bus man unit 4 aos 2

Low risk strategies

measured management approaches that gradually encourage employees to accept and participate in a business change

• aims to reduce employee resistance to change

communication - low risk strategy

managers openly and honestly giving information to employees, and listening to their feedback so employees know the reasons for, and impacts of an upcoming change

• a two-way communication

• builds trust

Example:

• can communicate through emails, meetings

communication - discuss

advantages:

• Can effectively reduce employee fear & stress levels

• Feel valued & trust managers → more likely to stay → less costs to hire new

disadvantages:

• can be time-consuming to implement

• training, counselling & incentives can be expensive

• may reduce management’s control over some decisions

Empowerment - low-risk

Involves managers providing employees with increased responsibility & authority during times of change

• Employees are directly involved and have more will to contribute to change process

• e.g. Using participative management style to empower staff

Empowerment - discuss

Advantages:

• Higher chance of change being successful in long-term (because of increased trust)

• Make employees feel valued

Disadvantages:

• Inexperienced employees may not carry out tasks how they were intended to

• Not useful in a crisis because they take e a long period of time to be effective

Support - low risk

A low risk strategy that involves managers providing employees with assistance as they move from current to new practices

• e.g. Training, using interpersonal skills

Support - discuss

Advantages:

• Higher chance of being successful in long term because of ↑ trust

• Can reduce employees’ fear & stress levels related to change

Disadvantages:

• Not useful in a crisis → take long to be effective

• Expensive for training & counselling

Incentives - low risk

Managers providing financial or non - financial rewards to encourage employees to support change

• c.g. Financial bonus → pay bonuses

• Non- financial → career advancement, free holidays

Incentives -discuss

Advantages:

• 
  

High-risk strategies

management approaches that reduce employee resistance quickly to accept & follow business change through force

• appropriate when a business immediately needs employees to follow procedures

• Unsustainable in long-term

high risk - when

• resistance is delaying an important deadline

• business is experiencing a crises

• legal or safety requirements must be followed

Manipulation - high-risk

involves influencing employees to support a proposed change by providing incomplete and deceptive information about the transformation

• coercing by not giving all information

qantas:

• emphasise career opportunities made by Project Sunrise

  • withhold info about bad changes to work schedules

Threat - high-risk

. Forcing employees to follow a proposed change by stating that they may or will cause harm it they fall to do so

-

Examples include: dismissal, poor referrals, loss of promotion

Lewin'S 3 - step change model

A process that can be used by a business to implement change successfully

- it has 3 steps: unfreeze , change & refreeze

Unfreeze

About moving a business to a state where stakeholders are prepared to undergo change

• Determine what needs to change

• Ensure there is strong enough support from uppe rmanagement

• Create the need for change

• Manage & understand the doubts & concerns

Change step

Involves moving a business towards its desired state

• transforms business practices to meet new objectives

• Provide support, training & involvement

• Clear communication for smooth implementation

Refreeze step

Ensuring a change is sustained within a business for the long term

• Use policies, job descriptions to support new culture

• Provide ongoing support & training

• Monitor & evaluate to consolidate change & achieve wanted performance

• Celebrate successes

Stakeholders

An individual or group who has a vested interest in activities & performance of a business

• Owners

• Managers

• Employees

• Customers

• Suppliers

• General community

Owners

Individuals who establish, invest & have a share in a business and want to make a profit

Benefits:

• Successful change → greater return on investment

• Opportunities to make interpersonal relationships

Negative:

• If unsuccessful → personal & financial implications

• Stressed with increased workload

• Resented if employees made redundant

Managers

Oversee & coordinate employees to achieve business objectives

Positive:

• Opportunities to develop new skills / career advancement

• Financial / non-financial rewards for successful change

• ↑ authority to ↑ skills & employability

Negative:

• ↑ workloads → ↓ wellbeing

• Unsuccessful → lose job & financial security

Managers - discuss

Employees

Individuals hired by a business to complete work tasks & support the achievement of business objectives

Employees - discuss

Positive:

• New responsibilities → career advancement → ↑ motivation

• Successful → improved job security

• Training → new skills →employability

Negative:

• Learn complex processes → stress levels → mental HWB

• Expected redundancies → fear of losing job security

Customers

Individuals or groups who interact with a business by buying their goods or services

Customers - discuss

Positive:

• If change improves quality → ↑ customer satisfaction

• Change may mean lower prices → ↑ customer satisfaction

• Implementing CSR → ↑ customer satisfaction

Negative:

• Sourcing cheaper inputs → lower quality → ↓ CS

• ↑ Prices → ↓CS

• Discontinues/changes product → ↓CS

Suppliers

Individuals / groups that source raw materials, component parts & processed materials to sell to business to use for production to create a good / service

Suppliers - discuss

Positive:

• Supplier demand ↑ if business needs more resources

Negative:

• If business switches / discontinues → supplier sales decrease

• May require suppliers to involuntarily change processes to meet demands of business

General community

Individuals/groups who are impacted by business operations & decisions, often because trey live close to business

General community - discuss

Positive:

• Creates job opportunities → local employment rates ↑

• When successful→ greater ability to contribute to local causes

• Change involves ↓waste → @environmental impact & improve living standards

Negative:

• Redundancy → poverty → ↓societal wellbeing

• Switching to overseas supplier → negative impact on environment