U4 AOS 2 Flashcards
Importance of Leadership in Change
Change can be a difficult process for many stakeholders
Leadership has the ability to influence and motivate individuals to achieve business objectives
Good leadership helps reduce resistance of change is stakeholders
Role of a Leader
Communicate clear vision
Listen to employee concerns
Resolve conflict
Strategies to respond to KPI’s
Staff training Staff motivation Change in management style or skill Increase technology Improve production quality Cost-cutting Initiate lean production technique Redeployment of resources
Responding to KPI’s: Staff Training
The process of improving an employees skills and knowledge
Impact on KPI's: Improved Productivity Improves Sales Less Accidents Decreased Staff Absenteeism
Responding to KPI’s: Staff Motivation
Motivated employees work harder towards the achievement of objectives
Impact on KPI's: Improved Productivity Groth Lowered Absenteeism Reduced Turnover Reduced Complaints
Responding to KPI’s: Change In Management Styles or Skills
Styles and skills can influence the performance of a business and its culture
Responding to KPI’s: Investing in Technology
Technology can be used in numerous ways to improve the business
Impact on KPI’s:
Improves rate of productivity growth
Reduces level of wastage
Increases net profit (reducing operating costs)
Responding to KPI’s: Improve Quality or Production
Improving quality of production improves the quality of final good or service produced
Impact on KPI's: Increased percentage of market share Increase number of sales Reduced complaints Reduced wastage
Responding to KPI’s: Cost Cutting
Businesses will look to reduce costs without having a significant impact on the overall value to consumers
Impact on KPI’s:
Increased net profit
Reduced wastage
Improved productivity growth
Responding to KPI’s: Initiating lean production techniques
Focus on minimising the waste produced in a business while improving the value of the end product
Impact on KPI’s:
Reduced level of waste
Increased net profit
Improved sales and market share
Responding to KPI’s: Redeployment of Resources
Redeployment is the transfer of resources from one place in the business to another.
Impact on KPI’s:
Improved productivity grwoth
Reduced staff turnover
Improved level of wastage
Management strategies to seek more opportunities
Domestic and Global Opportunities
Domestic vs Global Opportunities
Domestic is when the business is looking to gain more business within the country of operation whereas global is where the business is looking outside the country.
Domestic Strategies
Multiple Branding: Where an entity sells multiple brands in the same market
Franchising: Where a business grants someone the rights to carry out commercial activity with their brand
Government Programs: Governments provide assistance via the form of grants
Global Strategies
Exporting: Goods or services are sent to other countries for sale
Austrade: Government body that is involved in advancing Australians international trade
Online Presence: Attracts both domestic and international customers
Senges Learning Organisation
A learning organization is one that is flexible, adaptive, and productive.
It aims to have a culture where people work together at their best and continually work together at their best
5 Principles of Senges Learning Organistaion
Systems Thinking: Ability to see the big picture rather than things in isolation
Personal Mastery: When people within the business undertake continual learning
Mental Models: The deeply ingrained assumptions, generalizations and images of how people understand the world
Shared Vision: Being able to develop a vision that the people within the business believe in
Team Learning: Process of aligning and developing the capacities of a team to create results members desire
Overcoming Employee Resistance
High and low-risk strategies to reduce resistance to change
Low-Risk Strategies
Communication: Being open and honest about the change so that employees fully understand direction, allowing them to voice concern further building trust
Empowerment: Involving employees in the change process can help them get on board with the change, this shows a level of trust and helps gain support
Support: Those that are affected by the change need to be supported through the process, if employees lose employment they must be supported.
Incentives: Providing something encouraging employees to embrace change such as bonuses or promotions
High-Risk Strategies
Manipulation: Gaining support by the selective use of facts or deceptions, can reduce resistance as employees are only told benifets.
Threat: Forcing employees to embrace change or receive retribution, possible threats include deomition or loss of promotion
Lewins 3 step change model
A way for business to implement effect change
Unfreeze
Implement Change
Refreeze
Step 1 - Unfreeze
Unfreezing is about preparing for change, this includes identifying the change, creating an urgency and address concerns
Step 2 - Implement
Open communication is key for implementing change, support must be offered and people should be empowered to take action towards change
Step 3 - Refreeze
Reinforcing the change and implementing it into the culture, without refreezing there is potential change will not be effective
