Chapter 10- Change Flashcards
Change from Controller to Facilitator
Previously the manager was a ‘controller’ or ‘the boss’ who was autocratic, didn’t ask opinions and told employees what to do. Nowadays the manager is like a ‘coach’ who trains and develops staff to make their own decisions.
Previously managers thought the best thing to do was to try catch employees making mistakes. Nowadays managers help employees to solve problems together and provide advice and training.
Previously managers focus on ‘bad’ employees and punish them but nowadays managers try reward the good employees as a way of motivating underperforming employees.
Employee Empowerment and benefits
Employee Empowerment is where a manager gives employees the power to make their own decisions without having to ask the manager.
Employee Empowerment benefits
Better service for customers as no waiting around for managers.
Employees more motivated as they are given more responsibility (Theory Y) and satisfies ‘Esteem Needs’ (Maslow)
Business makes the most of employees skills and talents.
Managers spend less time supervising and more time on more important work.
Disadvantages of Employee Empowerment
Risk of employees making mistakes. This could lead to loss of customers and money.
Employee could confuse empowerment with being able to do whatever they want. Could lead to conflict.
Some people do not want empowerment and could become stressed.
Employee Participation
Participation means employees have more of a say in the running of the business. This can be performed through the following mechanisms.
Employee Participation
can be performed through the following mechanisms.
Works Council: Group of employees elected by their peers who have a say in strategy and planning of the business. Any business of over 1000 employees has to have a works council.
Worker Directors: An employee sits on the Board of Directors thus having a seat at the highest level of decision making.
Share Options: Employees buy shares thus becoming owners and can vote at the AGM
Benefits of Employee Participation
Increased Motivation due to being listened to and valued. Esteem Needs satisfied.
Employees can provide creative input and become Intrapreneurs.
More communication between employees and managers which leads to improved industrial relations. Any industrial relations problems will be solved in a more cooperative manner.
Teamwork
Managers think it is better for people to work in teams rather than in isolation. There are 4 stages a team goes through from when they meet to when they start to work well together.
Teamwork: Stages in forming teams
Forming: Meet for the first time, Be very polite, Suss each other out.
Storming: As they get to know each other conflict occurs. Strong personalities emerge. Team members vie for position.
Norming: Agree to a leader, people find their place / role, reach a consensus and start to work together. Set ‘Norms’ which are standards of behavior.
Performing: Cooperate. Work as a team to get the job done.
Advantages of Teams for Business/Employee
Teams make better decisions: Brainstorming. Each member brings different point of view, different skills and different ideas.
Teamwork increases employee motivation: Employees happier when working in a team. Satisfies ‘Social Needs’. Less staff turnover.
Teams ‘develop’ employees: Learn from other team members.
Protection and recognition: Praise from teammates and ‘hide behind the team’
Better quality product / service: Team members don’t want to let each other down and therefore do a better job.
Improves Coordination: Mixing employees from different departments helps people understand and appreciate the different roles in the business.
TQM
TQM is a business management strategy that aims to make 100% perfect products 100% of the time so customers are 100% satisfied. Every person in the business is responsible for the product so everyone has to do their job perfectly.
Perfection includes zero defects, zero waste and standard that satisfies customers.
TQM - Principles of Total Quality Management
Focus on Customer: Customer is the most important so ‘perfection’ is whatever the customer wants. Market research is very important in TQM.
Employee Empowerment: To make ‘perfect’ products requires excellent employees. In TQM employees are empowered to make their own decisions to improve quality.
Teamwork: Work together with suppliers who must supply ‘perfect’ raw materials. Employees also put into teams to motivate and generate perfection.
Continuous improvement: 100% perfection isn’t realistic but constantly striving to reach it and do better is called continuous improvement.
Benefits of TQM
Increased Sales: Better quality leads to higher sales. Higher sales means higher profits.
Lower Costs: No faulty goods, no repairs, no waste no refunds to unhappy customers. Lower costs means higher profits.
Improved Motivation: Empower employees, Place them in teams. Satisfy esteem needs and social needs.
Meet legal obligations under Sale of Goods and Supply of Services Act.
Technology’s role in Change
Marketing: Managers can now use the internet to advertise throughout the world. Social Media and companies websites. Also businesses can sell their products online to the world which is known as e-commerce
Decision-making: Research information on the internet
CAD / CAM / CIM: Computer Aided Design is software to design products EG Solidworks. Computer Aided Manufacturing controls the machine. Computer Integrated Manufacturing controls the entire design and production process.
Redundancies: ICT can replace humans in certain roles. Reduce managers span of control.
- Employee motivation and Retention: Employees can work from home and the hours to suit themselves.
- Make employees job easier. EG coin machine on the bus.
- New careers in programming and web design.
Impact of ICT on costs
Increased costs due to initial outlay of buying hardware and software. Also added cost of training staff.
Decreased costs CAM means products made to higher quality reduces refunds, repairs and waste. Fewer workers also means lower wages.
