Unit 4 AOS 1 - The Need For Change Card 1 - Card 20

Question 1

Business Change

Answer 1

Business change is the alteration of behaviours, policies and practices of a business.

Question 2

Key performance indicators (KPIs)

Answer 2

Key performance indicators (KPIs) are criteria that measure how efficient and effective
a business is at achieving different objectives.

Question 3

Percentage of Market Share

Answer 3

Percentage of market share measures a business’s proportion of total sales in a specific
industry, expressed as a percentage.

Question 4

Net Profit Figures

Answer 4

Net profit figures are calculated by deducting total expenses incurred from total revenues
earned over a period of time.

Question 5

Number of sales

Answer 5

Number of sales is the amount of goods and services sold by a business within a
specific time period.

Question 6

Number of customer complaints

Answer 6

Number of customer complaints is the amount of customers who have notified
the business of their dissatisfaction.

Question 7

Rates of Staff Absenteesim

Answer 7

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.

Question 8

Level of staff turnover

Answer 8

Level of staff turnover is the percentage of employees that leave a business in a year and
have to be replaced.

Question 9

Number of workplace accidents

Answer 9

Number of workplace accidents measures the amount of injuries and unsafe incidents that occur at a work location over a period of time.

Question 10

Level of wastage

Answer 10

Level of wastage is the amount of inputs and outputs that are discarded
during the production process.

Question 11

Rate of productivity growth

Answer 11

Rate of productivity growth is the increase in outputs produced from a given
level of inputs over time.

Question 12

Force Field Analysis

Answer 12

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.

Question 13

Driving forces

Answer 13

Driving forces are factors within or outside the business’s environment which promote change.

Question 14

Restraining forces

Answer 14

Restraining forces are factors within or outside the business’s environment which resist change.

Question 15

Step 1: Identify need for change

Answer 15

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?

Question 16

Step 2: Identify driving forces

Answer 16

Step 2: Identify driving forces

Which internal and external factors promote the proposed change?

Question 17

Step 3: Identify restraining forces

Answer 17

Step 3: Identify restraining forces

Which factors resist the proposed change?

Question 18

Step 4: Assign scores

Answer 18

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.

Question 19

Porter’s lower cost strategy

Answer 19

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.

Question 20

Porter’s differentiation strategy

Answer 20

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.

Question 21

The importance of leadership in change manageme

Answer 21

Leadership in change management is the ability to positively influence and motivate
employees towards achieving business objectives during transformation.

Question 22

Staff Training

Answer 22

Staff training is a business equipping employees with the knowledge and skills required to perform work tasks.

Question 23

Staff Motivation

Answer 23

Staff motivation is managers implementing strategies that seek to drive employees to work towards the achievement of business objectives.

Question 24

Change in management styles or skills

Answer 24

A change in management styles or skills is managers altering their way of directing
and interacting with staff.

Question 25

Increased Investment In Technology

Answer 25

Increased investment in technology is the implementation of automated and computerised processes for production and operations.

Question 26

Improving Quality in Production

Answer 26

Improving quality in production is the implementation of processes that increase the perceived value of a product or service.

Question 27

Initiating lean production techniques

Answer 27

Initiating lean production techniques (or lean management) is adopting approaches that reduce waste in production while increasing the value of goods to the customer.

Question 28

Cost cutting

Answer 28

Cost-cutting is the process of reducing business expenses.

Question 29

Redeployment of resources

Answer 29

Redeployment of resources is the reallocation of natural, labour and capital materials to different areas of the business to improve their effectiveness and productivity.

Question 30

New locations

Answer 30

A business can build new business opportunities by opening new branches or outlets in new locations.

Question 31

Online Sales

Answer 31

A business can potentially increase their domestic and global sales by selling their products online

Question 32

Differentiation

Answer 32

A business can gain new business opportunities domestically by differentiating their products or services.

Question 33

Exporting

Answer 33

Exporting is a specific method a business can use to grow globally

Question 34

Learning organisation

Answer 34

A learning organisation is a business that facilitates the growth of its members and continuously transforms itself to adapt to changing environments.

Question 35

Systems Thinking

Answer 35

Systems thinking is the ability to understand the interrelationships between different areas of a business.

Question 36

Mental Models

Answer 36

Mental models is challenging the pre-existing assumptions and beliefs that people have
about a business and its practices.

Question 37

Shared Vision

Answer 37

A shared vision is an aspirational description of what a business and its members would like to achieve.

Question 38

Personal Mastery

Answer 38

Personal mastery is encouraging individual development and learning through
business activities.

Question 39

Team learning

Answer 39

Team learning encourages individuals to combine their strengths and abilities to
continuously grow together.

Question 40

Low-risk stratergies

Answer 40

Low-risk strategies are gradual management approaches that encourage employees to accept and participate in a business change.

Question 41

Communication as a low-risk strategy

Answer 41

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.

Question 42

Empowerment as a low-risk strategy

Answer 42

Empowerment as a low-risk strategy is managers providing employees with increased
responsibility and authority during times of change.

Question 43

Support as a low-risk strategy

Answer 43

Support as a low-risk strategy is providing employees with assistance as they move from
current to new practices.

Question 44

Incentives as a low-risk strategy

Answer 44

Incentives as a low-risk strategy is managers providing financial or non-financial rewards
to encourage employees to support change.

Question 45

High-risk stratergies

Answer 45

High-risk strategies are autocratic management approaches used to influence employees
to quickly accept and follow a business change.

Question 46

Manipulation as a high-risk strategy

Answer 46

Manipulation as a high-risk strategy is influencing employees to follow a proposed
change by providing incomplete and deceptive information about the proposed change.

Question 47

Threat as a high-risk strategy

Answer 47

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.

Question 48

Unfreeze step

Answer 48

The unfreeze step moves a business to a state where stakeholders are prepared to undergo change.

Question 49

Change step

Answer 49

The change step moves the business towards the desired state.

Question 50

Refreeze step

Answer 50

The refreeze step ensures the change is sustained within the business for the long term.