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UNIT 4 AOS 2 - Implementing change (Management strategies to respond to…
UNIT 4 AOS 2 - Implementing change
Importance of leadership on change management
Strong leadership in times of change will lead to greater trust among employees, leading to less resistance to change because employees will be more prepared to accept the risks involved with change if they feel their manager is concerned about their welfare
Management strategies to respond to KPI's
Improving quality in production
Quality is the degree to which the good or service attempts to fit its stated purpose. Will impact KPI's such as customer complaints, number of sales, and level of wastage
Cost cutting
Cutting costs can respond to KPI's such as net profit figures, rate of productivity growth and level of wastage
Increased investment in technology
Will impact KPI's such as rate of productivity growth, level of wastage, number of workplace accidents, number of sales and net profit figures
Initiation of lean production techniques
Lean production can relate to KPI's such as level of wastage, net profit figures, and percentage of market share
Change in management style/skills
Relates to KPI's that suggest urgent action needs to be taken such as net profit figures, number of sales, or percentage of market share = autocratic/persuasive management style
KPI's that relate to low staff morale may lead to change of management styles to consultative/participative
Redeployment of resources
Moving resources from one area of the business to another. Can be in the form of natural resources, labour and capital. Can respond to KPI's such as level of wastage, rate of productivity growth, and level of staff turnover. Eg, moving employees from one department to another, moving store locations.
Staff motivation
What drives employees to apply effort over a sustained period of time. Can be satisfied by offering recognition and rewards for effort. Relates rate of productivity growth, rates of staff absenteeism, and level of staff turnover
Staff training
The process of teaching staff how to do there job more efficiently, boosting their knowledge and skills. Relates to KPI's that manage employees, such as level of staff turnover, number of workplace accidents, rates of staff absenteeism, level of wastage
Management strategies to seek new business opportunities
Domestic
Multiple branding
A strategy where one business sells multiple brands within the same business. For example the shampoo market, or car brands (BMW owns Rolls Royce ).
Advantage - Allows one business to saturate a market, can fill all price and quality gaps, gives customers the feeling like they have more options
Disadvantage - Customers can feel though the business is more concerned about money than the needs of the customers
Government services
Government provides assistance for businesses, usually in the form of grants and assistance programs, such as small business Australia
Global
Online shopping
Online shopping allows customers to view products, buy products, and manage shipping of products on the internet.
Advantage - Allows the business to potentially access multiple markets, expanding their market share and customer base
Disadvantage - Time consuming and expensive to set-up, staff will need to be trained, can diminish personal aspect of shopping with the business
Exporting
Advantage - Allows the business to access greater markets, allows the business to increase sales and increase profits
Disadvantage - There can be hidden costs such as meeting regulations
A business that sells its products to overseas.
Senges learning organisation
Systems thinking
The ability for individuals to analyse the business as a whole rather than seperate units. This allows individuals to analyse how aspects of the business interrelate, and allow for patterns and outside sources to be recognised
Personal mastery
The commitment for individuals to continually learn and improve their skills. By analysing their own strengths and weaknesses, by continually improve themselves, the business will also improve
A learning organisation is a business where invidious are constantly learning, improving their skills and expanding their capacity to create results
Mental models
The deeply ingrained assumptions that individuals have about aspects of the business. Individuals need to challenge these assumptions.
Building shared vision
Having a shared vision will encourage employees to take risks, experiment and foster innovation. People excel in the business because they want to, and see the long-term picture of the business.
Team learning
Team learning is where individuals act together. Individuals communicate openly and genuinely think together as a team rather than individuals
Strategies to overcome employee resistance
High risk strategies (likely to generate negative outcomes)
Manipulation
managers attempt to lie/manipulate/bribe employees to convince employees that the change is more advantageous than it really is. Can lead to employees resenting the managers and hating the change
Threat
When employees' job security is threatened in order to implement change. Can lead to employees less likely to support the change if it has been forced upon them
Low risk strategies (Likely to generate positive outcomes_
Empowerment
one way that managers can make employees feel more comfortable with change is by giving employees a say in the change that are to be introduced
Support
Support includes ensuring employees know the details of the change, are given counselling if necessary and are listened to if they have any concerns
Communication
Making sure employees are aware of the incoming changes, which once fully explained may not be as bad as they feared
Incentives
Employees may feel more receptive to change if they feel that there is something 'in it for them'.
Lewins three step change model
Unfreeze
Using a force field analysis to ensure that driving forces outweigh restraining forces.
Informing individuals of change
Change
Making the changes necessary by introducing new processes/systems
A theory that provides businesses with a process to follow when implementing change
Refreeze
The change becomes the new 'status quo', policies may need to be introduced to reinforce the change as the new force
Effect of change on stakeholders
Customers
If customers approve of the change they may promote the change, however if they dislike the change they may choose to shop somewhere else or boycott the business
Suppliers
Change may lead to new requirements for suppliers, outsourcing, changes of costs to suppliers, change of suppliers
Employees
Employees may need additional trainer, may have to be redeployed, may have to adapt to a new corporate culture, may be given a new position or may be made redundant
General community
If people in a local community lose their jobs it may have a ripple effect on the community as spending is low
Managers
May result in managers having to change their management style, having to train employees or hire new employees, or may result in a higher position or being made redundant
CSR considerations when implementing change (examples)
Ensure technology does not add pollution
Ensure existing employees are treated fairly
Ensuring workers are treated and paid fairly
Employees are aware of possible redundancies
Sourcing supplies from a local supplier
The importance of reviewing KPI's
Reviewing KPI's allow a business to evaluate if the change that has been implemented has been successful on fixing or improving KPI's. More effective than the subjective viewpoint of the person in charge of the change