UNIT 4 - OUTCOME 2

Question 1

Define leadership.

Answer 1

Leadership is the ability to influence and motivate individuals to achieve business objectives. It is very important because it can help overcome resistance if management supports stakeholders during change.

Question 2

Why is leadership important during change?

Answer 2

Leadership is important because …

• Employees have various reactions to change which will lead to resistance
• if resistance is not dealt with, employees will not agree with change and can lead to nasty conflicts down the road
• makes employees feel that they are valued, as management communicating with them and providing support

Question 3

What are the management strategies for responding to key performance indicators?

Answer 3

• Staff training
• Staff motivation
• Change in management styles/skills
• Increased investment in technology
• Improved quality in production
• Cost cutting
• Initiating lean production techniques
• Redeployment of resources

Question 4

Explain exporting as a management strategy to seek new business opportunities globally.

Answer 4

Exporting involves sending the businesses goods or services to another country for sale. This allows the business to sell and have access to a larger market or customer base which is guaranteed to bring in more profit. Additional costs may involve transporting the goods.

Question 5

Explain partnerships as a management strategy to seek new business opportunities domestically.

Answer 5

Partnerships involves businesses operating in tandem with the businesses being directly linked to each other. Each business is opened up to the customers of the other business and each business gains advertising benefits. However, decisions of one business directly affect the other and conflicts may arise.

Question 6

What is Senge’s Learning Organisation?

Answer 6

Senge’s Learning Organisation aims for a business to be flexible, adaptive and productive. It’s aim is to create a workplace where employees can be their best and continually work together to be their best.

Question 7

What is Systems Thinking?

Answer 7

Systems thinking is understanding that all aspects of the business are interconnected and acknowledging that when making a decision in one area, is going to directly affect the business in another area. It is about taking the wider picture in, rather then smaller aspects.

Question 8

What is personal mastery?

Answer 8

Personal mastery is the realisation that all employees have a vision of what they want to be, and the business should provide opportunities for each employee to strive to be their best and follow their passions.

Question 9

What is mental models?

Answer 9

Mental models is the shared assumptions, generalisations, beliefs and values that a business bases their decisions on, ingrained in the minds of management. A learning organisation should put these beliefs aside when making decisions as they will hold them back for further opportunities.

Question 10

What is shared vision?

Answer 10

Shared vision is being able to develop a vision that the people within the business believe in. Involves having all employees on the same page to develop long-term drive towards transformation.

Question 11

What is team learning?

Answer 11

Team learning is aligning and developing the capabilities of a team to create the results the members want. Individuals that learn together, grow more rapidly.

Question 12

Define low-risk strategies.

Answer 12

Low risk strategies are ways of fighting resistance of employees towards change that have a low chance of backfiring and deteriorating the relationship between management and employees even more. They involve the most safe ways to fight resistance.

Question 13

Explain communication as a low risk strategy.

Answer 13

Communication involves transferring information to all employees of the business, indicating why the change is necessary to better develop the employee,oyees understanding about why the change is necessary.

Question 14

Explain empowerment as a low risk strategy.

Answer 14

Empowerment involves giving employees some authority over the change so that they can make decisions that they stand by. This will lower resistance as employees are less likely to resist against their own decisions.

Question 15

Explain support as a low risk strategy.

Answer 15

Support involves management providing employees with additional services to help them cope with the change. Change can affect employees in negative ways and by supporting these employees, they are less compelled to resist.

Question 16

Explain incentives as a low risk strategy.

Answer 16

Incentives involves offering added bonuses to resistors to help gain support for the change. These could involve improved working conditions or financial incentives.

Question 17

Define high risk strategies.

Answer 17

High risk strategies are ways of fighting resistance of employees towards change that have a high chance of backfiring and deteriorating the relationship between management and employees even more. They involve the more unmoral ways to fight resistance.

Question 18

Explain manipulation as a high risk strategy.

Answer 18

Manipulation is using covert tactics to influence the employee to support the change. This may mean only revealing the benefits of the change to the employee, or exaggerating the benefits. Employee may feel used if they find out about the manipulation.

Question 19

Explain threats as a high risk strategy.

Answer 19

Threats involve using force and abusing authority to cease the resistance of employees. Threats never end well but may be necessary when change needs to be implemented as soon as possible. Creates a poor working culture.

Question 20

Describe the unfreezing step in Lewin’s Three Step Change Model.

Answer 20

This step involves PREPARING the business for change and involves communicating the proposed change to all members of the business. Management must not shy away from the negative feels as employees must be notified if they are becoming redundant. Management should also provide reasons why the change is necessary and what will occur if the current way of doing things is continued.

Question 21

Describe the changing step in Lewin’s Three Step Change Model.

Answer 21

This step involves the IMPLEMENTATION of the change and when it takes place. Clear goals should be set, with continued commitment and sustained energy being directed towards the goals. Communication and support are vital to keep employees working towards the common goal. Employees that are negatively affected should be provided with support to help ease the transition.

Question 22

Describe the refreezing step in Lewin’s Three Step Change Model.

Answer 22

This step involves STANDARDISING the changes so that they become part of the culture inside of the business. Evaluation of the change should be completed to determine the success of the implementation and further modifications can potentially be made to enhance the change even more. This step is important because it is what is crucial to the true implementation of the change because without the refreezing step, there is a chance that the employees could revert back to the old way of doing things.

Question 23

What is the effect of change on managers?

Answer 23

Change may result in an increased role, more pay but difficult times as they are the ones who have to facilitate the transition of employees. Managers should be viewed as leaders. Have to manage everyone else’s transition as well as their own.

Question 24

What is the effect of change on employees?

Answer 24

Change may result in redeployment of employees into jobs unusual to them. They may become redundant and maybe promoted with a pay increase. High resistance from employees will be a result of negative changes.

Question 25

What is the effect of change on suppliers?

Answer 25

Change may affect suppliers by using customers (businesses) if the business seeks materials elsewhere. Suppliers may need to re-evaliate their own supplies to make them more appealing.

Question 26

What is the effect of change on customers?

Answer 26

Change may result in customers open to a new variety of products, which may increase profit, or the opposite could occur with differentiation resulting in uproar and the loss of many customers. Customers have a massive say in what the business provides.

Question 27

What is the effect of change on the general community?

Answer 27

If a business decides to close, more or shut down, where the business was located would see an increase in unemployment as a large number of individuals have been made redundant. The opposite can occur as well with more employment opportunities being made when a business opens a new store/factory in a new community.

Question 28

Define corporate social responsibility.

Answer 28

Corporate social responsibility is the ongoing commitment a business demonstrates in the environment it operates in. It is the business’ decision to not just focus on the economical considerations, but the social and environmental considerations as well.

Question 29

What are some considerations a business have to make when implementing change?

Answer 29

• Applealing to customers who have the same beliefs
• Looking towards the future of the community, rather then just the businesses
• Improving the business reputation

Question 30

Why is it important to review KPI’s to evaluate the effectiveness of business transformation?

Answer 30

KPI’s give feedback on how the business is going, if they aren’t analysed the business could keep performing not to expectations and lose money and not reach objectives. Whereas, if they are reviewed, areas of improvement can be highlighted and modifications to the change can be made.