SAC REVISON

Question 1

Leadership in change management

Answer 1

Explain the Importance of leadership in change management:

• Leadership in change management:
  . The ability to positively influence and motivate employees towards achieving business objectives during transformation.
• Build a shared vision:
  Informing employees of the reason and benefits of change, as well as the consequences of not changing.
• Provide ongoing communication:
  Clear instruction to employees as they move from current to new practises.
• Provide ongoing support:
  Employee counselling, training, and consultation.

Question 2

Management strategies to respond to KPI’s

Answer 2

Response to the KPI: Level of staff turnover :

• Staff motivation:
• Staff motivation is managers implementing strategies that seek to drive employees to work towards the achievement of business objectives.
• Provides staff with a sense of achievement and commitment in fulfilling tasks as their efforts are considered as meaningful by the manager.
• Change in management styles or skills
• managers altering their way of directing and interacting with staff.
• less restrictive style promote employee involvement in decision making.

Explain how a change in management style can address poor performance:
- By implementing :Staff training, Change in management styles or skills, Increased investment in technologies, improved quality and initiate lean production techniques.

Define cost cutting and provide example:

• cost cutting is the process of reducing business expenses.
• Examples: merging employee roles to reduce number of employees, reducing employee wages.

Explain how redeployment of resources can address poor performance.

• the reallocation of natural, labour and capital materials to different areas of the business to improve their effectiveness and productivity.
• relocating of resources lead to better use of materials.

Question 3

New business opportunities

Answer 3

Explain a management strategy to seek new opportunities domestically:
. Differentiation of services or products
. Online sales
. Opening new store locations.

Explain a management strategy to seek new opportunities globally:
. Online sales
. Exporting
. Opening new business locations globally

Question 4

Senge’s learning orginisation

Answer 4

• A learning organisation: A business that facilitates the growth of it’s members and continuously transforms itself to adapt to changing environments.
• Systems Thinking: The ability to understand the interrelationship between different areas of a business
• Mental models: Challenging the pre-existing assumption and beliefs that people have about a business and it’s practices
• Shared Vision: An aspirational description of what a business and it’s members would like to achieve.
• Personal mastery: encouraging individual development and learning through business activities.
• Team learning: encourages individuals to combine their strengths and abilities to continuously grow together.

Question 5

Low risk strategies

Answer 5

• Low Risk Strategies: Gradual management approaches that encourages employees to accept and participate in a business change.
  - Can reduce levels of employee resistance by fostering a supportive and transparent environment during change.
• COMMUNICATIONS: Managers initiating open and honest two way communications with employees so they are fully aware of the reasons, impacts and roles in an upcoming change
  - ensuring employees understand why change is necessary
• Empowerment: Managers providing employees with increased responsibility and Authority during time change.
  - giving employees a sense of ownership towards change
• Support: Providing employees with assistance as they move from current to new practices.
  - Overcoming levels of fear and stress towards change
• Incentives: Incentives: Managers providing financial or non-financial rewards to encourage employees to support change.
  - Rewards for changes

Question 6

High risk stratergies

Answer 6

• High risk strategies: Autocratic management approaches used to influence employees to quickly accept and follow a business change.

Examples:

• threats
• manipulation

When should they be used:
- used by a business to respond to high levels of employee resistance during times where rapid acceptance is required

Question 7

Lewin’s three step change model

Answer 7

Unfreeze step: Moves a business to a state where stakeholders are prepared to undergo change.
- prepare business for change
Change step: Moves a business toward the desired state
- New processes or practises are introduced.
Refreeze step: Ensures the change is sustainable within the business for the long term.
- new policies introduced to reinforce new culture

Question 8

Effects of change on stakeholders

Answer 8

Explain how stakeholders can be affected by change:
- job security and whatnot

Describe the effects on employees and suppliers:
-POSITIVE
* new opportunities
* build long term job security
*increase amount of resources required
- NEGATIVE
* need to learn new skills
*lose there job/security
*decrease of sales
Describe effects on the general community
- POSITIVE
* creation of more jobs
* increase customer traffic and sales in area
- NEGATIVE
* loss of jobs = unemployment rate high
* Decrease customer traffic and sales in area

Question 9

CSR considerations and change

Answer 9

Define CSR: The ethical conduct of a business beyond legal obligations to improve social, economic and environmental outcomes of stakeholders.

• Changing suppliers: choose local to improve local economy

- Introducing new tech: reduces waste

Question 10

Evaluating changes

Answer 10

• Reviewing key performance indicators can identify whether a business change has achieved its desired objectives or if further changes are required. From a review of KPIs, a business may even discover that the change has achieved its objectives but unintentionally affected other areas negatively