Chapter 9 - Management and Change Flashcards
what is change
the alteration in the internal or external environments
internal changes effecting a business
change in production methods
change in products sold
change how employees perform tasks
new ways of dealing with problems
modified its corporate structure
new organisational structures
recruited employees with new skills / training
external changes effecting a business
change in consumer tastes
change in markets
economic changes
competition
seasonal changes
legal changes (state, local or federal changes in the laws)
why is it important for a business to adapt and change
gives them a competitive advantage
allows their survival
can react and respond quickly, being proactive rather than reactive
does responding to change effect a business’s success
yes, a business that is able to anticipate and respond to change quickly (being proactive rather than reactive) gives them a competitive advantage and won’t be left behind
what is organisational change
the adoption of a business’s new idea or behaviour response to internal or external influences
is change continuously happening
yes
what is transformational change
give examples
results in a complete restructure throughout the whole organisation
e.g. flatter organisational structure, new work systems and procedures
what is incremental change
give examples
minor changes, usually involving only a few employees
e.g. office employee may change from using a fax to using email when sending info to customers
what is structural change
the changes in the business’s structure - that is, the organisation chart
what are three main structural changes introduced in Australian businesses
outsourcing
flatter organisational structures
work teams
what is outsourcing
employing a minimum full-time staff and using as many people from outside the business as possible - on a contract, casual or part-time rate
this keeps costs to the lowest possible level
negatives and positive of outsourcing
\+ = the organisation may be able to produce its goods, or supply its service, more efficiently than before \+ = basically you can blame them if something goes wrong
- = may mean job losses occur within the organisation and other jobs then need to be created
how is a flatter organisational structure achieved
abolishing middle-management positions
fewer formal reporting controls
sharing of best practice methods
learning focused on the business’s needs
supportive learning environment
looser structure
advantages of teams
allows business to be more flexible and responsive
motivate employees to:
- be more creative
- develop a broader view of goals
- contribute across the entire business
give an example of a business that had to change their business culture due to external changes
Telstra
enjoyed a monopoly on telecommunications in Australia
competition forced them to change their mindset to compete in new environment
their existing business culture required a new way of thinking as it didn’t fit the real-world requirements
developed a new business culture
does change affect human resource management
why
yes
big changes have a profound impact on all employees
therefore, the HR management function must adjust to improve the effectiveness of changes made in other business divisions, e.g. organisational structure, technology
what are some of the main human resource management changes
- recruitment and selection must be altered to reflect the need for individuals who possess the knowledge and sills required to handle the changing circumstances
- if employees are to be made redundant then appropriate termination procedures must be put in place
- training must be offered to existing employees in the areas of teamwork, problem solving decision making and change management
- performance appraisal and reward systems that reinforce the new behaviours put in place
- to attract and maintain skilled employees, flexible working arrangements will be needed
- a clear vision of where the business is headed and the benefits to employees will need to be developed and clearly communicated
resistance to change
costs
traditional
time consuming
constantly having to adapt to environments
impact of change on operations management
- businesses have refitted and reorganised their factories to take advantage of improvements in technology
- new advances in production technology have been accompanied by changes in the way the production process is organised, including flexible manufacturing
- flexible manufacturing allows production plans to be smaller, more specialised and closer to important markets
- human relations are being improved so that employees will approach their work more intelligently. This includes such considerations as balancing workloads, using ergonomics etc