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unit 3/4 busman > U4 AOS2: Implementing change > Flashcards

U4 AOS2: Implementing change Flashcards

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1
Q

Change management

A

The process of implementing strategies that prepare business to undergo transformation

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2
Q

Leadership

A

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

  • Effective leader will reduce resistance to change
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3
Q

Leadership in change

A

The process of positively influencing and encouraging individuals to set and achieve objectives as the business undergoes a transformation

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4
Q

What are the individual qualities for leading through change?

A
  • Motivating
  • Inspiring
  • Responding to feedback
  • Guiding and training staff
  • Supporting, mentoring, coaching
  • Decisiveness
  • Acts as a role model
  • Communicates business intentions, visions and objectives
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5
Q

Management strategies to respond to KPIs

A
  • Staff training
  • Staff motivation
  • Change in management styles or management skills
  • Increased investment in technology
  • Improving quality in production
  • Cost cutting
  • Initiating lean production techniques
  • Redeployment of resources (natural, labour and capital)
  • Innovation
  • Global sourcing of inputs, overseas manufacture, global outsourcing
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6
Q

Staff training

A

Aimed at improving employee’s skills, knowledge, attitude and behaviour.

  • Number of workplace accidents
  • Number of sales
  • Level of staff turnover
  • Rate of productivity growth
  • Number of customer complaints
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7
Q

Staff motivation

A

Use of performance related pay, career advancement, investment in training, support and sanction strategies to motivate staff

  • Career advancement, make staff feel valued and recognised and rewarded with higher > reduce level of staff turnover
  • Performance related pay, reward staff for increased sales > level of productivity growth, percentage of market share, net profit figures
  • Support and sanction to punish reckless staff and help make the workplace safer > reduce number of accidents
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8
Q

Change in management styles or management skills

A

Autocratic, persuasive, consultative, participative, laissez-faire

Communication, delegation, planning, leadership, decision-making and interpersonal

  • Communication, delegation and interpersonal skills may be used to improve morale and motivation, thus improving rates of staff absenteeism
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9
Q

Increased investment in technology

A
  • APL allows economies of scale with high levels of output, lower cost per unit > increases net profit
  • CAD allows different designs for customers before manufacturing > reduce number of complaints
  • CAM reduces human errors > reduces wastage
  • Online services process orders faster than staff > increase rate of productivity growth
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10
Q

Improving quality in production

A

Quality Control, Quality Assurance and TQM

  • Number of customer complaints
  • Number of sales
  • Percentage of market share
  • Rate of productivity growth and level of wastage (reducing defects reduces wastes and makes sure inputs are being used more efficiently)
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11
Q

Cost cutting

A

Business looking for ways to reduce expenditures.

This can involve…

Inputs
- Sourcing cheaper inputs from different suppliers
- Sourcing different inputs (e.g. switching oil for butter)

Processes
- Reducing labour
- Using inputs more efficiently (maybe by introducing new machinery)
- Moving manufacturing overseas

Outputs
- Discontinuing low turnover products
- Cheaper packaging for outputs

Ultimately improves net profit figures, percentage of market share and number of sales.

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12
Q

Initiating lean production techniques

A

Intent to eliminate waste and improve quality > pull, one piece flow, takt, zero defects

  • Level of wastage
  • Rate of productivity growth
  • Net profit figures (less waste means lower costs, means high profits)
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13
Q

Redeployment of resources (natural, labour and capital)

A

Redeployment of resources means moving resources from one area of to another area in a business.

  • Rate of productivity growth
  • Level of waste
  • Level of staff turnover (redeploy labour)
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14
Q

Innovation

A

Innovation can mean a business creates a new good or service, a new way of producing an existing good or service, or a new way or structure of marketing.

  • Percentage of market share (new products, new processes)
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15
Q

Global sourcing of inputs, overseas manufacture and global outsourcing

A

Can all result in…

  • Improvement in quality = have a positive effect on percentage of market share, number of sales, number of customer complaints
  • Reduced costs = positive effect on net profit
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16
Q

Corporate culture

A

The shared values and beliefs that characterise a business

  • Some of the values and beliefs will be guided by the policies and formal rules of the business (Official)
  • Others will be influenced by the unwritten or informal rules that guide how people in the business behave. (Real)
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17
Q

Corporate culture and change management

A

Transformation will require a +ve corporate culture to support it and gain full potential.

  • Strong culture = more successful as workplace is perceived by employees to be +ve and personalised
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18
Q

Strategies for developing corporate culture

A
  • Publish/update vision/mission statement
  • Policies and procedures
  • Develop training
  • Hiring staff who fit in with values of business
  • Rewarding staff who exemplify appropriate values
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19
Q

Learning organisation (Senge)

A

Senge argues that all businesses should try and become learning organisations.

This means that they are able to…

  • Adapt to new situations quickly
  • Find how they can do things better
  • Embrace change with a +ve mindset and use thinking and behaviours to open new ideas and possibilities
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20
Q

What are the 5 principles of the learning organisation?

A
  • Systems thinking
  • Mental models
  • Building a shared vision
  • Personal mastery
  • Team learning
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21
Q

Systems thinking

A

Consider the interrelationship between parts of a whole system

  • See business as a whole and understand all the connections between parts of business
  • See the big picture and think about the long-term whenever they think about the impact of changes
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22
Q

Mental models

A

Existing assumptions and need to be challenged

  • Identify assumptions
  • Challenge assumptions to test if true
  • Ask what business has been doing wrong the whole time
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23
Q

Building a shared vision

A

Creates a common goal for learning

  • Employees understand business intentions
  • Know where to direct their work
  • Feel involved in change and committed
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24
Q

Personal mastery

A

Personal growth; self-improvement through training and development

  • Analyse strengths and weaknesses
  • Build their skills and knowledge in required areas to change
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25
Q

Team learning

A

Individuals learn from each other

  • Individuals work together to achieve shared vision
  • Individuals learn from each other and as a whole group
  • Individuals communicate honestly and openly to think collectively
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26
Q

Low-risk strategies

A

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

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27
Q

Purpose of low-risk strategies

A
  • Reduce stress and anxiety
  • Allow employees to feel valued
  • Maintain +ve corporate culture
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28
Q

What are the actions of staff that resist change?

A
  • Refuse to contribute ideas
  • Act with -ve mindset, complain
  • Work against change
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29
Q

Types of low-risk strategies

A
  • Communication
  • Empowerment
  • Support
  • Incentives
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30
Q

Incentives

A
  • Offering promotions as part of change
  • Offering bonuses/gifts/prizes to employees who embrace change
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31
Q

How can incentives help overcome employee resistance?

A
  • Personally benefit from change
  • Performance objectives linked with business objectives
32
Q

Communication

A
  • Clearly explain reasons for change
  • Allow employee questions, suggestions and feedback
  • Hearing employee concerns
33
Q

How can communication help overcome employee resistance?

A
  • Understand reasons and outcomes for change
  • Managers have listened to their concerns
  • Managers have used some of their ideas
34
Q

Empowerment

A
  • Allow employees to have input on decisions
  • Delegating responsibility for parts of change to employees
35
Q

How can empowerment help overcome employee resistance?

A
  • Feeling of input to change
  • Ownership over change, pride
36
Q

Support

A
  • Allow employees to share worries and anxieties about change
  • Reassure employees
  • Coping strategies
37
Q

How can support help overcome employee resistance?

A
  • Reduce fear of change
  • Reassured by help when change becomes difficult
38
Q

Advantages of low-risk strategies

A
  • Long-term trust and motivation from employees
  • Change likely to be successful in long-term
  • Employees understand and are committed to change
39
Q

Disadvantages of low-risk strategies

A
  • Slower change process
  • May be costly (bonuses, counselling)
40
Q

High-risk strategies

A

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

41
Q

Types of high-risk strategies

A
  • Manipulation
  • Threats
42
Q

Threats

A

Telling an employee they will suffer a negative consequence unless they do a certain task or accept a certain change.

  • Threaten job security
  • Threaten pay
43
Q

What are the negative consequences of threats?

A
  • Resist change
  • Employees threaten to go on strike
44
Q

Manipulation

A

Using tricks/lies to persuade someone to do something not in their interests.

  • Hiding info/truth about change
  • Forcing employees into a decision
  • Giving diff employees diff info
45
Q

What are the negative consequences of manipulation?

A
  • Employees may find the truth and resist change
  • Employees lose trust and motivation
46
Q

Advantages of high-risk strategies

A
  • Change occurs faster
  • Lower costs
47
Q

Disadvantages of high-risk strategies

A
  • High staff turnover
  • Loss of long-term motivation and productivity
  • Strikes
48
Q

Three-step change model (Lewin)

A

Framework business’ use to help successfully implement change.

  • Unfreeze
  • Change
  • Refreeze
49
Q

Unfreeze

A

Business must be ready for change

  • Identify aspects that require change
  • Communicate the necessity for change and its’ vision
  • Challenge existing beliefs, values and practices
50
Q

Change

A

Make necessary changes

  • Communicate about change, listen to feedback
  • Provide support (counselling/training) so employees accept change
  • Empower employees to make decisions and be part of change
51
Q

Refreeze

A

Return to stability, ensure change isn’t undone

  • Celebrate successes
  • Recognise employees who have changed successful
  • Re-write policies, processes and job descriptions
  • Integrate change into corporate culture
52
Q

Stakeholders

A

Groups and individuals who interact with the business and have a vested interest in its activities

53
Q

Owners

A

Invest in business with expectation of receiving ROI over time

54
Q

What are the positive impacts of change on owners?

A
  • Generate more profit
  • Involve new interesting work
  • Opportunity to learn new skills
55
Q

What are the negative impacts of change on owners?

A
  • Large costs may decrease profits
  • Must move outside of comfort zone to change, can be stressful
56
Q

Managers

A

Individuals with the responsibility to implement change. Make decisions and accept accountability for outcomes.

57
Q

What are the positive impacts of change on managers?

A
  • Publicly acknowledged for successful leadership, potential financial incentive
  • Involve new, interesting work
  • Opportunity to learn new skills and promotion
58
Q

What are the negative impacts of change on managers?

A
  • Increased workload, increases stress
  • Employees resent manager for change
  • Change may lead to redundancy
59
Q

Employees

A

Usually most impacted by change, need to adjust to different methods and sometimes struggle to understand the necessity for change

60
Q

What are the positive impacts of change on employees?

A
  • Increase skills through training
  • Increase in profits will increase job security
  • Can gain financial reward for successes
61
Q

What are the negative impacts of change on employees?

A
  • Change may lead to redundancy
  • Need to learn new skills and change of area of work can be stressful
62
Q

Customers

A

Meeting customer expectations is often reason for change, however can lead to inconvenience as they adjust to new products/operations

63
Q

What are the positive impacts of change on customers?

A
  • Receive higher quality products
  • Receive lower prices due to cost reductions from change
64
Q

What are the negative impacts of change on customers?

A
  • Resent changes if new products don’t meet needs
  • Potentially harder to access products
65
Q

Suppliers

A

Organisations who provide businesses with inputs. Changes to production methods will impact suppliers in terms of input requirements, quantities and delivery locations/timeframes

66
Q

What are the positive impacts of change on suppliers?

A
  • Increased sales will lead to profitability by providing more inputs
  • Gain competitive advantage by selling same high quality inputs to other businesses
67
Q

What are the negative impacts of change on suppliers?

A
  • Business may find new supplier
  • May be more expensive to deliver inputs if JIT is implemented, more orders less inputs
68
Q

General community

A

Residents, towns and suburbs that provide employees for business and live near business.

Changes can impact the local community if factories and stores are closed or relocated.

69
Q

What are the positive impacts of change on the general community?

A
  • Business may donate to local community to promote change
  • If business expands operations, it creates job opportunities for local residents
70
Q

What are the negative impacts of change on the general community?

A
  • If business closes site, then local businesses suffer as less money spent
  • Increased traffic, pollution, noise if business expands
71
Q

Corporate social responsibility (CSR)

A

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.

72
Q

Considering CSR in change

A
  • Inputs (ethically responsible suppliers, ethical treatment of animals)
  • Process (energy efficient machinery, waste management)
  • Outputs (environmentally friendly packaging, healthy products)
73
Q

Reviewing KPIs to evaluate transformation

A

Once change has occurred, business must review its KPI’s to evaluate effectiveness of change

74
Q

If KPIs show success, what should business do?

A
  • Maintain current actions
  • Continue to implement strategies
  • Implement the strategies more widely (e.g. other products, sites, factories)
  • Use success as driving force to undergo further change (change often happens in stages)
75
Q

If KPIs are unsuccessful, what should business do?

A
  • Gather more data to be certain of impact of strategies (change can take time to influence KPIs)
  • Review strategies to identify reasons for failure
  • Implement alternative strategies

unit 3/4 busman (6 decks)

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