unit 4 management of change

Question 1

what is total quality management ?

Answer 1

TQM is a process which tries to ensure quality in all aspects of a firms operations. TQM puts the efforts of the firm into meeting the present and future needs of its customers. A TQM approach will strive to work towards a zero defects and 100% perfection and a 100% customer satisfaction result.

Employers are given responsibility to ensure that the products meet the requirements of the consumer. Quality assurance and teamwork are central to the TQM approach.

Question 2

what are the 4 basic principles of TQM ?

Answer 2

1. Focus on customers - the focus is on the customer, so a manufacturing business will conduct market research into what the customer requires from their product.

benefit: sales will increase as consumer satisfaction is improved. this will also prevent a firm producing lots of an unwanted good as they will have checked what the consumer wants before production begins

2. continuous improvement - continuous improvement means the business tries each time to do better than the previous time when manufacturing products, improving the quality of the finished good. a business using TQM will strive for “zero defects” in production

benefit: fewer products will be returned for a refund, reducing costs

3. teamwork - employees also work in teams, increasing productivity and satisfaction

benefit: decision making should improve and teamwork can lead to more intrapreneurship, improving ideas and identifying new products, leading to higher sales.

4. employee empowerment- employees should benefit from greater job satisfaction as they will be empowered, allowing them to make decisions, increasing trust from management and allowing them to satisfy esteem needs (Maslow).

benefit: staff would be more energised and productive, and there would be lower staff turnover.

Question 3

what is employee empowerment ?

Answer 3

it is the act of giving employees the power to make decisions on their own without having to ask for their managers permission

Question 4

what are the benefits of employee empowerment?

Answer 4

1.quicker decisions for customers - decision making and control is in the hands of employees who use their greater skills and knowledge for the benefit of the business on the spot.

2. employees become more responsive to the needs of customers - they are more likely to come up with ideas to solve issues as they now have more power to try out solutions to consumer problems, giving more satisfied customers.
3. employees may become more motivates and have greater job satisfaction - workers may feel more trusted and enjoy having the power to act as they see fit and not have to defer to superiors for every decision.
4. employees may become more motivated and have greater job satisfaction - by acting with more responsibility and power.
5. mgmt can focus on strategic planning - allows staff to improve the day to day operations in the business.

Question 5

what are the risk of employee empowerment?

Answer 5

1. more mistakes/ worse decision making by staff - the lack of control and day- to - day supervision may encourage some empowered staff to take unnecessary risks, leading to bad decision making. Employees may be unhappy with the extra responsibility and/ or lack of training and their stress levels may increase. this can cause de- motivation among employees.
2. less motivated staff/ more industrial relations problems - if empowerment is introduced without adequate training for employees then mistakes can be made. empowerment means mgmt are handing over control, responsibility and power to subordinates. some managers may be cautious of this reallocation of power and loss of control. this can lead to conflict between themselves and employees.

Question 6

what is forming is the stages of forming teams ?

Answer 6

forming - members meet for the first time. they are polite to each other . they talk about their tasks. they may not offer/ contribute a lot as they wait to see what other members of the team are like.

Question 7

what is storming in the stages in forming teams ?

Answer 7

storming - team members test relationships and tensions. conflicts can frequently arise as personalities and ideas clash. members may try to establish their position on a team. members may act as individuals and resist other views and other team members challenge different opinions offered.

Question 8

what is norming in the stages in forming teams ?

Answer 8

norming constructive relationships and ways of working together emerge. ground rules and procedures are agreed and there is an increased focus on the task at hand. greater sense of trust develops between team members. people get used to how other team members operate and contribute.

Question 9

what is preforming in the stages in forming teams ?

Answer 9

preforming - team members pull together and focus on getting tasks completed. Co- operation exists as they act like a unit. Strong sense of togetherness and unity exists. Members have a greater understanding of where each-others strengths lie and try to use them for the teams benefit.

Question 10

what are the benefits of teamwork for the employees in a business ?

Answer 10

1. increased motivation/ staff morale - employees experience greater job satisfaction as all members efforts are taken into account. they are better motivated as participation in teams satisfies the social needs of employees ( Maslow) .
2. staff learn how to deal with other people (improved efficiency )- employees communication skills and interpersonal skills improve as they are working in a group and dealing with different personalities. this is a good experience for employees, as effective communication skills will help prepare employees for leadership roles within the business.
3. less personal pressure on bigger/ tougher decisions/ improved decision making - when working in isolation employees might find it difficult to take tough decisions. however, with the mutual support and protection of a team, these tough decisions are easier for employees to make eg a decision on making workers redundant.
4. industrial relations improved/ lower staff turnover/ reduced absenteeism - successful teams progress through the team development stages of forming, storming, norming and preforming. A successful team will mean less industrial relations problems and less conflicts, saving the employee the stress with industrial action .

Question 11

what is quality assurance ?

Answer 11

quality assurance is a system that refers to the maintenance of a desirable level of quality in a service or a product for customers . this is done by means of attention to every stage of the process of delivery or production of a product.

Question 12

what are the benefits of a business achieving quality assurance ?

Answer 12

1. increased customer loyalty - obtaining a quality mark eg the Q mark, shows existing and potential customers that the company’s products can be trusted and that they meet the industry standards required. this should help build brand loyalty to the company’s products.
2. used in the business’s marketing - a Q mark could be a source of competitive advantage for a business against competitors. the business could use it in their advertising campaigns and it could become a USP if no other businesses in the industry have obtained one. this should help increase sales.
3. charge a higher price - a Q mark is a sign of quality, so with higher standards of a product, the business may be able to increase their selling price ( premium pricing) . the product may now be seen as being of a higher quality, leading to higher profits for the business.
4. easier to enter new markets/ export/ internationally recognised - some quality marks may allow a business to export more easily, quality symbols such as ISO9000 are internationally recognised which will improve the businesses reputation and make them more able to penetrate foreign markets.
5. reduce defects

6 striving for achievement

Question 13

impact of changes in technology on business (opportunities and cost ) 1. impact on finance

Answer 13

acquiring the technology- financial cost of purchase of new tech. installation and maintenance costs as well as training costs for staff. GDPR fines for any breaches eg not holding data securely

Question 14

impact of changes in technology on business (opportunities and cost ) 2. impact on production

Answer 14

greater efficiency of machinery with newer tech. more likely to benefit from economies of scale/ reduced costs/ higher speed production. eg CAM (computer aided manufacturing)

Question 15

impact of changes in technology on business (opportunities and cost ) 3. impact on staff

Answer 15

technology replacing staff therefore potential staff redundancies.

E- working - staff working remotely, wider span of control.

more competent staff : greater efficiency in administrative functions

Question 16

impact of changes in technology on business (opportunities and cost ) 4. impact on communications

Answer 16

quicker decision making due to availability of large amounts of data.
staff can be equipped with laptops, mobile phones and e-mail.
the internet can be used to communicate with customers, suppliers and staff.

video- conferencing may be used by corporate clients organising external business meetings

Question 17

impact of changes in technology on business (opportunities and cost ) impact on marketing

Answer 17

on-line sales, e-commerce, e-business,..
websites can be used to promote facilities, services and special offers available to a global audience.
online booking is easier and more convenient for customers.
databases of customers can be used for market research purposes.

Question 18

what is EDI( electronic data interchange) ?

Answer 18

an automated stock ordering system

Question 19

what is different types of software used by businesses ?

Answer 19

database software - it details customers/ suppliers, etc )

spreadsheet software - financial and statistical calculations, etc

desktop publishing software - professional quality brochures/ leaflets

Question 20

strategies used to manage changes effectively - 1. communicate changes to staff

Answer 20

communication should be honest and open. management should explain the need for the changes and the consequences of not taking any actions for the business. this will reduce uncertainty and tensions among employees about the proposed changes.

Question 21

strategies used to manage changes effectively - 2. consult with staff before changing

Answer 21

seek staff input regarding changes, they give their opinion easing reluctance for the change. as a benefit staff would be more open to proposed change as they help decide it.

Question 22

what is communication and consultation ?

Answer 22

communication - the exchange of information between parties.

consultation - specific communication with a party seeking input on an issue/decision.

Question 23

strategies used to manage changes effectively - 3. reward staff for making change

Answer 23

employees can be incentivised to be open to change which encourages buy-in so their behaviour is positive for the change to be successful. a reward like a profit sharing scheme for changing will encourage employees to make it a success as they will benefit also.

Question 24

strategies used to manage changes effectively - 4. changing from a controller manager to a facilitator manager

Answer 24

a controller manager is characterised by a manager that wants to make every decision and feels that they know best. very little autonomy and responsibility is given to the employees. if they changes to a facilitator manager, they would become more of a co-ordinator or coach, energizing and encouraging, rather than ordering. the facilitator manager understands and trusts that employee on the front lines have the information they need to respond to changes rapidly once given the responsibility and resources to act.

Question 25

strategies used to manage changes effectively - 5.empower the employee

Answer 25

staff should be involved in the decision making process giving them a sense of ownership in the process of change. this allows employees to feel they have a voice and encourages them to take on extra responsibility.

with the increased responsibility comes increased enthusiasm for the job, so workers may see change as an opportunity for the firm rather than a hassle.

Question 26

strategies used to manage changes effectively - 6. resource provider

Answer 26

finance and funding of human and physical resources provided with an emphasis on new technology. New computers/technology/ software may be needed to be purchased and new staff may need to be hired in order to use/maintain this new technology.

Question 27

strategies used to manage changes effectively - 7. training and development

Answer 27

staff must be trained in the management and use of new technologies so as to achieve efficiencies and provide a better service to its customers. staff may need to be retrained (on the job and/ or off the job). in the absence of training staff may be fearful of taking on new challenges due to lack of appropriate skills.

Question 28

strategies used to manage changes effectively - 8. emphasis on quality/TQM/Quality circles

Answer 28

the focus on change has to be on the quality of output and quality management which is firmly based on teamwork. A TQM approach looks at reducing defects and continuously improving, which creates a great openness for change to seek improvements.

Question 29

strategies used to manage changes effectively - 9. lead by example

Answer 29

mgmt is totally committed to creating a business that welcomes change and develops a culture of change. mgmt should show total commitment to the change and have employees see this, and also takes steps to embrace change themselves as a role model for change to employees.

Question 30

strategies used to manage changes effectively - 10. use teamwork

Answer 30

if mgmt use a Matrix (team) structure, being in teams encourages a greater commitment and gives them a better sense of purpose. This can help them feel more involved and make them more likely to be open to change and able to adapt to it.

Question 31

strategies used to manage changes effectively - 11. employee participation

Answer 31

encouraging staff to become involved in decisions about the overall running of the business through taking part in Work Councils, becoming Board members, issuing of share options. benefits the business as staff will have increased involvement, better information, more control and less uncertainty about the business and necessary changes