UNIT 4 AOS 2B

Question 1

Three Step Change Model (Lewin)

Answer 1

Kurt Lewin believes that change should come from the inside of the organisation and from the structure.

Question 2

Step 1. Unfreeze (3)

Answer 2

Determine what needs to change
Ensure there is strong support from upper management
Mange and understand the doubts and concerns

Question 3

Step 2. Change (4)

Answer 3

In this stage new processes or practices may be introduced

• lines of communication are open so that employees are able to seek guidance on what is taking place
• Some support, counselling and training systems may need to be implemented to assist with the smooth transition.
• Dispel rumours
• employees are empowered to implement changes and because of this resistance in greatly reduced

Question 4

Step 3. Refreeze (4)

Answer 4

• Anchor changes into the culture
• Develop ways to sustain the change
• Provide support and training
• Celebrate success

Question 5

Stakeholders who may be affected by the implementation of change include (6)

Answer 5

Managers
Employees
Customers
Suppliers
General community
Shareholders

Question 6

Change: Mangers (2)

Answer 6

Change of management style
If redundancy results from the change, managers may need to be more consultative in dealing with employees who are facing redundancy

Change of processes
Change may stem from new technology being introduced into the industry/business
This may require managers to alter their recruitment and selection processes to reflect the need for individuals who possess the knowledge and skills required to handle the changing circumstances

Question 7

Change: Employees (2)

Answer 7

Introduction of new technology
Employees will need to undergo retraining or redeployment into other areas of the business

Business is taken over by or merges with another business
The culture of the business may change
New uniform, new vision statements, new values, new employees/team members
The structure of the business may change

Question 8

Change: Customers (2)

Answer 8

Customers on board with change
Customers may not like the change, hoping that the business will revert back to what it was
Others will embrace the change and may even promote the change to others

Backlash from customers
Businesses who have introduced change over time and been met with a backlash initially before acceptance was won and customers returned

Question 9

Change: Suppliers (2)

Answer 9

• For some suppliers this creates opportunities as they gain additional customers for their product/service
• On the other hand, these new methods of production

Question 10

Change: General community (2)

Answer 10

• When change occurs there can be a negative impact on the general community or a local community.
• As this occurs the local community suffers as the employees are losing income, reducing their spending and causing local business to loose sales

Question 11

Change: Shareholders (1)

Answer 11

If a business is affected in a negative manner then the shareholder dividends will go down and they may decide not to invest in the businesses anymore
If however a business makes positive changes such as reducing expenses and increasing profit the shareholders may benefit from it.

Question 12

CSR Definition:

Answer 12

Involves managing business processes in order to produce an overall positive impact on the community

Question 13

Corporate Social Responsibility considerations:

Change of supplier (3)

Answer 13

Source suppliers from a local supplier
If supplies are sourced overseas, ensure workers are not exploited, are paid fairly and have decent working conditions
Ensure suppliers uphold the same social responsibility standards

Question 14

Corporate Social Responsibility considerations: Introducing new technology

Answer 14

Ensure technology does not add to pollution or create additional waste
Ensure workers are given the opportunity to retrain and operate technology

Question 15

Corporate Social Responsibility considerations: downsizing

Answer 15

Employees are kept informed of changes and processes for redundancies (if needed)

Question 16

Corporate Social Responsibility considerations: Merger or takeover

Answer 16

Existing employees are treated appropriately by the new management team and all legal obligations are honoured

Question 17

Impact of CSR: Employees and managers (2)

Answer 17

May find that the task and jobs are modified.

Need to upskill qualifications

Question 18

Impact of CSR: Shareholders and owners (2)

Answer 18

Development of policies that are socially responsible

Financial support through initiatives to improve the community

Question 19

Impact of CSR: Customers (2)

Answer 19

May find that they prefer purchasing goods and services from a business that have a CSR outlook

Question 20

Impact of CSR: Suppliers (2)

Answer 20

• Some suppliers may have to change their policies and processes to ensure they can meet the demands of the business.

Question 21

Impact of CSR: Community

Answer 21

• Businesses will need to work hard to ensure that the community is aware of what the business is doing and how they are positively contributing to the environment

Question 22

Advantages and disadvantages of CSR

Answer 22

Advantages:
Better business reputation – can translate into improved sales for new customers,
Additional marketing opportunity
Employees more motivated

Disadvantages:
Financial cost
Diverted time away from core business

Question 23

By reviewing our initial KPIs a business can (3)

Answer 23

Analyse the size and extent of any transformation
We can identify the areas we had the most success in and the ones which require additional effort or time to be achieved
Consider an alternative management strategy if we didn’t achieve the results we were looking for

Question 24

KPIs: Operations management (2)

Answer 24

• If the business has made changes, then it can evaluate these using KPIs such as the rate of productivity growth, level of wastage and efficiency
• Reducing waste within a business is also important and can be measured to judge whether a program or initiative has been successful

Question 25

KPIs: Employees (2)

Answer 25

• If there were plans to improve the performance of employees, then this can be measured and assess using KPIs such as the number of training days per employee, the level of staff turnover and the rate of absenteeism
• will give an indication of the level of staff commitment and motivation to the business

Question 26

KPIs: Financial performance (2)

Answer 26

• Financial KPIs include profit, sales or revenue, and the percentage of market share.
• All business need to monitor these and for many small businesses the lack of review of financial information is a major problem