Reviewing for Change

Question 1

What is change and the 2 types of it?

Answer 1

Change is putting new ideas into practice.

Proactive approach- change is planned and less procussion are faced

Reactive- change is not planned and more procussion

Question 2

What are KPI and relation in change?

Answer 2

Assessment criteria that measure efficiency and effectiveness of the business performance. Recognize shortcomings and underperformance in certain areas. Results of the assessments can indicate need for change.

Question 3

Methods/indicators of key performance indicators

Answer 3

– market share
– net profit
– rate of productivity growth = does it take fewer inputs to produce same thing compared to last year?
– sales
– absenteeism
– staff turnover = rate of staff leaving that need to be
replaced (motivation, culture& management)
– wastage
– complaints
– accidents

Question 4

Name and explain Lewin’s (force field) process of change

Answer 4

Lewin’s Force field analysis allows to identify forces that drive the change and forces that restrain it. Involves listing and rating forces from each side from high order to less important. Ratings are added to conclude if change is worth making. A team is then assembled to create an action plan to identify what needs to be done to make the changes happen.

Question 5

restraining and driving forces

Answer 5

profits, managers, employees, unions, organizational inertia, legislations, trends, competitors, suppliers, consumers

Question 6

advantages and disadvantages of lower cost approach

Answer 6

attract more customers, competitive advantage

may suggest bad quality, less room for change in future

Question 7

advantages and disadvantages of differentiation approach

Answer 7

higher margins of profit, uniqueness

decrease in sales, lower market share

Question 8

what is Porter’s generic strategies?

Answer 8

Lower cost approach and differentiation approach

Question 9

Advantages and disadvantages of generic approaches.

Answer 9

lower cost- more sales
- higher market share, competitive ad
- suggests low quality
- less room for improvement
Differentiation - loyal customers due to uniqueness
- room for improving price
- less sales
- costly to achieve

Question 10

positives and negatives of force field analysis

Answer 10

Positive - analysis and evaluation are done by a team
- action plan brings order to process
Negative - process is lengthy not good in crisis
- does not allow to have flair/innovation and
taking risks

Question 11

Relation of an increasing trend in turnover and absenteeism to shareholders

Answer 11

staff are constantly leaving and new ones are being trained which is expensive and due to learning period, productivity is likely decreased. Consequentially, sales may decrease and less profit is made. Less dividend and less share value