UNIT 4 - AOS2 Implementing Change Flashcards
Explain the importance of leadership in change management
Change within a business can cause significant anxiety for different stakeholders, so it is important it is well managed in order to maximise the chances of it being successfully implemented in the long term.
Leadership is vital as it helps motivate employees and boost morale to achieve newly set objectives.
What are the 8 management strategies to respond to key performance indicators
staff training staff motivation change in management styles/skills Increased investment in technology improving quality in production cost cutting initiating lean production techniques redeployment of resources
What occurs if change is not well managed
If implementation of change is not well managed it can create an unpleasant working environment, characterised by conflict and poor relationships between the business and stakeholders.
What do leaders need to be able to do when reposing to change
- have a clear vision
- Plan and organise resources appropriately
- Able to communicate and inspire
- Maintain relationships
- Respond to feedback
Define staff training
training involves evaluating an employees current job, and aims to improve their skills to allow them to do their jobs for efficiently and effectively then before. Managers must choose between off the job or on the job training in relation to what best suits the change
Define Staff motivation
Motivation is concerned with the desire to do things. In a business, the manager clearly wants the employees to do things that will achieve “their” objectives
What are the 5 motivation strategies which could be used to respond to KPIS
Performance related pay Career advancement investment in training support sanction
What are management styles
autocratic, persuasive, consultative, participative, laissez faire
What is the appropriateness of management styles when considering changing it
Nature of task
tim
experience of employees
manager preference
What are management skill which are vital during change
communicating delegating planning leading decision making interpersonal
What are some options for investment in technology when responding to change
automated production lines
Computer aided design
Computer aided manufacture
Website development
What is improved quality in production
Quality related to goods and/or services that fully meet customer expectations. Therefore if your product or service has better quality than rival you will have a competitive advantage over them
What are the options to improve quality
Quality control
Quality assurance
Total quality management
What is cost cutting
Cost cutting is any strategy which involves reduces the expenses of a business to ultimately increase profits
What are some cost cutting strategies
lowering salary costs through redundancy programs, outsourcing etc. Reducing wastage looking for lower cost suppliers lower travel expenses lower energy
define lean management
Lean management involves a systematic process for eliminating waste so the end customer gets the most value from their perspective with fewer resources
What are the 5ss to lean production management
..
What is the redeployment of resources
- usually natural resources for different purposes such as recycling water or using solar
- Labour redeployment, may involve moving employees off dangerous production lines to be replaced by robots
- redeployment of capital may involve moving production machinery overeats take advantage of cheaper labour rates
What KPIS are linked to staff training and why
- number of customer complaints high: employees gain better knowledge and customer service is improved
- Productivity rates poor: quicker production as employees gain better skills
- Net profit figures low: Training can produce better quality
- Level of wastage high: better skills mean less wastage
- rates of staff absenteeism high: Opportunity for staff to develop together and thus staff motivation increase
- rate of staff turnover high: promotion opportunities develop
Why do businesses need to seek new business opportunities
- desire to expand profits
- move out of a market decline
- move out of a market with strong competition
- Get into a new market through expansion
What are the strategies a business could take advantage of new opportunities
exporting products and services
innovating and eloping a market niche
research and development
taking advantage of new and emerging technologies
What is research and development strategy
allows a business to analyse data and discover trends which impacts the decision making process when seeking new business opportunities
Helps a business evaluate success through data
New products can be constructed and researched
What are the advantages of research and development strategy
can stay at the front of the market with new releases and capture sales
may be first to patent
can lead to spin off innovations
- research allows a business to foreshadow outcomes
What are th disadvantages of research and development
can be expensive
time consuming
risk: no guarantee return on investment
Is research and development global or local
domestic market
What is finding a new market or niche
- identifying a gap in the market and developing products and or services to fit in and often lead to success
- business needs to think about where the market is viable or already exists
- great for businesses in a highly competitive market
what are the advantages to finding a new market niche
- use differentiation (porter)
- builds brand and customer loyalty
- allows you to charge premium price
- market n uniqueness
What are the disadvantages of market niche
- can be exposed to niche market declines
if it is successful major players can move into the niche market
What is innovation
change of an existing product or service to create a new market
what are the advantages of innovation
- expand of sales
- new market
- customer ‘buzz’
- increased product life cycle
What are the disadvantages of innovation
- need to constantly innovate to keep in front of the next idea
- requires heavy marketing
What is taking advantage of new technology
- bringing in new technology which allows a business to do things quicker, cheaper and more efficiently
- can expand into new markets by doing so
What are the advantages of taking advantage of new technology
- new markets
- improved accuracy and customer products
- can lead to efficiency, higher productivity and lower cost per capita
What are the disadvantages of taking advantage of new technology
- expensive
- may require training
Exporting products or services
- opens up market by going global rather than domestic limitation
- Australian dollar been in decline, making it easier for Australian business to export products overseas
- need to consider legal issues involved and taxes
what are the advantages of exporting products or services overseas
- much bigger market to tap into
- sales number can increase
- target areas of free trade to avoid tariffs and quotas
- can use australian trade support programs
What are the disadvantages of exporting products or services overseas
- exposed to exchange rate options
- language barriers
- expose to tarrifs
- delivery time increase
- exposed to global composition
What is Senge’s learning organisation theory `
- it is defined as organisations where people continuously expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured where people are continually learning to see the whole together
What are senses five principles
mental models building a shared vision personal mastery team learning systems thinking
What is mental models in Senge’s theory
- the assumptions held by individuals and organisations are called mental models
- “what did we do wrong”
- Employees encouraged to challenge old assumptions and mindsets in order to feel empowered to create something new and better than before
- business culture of openness inquiry and trust
What is building a shared vision in senge’s model
- important in motivating the employees to learn and creates a common goal providing focus and energy for learning
- people excel and learn not because they are told but want to
What is personal mastery in senges learning organisation model
- individuals committed to self improvement and becoming a life long learning
- acquired through staff training, development and continuous self reflection
- Aim is to develop a culture mastery is practiced
What is team learning
- emphasis on team learning rather than individual
- individuals learn from each other
- problem solving capacity improved
- ideas can be shared openly with trust
What is systems thinking
- used to evaluate the performance of the business as a whole
- involves disciplines
- continually reminds us that t he whole can exceed the sum of its parts
what are the benefits of s’s learning organisation
- boosts level of creativity, thinking, innovation and competitiveness
- continuously striving to improve
- adaptable, flexible business responds t issues quicker in the future
- staff motivation should increase
- improving quality of outputs
- Improves corporate image
What are the issues to consider with s’s learning organisation
- requires culture change which can take time
- Large businesses may struggle to share ideas and knowledge between all members
What is the link between employee objectives and low and high risk strategies
The prospect of change may threaten all or many of the employee’s objectives. Changes may bring feelings of fear, uncertainty and resentment. Therefore it is important manager implement strategies to ensure both the employees and business objectives are being achieved
What are low risk strategies
Communication
empowerment
support
incentives
What are high risk strategies
manipulation
threat
Describe the low risk strategy of communication
- by clearly and respectfully expressing IN ADVANCE WHY AND HOW CHANGES NEED TO OCCUR managers can overcome employee resistance
- communication can be done quickly, clearly and personally with respect
- also allows opportunity for feedback
Describe the low risk strategy of empowerment
- managers should practice sharing information, reward and power with employees so that they can take initiative and make decisions to solve problems
- By actively involving employees in the decision making process in relation to change and giving them tasks and responsibilities to enact the change, it builds employee commitment and motivation
What is the low risk strategy of support
- refers to all nurturing activities related to understanding the emotions the employees feel during change
- provides services to look after them through this period
What is the low risk strategy of incentives
- giving a desired reward will change behaviour such as a raise, promotion, employee of the month etc
- reward is given when the employee performs the change
- the business must ensure however that the reward is specifically tied to the change
What is the high risk strategy of manipulation
- form of persuasion or coercion which forces an employee to do what you want for them such as peer pressure, disguising what is lost and boosting what is gained, scare by exaggerating truth
- Usually against employee will
- some of these are considered unethical
What is the high risk strategy of threat
- can include threatening their job or promotion
- can be unethical or even illegal
- forms part of the unfair dismissal claim
What are the advantages of low risk strategies
- preserves employee morale
- maintains commitment
- maintains motivation
- reduces resistance
What is the disadvantages of using low risk strategies
- slower to intiate changes
- may require additional cost/time
What are the positives of using high risk strategies
- Usually initiates a quick response
- effective in the short term
What is the disadvantages of using high risk strategies
- causes long term resentment
- could be illegal and cause issues
- does not motivate employees
What is the effect change has on employees OVERVIEW
- Employees have a financial interest in the business in the form of their wages
- Some changes may affect the size of the workforce resulting in redundancies, redeployment or effect the number of working hours
- Some changes may also result in the nature of the job changing and may require some extra training
What is a positive effect change can have on employees
- business change may have led to new opportunities and responsibilities in their role
- change may have reduced safety risks
- Change may have removed boredom from repetitive tasks
- Change may have led to a more successful business which leads to long term job security
- due to the training involved in the change new jobs may open up
- Hopefully the change brings better working conditions for employees
What is the negative effect change can bring on employees
- Change may cause a reduced need for employees resulting in job loss, redundancies
- skills and demands of the change may cause some fear and angst or uncertainty
What is the effect change has on managers OVERVIEW
- managers may have to cope with changes to their positions or their responsibilities whilst also managing/implementing change
- Managers will have to deal with change in a positive way in order to support other employees through the changes
Who are the stakeholders which change may effect
employees managers customers general community suppliers shareholders
What is the positive effect change may have on employees
- if the business change is successful we can expect celebration and accolade for leading the business through the period
- If managers have success linked to financial reward this may also lead to a bonus for them
- change may have helped them reevaluate their management styles or skills and helped them develop them
What is the negative effect change may have on managers
- substantial change can sometimes be the expense of high stress
- If changes are resented or does not go smoothly manager could be held accountable
- change may have diminished roles and opportunities for them
What effect does change have on customers OVERVIEW
- preferences and need of a business’ customers is crucial to ongoing business success
- Business should always consider the impact change has on customers
what are the positive impacts change can have on customers
- customers will hopefully benefit from the better good and or services
- may experience higher quality products
- may experience lower prrices
- may feel happier CSr behaviour is being practices
What are the negative effects change can have on customers
- Customers may feel quality has been compromised for price
- customers may feel their brand loyalty has been taken advantage of during change and change their buying preferences
What is the impact change has on suppliers OVERVIEW
- Some changes may affect the company’s suppliers
- could necessitate new contract which could benefit or negatively affect them
- Bargaining position may also be effected as the company seeks to reduce costs
What is the positive impact change has on suppliers
- may gain additional contracts or volume orders from the host business as they become more successful
What is the negative impact change has on suppliers
- if change process went badly or market has been changed, the supplier may feel vulnerable especially if they are tied to the business
- suppliers may have less predictable and more spontaneous reactive orders
What impact does change have on the general community OVERVIEW
- Can be impacted directly or indirectly
- Surrounding businesses which provide goods and services to employees (cafes and office suppliers) may be impacted if there is redundancies
- CSR changes can impact the community positively
What is the positive impact change can have on stakeholders
- successful businesses are more likely to employ more workers, reducing unemployment rates
- successful businesses generate more tax which the government can spend on broader benefits to the community (schools, hospitals)
- Successful businesses more likely to contribute to community CSR
What is the negative impact change can have the general community
change may lead to redundancy, damaging unemployment rates, supplier closure, lower community incomes, job prospects and social wellbeing
Define corporate social responsibility
.CSR is the continued commitment by a business to contribute to economic development while taking into account an approach that is both ethical and socially responsible. It expresses a concern for how a business treats the environment, society and workers beyond what is required by law.
How is CSR linked to change
when in the process of change businesses must be aware of the environment, community and workforce
What are examples of envrionmental CSR behaviour
- recycle paper use
- renewable energy
- supply chain using Car
- waste management
- reducing carbon footprint
What are examples of CSR health and welfare
- giving non-profit organisations a portion of the business proceeds
- supporting community education through donations
- sponsoring local events
What are examples of Car in workforce concern
- flexible working atmosphere
- reducing noise
what are the advantages of Car
- better reputation
- brand loyalty
- additional marketing opportunity
- employer of choice
- employees more motivated
- society more forgiving
what are the disadvantages to CSR
- Financial cost
- may distract from core activity
What is the 3 step change model
to avoid change being confronting and handled badly a systematic process to change should be used. The 3 step change model is easy to follow, and ensures change is implemented long-term successfully
What are the three steps to Lewin’s model
- unfreeze
- change
- refreeze
wat is the unfreeze stage
- preparing business prior to actual change
- involves proactively removing resistance to change and motivating/preparing stakeholders for the change
- this may include surveys, strong support shown from senior management, make stakeholders understand why it is taking place, challenge current beliefs, remove obstacles
What is the change stage
Change is not an event but a process. New processes or practices may be introduced and it is a period of confusion and fear.
- to counteract this businesses must offer support, empower staff, celebrate short-term wins, communicate and let time take its course
what is the refreeze stage
returning to a state of stability. Here, the business develops ways to sustain change and anchor it. This may require new policies, new job descriptions, recognising employee efforts and celebrating success
What needs to be considered in the the 3 stage model
- businesses cannot expect to remain in the new state forever
- refreezing is crucial
- managers should monitor the performance through KPI’s
- the model can be used many times
How do businesses review transformation
Through reviewing KPI’s
Why is it important to review KPI’s
- it allows a business to recognise whether the change was or was not successful
- you can analyse the size or extent of any transformation
- can identify areas that were of most success and which areas require additional effort
- can consider an alternative management strategy if results hoped were not achieved
What is the typical process to change
- assess data and KPI’s
- look at driving and restraining forces
- consider management strategies/opportunities to respond to KPI’s
- consider lewis 3 stage model and implement
- review Kpi’s and evaluate performance
