Business Management Unit 4 AOS 2

Leadership in Change Management (Definition)

the ability to positively influence and motivate employees towards achieving business objectives during a transformation.

Strong Leadership Qualities

-building a shared vision
-providing ongoing communication
-providing ongoing support

Management Strategies Responding to KPIs

staff training
staff motivation
change in management styles
management skills
increased investment in technology
improving quality in production
cost cutting
initiating lean production techniques
redeployment of resources (natural, labour and capital)
innovation
global sourcing of inputs
overseas manufacture
global outsourcing.

Staff Training (Definition)

developing employees' skills and knowledge to improve their performance and the overall effectiveness of the business.

Staff Motivation (Definition)

the processes that influence the direction, persistence, and performance of employees' efforts.

Change in Management Styles (Definition)

the adjustments made in the approach to leadership and decision-making within an organization.

Change in Management Skills (Definition)

enhancing the abilities and competencies of managers to lead effectively.

Increased Investment in Technology (Definition)

Involves implementing automated and computerised processes into a business's operations system.

Cost Cutting (Definition)

the process of reducing business expenses.

Redeployment of Resources (Definition)

involves reallocating natural, labour, and capital resources to different areas of the business to improve productivity and effectiveness.

Global Sourcing of Inputs (Definition)

purschasing goods and services from international suppliers to enhance business opportunities.

Innovation (Definition)

the introduction of new ideas, products, or processes to improve business performance.

Global Outsourcing (Definition)

contracting out business processes to external organizations in different countries.

Initiating Lean Production Techniques (Definition)

implementing methods to minimize waste and maximize efficiency in production processes.

Improving Quality in Production (Definition)

the processes and practices aimed at enhancing the quality of goods produced.

Overseas Manufacturing (Definition)

the production of goods in foreign countries to reduce costs or access new markets.

Corporate Culture (Definition)

the shared values and beliefs of a business and its employees.

Official Corporate Culture (Definition)

the shared views and values that a business aims to achieve, often outlined in a written format.

Real Corporate Culture (Definition)

the shared values and beliefs that develop organically within a business, and are practiced on a daily basis by its employees.

Strategies to Develop Official Corporate Culture

• Publishing or updating a vision statement
• Establishing or amending policies and procedures in documented forms
• Developing employee training programs
• Selecting business names, logos, and slogans to represent the business as an entity
• Implementing guidelines and regulations around employee attire

Strategies to Develop Real Corporate Culture

-hiring a range of staff from a variety of backgrounds
-changing office layout to reflect the desired ways of working
-organising regular celebrations of employee contributions to the business
-selecting management style that reflects business environment and aims

Senge's Learning Organisation (Definition)

an organisation that facilitates the growth of its members and continuously transforms itself to adapt to changing environments.

Principles of the Learning Organisation

systems thinking, mental models, shared vision, team learning, and personal mastery.

Systems Thinkingm (Definition)

is a management approach that considers the inter-relationship between the parts of a whole system.

Mental Models (Definition)

involves existing assumptions and generalisations that must be challenged so that learning and transformation can occur in an organisation.

Shared Vision (Definition)

involves an aspirational description of what an organisation and its members would like to achieve.

Team Learning (Definition)

involves the collective learning that occurs when teams share their experience, insights, knowledge, and skills to improve practices.

Personal Mastery (Definition)

is the discipline of personal growth and learning, aligned with one's values and purpose.

Low-Risk Strategies (Definition)

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

Communication - Low Risk (Definition)

Involves managers openly and honestly transferring information to employees, and listening to their feedback so that employees are fully aware of the reasons for, and impacts of an upcoming change.

Empowerment - Low Risk (Definition)

involves managers providing employees with increased responsibility and authority during times of change.

Support - Low Risk (Definition)

involves managers providing employees with assistance as they move from current to new practices.

Incentives - Low Risk (Definition)

involves managers providing financial or non-financial rewards to encourage employees to support change.

High Risk Strategies (Definition)

autocratic management approaches used to influence employees to quickly accept and follow a business change.

Manipulation - High Risk (Definition)

occurs when a manager selectively leaves out relevant information about a change so that it appears to be more favourable or necessary, or makes a change seem more beneficial than it actually is.

Threat - High Risk (Definition)

forcing employees to follow a proposed change by stating that they may or will cause harm to them if they fail to do so.

Ads of Low Risk Strategies

-higher chance of change being successful due to increased trust between managers and employees
-can reduce employee fear and stress
-can provide employees with opportunities to advance their careers

Disads of Low Risk Strategies

-may result in tasks being carried out in a way that was not intended
-can be seen as bribes if not executed properly
-all low risk-strategies not useful in a crisis as they take longer period of time to be successful

Ads of High Risk Strategies

-change is implemented in a way that the manager desires and not employees
-effective in a crisis as occur rapidly
-relatively inexpensive during initial setup

Disads of High Risk Strategies

-may lead to development of negative corporate culture in the long term
-relationship between employee and manager is compromised
-employees fearful of losing job
-potential for low morale in the workplace

Lewin's Three Step Change Model (Definition)

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

Unfreeze Step (Definition)

involves moving a business to a state where stakeholders are prepared to undergo change.

Change Step (Definition)

involves moving a business towards its desired state by transforming the businesses practices to meet its new objectives.

Refreeze Step (Definition)

involves ensuring a change is sustained within a business for the long term preventing it from reverting back to previous ways of operating.

Positive Effect of Change - Owners

-successful business can provide owner with increased return on investment
-provide owners with opportunities to use their leadership skills
-owner may be perceived more positively by employees if they implement change successfully

Negative Effect of Change - Owners

-unsuccessful change may lead to business owner having personal and financial issues
-owner may become overwhelmed by increased workload and responsibilities associated with the new change
-owner may be resented if employee roles or redundant or significantly changed

Positive Effect of Change - Managers

-provide manager with opportunities to develop new skills and advance their career
-manager may receive financial or non-financial rewards if change is successful
-provided with increase authority and responsibility

Negative Effect of Change - Managers

-increased workloads can lead to stress
-if change is unsuccessful the manager may lose their job

Positive Effect of Change - Employees

-may be provided with new responsibilities and opportunities for career advancement
-if change is successful, employees may experience improved job and financial security
-may require employees to undergo training, therefore improve set of skills

Negative Effect of Change - Employees

-change may require employees to develop complex skills therefore increasing stress
-change may result in employee redundancy
-may need employees to take on greater responsibilities, thus potentially decreasing their performance if they are not prepared

Positive Effect of Change - Customers

-if change results in greater quality of goods and services, customer may feel increased satisfaction
-greater satisfaction is business implements new strategies to demonstrate CSR

Negative Effect of Change - Customers

• if business sources cheaper inputs, quality may decrease
  -if change results in increased price of products, customers may be dissatisfied

Positive Effect of Change - Suppliers

-supplier demand may increase if business requires a greater amount of resources

Negative Effect of Change - Suppliers

-if business changes suppliers, original suppliers sales may decrease
-may require suppliers to adjust their processes to meet new demands of the business

Positive Effect of Change - General Community

-change can create job opportunities, thus increasing employment rate
-change that involves expanding areas can increase customer traffic
-change can reduce potential waste in the area

Negative Effect of Change - Owners

-if change results in redundancies , employment rates decrease
-if change results in change of business location, traffic and sales may decrease in the area
-if change involves switching to overseas suppliers, there is potential negative impacts on environment

Corporate Social Responsibility (Definition)

the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.

Considering Employees

Managers should address factors that promote staff wellbeing during change, recognising that job loss or role changes can harm financial, social, and mental wellbeing.

Considering the General Community

When a business reduces or removes practices that harm society's wellbeing.

Considering the Environment

When a business reduces its negative environmental impact, acting responsibly to preserve the planet.

Ads of CSR Considerations

-business can develop positive reputation
-employees may prefer to work for a business that has ethical practices
-customers may be willing to pay more for goods that are produced in an ethical manner

Disads of CSR Considerations

• may decrease business' productivity levels
• time consuming to address various CSR considerations
• may delay business change
• expensive