Unit 4 AOS 1 - The Need For Change Card 1 - Card 20 Flashcards
Business Change
Business change is the alteration of behaviours, policies and practices of a business.
Key performance indicators (KPIs)
Key performance indicators (KPIs) are criteria that measure how efficient and effective
a business is at achieving different objectives.
Percentage of Market Share
Percentage of market share measures a business’s proportion of total sales in a specific
industry, expressed as a percentage.
Net Profit Figures
Net profit figures are calculated by deducting total expenses incurred from total revenues
earned over a period of time.
Number of sales
Number of sales is the amount of goods and services sold by a business within a
specific time period.
Number of customer complaints
Number of customer complaints is the amount of customers who have notified
the business of their dissatisfaction.
Rates of Staff Absenteesim
Rates of staff absenteeism is the average number of days employees are not present when
scheduled to be at work, for a specific period of time.
Level of staff turnover
Level of staff turnover is the percentage of employees that leave a business in a year and
have to be replaced.
Number of workplace accidents
Number of workplace accidents measures the amount of injuries and unsafe incidents that occur at a work location over a period of time.
Level of wastage
Level of wastage is the amount of inputs and outputs that are discarded
during the production process.
Rate of productivity growth
Rate of productivity growth is the increase in outputs produced from a given
level of inputs over time.
Force Field Analysis
Force field analysis theory is a model that determines if businesses should proceed with a proposed change. This model identifies and examines factors which promote or hinder the change from being successful.
Driving forces
Driving forces are factors within or outside the business’s environment which promote change.
Restraining forces
Restraining forces are factors within or outside the business’s environment which resist change.
Step 1: Identify need for change
Step 1: Identify need for change
Businesses face internal or external pressures to change. What must be altered to fulfil business objectives and reduce these pressures?
Step 2: Identify driving forces
Step 2: Identify driving forces
Which internal and external factors promote the proposed change?
Step 3: Identify restraining forces
Step 3: Identify restraining forces
Which factors resist the proposed change?
Step 4: Assign scores
Step 4: Assign scores
Determine the strength of each driving and restraining force by assigning numerical scores that are based on their level of influence on the proposed change.
Porter’s lower cost strategy
Lower cost strategy is a business offering customers similar or lower-priced products compared to the industry average while remaining profitable by achieving the lowest cost of operations among competitors.
Porter’s differentiation strategy
The differentiation strategy offers customers unique services or product features that are
of perceived value to customers which can then be sold at a higher price than competitors.
The importance of leadership in change manageme
Leadership in change management is the ability to positively influence and motivate
employees towards achieving business objectives during transformation.
Staff Training
Staff training is a business equipping employees with the knowledge and skills required to perform work tasks.
Staff Motivation
Staff motivation is managers implementing strategies that seek to drive employees to work towards the achievement of business objectives.
Change in management styles or skills
A change in management styles or skills is managers altering their way of directing
and interacting with staff.
Increased Investment In Technology
Increased investment in technology is the implementation of automated and computerised processes for production and operations.
Improving Quality in Production
Improving quality in production is the implementation of processes that increase the perceived value of a product or service.
Initiating lean production techniques
Initiating lean production techniques (or lean management) is adopting approaches that reduce waste in production while increasing the value of goods to the customer.
Cost cutting
Cost-cutting is the process of reducing business expenses.
Redeployment of resources
Redeployment of resources is the reallocation of natural, labour and capital materials to different areas of the business to improve their effectiveness and productivity.
New locations
A business can build new business opportunities by opening new branches or outlets in new locations.
Online Sales
A business can potentially increase their domestic and global sales by selling their products online
Differentiation
A business can gain new business opportunities domestically by differentiating their products or services.
Exporting
Exporting is a specific method a business can use to grow globally
Learning organisation
A learning organisation is a business that facilitates the growth of its members and continuously transforms itself to adapt to changing environments.
Systems Thinking
Systems thinking is the ability to understand the interrelationships between different areas of a business.
Mental Models
Mental models is challenging the pre-existing assumptions and beliefs that people have
about a business and its practices.
Shared Vision
A shared vision is an aspirational description of what a business and its members would like to achieve.
Personal Mastery
Personal mastery is encouraging individual development and learning through
business activities.
Team learning
Team learning encourages individuals to combine their strengths and abilities to
continuously grow together.
Low-risk stratergies
Low-risk strategies are gradual management approaches that encourage employees to accept and participate in a business change.
Communication as a low-risk strategy
Communication as a low-risk strategy is managers initiating open and honest two-way communication with employees so they are fully aware of the reasons, impacts and their roles in an upcoming change.
Empowerment as a low-risk strategy
Empowerment as a low-risk strategy is managers providing employees with increased
responsibility and authority during times of change.
Support as a low-risk strategy
Support as a low-risk strategy is providing employees with assistance as they move from
current to new practices.
Incentives as a low-risk strategy
Incentives as a low-risk strategy is managers providing financial or non-financial rewards
to encourage employees to support change.
High-risk stratergies
High-risk strategies are autocratic management approaches used to influence employees
to quickly accept and follow a business change.
Manipulation as a high-risk strategy
Manipulation as a high-risk strategy is influencing employees to follow a proposed
change by providing incomplete and deceptive information about the proposed change.
Threat as a high-risk strategy
Threat as a high-risk strategy is forcing employees to follow a proposed change by stating
that they may or will cause harm to them if they fail to follow the change.
Unfreeze step
The unfreeze step moves a business to a state where stakeholders are prepared to undergo change.
Change step
The change step moves the business towards the desired state.
Refreeze step
The refreeze step ensures the change is sustained within the business for the long term.
