Change Chap 10 Flashcards
The seven ways of managing change
Changing from Controller Manager to Facilitator Manager
Employee Empowerment
Job Enrichment/Job Enlargement/Job Rotation
Employee Participation
Teamwork
Quality Assurance and Total Quality Management (TQM)
Technology
What is the changing role of management
For a business to compete it must be managed efficiently.
In changing business environment, role and attitude of management has to change with the times.
Management must respond quickly to new situations.
Explain a controller manager
They control employees by laying down rigid rules and ensuring that they are obeyed.
They do no ask for employee’s opinions.
They think their job is to catch out employees.
Things done the way the manager wants but prevents workers using their full talents and all responsibility for managing change is on the manager.
Explain facilitator manager
They recognise that employees contribute a lot to the firm - listen to their opinions. Employees are rewarded for good work.
Managers help employees when they make a mistake and ensure they have everything they need to do their jobs better.
Managers freed from a lot of routine decision-making.
The business is able to respond more flexibly to change
Define employee empowerment
Manager gives employee power to make their own decisions about how they do their job without asking manager’s permission. Employees take ownership of their jobs and take a personal interest in improving the performance of the business.
They use their skills as they see fit to do their job to the best of their ability
What must an employee empowerment programme include?
A facilitator-style management which provides training, support and encouragement.
Careful supervision.
Extra rewards.
Explain the benefits of employee empowerment
Makes best use of employees skills- not used to carry out mundane tasks,innovative and creative
Better service to customers- employee has power, no waiting for manager. Impressed that first first they talk to solves their problems.
Enables firm to respond to and create change.
Enhances job satisfaction and higher motivation-esteem needs satisfied and gives them control over work
More time for manager- Consult with managers less. Can solve more important matters
Explain the disadvantages of employee empowerment
Demoralised workers may not want extra responsibilities and get stressed and demotivated.
Mistakes due to lack of training, poor attitude or inadequate supervision- cost business money
Disgruntled middle managers whose power and role have been taken away.
Employees may confuse empowerment with authority to do what they want. May take it too far and conflict arises. Worse manager employee relations
Define job rotation
Moving employees regularly from one task to another. This builds up their range of skills and increases motivation by reducing boredom.
Define Job enlargement
Giving people extra responsibilities to make their job more challenging and interesting.
Define Job enrichment
Giving employees not only more responsibilities but also the freedom to make their own decisions about them.
What is employee participation and how is it done
Involves Giving employees more of a say in the running of the business. This can be done with: Worker Councils Worker Directors Share Options
Explain the Benefits of Employee Participation
Increased Motivation- feel more important to business, they have a say and esteem need are satisfied-happier
New Ideas and Creativity - useful solutions to businesses problems. Intrapreneurship
Improved Industrial Relations- improved communication, problems more likely to be solved through negotiation in spirit of cooperation.
Explain teamwork
Teamwork refers to a group of people working co-cooperatively toward shared objectives.
What are the stages in teamwork
Forming, Storming , Norming and performing
Explain forming as a stage in teamwork
Team members meet for the first time and are polite to each other.
They discuss the job at hand
Do not reveal too much about each other
Explain storming as a stage in teamwork
Team members get to know each other, conflict may arise
Strong personalities emerge and so argument can occur
Explain norming as a stage in teamwork
Conflict is resolved, team members start working together
Team members start to trust each others
Agree on leader and everyone’s roles
Explain performing as a stage in teamwork
Team members work together successfully and reach their shared objectives
Co-operate with each other
Strong sense of unity in team
What are the advantages of Teams for the Business
Teams make better decisions
Teamwork increases employee motivation
Teams make better quality products
Teamwork improves co-ordination in the business
What are the advantages of Teams for the Employees
Teams satisfy employees’ social needs
Teams develop the employees’ skills
Teams protect employees
Teams offer employees recognition
What are the Disadvantages of Teamwork
Personality clashes
Getting agreement may be a slow process
Team may include people with negative attitudes
What is quality assurance?
Quality Assurance involves the business putting systems in place to make sure that each product reaches the desired level of quality and meets the requirements of customers.
Involves checking quality of product from design to it’s sale.
Aims to prevent problems by detecting them and fixing them instantly
Explain the advantages of Quality Assurance?
Products are of a high standard- customer happy with consistent quality and increase in sales
Lower Costs- improved quality means no wasting money on repairs or refunds ex: Microsoft spent $1 billion fixing flawed xbox consoles in 2007
Marketing Tool- quality award like ISO9000 arrouses customer interest. Reassuring that it is a trustworthy brand
Explain TQM
TQM is a business management strategy that aims to ensure the business makes 100% perfect products, 100% of time so customers are always satisfied.
Every employee is responsible for delivering TQM in the business.
Explain the four principles of TQM
Focus on the customer- perfect quality is defined as what the customer wants. Conducts market research as customer is most important
Employee empowerment- Requires excellent employees. Use knowledge to make products perfect.
Teamwork- Business and supplier work as team-pays for perfect goods. Employees work harder in teams
Continuous improvement- Tries to do better than last time. 100% perfect is unrealistic but must strive for that
What are the benefits of TQM
Increased sales
Lower costs
Improved motivation
Meeting legal obligations
What does TQM stand for
Total Quality Management
How has modern technology and changes in technology impacted the role of managers
Marketing Decision - making Production Redundancies Employee retention and motivation
How has modern technology and changes in technology impacted employees
Changing nature of jobs
New types of jobs
Redundancies
Teleworking (working from home)
How has modern technology and changes in technology impacted a business’s costs
Increased costs:
Cost of new technology
Training
Reduced costs:
Computer Aided Manufacture (CAM)
Reduced labour costs
Reduced travel costs
How has modern technology and changes in technology impacted business opportunities
Design
International trade
Direct marketing
New products
Explain why do employees may be resistant to change
Fear of losing their jobs- resist introduction of computers if they fear job losses
Fear of losing power- ex: Gardaí resisted intro of garda reserve as they did not want unqualified people doing job.
Fear of failure- fear they will not cope with change. rather than face up to it they resist
Laziness- Employees don’t want the hassle involved
What are some Strategies for Managing Change
Lead by example Communicate with employees Train employees Allow employees to participate Encourage teamwork
Explain and example of employee empowerment
Michelle works in a fast food restaurant.
Customer asks for sweet and sour sauce with chips but her employee rulebook states sweet and sour sauce is only given out with chicken nuggets.
She says she can give him ketchup instead and the customer complains calling for manager.
Michelle calls the manager over to ask if she can give out the sauce.
Why impression does customer get of place?
What should manager do to ensure it never happens again.
How did manager/Michelle feel?
Explain work councils as a method of achieving employee participation
Groups of employees elected by fellow employees who have a say in business plans and strategy
They make some decisions
Explain worker directors as a method of achieving employee participation
Business allows employees to have seats on company’s board of directors.
Elected by fellow employees.
Explain share options as a method of achieving employee participation
Employees can buy shares in business at a reduced price.
They become owners in the business and they have a vote at the company’s annual general meeting
Explain team makes better decisions as an advantage of teams for the business
Members of team can brainstorm with each other
Each member of team brings different expertise and perspective to team’s discussions
Teams can come up with better and more creative solutions for the business that an individual working alone
Explain Increases employee motivation as an advantage of teams for the business
Employees are happier working in a team as they are mixing with others.
The business is satisfying their social needs motivating employees to stay in the business
This saves the business money on recruiting, selecting and training new employees to replace people who leave
Explain makes better quality products as an advantage of teams for the business
Team develop team spirit and do their jobs to the best of their ability to make team succeed.
Member try to make best products as they don’t want to be cause of team failure
Rivalry between teams also motivates teams to make best possible products
Explain improves coordination as an advantage of teams for the business
Team members are often from different departments.
Employees from different parts of the business mix helping employee respect each other and understand the role played by others in the business.
All departments pull together in the same direction to make the business a success
Explain satisfies employee’s social needs as an advantage of teams for the employee
Employee is happier mixing with other people
Their social needs are satisfied and they have a sense of belonging.
Support and advice from team members makes work more bearable and enjoyable
Explain develops the employee as an advantage of teams for the employee
Team exposes employee to practices and work ethic of possibly more experienced workers
They learn more about their job and more quickly than trying to learn through their own instruction
Make them a better worker, increasing their promotion prospects and making them more employable
Explain protects employees as an advantage of teams for the employee
Individual worker may find it hard to make a tough decision ex: making others redundant
It is easier for employee to make such decisions in a team as is collective decision
Employee can be singled out for his decisions
Explain offer employee recognition as an advantage of teams for the employee
Allows employs the chance to be praised by his teammates when he makes excellent contribution
Employee being praised feel good about himself and proud his efforts don’t go unnoticed as they may do if they worked alone
Give an example of TQM in action
Guinness- strive for perfect pint
Raw material - Only buys from very best barley growers
Manufacturing- Leading edge technology to monitor brewing and Quality assurance laboratory employees dozens of samples of stout tested through process.
In pubs- Guinness quality team regularly visits Irish pubs. Offer business training courses for bar staff
Explain Increased sales as a benefit of TQM
Employees, managers and suppliers work together to make perfect quality products
Reputation for manufacturing excellent products because of improving quality
Higher sales and profits
Explain lower costs as a benefit of TQM
Excellent quality lowers costs and no longer waster money on repairing faulty goods.
No spending of money giving refunds to unsatisfied customers as products are perfect
Helps business keep prices low and competitive
Explain improved motivation as a benefit of TQM
TQM empowers employees to make decisions s they see fit to improve quality and they work in teams.
Empowerment satisfy their esteem needs and teamwork satisfies their social needs
Employees are more motivated and work harder
Explain meet legal obligations as a benefit of TQM
Sale of good and supply of services act 1980 say all products should be fit for purpose and of merchantable quality
TQM results in business producing excellent quality products
Ensures business fulfills legal responsibility to customers
Explain how technology changes the role of managers in terms of marketing
Internet can be used to advertise products
Leads to better known brand name -increased sales
e-commerce - It can use the internet to sell products all over world without setting up shops anywhere.
Manager can run internal business without expense of foreign travel etc
Ex: dell sells computers on its website and has no shop
Explain how technology changes the role of managers in terms of decision making
Manager make faster and better decisions
They can download information on any topic and this helps them in decision making
Ex: Manager deciding which computer to buy can download prices from different suppliers and pick best deal for business
Explain how technology changes the role of managers in terms of production
CAD- computer software that designs and tests new products for business
CAM- Computer software to control factory machines, enables business to mass produce
CIM - Uses computers to control entire production process design to distribution. ensures high quality standard of products
What does CAD stand for?
Computer aided design
What does CAM stand for?
Computer aided manufacture
What does CIM stand for?
Computer integrated manufacturing
Explain how technology changes the role of managers in terms of redundancies
Technology can replace employees in business by doing jobs previously done by them
Fewer employees for manager to supervise
Ex: Tesco managers have smaller span of control as workers have been replaced with self service checkouts
Explain how technology changes the role of managers in terms of employee retention and motivation
Managers can use technology to motivate,keep employee
Teleworking means employee can work from home
Work can be emailed over internet to and from house to office
Reduces the money employees spend commuting- good way to retain employees
Ex: employees with kids
How does technology impact personnel in terms of changing nature of jobs
Technology can make workers job possibly easier enabling them to do more work.
It may totally change the way they carry out their duties
Ex: very few accountants prepare accounts by hand but use specialised accounting software packages
How does technology impact personnel in terms of new types of jobs
Creates opportunities for employees to work in new area like computer programming and website design
Ex: Youtube launched and people can become ‘Youtubers’
How does technology impact personnel in terms of redundancies
Employees can lose their jobs as technology can now do jobs previously done by workers
Drop in the standard of living
Ex: Checkout assistants lost their jobs in supermarkets to self service checkout tills
How does technology impact personnel in terms of teleworking
ICT enables employees to work from home
Office e-mails any work to be done and employee e-mails back completed work
Costs and hassles of commuting are reduced for employee
Ex: suitable for employee with family
What does ICT stand for
Information and communications technology
Explain how technology causes a business to have increased coats
Costs a lot to buy new technology
Costs money to maintain the hardware
Employees have to be taught how to use the the new technology.
Explain how technology causes a business to have lower costs
CAM- tools and machines in factory are monitored by computers and so perfect products are made. Less money spent on repairs and refunds
Fewer workers are needed reducing wage bill ex: Electronic data interchange
Video conferencing- virtual meeting held between people in different locations saves on foreign travel costs
How does technology have an impact on business opportunities in terms of design
New products are tested, designed and manufactured more quickly and cheaply than before.
New products get to market quickly
Ex: Car manufacturer - Testing new cars easily
How does technology have an impact on business opportunities in terms of new products
New technology gives entrepreneurs the opportunity to develop brand new products
Ex: successful entrepreneurs have developed apps for apple iphone
EX: Airbnb, social media platforms
How does technology have an impact on business opportunities in terms of direct marketing
Database is a computer program that stores, organises and manages information entered by a person
Business can use this information to target customers with tempting offers and thus increase sales.
Ex: Amazon recommendations
How does technology have an impact on business opportunities in terms of international trade
Internet enables businesses to sell products anywhere without setting up shops all over world, e-commerce
Customers buy from website using their credit card
Ex: Dell does not have a shop but sells computers all over world online
Explain lead by example as a strategy to manage change
Manager must set good example and show they are willing to put in effort to cope with change.
They must show change is important and they are committed to it.
Ex: During recent economic downturn many managers took higher pay cut than workers to help workers accpt their own pay cut
Explain communicate with employees as a strategy to manage change
Managers must discuss the change and it’s reasons
Imposing change with no communication will not work
Managers must be open, honest and negotiate change with them
Ex: Shop owner wants to open earlier so explains to employees that it is difficult to compete with similar shops and job losses might result without change
Explain train employees as a strategy to manage change
Manager must teach them the knowledge, skills and attitude needed to cope with change successfully
Once they know how deal with it there will be know fear
Explain allow employee participation as a strategy to manage change
Employees must be allowed to input into change
They should make suggestions how to improve it and implement it ans this will generate creative ideas to make change success
Having a say in change employees are more likely to accept it.
Explain encourage teamwork as a strategy to manage change
Members of a team develop team spirit and sense of purpose to do job to best of their ability
They want to make team and thus business a success
Teams implementing the change will ensure its success
