Business Management Unit 4 Sac 2

Implementing Change

Leadership

Is the process of influencing, guiding, and motivating employees to ensure work is completed in the most efficient and effective manner in order to best achieve the company’s.

Roles/Characteristics of Leadership

• Interpersonal

• Informational

• Decision-making

Interpersonal

Liasing or dealing with people.

Informational

Solid content knowledge + ability to convey this info to employees.

Decision-making

Making choices in order to solve problems + take opportunities.

Features of an effective leader

• articulate the vision

• risk take

• have strong communication + interpersonal skills

• motivate and inspire staff - empower their staff and build capacity

• have effective plans and strategies for change management

• gather the necessary resources required for successful implementation of the change

Management strategies to respond to KPIs

• staff training

• staff motivation

• change in management styles + skills

• increased investment in technology

• improved quality in production

• cost cutting

• inviting lean production techniques

• redeployment of resources (natural, labour, capital)

• innovation

• global sourcing of inputs, overseas, manufacture, global outsourcing

Staff Training (internally focused)

Is learning that is provided in order to improve performance on the present job. It helps employees increase their skill set and knowledge and change their attributes in order to achieve a desired outcome. (on the job, off the job training)

Staff Training improves:

• number of sales

• number of customer complaints

• number of workplace

• rate of productivity growth

Staff motivation (Internal focused)

Is what stimulate desire and energy is people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal.

Staff motivation improves:

• number of sales

• level of staff turnover

• level of staff absenteeism

• rate of productivity growth

Management Styles

• Autocractic

• Persausive

• Consultative

• Participative

• Laissez-faire

Management Skills

• Interpersonal

• Delegation

• Decision-makin

• Planning

• Communication

Management Styles/Skills improves

• level of staff turnover

• staff absenteeism

• workplace accidents

• level of wastage

• rate of productivity

Investment in technology

• Automated Production Lines (APL)

• Robotics (ROB)

• Artificial Intelligence (AI)

• Computer-aided design (CAD)

• Computer-aided manufacture (CAM)

• Online Services (OS)

Investment in technology improves

• rate of productivity growth

• number of workplace accidents

• level of wastage

• number of sales

• percentage of market share

• number of website hits

Quality in production

A standard that meets the needs/wants of customer. (Quality Control, Quality Assurance, Total Quality Management)

Quality in production improves

• net profit

• number of sales

• level of wastae

• number of customer complaints

• percentage of market share

Cost Cutting

This includes actions taken to reduce the amount that is spent on a service or within an organisation.

Cost Cutting (examples)

Lowering salary costs (redundancy prorams), outsourcing, overseas manufacture, technology, reducing wastage.

Cost Cutting improves

• net profit

• reduce level of wastage

Initating lean production techniques

Is a systemic method for the elimination of wastes within a manufacture process.

Initating lean production techniques (examples)

• Pull

• One-piece flow

• TAKT

• Zero defects

Initating lean production techniques improves

• waste level reducation

• increase net profit

• number of customer complaints

• number of sales

• percentage of market share

Innovation

Is a process by which a product or service is renewed and brought up to date by applying new processes, introducing new techniques, or establishing successful ideas to create new value.

To support Innovation

• Build creative teams

• Encourage employees to take risks

Innovation improves

• percentage of market share

• number of sales

Redeployment of resources

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

Natural resources

Can be redeployed by using existing resources for different purposes.

Labour resources

Can be deployed by moving employees from one team to another.

Capital resources

Can be redeployed by being repurposed for the production of different goods, or in the case of machinery, physically moved to another location.

Redeployment of resources improves

• level of wastage

• number of sales

• level of staff turnover

• number of workplace accidents

Global sourcing of inputs

Business sources their inputs from Countries outside its place of orgin.

Overseas Manufacture

Manufacturing overseas can reduce cost of production (standardized mass production)

Global Outsourcing

Contracting of some organisational operations to outside suppliers.

Global sourcing of inputs improves:

• number of sales

• market share percentae

Overseas Manufacture improves:

• rate of productivity growth

• percentage of market share

Global outscourcin improves:

• number of sales

• net profit

Corporate Culture

The shared values and beliefs held by an organisation.

Strategies for developing official corporate culture

• shared objectuves

• policies

• training

• symbols

• uniform

Shared objects (conveyed through)

Publishin or updating a vision and mission statement.

Policies (conveyed through)

Establishing or amending policies and procedures in documented forms

Publishin an employee code of conduct.

Uniform (conveyed through)

Implementing guidelines and regulations around employee attire.

Strateies for developing real culture

• type of employees

• workplace environment

• business rituals

• management styles

Types of employees (conveyed through)

Tailoring employee hiring criteria to the specific needs of the business and hiring a range of staff from a variety of backgrounds.

Workplace environment

Changing office layout to reflect the desired ways of working.

Senge’s Learning Organisation Theory

States that organisations should encourage continuous learning and new ways of thinking so employees can work towards a shared vision and adapt effectively to change.

Personal Mastery

Focuses intently on providing opportunities within your business for employees to become experts in their areas.

Personal mastery strategies

• foster individual apsirations

• training must be provided

• mentoring or coaching

Personal mastery benefits

• employees become more capable and effective

• reduces resistance to change if confidence in their skills

Personal mastery limitations

Time consuming and costly (to offer strategies)

Buildin shared vision

Creating a common understanding and commitment to the organisation’s goals, so employees are motivated and involved in achieving the desired change.

Building Shared Vision (strategies)

• new values (development)

• vision/mission statements

• communication

• policies

Building Shared Vision benefits

• increase employee buy-in (commitment)

• increase productivity growth

Building Shared Vision limitations

Time consuming, requires strong leadership

Team learning

Is when employees learn and work together, sharin ideas and knowledge to achieve shared goals and improve problem-solving.

Team learning (strategies)

• Team meeting

• Team building activities

• Peer learning

• Two way commmunication

Team learning benefits

• stroner team work and collaboration, increased productivity

• employees can share idea + concerns openly (reduces resistance to change)

Team learning limitations

Group conflict.

Mental Models

Are the assumptions and beliefs that influence how employees think and behave, which can be challenged to encourage openness and new ways of thinking.

Mental Models (strategies)

• communication

• research

• trainin

• coaching/mentoring

Mental Models benefits

• grater openness to change (employees challenge old assumptions

• more adapttable corporate culture (more willing to respond to change)

Mental Models limitations

Risk-taking can lead to failure, resistance to changing beliefs.

System Thinking

Involves understanding the big picture and how different parts of an organisation interact and influence each other.

System Thinking (strateies)

• open communication

• undergo paradigm shift from being unconnected to interconnected

System Thinking benefits

• better decision makin

• greater adaptability (knows how areas impact each other)

System Thinking limitation

Complex, time consuming.

Why is the Learnin Organisation Important?

• improve competetive advantage

• increase rate of productivity

• greater likelihood of innovation

• More flexibility and adaptability for change

Low Risk Strategies

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

Low Risk Strategies (examples)

• communication

• empowerment

• support

• incentives

Communication

Management provides employees with information about why the change is needed, its impact and timelines.

Communication (feature)

Should be: two way, involve feedback from employees.

Communication benefits

• ensures clarity during the change, employees understand reasoning (reduces resistance)

• builds employee trust + commitment to business

Communication limitation

Time consuming and this can lead to delays in the change.

Empowerment

Employees are involved in the change process and given greater responsibility and decision-makin power.

Empowerment (strategies)

• negotation

• teamwork

• management styles + skills

Empowerment benefits

• commintment to change obtained by involving employees in change

• increase effectiveness + motivation of employees

• builds employees trust

Empowerment limitatiion

Time consuming to implement strategies and can be costly to achieve.

Support

Management assists employees in moving from the current state to the new state through counselling, training and time.

Support (examples)

• helpin employees who lose their job find new opportunities

• training remaining employees in new processes

Support benefits

• reduces anxiety + fear around change, increases employee morale

• increase motivation + productivity

• builds employee trust + commitment

Support limitations

Time-consuming, expensive and only works for proactive change.

Incentives

Employees recieve financial or non-financial rewards to encourage them to accept the change.

Incentives (examples)

• bonuses

• career advancements

• training

Incentives benefits

• reduces resistance as employees feel benefitted from change

• greater motivation at prospect of rewards

Incentives limitation

They are one of the most expensive strategies (primarily money based)

High Risk Strategies

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

High Risk Strategies (examples)

• Manipulation

• Threat

Manipulation

Influencing employees’ views through the selective use of facts and information to encourage them to accept change.

Manipulation (examples)

Peer pressure, disguise losses, speak fast (to overwhelm), targeting times when employees are worn out, overexaggerating the truth.

Manipulation benefits

• useful in crisis situations

• can reduce employee resistance and achieve business objectives

Manipulation limitations

Decreseases employee trust and damages manager credibility.

Threat

Communicating an intent to cause harm or loss to an employee to encourage them to accept a change or course of action.

Threat (examples)

• loss of promotion

• retrenchment

• departmental transfer

• poor employee reference

Threat benefits

• Can gain quick employee compliance

• can be useful when urgent action is required

Threat limitations

Can lower motivation and create a fearful and stressed culture.

Three Step Change Model

• Unfreeze

• Change

• Refreeze

Unfreeze steps

1. Determine what needs to change

2. Ensure there is strong support from upper management

3. Create the need for change

4. Manage and understand the doubts and concerns

Change steps

1. Communicate often

2. Dispel rumours

3. Empower action

4. Involve people in the process

Refreeze steps

1. Anchor the changes into the culture

2. Develop ways to sustain the change

3. Provide support and training

4. Celebrate success.