UNIT 4 - AOS 5

Question 1

Define Leadership

Answer 1

Is the process of positively influencing and encouraging individuals to set and achieve objectives. It is the ability of a manager to inspire and motivate employees towards the achievement of business objectives.

Question 2

Qualities of a good leader

Answer 2

Motivational, Communicative, feedback, establishing a vision, include stakeholders and maintain stability.

Question 3

Importance of Leadership

Answer 3

Employees are likely to resist a change due to the uncertainty of it, leaders need to ensure a smooth change by:

• establishing a clear vision and communicating it to stakeholders.
• a good leader will use the above qualities to get all stakeholders on the same page and working towards a common goal.
• they will support those that find the change difficult through good communication skills in order to understand their concerns and work towards reducing change resistance.
• leaders have the ability to use interpersonal skills to highlight the necessity of a change, which helps to build and maintain positive relationships with stakeholders - thereby reducing change resistance.

Question 4

Staff Training as a way to respond to KPI’s (refer to training options 2B)

Answer 4

Is a process of teaching staff how to do their jobs more effectively and efficiently by increasing skills and knowledge. This could be through on and off the job training.

Question 5

Impact of Staff Training on KPI’s

Answer 5

Level of Staff Turnover: Training allows someone to be more confident in their position and more effective. This makes their job easier and more enjoyable thereby reducing the level of staff turnover and increasing morale.
Number of Workplace Accidents: Training allows an employee to become more skilled and competent in their role - thereby reducing the amount of accidents.
Rate of Staff Absenteeism: Similar to staff turnover, training essentially leads to increased morale/job satisfaction.
Customer Complaints: Allows staff to better perform their job and provide quality customer service.

Question 6

Staff Motivation as a way to respond to KPI’s (refer 2A motivational strategies)

Answer 6

Motivation is the level of energy, commitment and creativity that employees bring to their jobs. Motivating staff leaders to them being happy at work and motivated to complete tasks.

Question 7

Impact of Staff Motivation on KPI’s

Answer 7

Level of Staff Absenteeism: Motivated staff are more likely to enjoy and turn up for work as they want to be their.
Rate of Productivity: Staff that are motivated and enjoying their job are likely to be more willing to work harder, increasing efficiency.
Staff Turnover: The level of staff turnover directly relates to the motivation of employees, if they are happy and enjoying their work then they are less likely to turn over.

Question 8

Change in Management styles or skills as a way to respond to KPI’s (refer 1B)

Answer 8

This is a change in the actual way that a manager controls his/her subordinates.

Question 9

Impact of a Change in Management Styles or Skills on Motivation on KPI’s

Answer 9

Productivity Rate: A new consultative management style or skill would allow employees to express their own ideas/opinions which makes them feel valued and motivated - which leads to more efficient work being done.
Level of Staff Turnover/ Absenteeism: Higher morale as a result of delegation, two way communication etc.
Sale/Market share: An overall increase in morale as a result of the above changes leads to harder working employees delivering better quality products.

Question 10

Increased Investment in Technology as a way to respond to KPI’s(refer 3B)

Answer 10

A business invests in technology that would allow a business to be more efficient and effective in its operations.

Question 11

Impact of Increased Investment in Technology on KPI’s

Answer 11

Improved rate of productivity: Technology allows a business to be more efficient in its operations system.
Customer Complaints: Technology such as automated production can increase quality, leading to satisfied customers.
Number of sales/market share: Increased quality allows a business to be more effective in satisfying customers and gaining repeat sales.
Profit Figure: Technology cuts costs.
Wastage: Machines are more efficient.
Workplace Accidents: Machines can perform hazardous tasks.

Question 12

Improving Quality in Production as a way to respond to KPI’s (refer 3B)

Answer 12

A business can improve quality by implementing and introducing quality systems into its operations system. These systems can improve the efficiency and effectiveness of production by ensuring a god/service is of high quality which leads to satisfied customers.

Question 13

Impact of Improving Quality in Production on KPI’s

Answer 13

Productivity: Something like TQM means that people will only be working at a high productivity and are therefore using resources more efficiently.
Sales/Market share/Profit: Increased quality leads to higher customer satisfaction, repeat sales and increased market share/profit.
Reduction in complaints.

Question 14

Cost Cutting as a way to respond to KPI’s (refer 3B)

Answer 14

Refers to management strategies that focus on reducing expenses in a businesses operations. This could be lowering salary costs, reducing wastage etc.

Question 15

Impact of Cost Cutting on KPI’s

Answer 15

Net Profit Figure: A reduction on the salaries of employees or just costs in general increases profit.
Level of Wastage: Cost cutting may include reducing wastage through lean management or JIT.

Question 16

Initiating Lean Production Techniques as a way to respond to KPI’s

Answer 16

Is a management approach to operations that attempts to improve efficiency and consequently effectiveness by eliminating all types of wastage and inefficiencies that do not add value to the overall product. This is aimed at being done whilst still providing a high quality product.

Question 17

Impact of Initiating Lean Production Techniques on KPI’s

Answer 17

Productivity Rate: Reduction in excess waste allows for a more efficient us of resources.
Net Profit/Sales: Optimizes costs and produces a high quality product.
Wastage: Designed to eliminate all types of waste.
Customer Complaints: Decreases due to a high quality product.

Question 18

Redeployment of Resources as a way to respond to KPI’s

Answer 18

Is the transfer of resources from one place to another. These resources are capital, labour and natural resources. Resources will be redeployed so that better use can be made of them so they can be more efficiently used.
Natural - Raw materials may be stagnant and have money tied up in them.
Labour - Employees may be moved to new positions to make better use of their skills and thereby increase their effectiveness.
Capital - Machinery may be redeployed.

Question 19

Impact of Redeployment of Resources on KPI’s

Answer 19

Wastage: Reduces it as resources are being used more efficiently.
Productivity Rate: Increases due to better efficiency.
Net Profit Figure: More effective use of resources reduces costs.

Question 20

Why a business should seek new opportunities

Answer 20

A business should seek new opportunities to expand profits, move out of unsuitable markets and move into better markets.

Question 21

Multiple Branding to seek new opportunities (DOM)

Answer 21

Is a strategy whereby a business sells multiple brands in the same market. This allows a business to target a wider spread of customers who may have different product preferences.

Question 22

Senges Learning Organisation

Answer 22

is a business that facilitates the learning of its people and continuously transforms itself. This is done by implementing and maintaining five principles which are intended to be used throughout the whole business. Business needs to develop an environment where employees are encouraged to learn and share. Which allows the business to learn.

Question 23

Mental Models

Answer 23

Mental Models are the generalisations, assumptions and beliefs that people have. The mental models shape how people behave because they affect they way the see things.
In order to learning grow as a business, it is important that the mental models of the people within the business are understood and challenged, through learning new skills and developing new orientations (attitudes) the business will be able to change and move in the right direction

Question 24

Shared Vision

Answer 24

Is where the people within the business work towards a common goal that they believe in. The shared vision provides a focus for the people within the business on where they are heading. Having this shared vision motivates employees to learn as they have a common goal that they want to achieve.

Question 25

Pros and Cons of Multiple Branding

Answer 25

ADV:
A business holds more shelf space than competitors, reducing competition.
Targets multiple target markets by saturating different qualities and prices.
Caters to brand switches.
DIS:
May receive backlash from consumers as they resent a profit driven business.
Expensive to do - may result in an oversaturated market.

Question 26

Product Differentiation to seek new opportunities (DOM)

Answer 26

Is a strategy where a business uses brand names and advertising to establish key differences between their product and competitors. This allows a businesses product to stand out when their is lots of competition.

Question 27

Pros and Cons of Product Differentiation

Answer 27

ADV:
Increases customer loyalty and generates repeat sales which increases profit.
Same goes for completeness generating sales.
DIS:
Expensive to do this.
May only appeal to niche amount of customers.

Question 28

Developing a Niche Market as a way of seeking new opportunities (DOM)

Answer 28

A business would take advantage of a small gap in the market which can enable a small business to grow without having to compete with larger ones.

Question 29

Pros and Cons of Niche Market

Answer 29

ADV:
Builds a loyal customer base which leads to repeat sales.
Business isn’t in competition with larger businesses who have superior buying power.
DIS:
Limit on potential sales and profit as the market is so small.
Major businesses may take control of the market if it becomes lucrative.

Question 30

Online Shopping as a way of seeking new opportunities (INT)

Answer 30

A business develops an online presence and begins to offer customers the ability to purchase goods and services online. This can be achieved by building a website.

Question 31

Pros and Cons of Online Shopping

Answer 31

ADV:
Allows a business to target customers worldwide with low transport times - increasing profit.
A business is selling to more customers but doesn’t have to open store.
DIS:
Can be costly to set up and maintain and is reliant on the internet.
Requires business to establish new distribution channels.

Question 32

Exporting as a way of seeking new opportunities (INT)

Answer 32

Is where a business sends goods or services overseas for sale.

Question 33

Pros and Cons of Exporting

Answer 33

ADV:
Bigger markets to tap into - sales numbers can massively increase.
A business can target countries (with the help of Austrade) with free trade agreements to increase profit.
DIS:
Costs associated with taxes and transport; exchange rates.
Deal with global competition and cultural barriers.

Question 34

Producing Goods Overseas as a way of seeking opportunities (INT)

Answer 34

A business moves the actual production of its goods overseas in order to decrease costs.

Question 35

Pros and Cons of Producing Goods Overseas

Answer 35

ADV:
Less transport costs for international markets (selling to).
Allows a business to cut labour costs.
DIS: 
Difficult to manage overseas.
Ethical problems.

Question 36

High Risk Strat - Manipulation + not landing together

Answer 36

Is a form persuasion or coercion that forces an employee to do what you want them to do. This can be done through the selective use of facts ad selection.
However this can be unethical; it harms morale and business culture.
This reduces resistance as employees are told the benefits of a change without knowing the negatives.

Question 37

High Risk Strat - Threat + looting before reviving

Answer 37

Forcing employees to embrace the change or receive retribution. This may be in the form of formal punishment or job loss.
Which can cause resentment among employees and harm workplace relationships.

Question 38

Advantages and Disadvantages of High Risk Strategies

Answer 38

ADV:
Ensures change is implemented quickly and matches exactly what was required.
Works well in crisis situations.
DIS:
Motivation falls.
Distrust builds
Can lead to greater resilience

Question 39

Low Risk Strat - Communication

Answer 39

By clearly and respectfully expressing in advance, why and how change needs to occur, managers can overcome employee resistance.
This communication should be; clear, quick, two way and respectful.
This helps to build trust and gains support as employees have abetter understanding of change.

Question 40

Low Risk Strat - Empowerment:

Answer 40

Is a management practise of sharing information rewards and power with employees so that they can take initiative and make decisions to solve problems and improve performance.
By giving these things to employees during a change, actively involving them in the change, employee commitment and motivation is enhanced reducing resistance.

Question 41

Low Risk Strat - Support:

Answer 41

Is a board term for all nurturing activities related to understanding the emotions that employees will feel during the change and providing services to look after them during this period, such as interpersonal skills, counselling, mentoring and training.

Question 42

Low Risk Strat - Incentives

Answer 42

Refers to providing something (a reward) in exchange for an employee completing a task or an assignment. This could be in the form of a promotion or bonus.
This knowledge that a rewards will be given when an employee performs a task ie: successfully implementing a change, is what motivates an employee to support it. Reward should be somewhat related to the change.

Question 43

Pros and Cons of Low Risk Strategies

Answer 43

ADV:
Preserves morale whilst reducing resistance.
Maintains a business wide commitment.
Maintains motivation.
DIS:
Slower to initiate change
May require additional costs and time to supply ie support and counselling.

Question 44

Team Learning

Answer 44

Is where individuals come together as a team to learn and grow together. Teams that are aligned will move in one direction together.

The idea that individuals learn from each other therefore as a group together. This therefore improves the problem solving capacity of the business due to increased communication.

Question 45

Personal Mastery

Answer 45

is where individuals are committed to developing themselves. Individuals create a vision for themselves and follow there passion. Senge states that those that have high levels of personal mastery are more committed and take more initiative and responsibility in their work.

Question 46

Importance of reviewing KPI’s

Answer 46

A business needs to evaluate the effectiveness of a change by:
1 - Establishing the KPI’s to be checked
2 - Checking them before, during and after a change

Results report back to key stakeholders, if results are positive then it can help to maintain momentum for a change as stakeholders see their hard work paying off

Question 47

CSR considerations in change

Answer 47

It is important for a business to consider its CSR when implementing change, it is important for the business to consider its triple bottom line

Question 48

Downsizing (CSR)

Answer 48

Keeping employees informed and working to find them new employment or making them more employable through strategies such as training

Question 49

New technology (CSR)

Answer 49

reducing the impact on the environment and aim to minimise the amount of redundancies it may cause. Provide training to boost confidence

Question 50

Changes to facilities

Answer 50

Changes to facilities should look to minimise the impact on the community snd the environment.

Question 51

Changes to suppliers

Answer 51

using local suppliers that ethically source goods. These suppliers should implement similar CSR standards that the business expects.

Question 52

Changes to products

Answer 52

Considering the impact on the end customer when altering a product. If looking to reduce costs, considering the impact it has in the quality of the product and the value to the end customer.

Question 53

Systems thinking

Answer 53

This is the cornerstone of the learning organisation. It assess the business as a whole rather than in individual parts. One area of the business will impact another and it is important that managers understand these relationships. Each of the other four disciplines need to be in place for a business to be a learning organisation because each work together

Question 54

3 step change: Unfreeze

Answer 54

This is about preparing the business for the change. This means removing resistance to the change and motivating and preparing stakeholders for this change (force field analysis)

A business should:

• Understand the business change and survey its current state
• Ensure stakeholders understand the change
• challenge the beliefs of the business by creating a vision

Question 55

3 step change: Change

Answer 55

New processes or practices ma be introduced to the business nd is expected that the will be a period of confusion.
This can be done by supporting employees, providing counselling, training them and communicating regularly with them. Staff should be empowered and short term goals celebrated.

Question 56

3 step change :Refreeze

Answer 56

is designed to return the business to stability. This involves anchoring the change and developing new ways to sustain it and make it the norm; such as:
- new policies to reinforce culture
- hire new people for new positions
- reward employees and celebrate the change
(training and support should still be provided)

Question 57

Learning Organisation benefits

Answer 57

• Boosts the level of creative thinking, innovation, and business competitiveness
• Continuously striving to improve
• Adaptable and flexible, which means the business can quickly adapt to the change
• Staff motivation should increase, boosting skills and empowerment.

Question 58

learning organization issues

Answer 58

• requires a cultural change which takes time

- large businesses can struggle to implement throughout the entire business

Question 59

Learning organization - business application

Answer 59

is theoretical, it can provide businesses with a way to use and develop the capacity of staff, together with the ability of the business to successfully implement the change.
This model focuses on building and increasing the learning of all people who work in a business.

Question 60

Background Information - BEGA

Answer 60

Bega chees was originally focused on dairy/cheese products, however it has expanded its grocery options in search of increasing profits. This has resulted in the acquisition of:
Mandelz Int
Peanut Company of Australia
Two local state of the art factories
This is all in the aim of becoming a ‘Great Australian Food Company’

Question 61

Relevant KPI’s - BEGA

Answer 61

Number of Sales: 27% increase in sales 2016-2018
Net Profit: 51% increase in profit 2-16-2018
Level of Wastage: 7.9% reduction in wastage per ton of inputs 2017
Workplace Accidents: 70% reduction 2016-2017
Productivity: 9% increase in outputs with a steady 46 million of capital expenditure.

Question 62

Driving Forces at Bega

Answer 62

Pursuit of Profit - Increasing declining profits.
Reduction of costs - More efficient methods of dairy production
Managers - Seeking to prepare BEGA for the declining dairy market
Technology - More efficient methods of production influence a change to these methods
Societal Attitudes - Consumers wanting to see goods made in Australia; purchase of the Australian Peanut Company - aims to grow peanuts in Australia

Question 63

Restraining Forces at Bega

Answer 63

Financial Considerations - The costs of new technology and facilities.
Employees - Redeployed from the Melbourne factory, have to integrate their culture with Mandelz’s.
Time: Problems with sourcing milk products.
Managers: Will need to make changes to incorporate both business, which may annoy employees.

Question 64

Strategies to Seek Opportunities Domestically - Bega

Answer 64

Multiple Branding: Supplying Woolworths with its own brand of cheese.
Acquisitions: Of Mandelez and the Peanut Company of Australia which allows Bega to sell a wider variety of products.
Product Differentiation: Contract to source local organic milk.

Question 65

Strategies to Seek Opportunities Internationally - Bega

Answer 65

Exporting: Specific cheese types to international markets ie: cheese in a jar in the Middle-East. This has seen a 29%.
Acquisition: Of Mandelez INT

Question 66

Management Strategies to Respond to KPI’s - Bega

Answer 66

Between 2016-2017 Bega faced declining sales, profit and market share, 2018 was a positive year as:

• Increased investment in technology to increase efficiency in production. Purchase of State of the art Koroit facility.
• Lean Management in order to reduce wastage.
• Staff Training - In order to reduce the amount of workplace accident by 70%
• Redeployment of Resources - Closure of Melbourne facility meant; capital will be used to expand the business to expand into more profitable markets, employees will be reassigned to other factories.

Question 67

The Effect of Change on Stakeholders - Bega

Answer 67

Suppliers: Bega’s contract with Woolworths will increase the demand for milk - benefiting Bega’s milk suppliers.
Customers: Bega’s purchase of additional food companies will offer consumers more food choices and keep prices for certain products competitive.
Employees: Closure of its Melbourne factory may lead to job losses, additionally employees may struggle to integrate with employees from Mondelez - different cultures.
Managers: Have to ensure a smooth unification of the two companies - this an be highly stressful and poor decision making may alienate employees.