Change SAC Flashcards
1
Q
What is change?
A
CHANGE is any alteration in the internal or external environments. Businesses must constantly change in order to survive in today’s volatile business
environment
2
Q
Business Change
A
BUSINESS CHANGE is the adoption of a new idea or behaviour by a business resulting in a difference in the form or operation of a business over time. This is how a business responds to change.
3
Q
Proactive
A
-To be PROACTIVE is to initiate change rather than simply to react to events
4
Q
Reactive
A
-To be REACTIVE is to wait for a change to occur and then respond to it
5
Q
Skills in managing change
A
- Communication Skills
- Delegation Skills
- Planning Skills
- Leading Skills
- Decision Making Skills
- Interpersonal Skills
6
Q
Effectiveness
A
EFFECTIVENESS is the degree to which a business has achieved its stated objectives
7
Q
Efficiency
A
EFFICIENCY refers to how well a business uses resources to achieve objectives
8
Q
How do businesses evaluate their objectives using KPI’s
A
- Establish Objectives: What do we want to achieve?
- Develop Strategies: How will we achieve the objectives
- Evaluate Performance: Did we achieve the objective-KPI’s?
9
Q
Key Performance Indicators (KPI’s)
A
- Performance Of Market Share
- Net Profit Figures
- Rate of Productivity Growth
- Number of Sales
- Rate of Staff Absenteeism
- Level of Staff Turnover
- Level of Wastage
- Number of Customer Complaints
- Number of Workplace Accidents
- Benchmarking
10
Q
Performance Of Market Share
A
- Refers to the business’s share of the total industry sales for a particular good or service, expressed as a percentage
- It is calculated by dividing a business’s sales (from that market) by the total sales of all businesses in that market and expressing this as a percentage
11
Q
Net Profit Figures
A
- Net profit is what remains when expenses are deducted from the revenue earned
- A business that makes a profit is considered to have performed successfully
12
Q
Rate of Productivity Growth
A
- Productivity is a measure of performance that indicated how many inputs (resources) it takes to produce an output (goods or services)
- The rate of productivity growth measures the change in productivity in one year compared to the previous year
- Growth in productivity indicates that the business is using resources more efficiently and
will improve if a business uses fewer inputs to obtain the same level of output, or if more output is produced from the same input
13
Q
Number of Sales
A
- The number of sales of a product is a measure of the number of goods or services (products)
sold. Measuring the number of sales helps a business evaluate its performance, especially its marketing strategies
14
Q
Rate of Staff Absenteeism
A
- Rate of staff absenteeism: the number of workers who neglect to turn up for work when they are scheduled to do so
15
Q
Level of Staff Turnover
A
- Staff turnover is the number of staff leaving the business who must be replaced
16
Q
Level of Wastage
A
- The amount of waste created by the production process
- Doesn’t just refer to raw materials in manufacturing, but to waste of any resources, including labour, time and money. If this is a problem, adopting lean management principles could prove to be effective
17
Q
Number of Customer Complaints
A
- Customer complaints are communications that indicate whether or not customers are satisfied with the performance of the business
18
Q
Number of Workplace Accidents
A
- The number of workplace accidents indicates how safe the workplace is for employees
19
Q
Benchmarking
A
- Benchmarking occurs when a business measures its performance against that of other leading businesses known for their excellence
20
Q
Force Field Analysis Theory
A
- Outlines the process of determining which forces drive and which resist a proposed change
21
Q
Driving Forces
A
- Driving forces are those forces that initiate, encourage and support the change — they work to assist the business in achieving its goal
22
Q
Restraining Forces
A
Restraining forces are those that work against the change, creating resistance — in other words, they hinder the achievement of the goal
23
Q
Force Field Analysis Diagram Action Plan
A
- T Table
- Driving Forces on the left side
- Restraining Forces on the right side
24
Q
Benefits of a force field analysis
A
- Businesses are able to weigh up the ‘for’s and against’ and whether the change is worth undertaking
- It allows a business to identify and strengthen the driving forces supporting the change and to take action to reduce or eliminate the restraining forces
- Force Field Analysis allows stakeholders to identify the change as a positive or negative change from their perspective.
- It allows a timeline to be developed and additional resource requirements to be identified
- Force Field Analysis can identify if skills are restraining change and therefore what training may be required.
- It can identify inadequate systems so a redesign of systems can be undertaken.
- The Force Field Analysis diagram is a visual aid that can support communication and reduce communication barriers.
- It allows the business to identify those people within the business who are supportive of the change and those restraining the change
25
What do driving forces do
Driving forces work to encourage, foster and initiate change. The sources of these driving forces are varied — each environment in which a business operates places
pressure on a business to change
26
Driving Forces
- Managers
- Employees
- Competitors
- Legislation
- Pursuit of Profit
- Reduction of costs
- Globalisation
- Technology
- Innovation
- Societal Attitudes
27
Managers (Driving Force)
- Managers have the responsibility of operating a profitable or successful business. The poor financial performance of a business would result in management reviewing processes, staff and systems
- Managers will push for changes that will lead to a better outcome and more efficient achievement of business objectives
28
Employees (Driving Force)
- Employees working for a business expect to be paid fairly, trained properly and treated ethically in return for their vital contribution to production
- The development of innovative products within a business can create a need for change in everything from operations to marketing
29
Competitors (Driving Force)
- Opening of a new business
- Pricing policies by a competitor
- Adoption of new technologies
- Advertising campaigns
30
Legislation (Driving Force)
- Whenever new laws are passed, businesses must comply with new changes
- These laws can be passed by; National and State Governments, Local Councils and statutory bodies
31
Pursuit of Profit (Driving Force)
- All businesses need to earn a profit, with which they return a portion to owners/shareholders
- If profit levels are not as high as hoped/expected, change would likely be made to generate more revenue or cut costs
32
Reduction of Costs (Driving Force)
- If rising costs are affecting profit reduction of costs will be undertaken, this can be done by:
- Source materials from a cheaper supplier
- Source locally to lower import costs
- Reduce wages through downsizing or implementing new technology
33
Globalisation (Driving Force)
- Globalisation is the movement across nations of trade, investment, technology, finance and labour brought about by the removal of trade barriers
- Businesses that do not recognise as operating in the world market may feel left behind and change to be able to join this market
34
Technology (Driving Force)
- A business that wants to be locally, nationally and internationally competitive must use the appropriate technology
- All businesses, regardless of size, are able to take advantage of technology and so all businesses are driven to change by technology
35
Innovation (Driving Force)
- Innovation is a process that occurs when something already established is improved upon
- Innovation can result from research and development undertaken by businesses or through individuals identifying areas for improvement
- Innovation can be driven by technological advances and by globalisation
36
Societal Attitudes (Driving Force)
- Businesses are constantly confronted by changes in society’s attitudes and values
- Pressure from society has forced businesses to implement procedures to preserve and protect the natural environment
- Society requires that large businesses sell acceptable products and treat staff with respect
37
Managers (Restraining Forces)
- Some managers may make hasty decisions that are poorly timed and unclear
- There will be stakeholders who like the current situation, the ‘status quo’. These stakeholders may overtly or covertly work against the change, creating a restraining force
38
Employees (Restraining Force)
- Employees may resist change because they are worried that they cannot adapt to the new procedures, which threaten established work routines
- The introduction of a major change, such as a merger or acquisition, may result in a complete breakdown of the existing corporate culture
39
Time (Restraining Force)
- In some circumstances, not enough time is allowed for people to think about the change, accept it, and implement it
- A business may invest years and millions of dollars in a change, only to find the external environment has changed so much that the plan devised for success is no longer applicable
40
Organisational Inertia (Restraining Force)
- Organisational inertia is an unenthusiastic response from management to proposed change
- Organisational inertia refers to management’s inactivity or lack of response when faced with proposed changes
41
Legislation (Restraining Force)
- Legislation must be complied with, and it can act as a restraining force
- This occurs when the legislation places restrictions on certain operational practices and procedures
42
Financial Consideration (Restraining Force)
- Financial considerations include cost and revenue issues for a business
- The financial cost of its implementation can restrain a change
