Implementing Change Flashcards
leadership
the ability to influence or motivate people to work towards the achievement of business objectives
how does good leadership help change management
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.
preparation and planning
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.
communication
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.
support
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.
collaboration
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.
accountability
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.
staff training
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.
Effects of staff training on KPIs
no. of customer complaints
no. of workplace accidents.
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.
(staff) motivation
Motivation is what drives employees to apply effort over a sustained period of time.
effect of staff motivation on KPIs
level of staff turnover
rate of productivity growth
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.
change in management styles and skills
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.
effect of change in management styles
rates of staff absenteeism
net profit figures
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.
effect of change in management skills
rate of productivity growth
net profit figures
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.
Cost-cutting
is the process of reducing business expenses.
to decrease unnecessary expenses within a business’s operations, allowing for maximised profits.
cost-cutting effects on kpis
level of wastage
net profit figures
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.
business transformation
the new form or structure of a business after a change has been introduced
high-risk strategies
actions taken that may succeed in the short term but run the risk of generating negative outcomes in the longer term
corporate social responsibility
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
low-risk strategies
actions taken that are likely to generate positive outcomes in the short term and longer term
manipulation
the skilful or devious exertion of influence over someone to get them to do what you want, often by providing incomplete or selective information
redeployment of resources
the assignment of resources, including natural, labour and capital resources, to another area of the business
threat
the suggestion that some sort of negative consequence will occur if employees fail to follow a requested change
increased investment in technology
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.
increased investment in technology
level of wastage
number of workplace accidents
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.
Improving quality in production
Improving quality in production involves a business implementing processes that increase
the perceived value of its good or service.
Improving quality in production
number of customer complaints
number of sales
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.
Initiating Lean production techniques
involves a business adopting lean management strategies to systematically reduce waste in all areas of production while also improving customer value.
Initiating Lean production techniques
level of wastage
rate of productivity growth
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.
redeployment of…
natural resources
labour resources
capital resources
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.
redeployment of resources
rates of staff absenteeism
net profit figures
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.
innovation
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.
innovation
rate of productivity growth
number of website hits
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.
global sourcing of inputs
involves a business acquiring raw materials and resources from overseas suppliers.
global sourcing of inputs
net profit figures
number of sales
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.
overseas manufacture
involves a business producing goods or services outside of the country where its headquarters are located.
overseas manufacture
rate of productivity growth
number of workplace accidents
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.
global outsourcing
involves transferring specific business activities to an external business in an overseas country.
global outsourcing
level of wastage
rates of staff absenteeism
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.
official corporate culture
involves the shared views and values that a business aims to achieve, often outlined in a written format.
real corporate culture
involves the shared values and beliefs that develop organically within a
business, and are practised on a daily basis by its employees.
establishing appropriate rituals, rites and celebration
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.
change the prevailing management style
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.
Employee training to reflect business values
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.
“Heroes”/role models of the business
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.
Communication of desired values to staff
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.
Hiring staff who fit in with the values of the business
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
Rewarding employees who exemplify appropriate values.
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
strategies to improve official corporate culture
- 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.
A learning organisation
is an organisation that facilitates the growth of its
members and continuously transforms itself to adapt
to changing environments.
Senge’s learning organisation background
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.
systems thinking
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.
mental models
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.
shared vision
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.
personal mastery
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.
team learning
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.
advantages of a learning organisation
- 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.
disadvantages of a learning organisation
- 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.
Leading a learning organisation
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.
communication
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.
empowerment
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.
support
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.
incentives
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.
advantages of low risk strategy
- 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.
disadvantages of low-risk strategy
- 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
manipulation
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.
threat
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.
Lewin’s three step change model
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.
Unfreeze step
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.
Change step
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.
Refreeze step
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.
benefits of lewin’s three-step change model
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.
Effect of change on owners
The extent to which an owner is affected by change will depend on their involvement in the management or daily operations of the business.
advantages owners
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.
disadvantages owners
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
effect of change on managers
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.
advantages managers
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.
disadvantages managers
Increased workloads associated with change can lead to stress
may lose their job and financial security.
employees
often integral to the implementation of successful change as they are responsible for performing work tasks that assist in the achievement of objectives.
advantages employees
improved job and financial security
new responsibilities and opportunities for
career advancement
disadvantages employees
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.
customers
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.
advantages customers
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.
disadvantages customers
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.
suppliers
relies on its suppliers to provide the raw materials and resources it requires in its
operations system to produce a final good or service.
advantages suppliers
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
disadvantages suppliers
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.
general community
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.
advantages of general community
creates job opportunities, local employment rates may increase
if business change is successful business has a greater ability to contribute to local social causes
disadvantages general community
business change redundancies may increase local
unemployment rates and poverty levels
switching to an overseas supplier can have a negative
impact on the environment
considering environment
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
considering employees and management
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.
considering customers
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.
considering suppliers
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.
considering general community
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.
By reviewing KPIs, a business can evaluate the effectiveness of its transformation by:
- 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.
Ways KPIs can be used to evaluate change
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
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