UNIT 4 AOS 2 - IMPLEMENTING CHANGE

Official Corporate culture

Shared values, ideas, beliefs and expectations of those within a business that the business wants to establish. Usually revealed in policies, objectives, mission statements or slogans

Real Corporate culture

Unwritten/informal rules that guide how people in the business behave. How the culture actually is

Elements of corporate culture

1. Values and practices (teamwork)

2. Symbols (sporting events)

3. Rituals, rites and celebrations (Regular events)

4. Heroes (star employees)

Strategies for developing culture

• Hire staff who align

Importance of leadership in change management

leadership = positively influence subordinates

To ensure the success of the change

Management skills

• Leadership

• Planning

• Delegation

• Communication

• Decision making

• Interpersonal

Staff training

• Businesses that focus on training and skilling staff decreases absenteeism, turnover, workplace accidents

• Indicates how satisfied staff are

Staff motivation

• Keeping them motivated so they attend work and productivity is high

Change to management styles or skills

• Can influence performance, important to understand situation and context to make a conscious decision

Increased investment in tech

Could improve employee safety

Could improve KPIs like level of wastage, number of accidents, eg. if its physical or hazardous work

Improving production quality

• KPIs like level of wastage, productivity growth, number of complaints, may indicate need for improvement in production quality

Cost cutting

• Should monitor KPIs like level of wastage, productivity growth, net figures to make informed decisions about what can be cut

Redeployment of resources

Moving resources from one area in a business to another, to improve efficiency

Innovation

Introduction of new or significantly improved products, services, processes or methods into a business

Gives a competitive edge

Global sourcing

Practice of seeking most cost efficient materials and other inputs, including countries overseas - NOT labour, but taking advantage of lower labour costs in producing an input

Overseas manufacture

Production of a good in a country that is different to the location of the business’ headquarter

Global outsourcing

Contracting of a specific business operation (function) to an external person or business in another country (eg. call centre)

Learning Organisation - Senge

1. Systems Thinking

2. Personal Mastery

3. Mental Models

4. Building Shared vision

5. Team Learning

Systems thinking

Ability to see the big picture, look beyond what is currently occurring

Look at whats occurred, get feedback and why

Personal Mastery

Individuals undertaking personal growth and learning, such as:

• Developing competence and skills, ability to focus energy and look at things objectively

• Training, performance management, progression

Mental Models

• Deeply engrained assumptions, generalisations, or even pictures and images that influence how we view the world and take action

• Businesses and employees to look inward and be self aware enough to scrutinise - open positive culture more likely to success

Building shared vision

• So everyone can see/understand systems thinking

• Motivates everyone - commitment to business and further learning will develop

Team Learning

The process of aligning and developing the capacities of a team to create results its members truely desire

• When team works together , business will achieve improved results

Leading the learning organisations

Leaders are

• Designers - design the learning process

• Stewards - Responsible for the vision

• Teachers - Foster learning

Low risk strategies

• Communication

• Empowerment

• Support

• Incentives

High risk strategies

• Manipulation

• Threat

Communication

Transfer of information from the sender to the receiver

Empowerment

Involving employees in the change process, providing them with greater responsibility and decision making power

Support

Management providing employees with assistance in moving from the current state to the new

Incentives

Any financial or non financial rewards provided to employees to encourage them to embrace change

Manipulation

Skilful or devious exertion of influence over someone to get them to do what you want, often by providing incomplete or selective information

Threat

The suggestion that some sort of negative consequence will occur if employees fail to follow a requested change

Lewin’s 3 step change

1. Unfreeze

2. Change

3. Refreeze

Unfreeze

1. Determine what must change

2. Ensure strong support from upper management

3. Create the need for change

4. Manage and understand doubts and concerns

Change

1. Communicate often

2. Dispel rumours

3. Empower action

4. Involve people in the process

Refreeze

1. Anchor changes into the culture (eg. policies)

2. Develop ways to sustain a change

3. Provide support and training

4. Celebrate success

Stakeholders

• Owners

• Employees

• Managers

• General community

• Suppliers

Owners

Vested interest in profit and business success

+ Potential greater profit, skills/knowledge

- Potential loss of profit, stress, time consuming

Managers

Vested interest in job security and success of the business

eg. expansion

+ Employment opportunity

- Job relocation

Employees

Vested interest in remuneration and job security

Supplier

Vested interest to be paid on time and the appropriate/ethical use of their products

eg. expansion

+ Potential increase in sales

- Potential customer loss, different state laws

General community

Vested interest in getting decent quality product at a competitive price

+ Potential greater choice of product, potential job opportunity

- Greater pollution (eg. noise pollution)

CSR

Managements awareness or obligations of going above and beyond it’s legal requirements in regards to the wellbeing of it’s stakeholders and the environment