Unit 4 AOS 2 - Implementing Change Flashcards
Change
Any alteration in the internal or external environments
Organisational Change
The adoption of a new idea or behaviour by an organisation
Leadership
The ability to positively influence and motivate employees towards achieving business objectives during transformation
Managers role in leadership
- Build a shared vision
The benefits and consequences of the change - Provide ongoing communication
Clear instructions for the change - Provide ongoing support
Counselling, training, consultation
The role of leaders
- Leaders can cultivate effective teamwork, coaching and mentoring and develop talent within the organisation
- If a leader does not posses these skills, then change is likely to be handled poorly, where employees and middle managers become resistant and cynical about the change
The need of KPI’s
- KPI’s allow a business to assess their level of performance during and after business change
- KPI’s can provide a business on how it is performing, in terms of its employees, products, services and efficiency of resources
- Businesses should respond to KPI’s that highlight poor performance, through the use of appropriate management strategies
KPI’s
- Percentage of market share
- Net profit figures
- Rate of productivity growth
- Number of sales
- Rates of absenteeism
- Level of staff turnover
- Level of wastage
- Number of customer complaints
- Number of workplace accidents
Staff Training and Development - Staff Absenteeism, Staff Turnover, Number of Workplace Accidents
- Equipping employees with the relevant knowledge and skills required to perform work tasks
- Improves employee’s skills, knowledge, attitude and behaviour to make them do jobs more efficiently and effectively
- Staff training can improve the quality, productivity and safety of a business
Staff Motivation - Staff Absenteeism, Staff Turnover, Rate of Productivity Growth
- Strategies that seek to drive employees to work towards the achievement of business objectives
- A business needs to place emphasis on ensuring staff are highly motivated and treated well
Examples: performance related pay, career advancement, safe workplace
Management Styles and Management Skills - Almost every KPI
- Managers altering their way of directing and interacting with staff
- The complexity of the task, experience of staff, time and manager preferences should be considered
Examples: communicating, delegating, interpersonal skills, planning
Increased Investment in Technology - Sales, Market Share, Level of Wastage, Productivity Growth
- The implementation of automated and computerised processes of production and operations
- When a business experiences low performance, technology can improve productivity, market share and profitability
Improving Quality in Production - Market Share, Sales, Number of Customer Complaints, Level of Wastage
- The implementation of processes that increase the perceived value of a product or service
- The use of this enables businesses to meet customer needs, remain competitive and increase efficiency in production
Examples: Quality Control, QA, TQM, Benchmarking against industry leader, Standardising
Cost Cutting
- Process of reducing business expenses
Examples: Examining non-essential costs, Declaring employees redundant, Outsourcing non-core functions
Lean Production Techniques - Sales, Net Profit, Market Share
- Adopting approaches that reduce waste in production while increasing the value of goods to the customer
- Lean production can improve the efficiency, reduce costs and improve customer satisfaction
Examples: JIT, Benchmarking
Redeployment of Resources - Level of Wastage, Net Profit, Level of Staff Turnover
- The reallocation of natural labour and capital materials to different areas of the business to improve their effectiveness and productivity
Types of Redeployment:
Labour Resources, Capital Resources, Natural Resources
Opportunities for Growth
- Exploring new business opportunities in the domestic and global markets
- Finding a market niche
- Researching and developing or improving a product or service
- Taking advantage of new technologies
Strategy: exporting products and services
- Expanding to the global market and global economy to increase market share and increase net profit
Considerations:
Legal Structure, Taxation, Staffing
Strategy: Innovation
- a new idea or improvement, which will enhance or extend how a business can operate
Innovation: Crowd Sourced Funding
- the practice of funding a business venture by raising small amounts of money from a large number of investors, often via the internet
Strategy: Developing a Market Niche
- filling a gap in the market, which is either not being catered for at all or is being done poorly
Questions to ask:
1. How should the niche be developed?
2. Exactly what will the business sell and to whom?
3. What concerns and potential customers have?
4. Plan the business and test in the market
Strategy: Research and Development
- allows businesses to come up with new ways to provide services and products
Strategy: New Technologies
- Businesses need to adapt and be prepared to develop or use new technologies in order to properly connect with their customers
Senge’s Learning Organisation
- In situations of rapid change, only businesses that are flexible, adaptive, and productive will be successful
Systems Thinking
Building Shared Vision
Mental Models
Personal Mastery
Team Learning
Systems Thinking
- The interrelationship that exists between all parts of an organisation
- Managers have to understand that every action and consequence is correlated with another
Building a Shared Vision
- An aspirational description of what a business and its members would like to achieve
- A strong and clearly communicated vision can provide a unified focus for employees and their work activities
Mental Models
- Deeply entrenched assumptions, generalisations, and images of how people view themselves and the world
- Businesses should continually challenge their employees’ beliefs and break down existing mindsets
Personal Mastery
- The discipline of continually clarifying and deepening personal vision
- Businesses can learn when their employees are committed to continuously developing themselves
Team Learning
- The discipline by which personal mastery and shared vision are brought together
- People working together develop skills faster than they would individually
Strengths and Weaknesses of Senge’s Theory
Strengths:
- Continuously striving to improve
- Boosts levels of creativity, thinking, innovation and competitiveness
- Improves corporate image
Weaknesses:
- Requires cultural change
- Can be difficult for large businesses to share ideas
Three Step Model
Change Management Model:
1. Unfreeze the status quo
2. Move from the current situation
3. Refreezing
Unfreeze the Status Quo
- Moves a business to a state where stakeholders are prepared to undergo change
- The way to change is to break or destabilise the equilibrium (unfreeze) before the old behaviour could be ‘unlearnt’ and new behaviour successfully adopted
Move from the current situation
- The change step moves the business towards the desired state
- This is the time where managers need to provide ongoing support and training to employees
Refreezing
- Ensures that the change is sustained within the business for the long term
- Involves changing corporate behaviour to ensure change is embraced
Low-risk Strategies
- Gradual management approaches that encourage employees to accept and participate in a business change
Examples: two-way communication, empowerment of employees, support and incentives
High-risk Strategies
- Autocratic management approaches used to influence employees to quickly accept and follow a business change
Examples: threats, manipulation of the situation
Effect of Change on Managers
Positive effects:
- opportunities to develop new skills or advance careers
- financial or non-financial rewards
- increased authority or responsibility can improve skills
Negative effects:
- less authority and control due to less roles
- may be affected but still have to support employees
Effect of Change on Employees
Positive Effects:
- new opportunities and responsibilities can improve satisfaction
- can improve job security
Negative Effects:
- may need to develop new skills
- may lose their job
- pay and conditions may be affected
Effect of Change on Customers
Positive Effects:
- improves product quality can increase satisfaction
- can get a better price
Negative Effects:
- quality may be compromised
- prices may be increased
- may fail to meet the needs
Effect of Change on Suppliers
Positive Effects:
- may increase the demand for resources
Negative Effects:
- businesses may decide to switch or lower orders
- may require adjustments in processes
Effect of Change on the General Community
Positive Effects:
- creates more job opportunities
- greater ability to make donations and support social causes
Negative Effects:
- loss of jobs
CSR
The moral and ethical decisions made by businesses
Corporate Philanthropy
- A way of businesses giving back to its community
- Also includes donating expertise, time and goods and services
Triple Bottom Line
Profit, People, Planet
Stakeholder CSR Considerations
- Employees
- Shareholders
- Customers
- Suppliers
- Community
- Environment
