Implementing Change

Question 1

leadership

Answer 1

the ability to influence or motivate people to work towards the achievement of business objectives

Question 2

how does good leadership help change management

Answer 2

understand the reasons for change and feel motivated towards a shared goal, they are more likely to support and implement new practices

involving employees in decision-making and equipping them with the necessary skills to implement change can allow a seamless transition process.

Question 3

preparation and planning

Answer 3

Developing a ‘plan of action’ or a ‘business case’ describing the change, and the strategies that will be implemented to deal with it, will allow the leader to more easily explain the need for change to stakeholders.

Question 4

communication

Answer 4

The vision for change will need to be clearly communicated to the business. Using two-way communication all stakeholders need to be informed about the various challenges facing the business, as well as progress of the change.

Without clear communication regarding the change there may be opposition or hesitancy, delaying the change and causing problems for management and other stakeholders.

Question 5

support

Answer 5

An effective leader will ensure that employees are provided with assistance or services to help them cope with the change. Employees who feel supported are generally more prepared to accept the risks involved with change.

Question 6

collaboration

Answer 6

An effective leader will ensure that a team of people is formed to act as facilitators of change. Opportunities for other employees should be created to make sure they can also be involved in the change. People are more likely to accept change when they feel a sense of ownership.

Question 7

accountability

Answer 7

During change, a leader will need to be held responsible for the success of the change. It reflects a level of integrity, which should lead to employees trusting management, and vice versa.
On the other hand, a lack of accountability can lead to mistrust and confusion, as stakeholders struggle to understand what the truth is.

Question 8

staff training

Answer 8

Training refers to the process of teaching staff how to do their job efficiently, boosting their knowledge and skills. It can be completed on the job or off the job.

Question 9

Effects of staff training on KPIs

no. of customer complaints
no. of workplace accidents.

Answer 9

no. of customer complaints: establishes an expected standard of performance and employee conduct, improving customer satisfaction.

no. of workplace accidents: ensures employees are equipped with the skills to handle and operate equipment safely.

Question 10

(staff) motivation

Answer 10

Motivation is what drives employees to apply effort over a sustained period of time.

Question 11

effect of staff motivation on KPIs

level of staff turnover
rate of productivity growth

Answer 11

level of staff turnover: Motivating employees can provide them with a greater sense of achievement and increase their commitment to the business as managers recognise their efforts to achieve objectives.

rate of productivity growth: Motivated employees may be more willing to increase the efficiency and
effectiveness of the production process to achieve business objectives, hence improving productivity.

Question 12

change in management styles and skills

Answer 12

A change in management style involves a manager altering the way they direct and communicate
with employees whereas A change in management skills involves a manager altering the way they approach business tasks and collaborate with employees.

This directly influences staff engagement and the coordination of business activities.

Question 13

effect of change in management styles

rates of staff absenteeism
net profit figures

Answer 13

rates of staff absenteeism: Adopting a less restrictive management style creates strong interpersonal relationships, encouraging them to regularly attend work.

net profit figures: Adopting a more restrictive management style increases the ability of a manager
to utilise the business’s resources in an optimal manner. This can reduce the number
of resources wasted, leading to a reduction in expenses and improvements in profit.

Question 14

effect of change in management skills

rate of productivity growth
net profit figures

Answer 14

rate of productivity growth: Utilising management skills that create structured and efficient processes, can ensure employees understand their role increasing their efficiency.

net profit figures: Utilising management skills that provide a manager with a high degree of control,
can allow the business to effectively manage
resources and reduce waste-related expenses, contributing to higher profit margins.

Question 15

Cost-cutting

Answer 15

is the process of reducing business expenses.
to decrease unnecessary expenses within a business’s operations, allowing for maximised profits.

Question 16

cost-cutting effects on kpis
level of wastage
net profit figures

Answer 16

net profit figures: Removing unnecessary expenses can increase a business’s net profit.
level of wastage: Eliminating unvalued resources to the operations system can minimise amount of unused resources.

Question 17

business transformation

Answer 17

the new form or structure of a business after a change has been introduced

Question 18

high-risk strategies

Answer 18

actions taken that may succeed in the short term but run the risk of generating negative outcomes in the longer term

Question 19

corporate social responsibility

Answer 19

the obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community, as well as the environment

Question 20

low-risk strategies

Answer 20

actions taken that are likely to generate positive outcomes in the short term and longer term

Question 21

manipulation

Answer 21

the skilful or devious exertion of influence over someone to get them to do what you want, often by providing incomplete or selective information

Question 22

redeployment of resources

Answer 22

the assignment of resources, including natural, labour and capital resources, to another area of the business

Question 23

threat

Answer 23

the suggestion that some sort of negative consequence will occur if employees fail to follow a requested change

Question 24

increased investment in technology

Answer 24

involves implementing automated and computerised
processes into a business’s operations system.

businesses that do not constantly update
and invest in technology are often at a severe disadvantage compared to competitors.

Question 25

increased investment in technology
level of wastage
number of workplace accidents

Answer 25

level of wastage: can minimise the number of errors
in production, reducing the number of defective products produced, reducing levels of wastage.

number of workplace accidents: can minimise the number of dangerous tasks that employees are required to perform, increasing their safety at work.

Question 26

Improving quality in production

Answer 26

Improving quality in production involves a business implementing processes that increase
the perceived value of its good or service.

Question 27

Improving quality in production
number of customer complaints
number of sales

Answer 27

customer complaints: Higher quality goods and services can increase customer satisfaction.

number of sales: Higher quality goods and services can better satisfy customer needs and increase
the likelihood of repeat purchasing.

Question 28

Initiating Lean production techniques

Answer 28

involves a business adopting lean management strategies to systematically reduce waste in all areas of production while also improving customer value.

Question 29

Initiating Lean production techniques
level of wastage
rate of productivity growth

Answer 29

level of wastage: By implementing pull, this minimises idle stock and the number of unused resources that are discarded.

rate of productivity growth: Inputs are used more efficiently to produce outputs as the operations system is streamlined when a business implements takt and one-piece flow.

Question 30

redeployment of…
natural resources
labour resources
capital resources

Answer 30

natural: involves a business reusing, recycling, or repurposing its raw materials and is often associated with waste minimisation strategies.

labour: involves transferring employees to other areas
of the business. employees may need to undergo training to learn how to complete their new tasks.

capital: involves a business using physical assets for a different purpose than what they were initially intended for.
man-made items used in the production of
final goods and services, including machinery, vehicles, and tools.

Question 31

redeployment of resources
rates of staff absenteeism
net profit figures

Answer 31

net profit figures: Reduces inefficiencies in the operations system, allowing for optimal use of the business’s resources and increased profit margins.

rates of staff absenteeism: Reallocating labour resources to another area of business where they have different roles and responsibilities can motivate employees to attend work.

Question 32

innovation

Answer 32

is the process of altering and improving or creating new products or procedures.
an opportunity to expand to new markets, meet new customer needs, and improve performance.

Question 33

innovation
rate of productivity growth
number of website hits

Answer 33

no. of website hits: promoting products with unique and engaging marketing techniques may attract more customers to its online platform.

rate of productivity growth: innovative production techniques can minimise the number of inputs required for production, thus increasing efficiency.

Question 34

global sourcing of inputs

Answer 34

involves a business acquiring raw materials and resources from overseas suppliers.

Question 35

global sourcing of inputs
net profit figures
number of sales

Answer 35

net profit figures: A business can source its inputs at a cheaper price from overseas suppliers.
This can reduce production costs and increase profit margins.
number of sales: Sourcing unique resources that are not available domestically can provide a a competitive advantage and entice customers to purchase.

Question 36

overseas manufacture

Answer 36

involves a business producing goods or services outside of the country where its headquarters are located.

Question 37

overseas manufacture
rate of productivity growth
number of workplace accidents

Answer 37

rate of productivity growth: Highly skilled overseas workers may be able to manufacture outputs quicker
and more accurately, thus reducing resources wasted.

number of workplace accidents: Overseas workers may be more skilled and trained in using equipment, minimising the number of incidents in the workplace.

Question 38

global outsourcing

Answer 38

involves transferring specific business activities to an external business in an overseas country.

Question 39

global outsourcing
level of wastage
rates of staff absenteeism

Answer 39

level of wastage: Outsourcing tasks overseas can allow a business to minimise the amount of time and resources wasted by a business.

rates of staff absenteeism: Outsourcing tedious and unenjoyable tasks overseas may improve levels of employee satisfaction.

Question 40

official corporate culture

Answer 40

involves the shared views and values that a business aims to achieve, often outlined in a written format.

Question 41

real corporate culture

Answer 41

involves the shared values and beliefs that develop organically within a
business, and are practised on a daily basis by its employees.

Question 41

establishing appropriate rituals, rites and celebration

Answer 41

involve management introducing routine patterns of behaviour to the business’s everyday life such as observing safety procedures and working in teams, as well as participating in social events and gatherings.

Question 42

change the prevailing management style

Answer 42

A business with a less than desirable corporate culture may find that a different prevailing management style could result in a more positive corporate culture.
Eg, a participative style to emphasise the way it values staff input and the contribution of its employees.

Question 43

Employee training to reflect business values

Answer 43

By gaining skills and knowledge, employees are more developed, both professionally and personally, and are likely to feel valued by the business and empowered to do their best.
training to employees that focuses on respect for all employees and managers or what it means to work with integrity.

Question 44

“Heroes”/role models of the business

Answer 44

By influencing employees, positively encouraging them and motivating staff to share in these values and beliefs, management will be able to develop a desired culture at a business.

Question 45

Communication of desired values to staff

Answer 45

Employees may not have a full understanding of the desired corporate culture that the business is trying to achieve. In this case, management should explain what the culture is and why it is important.

Question 46

Hiring staff who fit in with the values of the business

Answer 46

Screening potential candidates to ensure that they will fit in with the business’s shared values and beliefs is important — employees who don’t adapt to the culture of a business are more likely to quit or create problems for the business.
On the other hand, research suggests that staff who fit well into the prevailing corporate culture tend to enjoy greater job satisfaction and will be more likely to remain with the business for a longer period

Question 47

Rewarding employees who exemplify appropriate values.

Answer 47

The act of recognition will develop relationships, help employees feel connected to the business and create positive moments for staff. Every time a business rewards or recognises an employee, management is showing the rest of the staff the values and behaviours they are expected to embrace

Question 48

strategies to improve official corporate culture

Answer 48

• publishing or updating mission statements which shows the public and employees the business’ aspirations
• establishing or amending policies and procedures in documented forms or publishing an employee code of conduct which unifies approaches to work and outlines business’ expectations of itself and it’s employees.

Question 49

A learning organisation

Answer 49

is an organisation that facilitates the growth of its
members and continuously transforms itself to adapt
to changing environments.

Question 50

Senge’s learning organisation background

Answer 50

Peter Senge developed the theory of the Learning Organisation in 1990. He proposed the idea that becoming a learning organisation helps a business manage change more effectively.

Question 51

systems thinking

Answer 51

management approach that considers the interrelationship between the parts of a whole system.

• Analysing a business as a whole, rather than as separate parts.
• a business is connected to external structures, such as the specific industry and wider economy in which it operates.
• consider the flow-on effects that occur to all parts of the business when a change is made to one part.

Question 52

mental models

Answer 52

are existing assumptions and generalisations that must be challenged so that learning and transformation can occur in an organisation.

• important to reflect on behaviour and beliefs
• encourage employees to be more open to change and improve the business’s ability to implement change successfully.

Question 53

shared vision

Answer 53

aspirational description of what an organisation and its members would like to achieve.

• A strong and clearly-communicated vision
  can encourage a unified focus for employees
• employees become motivated and subsequently align their individual efforts to achieve the business’s vision.

Question 54

personal mastery

Answer 54

is the discipline of personal growth and learning, aligned with one’s values and purpose.

• provide an environment that constantly promotes an employee’s learning, ensuring that such growth aligns with an employee’s personal aspirations.
• opportunities for self-assessment to determine their strengths and weaknesses so that they may focus on skills they would like to improve.

Question 55

team learning

Answer 55

collective learning that occurs when teams share their experience, insights, knowledge, and skills to improve practices.

• It encourages individuals to combine their strengths
  and abilities to continuously grow together.
• The principle of team learning assumes that people
  working together develop skills faster than they would individually.

Question 56

advantages of a learning organisation

Answer 56

• improved corporate culture as employees feel connected, valued for their input and share a part of their vision.
• employees receive extensive training and development helping them feel more job secure and lowering staff turnover.

Question 57

disadvantages of a learning organisation

Answer 57

• time consuming with many employees engage in training and development instead of being productive in core activities.
• training and development is very costly as employees seek improvement that may not directly contribute to net profit.

Question 58

Leading a learning organisation

Answer 58

Leaders are designers, stewards and teachers. They are responsible for building businesses where people continually expand their capabilities to understand complexity, clarify vision and improve shared mental models.

Question 59

communication

Answer 59

involves managers openly and honestly transferring
information to employees, and listening to their feedback so that employees are fully aware of
the upcoming change.

• two-way communication increases employees’ understanding of the proposed change and builds trust in management.
• clearly outline the reasons, benefits, and other important information regarding the change to employees.

Question 60

empowerment

Answer 60

strategy involves managers providing employees with increased responsibility and authority during times of change.

• feel directly involved within the process, leading to a greater willingness to contribute to the change.
• less likely to resist as they develop a sense of ownership towards the change.
• increase employee morale and motivation to accept and implement the change.

Question 61

support

Answer 61

involves managers providing employees with assistance as they move from current to new practices.

• reduce an employee’s level of fear and stress related to change and make them feel more prepared to embrace the change.

Question 62

incentives

Answer 62

involves managers providing financial or non-financial rewards to encourage employees to support change.

Financial rewards: bonuses, pay rises, and commissions
Non-financial rewards: positions of leadership
or new responsibilities.

• Employees will be less resistant and more motivated to implement change if they are aware that they will personally gain from the change.

Question 63

advantages of low risk strategy

Answer 63

• result in a higher chance of change being
  successful in the long term due to increased trust
  and cohesion between managers and employees.
• useful for businesses where the change will take a long time to introduce as they are more sustainable approaches.

Question 64

disadvantages of low-risk strategy

Answer 64

• are not useful in crisis
  situations as they take a longer period of time
  to be effective.
• Incentives lead to financial expenses for the
  business, which can therefore reduce overall profit

Question 65

manipulation

Answer 65

involves influencing employees to support a proposed change by providing incomplete and deceptive information about the transformation.

• selectively presenting information and details to distort employees’ understanding of an upcoming transformation.
• making the change seem more beneficial than it actually is.

Question 66

threat

Answer 66

involves forcing employees to follow a proposed change by stating that they may or will cause harm to them if they fail to do so.
* dismissal
* poor employer references
* loss of promotion.

These threats force employees to agree with a change because failure to do so may threaten their job security, financial stability, and workplace happiness.

Question 67

Lewin’s three step change model

Answer 67

process that can be used by a business to implement
change successfully. Kurt Lewin, a German-American psychologist, created this theory as a guide
for businesses to implement change smoothly and successfully.

Question 68

Unfreeze step

Answer 68

involves moving a business to a state where stakeholders are prepared to undergo change.

• challenge the beliefs, behaviours, and values that currently exist within the business.
• involves identifying what needs to be changed and why, before announcing it to stakeholders highlighting the reasons for, and benefits of the change.
• provide opportunity to raise any concerns related to the change.

Question 69

Change step

Answer 69

involves moving a business towards its desired state.

• transforms the business’s practices to meet its new objectives.
• provide ongoing support and training to employees, as this can reduce the stress associated
  with new practices and allow the change to be implemented smoothly.

Question 70

Refreeze step

Answer 70

involves ensuring a change is sustained within a business for the long term.

• prevents a business from reverting back to previous ways of operating by embedding the change into its everyday practices.
• Management should constantly monitor and evaluate the change during this stage to
  ensure business performance after change.

Question 71

benefits of lewin’s three-step change model

Answer 71

allows a business to take a structured approach to any change which can be communicated to all stakeholders.

A structure for change can also assist in removing or minimising any residual resistance to the change.

Question 72

Effect of change on owners

Answer 72

The extent to which an owner is affected by change will depend on their involvement in the management or daily operations of the business.

Question 73

advantages owners

Answer 73

A business owner may be perceived more
positively by employees if they implement
change successfully

successful change = increased
return on their investment and greater
financial security.

Question 74

disadvantages owners

Answer 74

owner may may experience personal and financial
implications if change is unsuccessful.

may become overwhelmed and stressed by the increased workload and responsibilities that come with change

Question 75

effect of change on managers

Answer 75

A manager within a business may be responsible for monitoring a specific area of business or the
business as a whole.
involve coordinating employees and
business activities that enable the achievement of objectives.

Question 76

advantages managers

Answer 76

provide opportunities for a manager to develop new skills or advance their career.

may provide a manager with
financial and non-financial rewards if the
change is successfully implemented.

Question 77

disadvantages managers

Answer 77

Increased workloads associated with change can lead to stress

may lose their job and financial security.

Question 78

employees

Answer 78

often integral to the implementation of successful change as they are responsible for performing work tasks that assist in the achievement of objectives.

Question 79

advantages employees

Answer 79

improved job and financial security

new responsibilities and opportunities for
career advancement

Question 80

disadvantages employees

Answer 80

need to develop complex skills and learn difficult
processes, which may increase stress levels

expected to result in redundancies employees may fear for their job or financial security.

Question 81

customers

Answer 81

are the people who purchase its goods or services. When businesses undergo change, they often adapt their products to meet changing customer preferences or improve their overall performance.

Question 82

advantages customers

Answer 82

Customer satisfaction may increase if the change allows the business to offer lower prices for its goods and services.

improves the quality of a business’s goods and services which increases satisfaction.

Question 83

disadvantages customers

Answer 83

sources cheaper inputs to reduce business costs may compromise the quality of its product

• Customers may be dissatisfied if a business
  change increases the price of its products.

Question 84

suppliers

Answer 84

relies on its suppliers to provide the raw materials and resources it requires in its
operations system to produce a final good or service.

Question 85

advantages suppliers

Answer 85

Supplier demand may increase if a business
requires a greater amount of resources
to meet its production needs.

change in contract to adjust production processes which may create new opportunities for suppliers

Question 86

disadvantages suppliers

Answer 86

decides to switch to a different supplier or discontinue a product decreasing supplier sales

may require its suppliers
to involuntarily adjust their processes to
meet the new demands of the business.

Question 87

general community

Answer 87

although the general community do not directly interact with the business, they are
still indirectly impacted by the decisions and changes that it chooses to undertake.

Question 88

advantages of general community

Answer 88

creates job opportunities, local employment rates may increase

if business change is successful business has a greater ability to contribute to local social causes

Question 89

disadvantages general community

Answer 89

business change redundancies may increase local
unemployment rates and poverty levels

switching to an overseas supplier can have a negative
impact on the environment

Question 90

considering environment

Answer 90

when implementing a change, ensuring that it goes above and beyond in reducing its impact on pollution, wildlife and the world’s resources

• attempt to use other inputs that do not have a serious impact on the environment.
• make sure that the suppliers are environmentally friendly and/or make use of local suppliers

Question 91

considering employees and management

Answer 91

make sure that any change introduced does not negatively impact on the health and wellbeing of staff

A socially responsible approach is to inform staff of the situation and provide a timeline for the coming period, identifying if and when redundancies might occur and the process that would take place in this situation, as well as what the outcome would be.

Question 92

considering customers

Answer 92

need to make sure that the goods or services it produces remain at the required quality, and that they continue to be safe and reliable.

• A change should not result in dangerously defective or harmful products
• increasingly demanding authenticity in their social responsibilities and want to be involved with brands that care about improving the world.

Question 93

considering suppliers

Answer 93

A business should make sure that suppliers uphold the same corporate social responsibility standards as the business.

It would be considered socially responsible to source resources and materials from local suppliers.
job opportunities are created in the local community and supports the local economy.

Question 94

considering general community

Answer 94

Society demands that businesses be held accountable and responsible for their actions.

The general community expects that a business, when implementing change, will carefully consider the natural environment, local economy, redeployment instead of redundancies.

Question 95

By reviewing KPIs, a business can evaluate the effectiveness of its transformation by:

Answer 95

• analysing the size and extent of its change.
• identifying whether the change has successfully achieved its objectives.
• identifying whether the change has negatively impacted another area of performance.
• determining whether more effort and time are required for the change to achieve desired objectives.

Question 96

Ways KPIs can be used to evaluate change

Answer 96

KPI’s provide a quantitative or quantifiable basis to make judgements on performance using data or other information.

KPI’s can be compared to previous performance, helping the business to recognise and report success to key stakeholders

KPI’s can be benchmarked against competitor achievement or world’s best
practice