Unit 4 AOS 2 BM Flashcards
Leadership in change management preparation planning and communication
Preparation planning- A effective leader will prepare the business because of a ‘plan of actions’ or ‘business case’ that describe how change will occur in the business, the vision for change must also be clear
Communication- Effective leaders understand the need for communication, the vision for change will need to be communicated as well as employees all stakeholders must be communicated when change occurs
The importance of leadership in change management. And the 4 ways a manager can best implement change/ act like a leader before change
To successfully implement change a manager must be able to use leadership, which includes positively motivating individuals and achieving objectives this can be done with
Preparation planning- A effective leader will prepare the business because of a ‘plan of actions’ or ‘business case’ that describe how change will occur in the business, the vision for change must also be clear
Leadership in change management support, collaboration and accountability
Support- Support helps employees with tasks that they are struggling with because managers can help them with the task.
Collaboration- Making sure all stakeholders are on board with change, a effective leader will ensure that everybody is on board and that everybody can work together with change. Tasks should be delegated so that responsibility for change is shared with employees who can handle change
Accountability- During change a leader must be held responsible when change is either working or not working, it reflects the integrity which shows trust between employee and managers, on the other hand a lack of accountability can lead to mistrust and confusion as stakeholders do not understand the truth
A list of management strategy’s that can be used in response to KPI’s
- Staff training
2.Staff motivation
3.Change in management style or management skills
4.Increased investment in tech - Improved quality in production
6.Cost cutting - Initiating lean production techniques
8.Redeployment of resources - Innovation
- Global sourcing of inputs
- Overseas manufacture
12.Global outsourcing
13.
Corporate culture and why its needed in change management
Corporate culture- Refers to the shared values and beliefs that characterize a business this can make a business behave in a certain way, some of these values will be guided by the policies and formal rules made by the business.
When change is being implemented, the CC of the business will often be considered to determine if change is possible generally a positive culture encourages change inside of the business and a toxic culture would lead to organizational inertia.
A positive culture has many benefits such as
- Employees experiencing a high moral and positive attitude towards change
- Employees are more loyal to the business
- A business gaining a positive reputation
Strategy’s for developing CC
- Establishing appropriate rituals, rules and celebrations
- Changing a prevailing management style
- Ensuring staff have been given sufficient training to reflect the values of the business
- Senior management and the ‘hero’s’ of the business
- Rewarding and hiring staff with same values
6.
What is the basic outline of Senge and the 5 main principles in Senge
Senge suggests that a business must aim to be a ‘learning organization’ and he suggests that a business should be a dynamic entity’s. That is constantly moving and changing
- Systems thinkings
- Personal mastery’s
- Mental models
- Building shared vision
- Team learning
What is systems thinking in senges learning organization
According to senge systems thinking is ‘the cornerstone of the learning operations’. It is the ability to see the big picture senges says because business don’t operate in isolation nor do individuals with operating a business, for a business to undergo a shift from unconnected to interconnection it must undergo a shift
What is personal mastery in senges learning organization
Refers to the practice of individuals undertaken personal growth and learning senge noticed the originations learn only through individuals who learn, mastering ones personal and professional life includes
- Developing competency skills
- Developing the ability to focus energy
- Looking objectively at oneself one’s ability and weaknesses
Personal mastery involves employees being proficient in whatever there job is to have continued improvement and ensuring KIP’s and business goals are completed
What are mental models in relation to senges learning organization
Mental models are ‘deeply ingrained’ assumptions generalization or even pictures and images that influence how we understand the world and how we take action.
To allow a business and individuals to change, the discipline of mental models required a business to look inside and scrutinize what they do, there system and prices and then act upon what they learn new skills and develop new skills and develop new orientations and for there to be change
What is building a shared vision in senges learning organization
Senge starts from the position that ‘its the capacity to hold a shared future we seek to create’, having this will help members of the business and it will encourage risk taking and experimentation people who work within the business and adopt this shared vision will see the long-term picture od the business and o commitment to the business will be ensured
Ths shared vision will see people excel and learn not because they are told to but because they want to. Senge also describes it as people must communicate and ahre visions to ensure that a shared vision will come to all members of the business
What is team learning in context of senges learning organization
‘the process of aligning and developing the capacity of a team to create the results its members truly desire’. Build right upon personal mastery and shared vision but they are simply not enough because the nosiness must act together to make sure it runs at its best. If a group can have dialogue without bias or preconceptions then greater earning will happen in the business and achieve better results, open communication shared meaning and shared understanding also much more likely to contribute to a positive and supportive culture that leads to support for change
What are low risk strategy’s
Actions taken that are likely to generate positive outcome in short and long term
- Communication
- Empowerment
- Support
- Incentives
What is the low risk strategy of communication
Refers to the management transferring info about change to employees this info would concern the reason and impact of change, the greater the level of communication the more trust between employee and management, as communication is a 2 way operation managers must lead to employee communication to their management
What is the low risk strategy of empowerment
Refers to involving employee in the change process, providing them with greater responsibility and decision making power, this leads to employees feeling like they belong in the business. Top down direction can lead to mistrust and lack of confidence in this process encouraging negotiation process can empower employees and enhance the support they show and give direction to change
What is support in senges learning organizations
Refers to the management providing employees with assistance in moving deom the current syaye to the new support for those going through a change could include consulting
What is incentives as a low risk strategy
Employee resistance can be overcome by provided incentive in the context of low risk strategy it refers to any financial or non financial reward provided to employees to embrace change it involving
-bonuses
-promotions
- additional responsibility
-
Advantages and disadvantages of low risk stratergys
Advantages
- Employee involvement and two way communication providing opportunity’s for employee to put forward ideas
- Fears and anxiety’s are likely to be reduced as the situation is clearly explained so that there is no misunderstandings
Disadvantages
- The change process can be very time consuming as it takes time to involve all employees
- Low risk strategy’s Such as support and incentives can be expensive especially in the case of consulting training and bonuses
What are high risk strategy’s and the 2 types
High risk strategy- Actions taken that may succeed the short term but run a risk of generating negative outcomes in the long term
the 2 types are
- Manipulations
- threats
What is the high risk strategy of manipulation
Manipulation occurs when a manager selectively leaves out relevant info about a change so that it appears to be more favorable or necessary or make a change that seems to be more beneficial then it is, e.g lying about redundancy, this can work as long as employees don’t find out
What is the high risk strategy of threats
The suggestion that some sort of negative consequence will occur if employees fail to follow a request for change, threats can involve loss of promotion overtime or termination, the danger associated with this is that this can lead to resentment and resistant from employee towards managers even though it is a quick fix it can lead to issues in the future
Strengths and weaknesses of high risk strategy’s
Strengths
- Generally involves little financial cost
- Enables immediate implementation of change/ ensures change will be implemented
Weaknesses
- A poor employee- employer relationship is possible
- Likely to foster a negative CC which breeds mistrust in long term
The 3 principles of Lewins 3 step model
- unfreeze
- Change
- Refreeze
What isfirst step of lewins change model (unfreeze)
Involves preparing the business for change, businesses are often too comfortable in their current position so change or pressure associated can be difficult, to unfreeze means to first identify what needs to change then all relevant aspects of the business need to be ‘put on the table’ and the need for change need to be created current conditions need to be communicated to stakeholder along with what woill change the steps being taken and the benefit of the change employees must also need yo know how that help and support in unfreezing the business change the status quo
What is the second step of lewins 3 step change model (Change)
Involving moving the business from the current situation to the new situations, with the business in this unfrozen state- with all processes policy and practices able to be changed and the necessary support in place- management is now able to move the business to the new position, that is ti change what is occurring support is still provided.
What is the third step of Lewins 3 step model (Refreeze)
Involve putting strategy’s in place to make sure that the changes is stabilized and the institutionalized is made sustainable. The fear with undertaking change will fade and staff will revert to how the business was before- adopting the previous behavior following old policy and procedures and falling back on outdated models and practices
Benefits of lewins model
Lewins model allows a business to take a structural approach to change, clearly state that for change to be implemented communication to stakeholders must occur these steps also act as a checklist that must be ticked off, a structure for change can also assist in removing or min anu residual resistance to change
Main stakeholders
- Owners
- Managers
- Employees
- Customers
- Suppliers
- General community
The effects on owners with change
Business may be owned by sole trader by partners or by shareholders the affect to which an owner will be affected will depend on their involvement in the operations on the business
Advantages
- Improved financial performance is likely to result in an increased or steady return on the investment of owners and shareholders
- As owners involved directly in day-to-day operations will have the opportunity to learn new skills
Disadvantages
- A change may result in an owner losing there business or shareholder losing the value of shares
- An owner involved directly in day-to-day operations will be required to move out and away from their comfort zone
The effects on Managers with change
They will likely be directed effected by change because of there day-to-day involvement of the business some changes to directly effect them is
- New tech
- Downsizing or expanding
- Change in management style
Advantages
- Business may receive performance related bonus on successful implementation of business
- Opportunity for career advancement in case of restructure which increased responsibility
Disadvantages
- Managers may be uncomfortable with using a different management style
- Managers may lose there jobs if a business id downsizing
The effects on employees with change
Most affected by change since they run and are the most directly involved in the business and change may include
- New tech
- Downsizing/ expanding
- New competitors
Advantages
- Employees ,ay have a opportunity to learn new skills and training when change occurs
- Change can result in better employment conditions
Disadvantages
- Employees may be stressed about being made redundant
- Employees may be redeployed to where they dont want to be redeployed
The effects on Customers with change
As the people who purchase the product they expect high quality and they can also be effected by change
Advantages
- Customers may be pleased with a business’s decision to discontinue or change a good or service, and may even promote the business
- A fall in the price of the
business’s good or service
could increase customer
satisfaction
Disadvantages
- Customers may not like a business’s decision to discontinue or change a good or service, hoping the business will revert back to what it was.
- An increase in the price of the business’s good or service could reduce customer satisfaction
How change effects suppliers
Change can effect suppliers because suppliers may either get more or less work
Advantages
- If change results in an increase in the amount of resources needed by the business, suppliers may experience increased sales.
- A change in a contract or specifications may result in a supplier needing to adjust its production processes, which may create opportunities for the supplier.
Disadvantages
- If change results in an
decrease in the amount of resources needed by the business, suppliers may experience reduced sales
- If a business switches to a different supplier, then the original supplier may
experience a fall in sales
How change effects the stakeholders of the general community
Change can effect the genral community based on if they are still doing CSR
Advantages
- A change may result in the creation of jobs, which improves employment and social wellbeing
- A successful change may result in the business making a greater contribution to social needs.
Disadvantages
- A change may result in the loss of jobs, which increases unemployment and impacts negatively on social wellbeing
- An unsuccessful change
may result in the business making a lesser contribution to social needs.
