BUSINESS UNIT 4 AOS 2

Business change

is the alteration of behaviours, policies, and practices of a business.

What is leadership in change management?

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

Why is leadership important during change?

Leaders help employees understand, accept and adapt to change by building a shared vision, communicating clearly and providing ongoing support.

How can leaders build a shared vision?

By inspiring employees and informing them about the reasons and benefits of change, as well as the consequences of not changing.

How does ongoing communication assist change?

It provides employees with clear instructions and instils trust and confidence as they move from current to new practices.

How can leaders support employees through change?

Through counselling, training, consultation, coaching and mentoring.

What is staff training?

Equipping employees with the knowledge and skills required to perform work tasks.

How can staff training improve KPIs?

It improves employees' abilities and can increase motivation, helping them perform work to a higher standard.

What is staff motivation?

Encouraging employees to work towards achieving business objectives.

How can staff motivation improve business performance?

It can increase employee morale, improve corporate culture, work ethic and commitment.

What is a change in management style?

When a manager alters the way they direct and communicate with employees.

How can changing management style improve performance?

A less restrictive style with two-way communication and decentralised decision-making may improve employee morale.

What is a change in management skills?

When a manager changes the way they approach business tasks and collaborate with employees.

What management skills are important for an autocratic manager?

Decision-making and planning skills.

What management skills are important for a participative manager?

Interpersonal and leadership skills to motivate and connect with employees.

What is increased investment in technology?

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

How can technology improve KPIs?

It can increase the speed of production, reduce errors and improve competitiveness.

What is improving quality in production?

Implementing processes that increase the perceived value of goods or services.

How can improving quality respond to KPIs?

It can reduce customer complaints, meet customer expectations and improve competitiveness.

What is cost cutting?

The process of reducing business expenses.

How can cost cutting improve business performance?

It can reduce unnecessary expenses and improve KPIs such as net profit, wastage and productivity growth.

What are lean production techniques?

Strategies used to systematically reduce waste while improving customer value.

What is the pull strategy?

Only using resources necessary to meet customer demand.

How can lean production improve KPIs?

It can increase productivity and minimise wastage.

What is redeployment of resources?

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

What is redeployment of natural resources?

Reusing, recycling or repurposing raw materials or putting natural resources to a better use.

What is redeployment of labour resources?

Transferring employees to different areas of the business.

What is redeployment of capital resources?

Using physical assets for a different purpose to improve efficiency.

What is innovation?

The process of altering and improving, or creating, new products or procedures.

How can innovation create a business opportunity?

It can help a business develop new products, improve operating methods and better meet customer needs.

What is global sourcing of inputs?

Acquiring raw materials and resources from overseas suppliers.

What are the benefits of global sourcing?

It can provide higher-quality or cheaper resources, reduce operating costs and improve competitiveness.

What is overseas manufacture?

Producing goods outside the country where the business's headquarters are located.

How can overseas manufacture create opportunities?

It may provide access to skilled labour and lower operating costs, allowing lower prices or improved profit margins.

What is global outsourcing?

Transferring specific business activities to an external business in an overseas country.

What are the benefits of global outsourcing?

It can minimise expenses, provide access to expertise, improve operations and allow a business to focus on its core objectives.

What is corporate culture?

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

What is official corporate culture?

The shared views and values a business aims to achieve, often outlined in written form.

What is real corporate culture?

The shared values and beliefs that develop organically within a business and are practised daily by employees.

What is a learning organisation?

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

Why is a learning organisation important?

It can improve competitive advantage, increase productivity, encourage innovation and improve corporate culture.

What is systems thinking?

A management approach that considers the interrelationships between the parts of a whole system.

What are mental models?

Existing assumptions and generalisations that must be challenged for learning and transformation to occur.

What is a shared vision?

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

Why is a shared vision important?

It motivates employees and develops commitment rather than simple compliance.

What is personal mastery?

The discipline of personal growth and learning aligned with a person's values and purpose.

What is team learning?

Collective learning that occurs when teams share their experiences, insights, knowledge and skills to improve practices.

Why is a positive culture important for change?

A positive culture can improve relationships, motivation, trust, learning and employees' willingness to adapt to change.

What are low-risk strategies?

Measured management approaches that gradually encourage employees to accept and participate in change.

What is communication as a low-risk strategy?

Openly and honestly sharing information with employees and listening to their feedback.

What is empowerment as a low-risk strategy?

Providing employees with increased responsibility and authority during change.

What is support as a low-risk strategy?

Providing employees with assistance as they move from current to new practices.

What are incentives as a low-risk strategy?

Financial or non-financial rewards used to encourage employees to support change.

What are high-risk strategies?

Autocratic management approaches used to influence employees to quickly accept and follow change.

What is manipulation?

Influencing employees to support change by providing incomplete or deceptive information.

What is threat?

Forcing employees to follow change by stating that harm may occur if they fail to do so

What is Lewin's Three-Step Change Model?

A process used by a business to implement change smoothly and successfully.

What happens in the unfreeze stage?

The business prepares stakeholders for change by challenging existing beliefs, behaviours and values and explaining what needs to change and why.

What happens in the change stage?

The business moves towards its desired state through clear communication and employee involvement.

What happens in the refreeze stage?

The change is embedded into the business for the long term so employees do not return to previous ways of operating.

How can a business refreeze change?

By introducing new policies, job descriptions and other strategies that establish a culture supporting the change.

How does change affect owners?

Owners are responsible for major decisions and often have the final say on how transformation occurs.

How does change affect managers?

Managers may need to monitor business areas and coordinate employees and activities differently.

How does change affect employees?

Employees are often the most affected because their roles and responsibilities may be completely transformed.

How does change affect customers?

Changes can affect the quality, price or overall experience of the goods and services they purchase.

How does change affect suppliers?

Changes to production processes can alter the resources required from suppliers.

How does change affect the general community?

Business decisions can indirectly affect the community, even if community members do not directly interact with the business.

What is corporate social responsibility (CSR)?

The ethical conduct of a business beyond its legal obligations, including consideration of social, economic and environmental impacts.

What CSR considerations should a business make regarding employees during change?

It should consider staff wellbeing, particularly when jobs or roles may be affected.

What CSR considerations should a business make regarding the community?

It should reduce or eliminate practices that negatively affect society, including impacts on employment and economic activity.

What CSR considerations should a business make regarding the environment?

t should reduce the negative environmental impacts of its activities and operate in an environmentally responsible way.

Why is it important to review KPIs after implementing change?

To determine whether the transformation has been successful and whether further changes are required.

What can reviewing KPIs tell a business about change?

Whether the change has achieved its objectives, negatively affected another area of performance, or requires more time and effort.

How can reviewing KPIs improve future decision-making?

It can help a business consider alternative management strategies to achieve the desired results or improve areas negatively affected by change.

Can a successful change negatively affect another KPI?

Yes. For example, technology may increase productivity but have unintended negative effects on staff turnover or absenteeism.