Change Management Topic

Question 1

Explain the following pressure: Management - and Australia Posts response.

Answer 1

Explanation - they can see that a change needs to occur because Aus. Post is expected to lose billions. “Innovate or die.”

Response:

• StarTrack express is now Blue Post StarTrack as it has merged with Aus. post
• project —> future ready in 2010
• digital mailbox (costumers can receive mail from the gov. and bus. and do banking over a secure site)
• many jobs are being cut to become more efficient

Question 2

Explain the following pressure: Customers - and Australia Posts response.

Answer 2

Explain:

• They want faster deliveries and are sending and receiving more parcels.
• Costumers aren’t interested in sending letters.
• They aren’t always home to receive parcels, they want convenience.

Response:

• Saturday parcel and express post services
• Extended weekend trading hours
• Parcel lockers
• My delivery has been released (allows consumers to reschedule or redirect deliveries)
• Postcards app
• Personalised postage stamps

Question 3

Explain the following pressure: Global Forces - and Australia Posts response.

Answer 3

Explain:

• Globalisation has allowed for more online shopping and more parcels.
• Aus. Post doesn’t have a monopoly for parcel delivery, unlike letters (they need to be able to compete with other parcel deliverers).

Response:

• Merged with StarTrack
• This merge means they have the leading logistics and e-commerce proposition in the market.
• Exclusive shipping partner with new Aus. based international shopping service called Tarazz.

Question 4

Explain the following pressure: Technology - and Australia Posts response.

Answer 4

Explain:

• Communication through emails, texting and social media has meant traditional communication, such as letters, are struggling.
• Aus. Post is trying to anticipate shifts in behaviour and adapt accordingly.

Response:

• Aus. Post is now using tech. to their advantage by sending texts and emails to customers to know when parcels are ready.
• Improving performance of own equipment such as conveyer belts that transport parcels around the plant (21 hours a day).

Question 5

What are some driving forces at Australia Post?

Answer 5

• A Clear Vision eg. Future ready 2010

- Participative Management Style

Question 6

Explain the following Australia Post driving force: A Clear Vision

Answer 6

When there is a clear vision the organisation is able to plan ahead and put strategies in place ahead of time. It will help everyone understand what is being asked of them and allows for directions to be clarified. (Future ready 2010)

Question 7

What are some pressures regarding technological development which affect Australia Post?

Answer 7

. Management (internal environment)
. Customers (external-operating environment)
. Global Forces (external-macro environment)
. Technology (external-macro environment)

Question 8

Explain the following Australia Post driving force: Participative Management Style

Answer 8

This is a style based on consultation and and employee participation (also a positive relationship between employees and management). It allows for more trust and can lessen the worry by employees for their jobs.

Feeling more secure about jobs = increased productivity and a willingness to help with change.

Question 9

What are some restraining forces at Australia Post?

Answer 9

• Employees

- Cost

Question 10

Explain the following Australia Post restraining force: Employees

Answer 10

Change to an organisation and its operating procedures will eventually impact on the level and type of staffing. Therefore employees worry about the likelihood of losing their jobs. They may also resist change due to worrying about adapting to new procedures. This can result in poor morale which can even the most perfect proposed change.

Question 11

Explain the following Australia Post restraining force: Cost

Answer 11

Although the vision for change has a planned end result of increased profit, money does need to be used to support changes. Costs and benefits must be weighed up. Financial costs of change include purchasing new equipment, redundancy payments, retraining the workforce and reorganising plant layout.

Question 12

What are some performance indicators Australia Post could use?

Answer 12

• Net profit figures
• Customer satisfaction as measure by the number of customer complaints
• Number of parcel lockers located around Australia

Question 13

Explain the following Australia Post performance indicator and its trends: Net profit figures

Answer 13

Explanation: This is what remains when expenses are deducted from revenue earned. An organisation which has made a profit is considered to have performed successfully, whilst low or negative profit suggests an organisation could be experiencing problems.

Trends/Results: If Aus. Posts profit increases it means their changes to technology have been successful. Whilst of the Aus. Posts profit decreases it means their change due to tech. development have been unsuccessful.

Profit after tax - 2011/12 $281m - 2012/13 $312m +11%

Question 14

Explain the following Australia Post performance indicator and its trends: Customer satisfaction as measured by the number of customer complaints

Answer 14

Explanation: This indicates how happy customers are with the performance of an organisation. (Complaints are often considered the tip of the iceberg).

Trends/Results: (Aus. Posts changes involve listening to customers, therefore customer satisfaction is crucial) If the complaints Aus. Post receives from customers (for eg. Slow delivery) increases, it means they are not performing successfully. Whilst less complaints mean customers are more satisfied with Aus. Post.

Overall costumer satisfaction - 2013 9.06/10 - 2014 9.14/10

Question 15

Explain the following Australia Post performance indicator and its trends: Number of parcel lockers located around Australia

Answer 15

Explanation: Aus. Post has begun putting parcel lockers around Australia, the increase in parcel lockers means they are demanded and liked by customers.

Trends/Results: They invested $2 billion in parcel lockers. In 2011 Aus. Post said parcel lockers would be rolled out in 250 locations. In 2014 Aus. Post had 150 locations for parcel lockers (so far).

Question 16

What are the areas impacted by Australia Posts’ technological developments?

Answer 16

. Employees
. Operations Management 
. Human Resource Management
. Corporate Culture
. Policies and Procedure

Question 17

Explain the following area impacted by Australia Posts’ technological developments: Employees

Answer 17

Definition: A worker under an employers control. This may involve the location of the workplace, way in which the work is performed or the degree of supervision involved.

Description of impact: The main impact of technological development is the risk it puts on the stability of employees jobs (up to 1900 to go). There is also fear that they won’t understand/keep up with new technology. They need to go through more training.

Question 18

Explain the following area impacted by Australia Posts’ technological developments: Operations Management

Answer 18

Definition: This consists of all the activities in which managers engage to produce goods or services. Change results in organisations seeking to speed up production time, shorten production and serve customers.

Description of impact: Australia Post is no longer focusing on letters, they are now focusing on 4 different strategic business units, all of which need to be monitored.

• Furthermore, as a result processing facilities may need to be rearranged in order to make sure the most efficient layout is in use for the new structure.
• New equipment may be need to be purchased for the new structure.
• Emphasis on quality assurance.

Question 19

Explain the following area impacted by Australia Posts’ technological developments: Human Resource Management

Answer 19

Definition: The effective management of the formal relationship between the employer and employees. Adjustments to the HRM function are necessary in order to improve the effectiveness of change.

Description of impact: An employee expectation is job security, however during change employees may feel like their job is at risk.

• training must be offered
• recruitment and selection can be altered (to reflect need for individuals with right qualities for handling change)
• conflict can arise from employees being dissatisfied about change so the HR manager needs to resolve any conflict in order for the change to be successful, because this can hinder the change.

Question 20

Explain the following area impacted by Australia Posts’ technological developments: Corporate Culture

Answer 20

Definition: This refers to the values, ideas, expectations and beliefs shared by members if an organisation.

Description of impact: Any changes need to be reflected in culture.

• different values, attitudes and mindsets will eventually be adopted to satisfy any changes (especially in the case of Aus. Posts merge with Star Trak).
• employees from Star Trak and Aus. Post coming together can result in a clash of corporate cultures.

Question 21

Explain the following area impacted by Australia Posts’ technological developments: Policies and Procedures

Answer 21

Definition: A policy is a set of broad guidelines to be followed by employees when dealing with important areas of decision making. A procedure is a series of actions enabling a policy to be put into practice.

Description of impact: Due to changes to policies (eg. Allowing customers to decide where and when to get parcels) procedures need to change to enable this to occur.

• procedure changes would include emailing customers, giving them delivery/pick up options and then ensuring the customers options are fulfilled.
• this change in policies come as a result of customers wanting more options for parcel delivery.

Question 22

Provide a description of change management in response to the technological issue at Australia Post.

Answer 22

This is the sequence of steps that a manager would follow for the successful implementation and adoption of change. There are quite a few changes occurring at Australia Post which need to follow all 8 steps in order to be successful.

Question 23

Explain step 1 of Kotter’s theory and its application to Australia Post.

Answer 23

Step 1: Create Urgency - This is about inspiring people to want to change. It involves developing a sense of urgency around the need for change to help spark the initial motivation needed to get things moving.

Application: Make it well known that businesses need to continue to develop new lines of revenue in order to be successful. (Benefit of change).

• without reform, the business becomes unsustainable.
• this make employees want to implement change so their jobs wont be at risk.
• why is change required? Because letters aren’t used.

Question 24

Explain step 2 of Kotter’s theory and its application to Australia Post.

Answer 24

Step 2: Form a powerful coalition - Assemble a group of people to lead the org. through the changes. Get the fight people in place with the right emotional commitment to making the change successful.

Application: There are a few people which help lead the organisation through change, such as the head of each new structure in positions such as corporate affairs and people as well as marketing and costumer experience.
- postal, retail, express and e-service.

Question 25

Explain step 3 of Kotter’s theory and its application to Australia Post.

Answer 25

Step 3: Create a vision for change - Clarify how this vision will be better than what happened in the past. A vision will help everyone understand what is being asked of them and directions given to them will make sense.

Application: Future Ready Program

• 4 strategic business units with individual profit and loss accountability.
• postal services, retail services, express distribution services and e-services.
• it lays foundations for a more consumer focused and sustainable Aus. Post.
• communicate benefits of change.

Question 26

Explain step 4 of Kotter’s theory and its application to Australia Post.

Answer 26

Step 4: Communicate the vision - This involves communicating the essential aspects of the vision. Everyone must understand and accept the strategy and work towards achieving the vision. All aspects of operations need to be tied to the vision.

Application: Future Ready program will allow for letter declines to be offset by growth in parcels, retail and business to business express delivery.

• embraces technology and keeps traditional postal services and letters.
• communicate role and whether training is needed.

Question 27

Explain step 5 of Kotter’s theory and its application to Australia Post.

Answer 27

Step 5: Remove obstacles - Continually check for barriers to change. Identify change leaders who can implement the change and reward those who can make the change happen.

Application: Main objective would be happy employees.

• they would be less productive as morale decreased (barrier to change).
• finances is another obstacle (need to remove this by cutting costs to make change costs slightly less harsh on the organisation).

Question 28

Explain step 6 of Kotter’s theory and its application to Australia Post.

Answer 28

Step 6: Create short-term wins - Create short-term targets (rather than large-scale targets) that become short-term successes, as these will motivate staff. This is because change does not occur overnight and staff need to have motivation for change sustained.

Application: Slowly get other services to excel and exceed the loses occurring from letters (slowly increase growth).

• allowance of $1 stamps from ACCC.
• slow increases in profits (annually and monthly) .
• slow customer satisfaction increase through decrease in complaints.

Question 29

Explain step 7 of Kotter’s theory and its application to Australia Post.

Answer 29

Step 7: Build on the change - After every success in the process, analyse what went right and what needs improving. Set goals to continue building on the momentum that has been achieved and encourage continuous improvement.

Application: Once new production is arranged, check to dee how productive the org. is and make alterations to continue production efficiency.
- so if complaints go up maybe a survey would be good to see whats wrong.

Question 30

Explain step 8 of Kotter’s theory and its application to Australia Post.

Answer 30

Step 8: Anchor the change in corporate culture - Institutionalise new approaches and creat and new culture so the changes stage becomes normal. Include change ideals and values when hiring and recruiting staff.

Application: Keep encouraging employees and make sure you don’t go back to old ways (lock it in).

• make sure everyone shares beliefs so everyone follows the same path (same direction).
• (stability) make sure ensures org. doesn’t drift from changes (mission and vision statement)

Question 31

What is Australia Posts mission statement?

Answer 31

We are here to help Australians by providing:
. innovative and easy to use products and services
. friendly service from knowledgeable staff
. consistent on time delivery
. value for money
. as well as modern and efficient networks.