the other jobs created.

Flat Structures
Flatter management structures reduce the amount of middle management positions and increase accountability and responsibility of front_line staff.
Often these organisations share best practice methods, have a supportive learning environment, and are focused on continuous improvement.
Evolving from formal hierarchal structures to less formal and looser structures. Work Teams

Work teams:
Coupled closely with flatter organisational structures.
Allows organisation to be more flexible and responsive, whilst allowing employees to be more creative, have broader view of goals, and contribute more.
Development of teams is transforming workplace cultures, practises, operations, and productivity levels.

Teamwork - involves people who interact regularly and coordinate their work towards a common goal

Question 56

Define outsourcing

Answer 56

Is the contracting of some organisational operations to outside suppliers

Question 57

Define teamwork

Answer 57

Involves people who interact regularly and coordinate their work towards a common goal

Question 58

Explain impact of chnage of cooperate culture

Answer 58

Internal and external environmental changes should be reflected in culture.
Corporate culture that fits the external environment will give employees and managers an attitude needed to compete successfully.
i.e – Privatization: existing culture changing to focus on profits which requires a new way of thinking – a new corporate culture.
Changes in the external environment will influence the structure, operations, and culture of an organisation. Different attitudes, values, and mindsets will eventually be adopted to satisfy the new demands.

Question 59

Impact of chnage on hr management

Answer 59

Change will affect all employees at all levels in the organisation.
Adjustments to HRM are necessary to improve effectiveness of improvements made in other organisational components, such as technology.
Main changes to HRM:
Alter recruitment and selection – to reflect need for individuals who meet new job designs and are fit for changing conditions.
Implement termination procedures – put in place for employees to be made redundant.
Provide training – to be offered to existing employees in areas of teamwork, decision-making, problem solving, and change management.
Use recognition and reward – to reinforce new behaviors put in place.
Empower employees – provide autonomy and change traditional communication methods.
Provide flexible working arrangements – to attract and retain skilled employees.
Communicate vision – clear vision of future and benefits to employees should be communicated to all employees.
The bases of power will shift from title, seniority and authority to collaboration and contribution and this must be communicated

Question 60

Explain impact of chnage on operations management

Answer 60

Competitive advantage is often gained through lower costs that can be lowered due to reduced production costs.
Organisations are constantly seeking ways to speed up production time, shorten production development, streamline distribution, and serve customers.
Main changes to operations management:

Change facilities design and layout – to take advancements of improvements in technology, as well as pursuing efficiencies in process design and materials management.
Change in production process – due to advances in production technology, such as flexible manufacturing.
Including “ Flexible manufacturing” is production by computer controlled machines that adapt to various versions of the same operation.
“ Smaller factories – able to be better located in important markets due to flexible manufacturing.
Emphasis on quality – including quality assurance, quality control, and total quality management.
Improved employee relations – resulting in more intelligent approach to work, including balancing workloads, simplifying materials handling, and training employees.

Question 61

Define flexible manufacturing

Answer 61

Is production by computer controlled machines that can adapt to various versions of the same operation