Unit 4 AOS 2 Flashcards
Leadership in change management
Leadership in change management is the ability to positively influence and motivate employees towards achieving business objectives during transformation.
How can managers demonstrate strong leadership in change management?
- Build a shared vision by informing employees of the reasons and benefits of change, as well as the consequences of not changing.
- Provide ongoing communication with clear instructions to employees as they move from current to new practices.
- Provide ongoing support including employee counselling, training, and consultation.
Lewins three step model
Lewin’s three step change model is a process which can be used by a business to implement successful change. The three step change model breaks down change into three stages: unfreeze, change, and refreeze. These steps ensure that a business can implement change smoothly and successfully.
Lewins three step model. 1. Unfreeze step
The unfreeze step moves a business to a state where stakeholders are prepared to undergo change.
This steps involves challanging beliefs, behaviours and values that currently define the business. A manager should identify the need for change and the inform and persude stakeholders within the business. By explaining the need for change this can then gain stakeholder support for the needed change.
Lewins three step model. 2. Change step
The change step moves the business towards the desired state.
This stage is where a business transforms and transitions into the change. Stakeholders such as employees may be fearful of the change where managers must be prepared to support and communicate with employees to successfully grow from this change.
Lewins three step model. 3. Refreeze
The refreeze step ensures the change is sustained within the business for the long term.
The refreeze step stops a business from reverting to previous ways of operating. This is
achieved by embedding the change into the business’s everyday operations. During this
stage, managers should introduce new policies and job descriptions to establish the new
culture which aligns with the change. Management should also constantly evaluate the
change during this stage through KPI’s to ensure that the business is performing as desired.
Corporate social responsibility (CSR) when implementing change
When implementing change it is important that businesses act in an ethical and socially responsible manner. To behave in a way that is socially responsible, businesses implementing change should consider these areas:
• Employees: businesses can improve the wellbeing of their employees.
• The general community: businesses can reduce social harm caused by a change and
make a positive impact on society.
• The environment: businesses can contribute to preserving the planet by conducting
the change in an environmentally ethical manner.
The advantages and disadvantages of CSR considerations for implementing business change: Business
Advantages: • Can develop a good brand reputation which leads to more customers purchasing goods or services. • May attract highly skilled employees who value ethical conduct and are committed to meeting objectives.
Disadvantages:
• A constant focus on CSR may decrease
productivity levels.
The advantages and disadvantages of CSR considerations for implementing buisness change: Employee
Advantages:
• Employees usually prefer to work for
businesses who have ethical practices
Disadvantages:
The advantages and disadvantages of CSR considerations for implementing buisness change: Time
Advantages:
Disadvantages:
• It can be time-consuming to address
various CSR considerations.
The advantages and disadvantages of CSR considerations for implementing business change: Money
Advantages:
• Customers are willing to pay more for
ethically produced goods or services.
Disadvantages:
• CSR practices can be expensive for a
business to implement.
Reviewing KPIs to evaluate the effectiveness of business transformation
It is vital for a business to evaluate performance following a change. Evaluating performance following transformation can identify if the change has been successful or if further changes need to be made. Changes can also be successful but still affect other areas of the business negatively. redo
Effect of training and related KPI’s
Number of customer complaints:
- Improves the quality of a product or service leading to more satisfied customers.
Number of workplace accidents:
- Improves employees’ handling of equipment and promotes safe working practices.
Number of sales:
- Equips employees with the skills needed to communicate the value of products to customers and close sales.
Rate of productivity growth:
- Equips employees with the skills needed to increase efficiency and effectiveness in production
Staff training and related KPI’s
level of staff turnover:
- Provides staff with a sense of achievement and commitment in fulfilling tasks as their effects are considered as meaningful by the manager.
Rates of staff absenteeism:
- Improves employee willingness to show up to work and complete tasks
as they are given more support, specific goals and rewards
Number of customer complaints:
- Increases employee commitment and willingness to improve quality
of product or service provided to customers.
Rate of productivity growth:
- Improves employee willingness to increase efficiency and effectiveness in production to achieve business objectives.
Change in management style or skills and related KPI’s
level of staff turnover:
- Less restrictive styles promotes employee involvement in decision
making. Employees then feel more valued and considered in the workplace
Rates of staff absenteeism:
- Less restrictive styles increases employee confidence in completing
tasks. Employees can gain feedback on their performance.
Rate of productivity growth:
- More restrictive styles promotes employees staying on task which
improve business productivity.
Net profit figures:
- More restrictive styles increases the manager’s ability to manage waste, resources and expenses efficiently
