Chapter 9 - Management and Change

Question 1

what is change

Answer 1

the alteration in the internal or external environments

Question 2

internal changes effecting a business

Answer 2

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

Question 3

external changes effecting a business

Answer 3

change in consumer tastes

change in markets

economic changes

competition

seasonal changes

legal changes (state, local or federal changes in the laws)

Question 4

why is it important for a business to adapt and change

Answer 4

gives them a competitive advantage

allows their survival

can react and respond quickly, being proactive rather than reactive

Question 5

does responding to change effect a business’s success

Answer 5

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

Question 6

what is organisational change

Answer 6

the adoption of a business’s new idea or behaviour response to internal or external influences

Question 7

is change continuously happening

Answer 7

yes

Question 8

what is transformational change

give examples

Answer 8

results in a complete restructure throughout the whole organisation

e.g. flatter organisational structure, new work systems and procedures

Question 9

what is incremental change

give examples

Answer 9

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

Question 10

what is structural change

Answer 10

the changes in the business’s structure - that is, the organisation chart

Question 11

what are three main structural changes introduced in Australian businesses

Answer 11

outsourcing

flatter organisational structures

work teams

Question 12

what is outsourcing

Answer 12

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

Question 13

negatives and positive of outsourcing

Answer 13

\+ = 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

Question 14

how is a flatter organisational structure achieved

Answer 14

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

Question 15

advantages of teams

Answer 15

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

Question 16

give an example of a business that had to change their business culture due to external changes

Answer 16

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

Question 17

does change affect human resource management

why

Answer 17

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

Question 18

what are some of the main human resource management changes

Answer 18

• 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

Question 19

resistance to change

Answer 19

costs

traditional

time consuming

constantly having to adapt to environments

Question 20

impact of change on operations management

Answer 20

• 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