U4: AOS2: Implementing change Flashcards
Leadership
(In Change)
The ability to influence or motivate individuals to achieve business objectives
How can managers demonstrate Leadership?
-Build a shared vision
-Provide ongoing communication
-Provide ongoing support
Effective Leaders Will..
-Build trust and confidence
-Organise and plan thoroughly
-Provide clear goals
-Negotiate effectively
-Provide enthusiasm
Characteristics of strong leadership
-Communicate with a clear vison
-Listen
-Resolve conflicts
-Motivate stakeholders on the benefits of change
-Support
-Focus on the needs of employees and the business
-Get all on the same page working towards the same goal
Main Qualities Of Leading
-Vison and strategy
-Creating value
-Influence and inspiration
-Have followers
-Leading people
-People focused
-Characteristic style
-Risk and change seekers
-Appeal to the heart
-Proactive
-Sets direction
-Raising expectations
-Ask question
Main Qualities Of Managing
-Polices and Procedure
-Counting value
-Power and control
-Have subordinates
-Managing work
-Work focused
-Authoritarian
-Risk averse and stability
-Appeal to the head
-Reactive
-Plan details
-Maintains status quo
-Gives directions
Qualitites of both Leading and Managing
-Accomplish a goal
-Explain a vision
-Organisational figureheads
-Motivate others
-Mobilise resources
What are management strategies used for?
To respond to KPIs and seek new business
What must businesses do to analyse KPIs?
-Collect information
-Store information in a usable format
-Ensure records are accurate
-Analyse any trends
List 10 management strategies
1- Staff training and development
2- Change in management styles or skills
3- Investment in technology
4- Improved quality
5- Lean production
6- Cost cutting
7- Redeployment of resources
8- Innovation
9- Global sourcing of inputs
10- Overseas manufacturing
Why should a business seek growth
-Responding to strong competition
-Gaining higher profit margins
-Attracting new customers
-Capitialising on business success
-New opportunities or markets developing
Staff training and developing
Management Strategy
Business should aim to equip the staff with the skills and knowledge required to do the job.
-Can reduce staff absenteeism due to to improved job satisfaction
-Can increase No. of Sales due to improved sales skills of staff
-Can improve rate of productivity due to increased skills of staff
Staff Motivation
Management Strategy
About implementing strategies that seek to drive staff to work towards the achievement of business objectives.
-Reduce staff turnover, staff absenteeism due to improved job satisfaction and engagement
-Productivity growth
Change in management styles and skills
Management Strategy
Refers to managers altering their way of directing and interacting with staff
-The strategies used will be influenced by the management style, the manager’s skills etc..
EXAMPLE: If a manager uses a more participative management style it can reduce staff turnover, reduce staff absenteeism, improve rate of productivity growth.
Increase investment of technology
Management Strategy
An implementation of automated and computerised process for production and operations.
-No. of sales, rate of productivity growth, market share, competitive advantage
Improving quality in production
Management Strategy
-Implement process to increase time percieved value of a product
-Effort needs to be made to ensure customers perceive quality in products.
-Quality products can lead to higher profit, reduced waste and increased productivity.
Initiating lean production techniques
Management Strategy
Adopting approaches that reduce waste in production and increasing the value of goods.
-Includes eliminating waste, minimising inventory avoiding excess motion, reducing defects, eliminating waiting times and avoiding over production.
-Improves rate of productivity and net profit figures
Cost cutting
Management Strategy
The process of reducing costs in production for the business
-It is important that businesses analyse their operations thouroughly in order to ascertain the best way to reduce cost.
-Can include making employees redundant, reducing energy, sourcing cheaper supplies.
Redeployment of resources
Management Strategy
Includes moving staff to different jobs, and/or locations - LABOUR
May include moving some of the business operations to a different location - CAPITAL
-Can improve net profit figures, reduce staff absenteeism
Innovation
Management Strategy
Important to have strong management strategies to support innovation
-Could lead to competitive advantage
Examples include:
-market research
-Competitors analysis
-Research and development
Overseas manufacturing, global sourcing of inputs, global outsourcing
Management Strategy
Can reduce costs by finding cheaper raw materials.
-Procurement strategy required
Strategies to develop Corporate Culture
-Revising and Embedding vision and values statements
-Changing management structures
-Changing management styles
-Revising business policies and procedures
-Recruiting and developing employees
-Proserving the stories, narratives and rituals
When is it important to have a strong postive corporate culture?
During change to ensure success
Revising and Embedding vision and values statements
Corporate culture strategy
A business should revisit its vision and values statement.
-Setting out the new vision will provide a stronger framework for the business.
Changing management structures
Corporate culture strategy
-Important that the structures change to support the new operations
-Impact on communication channels, employee empowerment and decision making process
Changing management styles
Corporate culture strategy
-Reflecting on the current style
-Many businesses use a participative style as employees expect to be involved in decision making
Revising business policies and procedures
Corporate culture strategy
-Ensuring expected behaviours within a business
-Policies can support the changes.
-E.G. anti bullying, equal opportunity, greivance procedures
Recruiting and developing employees
Corporate culture strategy
-Recruiting staff who fit in with the desired culture
-Training may focus on diversity, learning core values and skill development through the change.
Proserving the stories, narratives and rituals
Corporate culture strategy
-Creating narratives about significant events and/or people is important as changes are made
-Celebrates business and bridges gap between old and new culture
St Patrick’s Ballarat To Melbourne
Senge’s Learning Organisation
Systems Thinking
Personal Mastery
Building shared vision
Team Learning
Mental models
What defines a learning organisation?
-Facilitates growth
-Transforms itself to adapt to changing environments
Benefits of Senge
-Boosts level of creativity, innovation
-Adaptive, flexible
-Staff motivation should increase, boosts skills
-Improving corporate image by becoming more people oriented
Limitations of Senge
-Requires cultural change which can take time
-Large businesses can struggle to share ideas and knowledge between all members
Systems Thinking
-Management as a whole and the interrelationship between its parts
-Long term over short term
-Is the overarching discipline
Personal mastery
-Continually clarifying and deepening personal vision
-Individual development and learning through business activities
-Business should promote a learning environment
Mental Models
-Deeply held assumptions and generalisations that need to be challenged
-Needs self reflection to adjust
-Similar to organisational inertia
Building Shared Vision
-Having all employees participating in one shared view of the picture
-Can encourage and inspire employees to innovate
Team Learning
-Involves all members of the team developing the team’s capacity to create results for all
Role of the leader in Senge’s Learning Organisation
-Advocate, facilitator and teacher
-Responsible for creating an organisation that is responsive to change and where individuals are able to continuously learn and embrace change
Low Risk Strategies
-Gradual management approaches that encourage employees to accept and participate in change.
-Creates a supportive environment during the change process
Examples of Low Risk Strategies
Communication- reduces employee resistance by ensuring they understand
Empowerment- giving sense of ownership
Support- overcoming sense of fear and stress
Incentives- Providing them with rewards
Advantages of Low Risk Strategies
-Increased trust- higher chance of long term change
-Reduce employee fear
-Employees feel valued
Disadvantages of Low Risk Strategies
-Empowerment may mean employees doing things that management didn’t intend
-Incentives could be seen as bribe
-Not useful in crisis
-Expenses
High risk strategies
-Autocratic management strategies
-Used to influence employees to quickly adopt and implement changes
-Potentially good for the short term however are unsuitable in the long term
Examples of High Risk Strategies
Threats e.g. dismissal, decrease wages- forcing employees to accept and follow change
Manipulation e.g. provide incomplete or deceptive info
Advantages of High Risk Strategies
-Manager gets change they desire
-Useful in crisis
-Little financial cost
Disadvantages of High Risk Strategies
-Negative corporate culture
-Compromised relationship
-Low morale
-Short term only
Principles of Three Step Change Model
1- Unfreeze the status quo
2- Move or change to the next phase or desired state/situation
3- Refreeze the new situation
Unfreezing the status quo
Lewin’s Three Step Change Model
Preparing a business for change
-Before any change, existing behaviours need to be challenged making it possible for new behaviours to be learnt.
-Change identified and stakeholders are prepared to undergo change
Moving or changing to the next desired state
Lewin’s Three Step Change Model
-Once a behaviour has been unfrozen, efforts need to be made to action change.
-Transforms the business to meet the new objectives.
-Manage change to alleviate fear and confusion with employees
-Provide support
Refreeze the new situation
Lewin’s Three Step Change Model
-Stabilises the change and embeds its into the organisation
-Stops a business from reverting to previous ways of operating
-The behaviour of the individuals, groups and broader business match the desired outcome
Effects of change on Managers
-Implement change, learn new skills
-Financial and non financial rewards
-Increased workload
-Changes in their position
-Loss of job
Effects of change on Employees
-New role can increase job satisfaction and long term security
-Better conditions
-Loss of job
Effects of change on Customers
-Better products
-Decreased price
-Increase CSR policies
-Increase prices
-Decreased quality
-Changes in product
Effects of change on Suppliers
-Gain new contracts and increase demand
-Increase profit
-May lose business due to changes in a process
-Changes in specifications may also require suppliers to adapt their own business operations
Effects of change on General Community
-Community needs to allocate more resources for increase traffic
-Strong contribution to social causes
-Create more jobs in the local community
-Decision to close can take people away from a particular location or lead to unemployment
-Decrease sales
CSR Considerations when implementing change
CSR must be integrated within day-to-day activities
Advantages of CSR Considerations when implementing change
-better business reputation
-brand loyalty
-employer of choice
-motivated employees
-benefits society, health and welfare
What can evaluating change using KPIs do?
-give an indication of whether or not the change has had its desired effect
-detect trends in the business
-Track performance over time
Disadvantages of CSR Considerations when implementing change
-Financial cost
-Diverts time away from core business
In what areas can KPIs be assessed?
-Operations (Inv in tech, quality, lean production, cost cutting)
-HR (Training, motivation, management styles+skills)
-Financial performance (% of market share, sales)
-CSR (Staff turnover, sourcing)